What Does Trust Litigation Mean? A Florida Guide

Trust litigation is a legal dispute about a trust. It is resolved in court or through a court-supervised process. It asks whether the trust is valid, what its terms mean, or whether the trustee is managing it properly. This guide explains what trust litigation means in Florida, how it differs from other cases, and how these disputes usually move forward.

What trust litigation means

Trust litigation is a court dispute about a trust’s terms, how the trustee manages it, or whether the trust is valid. The people involved are usually a trustee, a beneficiary, a co-trustee, or someone who claims an interest in the trust property.

In plain terms, a trust dispute asks three questions. Who controls the trust property? Who is owed what? Did the trustee follow the trust terms and the law?

Florida trusts are governed by the Florida Trust Code, Chapter 736 of the Florida Statutes. The code applies to express trusts (Fla. Stat. § 736.0102). It also requires a trustee to administer the trust in good faith, under its terms and in the interests of the beneficiaries (Fla. Stat. § 736.0801).

Trust litigation, probate litigation, commercial litigation and a regular lawsuit

Each term covers a different kind of dispute. A lawsuit is a single case filed with a court. Litigation is the whole process of resolving that dispute, from filings and discovery through motions, mediation, settlement or trial.

• Probate litigation: disputes over a deceased person’s estate in probate court. Examples include a will challenge or a complaint about how a personal representative (often called an executor) handled the estate.
• Trust litigation: disputes over property held in a trust. Trust property can pass outside probate, so a trust dispute can arise even when no probate case is open.
• Commercial litigation: business disputes. A trust that holds a business interest can raise both trust and business questions.

Is litigation the same as a lawsuit?

No. A lawsuit is one filed case. Litigation covers the full fight over the dispute, including every step after the case is filed.

Common reasons trust disputes reach court

Trust disputes usually reach court when a beneficiary believes the trustee is not following the trust or the law. Common triggers include:

• Breach of duty. A violation by a trustee of a duty owed to a beneficiary is a breach of trust (Fla. Stat. § 736.1001). Florida law says a trustee must administer the trust solely in the beneficiaries’ interests (Fla. Stat. § 736.0802).
• Accounting demands. A trustee of an irrevocable trust generally must give each qualified beneficiary an accounting at least once a year (Fla. Stat. § 736.0813).
• Unclear terms. People may disagree about what the trust language means or how it applies to the facts.
• Validity challenges. If a trust’s creation, amendment or restatement is procured by fraud, duress, mistake or undue influence, the trust or any part so procured is void (Fla. Stat. § 736.0406). The person contesting the trust must prove those grounds (Fla. Stat. § 736.0207).
• Removal requests. A settlor, cotrustee or beneficiary may ask the court to remove a trustee. The court may remove a trustee who has committed a serious breach of trust (Fla. Stat. § 736.0706).

Each of these claims asks a court to enforce the trust terms, the trustee’s duties or the beneficiary’s rights.

Can people sue you if your money is in a trust?

A trust is a legal arrangement, not a shield from every claim. Beneficiaries can take legal action to hold a trustee to the duties the law sets. Whether a creditor or other outside party can reach trust property depends on the facts.

Revocable and irrevocable trusts work differently. Unless the trust terms say the trust is irrevocable, the settlor may revoke or amend it, but this rule does not apply to a trust created under an instrument signed before the Florida Trust Code took effect (Fla. Stat. § 736.0602). A person who created a revocable trust generally keeps that control during life. An irrevocable trust usually limits the creator’s control, which changes who can bring a claim.

Timing matters too. An action to contest a revocable trust cannot start until the trust becomes irrevocable, by its terms or by the settlor’s death, although this section does not prohibit such an action by the guardian of the property of an incapacitated settlor. If all of a revocable trust has been revoked, an action to contest the revocation may not be commenced until after the settlor’s death (Fla. Stat. § 736.0207). A contest of a trust that was revocable at death is barred if it is not started within the earlier of the chapter 95 period or six months after the trustee sends the person a copy of the trust instrument and a notice of the trust’s existence, the trustee’s name and address, and the time allowed for commencing a proceeding (Fla. Stat. § 736.0604).

How a Florida trust dispute typically moves forward

Most trust disputes start with a request for information. Beneficiaries who have questions about a trust or estate can raise them with the attorneys at Trust Counsel, PL during a free initial consultation, which is confidential and carries no obligation to continue.

On reasonable request, a trustee must give a qualified beneficiary a complete copy of the trust instrument. The trustee must also share relevant information about the trust’s assets, liabilities and administration (Fla. Stat. § 736.0813). For an irrevocable trust created on or after the effective date of this code, the trustee must give notice to the qualified beneficiaries within 60 days after the date the trustee acquires knowledge of the creation of the trust, or the date the trustee acquires knowledge that a formerly revocable trust has become irrevocable (Fla. Stat. § 736.0813).

If informal steps fail, a petition or complaint may be filed in the proper Florida court, and the other side responds. Discovery follows, where each side requests documents and testimony. Mediation is often used to settle the case before trial. If the case does not settle, a hearing or trial follows.

If a court finds a breach, it has several tools.

Timelines vary with the court, the claims and how each side responds.

Talking through your trust situation with Trust Counsel, PL

A trustee’s letter you don’t understand, or a distribution that has stopped, can leave you unsure what to do next. Trust Counsel, PL focuses on trust and estate disputes, representing beneficiaries, heirs and fiduciaries.

The firm advises and represents trustees, personal representatives and beneficiaries. Trust Counsel’s attorneys can serve individually as trustee or personal representative.

Leslie V. Marenco is the responsible lawyer for this page. The firm’s only office is in Coral Gables, Florida.

The first consultation is free, confidential and carries no obligation to continue. If a trustee’s letter or a stopped distribution has you unsure where you stand, you don’t have to face it alone. Call (305) 707-7126 or schedule online.

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