If you're considering estate planning, one possible solution you may look at is the creation of a trust. A trust can help you manage property and assets while you're alive so that, after your death, it can be distributed smoothly. There are two types of trusts, revocable and irrevocable. Revocable trusts are those that involve you as the initial trustee (person managing the trust) and allow you to remove, modify, or revoke the trust while you're still alive. Irrevocable trusts take the responsibility out of your hands; once it's been created, nothing can alter it.
At its root, trust litigation occurs when there is an issue or conflict with the details of the trust or between involved parties. These parties can be corporate entities, creditors, or individuals.
Breach of Trust by a Trustee
In a situation where the trustee does something against the rules or guidelines of the trust, one or more concerned parties may feel the need to raise the issue of litigation in order to fix the issue or contest the breach of trust.
Abuse of Authority by a Trustee
The trustee is placed in a position of authority over the contents of the trust. If the trustee mismanages the assets in the trust or engages in unethical behavior, one of the parties may feel the need to pursue litigation related to the trust.