You might wonder about the different fees in a trust if you are a beneficiary or trustee. These are some answers to the most common questions regarding such fees.
Problems That Arise Between Beneficiaries and Trustees
Many problems can arise between trustees and beneficiaries. These are some issues that frequently occur:
The beneficiaries or other parties may need to discuss the removal of an untrusted trustee. That process can result in accumulated fees and efforts. Beneficiaries may have difficulty paying to have something done if they feel the trustee isn’t handling the accounts properly. Fortunately, they have alternative options.
For one, they can complete a court order to declare the trust inviolable. The other alternative they have is to request to be reimbursed by the trust for any expenses they accrue and money they lose going through certain processes. The court may deem them eligible to receive some of their funds back.
Foul Play Claims
Beneficiaries may not believe the trustee is handling the documents and processes honorably. They can present their concerns to an authoritative party, which will cost money. That authoritative party will investigate the matter to see if any of those claims are valid. As a result, some changes might be made to the account to ensure that all processes are handled legally and professionally.
Malicious Litigation Protection
Trustees are permitted to use the money in the trust account to protect the trust from malicious litigation. This may result in trustee legal fees or attorney’s fees.
At some point, disputes between two or more beneficiaries can arise, resulting in distribution delays and other issues. These problems can cost money and time to resolve.
Fees Involved for Trusts
If you were wondering if fees were involved with trusts, the answer is yes. Yes, many fees can arise when using a trust. Attorney’s fees are an example of those fees. Attorneys will charge trustees and beneficiaries for any claims they bring forth. They will also charge for any changes they make to the trust or any processes they need to execute.
The cost of attorney’s fees can be overwhelming for a beneficiary who desires assistance. Thus, they sometimes have difficulty getting the services they need.
An attorney may choose to use whatever method to charge for services they fit. Thus, that particular attorney may charge hourly or have a flat fee rate for certain services. The person initiating the services needs to pay for them. If that’s a beneficiary with limited funding, then payment can become an issue.
What To Do if You Have an Issue
If you experience an issue with a trust, you must contact a legal expert with experience dealing with those problems. Contact a seasoned and reliable attorney in your jurisdiction who deals with disagreements between beneficiaries or complications between trustees and beneficiaries. That attorney will explain your options during the consultation and let you know what they can do to assist you.
Categorised in: Estate Lawyer