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By: Scott Grossman on June 18th, 2018

Lawsuit Against Trustees: Distributions to the Wrong Party

If you are the rightful beneficiary of a loved one’s trust and the trustee is distributing the trust assets to the wrong beneficiary, you are rightfully concerned. Unfortunately, these errors do sometimes occur when a trust is being administered. Beneficiaries not receiving their proper inheritance may have grounds to pursue a lawsuit against trustees. This can be true even if it was an error. Trustees have a duty to treat all beneficiaries fairly and to use reasonable efforts to carry out the terms of the trust as they are outlined in the trust instrument. Failing to do so can result in a lawsuit.

You may be entitled to pursue a lawsuit against trustees of a trust of which you are a beneficiary in any of the following situations:

  1. First of all, if a payment was made to beneficiaries who are not named as beneficiaries in the trust.
  2. Additionally, if an excessive payment was made to a different beneficiary under the trust. And as a result, reducing the size of your inheritance.
  3. Finally, if a payment was not made to the proper contingent beneficiaries in a situation where one primary beneficiary pre-deceased the creator of the trust.

If you are ready to start your case, then please give us a call or fill out our Get Help Now form. A comprehensive overview of California Probate is available here. Should you have additional questions about trust litigation, you will find plenty of useful information in our Learning Center.