Are you a trustee, probate executor, or personal representative of an estate? If so, this report is for you!

This report deals with trust and estate litigation, how the overall process works, and the need for litigators in the courtroom proceeding. The way litigators can help their clients and the essential qualities of an attorney for smooth and successful handling of trust and litigation issues. Sierra Crest Business Law Group has experience handling these types of cases, and if you need an experienced Reno Trust Litigation Lawyer, we can help. 

We will dive into the basic guidelines an individual should keep in mind before heading into a legal courtroom proceeding in a courtroom or hiring a professional litigator’s help to win the case. Ultimately, basic categories of trust and estate litigations are discussed based on inheritance or contest. 

Estate litigation crosses into the area of property and land law. Property and land law manages how a person’s property or estate is handled and distributed. Estate litigation can also examine the supervision of an individual’s assets during their life or after their demise or debilitation.”

First, it is helpful to have a definition for Estate Litigation.  

“Estate or Trust Litigation is the process of filing a civil case in Probate Court. The goal of the case is to challenge proper trust creation, asset distribution, or fiduciary handling of trust assets by the trustee.”

The professional and legal structure that owns the right to property of an individual is called a “Trust.” A trust has a lawful duty with a fiduciary responsibility to keep and utilize the assets in its care for someone else’s advantage. The someone else we are talking about is called the “Beneficiary.” According to customary law, also known as Anglo-American regulations, the entity or person who creates a trust is considered a “Settlor.” The person or firm overseeing a trust’s ongoing management is called a “Trustee.” A trustee serves as a fiduciary for the beneficiary party entitled as the owner of that particular asset or property. 

A “Testamentary Trust” results from directions given inside a “Will” that guides property distribution to beneficiaries at the time of a settlor’s death. 

On the other hand, an “Inter-Vivo Trust” or “Living Trust” is established during the settlor’s life by a legal instrument. This trust can be reversible or irreversible. In the USA, a trust is considered irreversible as the default until the settlor states it is reversible. 

What is a Settler’s Goal?

Any settler’s goal should be to enlist a responsible party to oversee the fiduciary responsibilities required when managing a trust. These responsibilities include routine financial management of trust assets, financial reporting, and taxes. In addition, the trust should reimburse the trustee for their time and effort in their services. Trustees govern trusts by the terms and conditions in the trust document. 

In the case of trust litigation, a court can intervene and replace a trustee who is not faithfully fulfilling their responsibilities. In some cases, if the trustee breaks the law, they can be prosecuted in criminal court. In addition, trusts are subject to taxation like any other corporate entity and must follow applicable tax laws.

Estate litigation will strive to establish the net value of assets by adding up all asset values, legal rights, royalties, interest, and properties and subtracting any liabilities. This calculation will give an individual’s net worth represented by a living trust. This valuation is of great importance, especially during bankruptcy.  

Considering the United States bankruptcy law, an individual’s estate comprises all the assets and properties of any sort creditors can access. Some of these possessions are exempted from creditors, allowing individuals to establish or restart their financial lives. In many developed countries, the exemption of assets and possessions depends on multiple aspects, including a particular country’s federal and government laws. 

Most property ownership in common law jurisdictions is fee simple. However, when dealing with Nevada property, someone should consider that a property in a trust or estate might fall under a Nevada Revised Statute that grants “Allodial Titles.” Allodial titles on property and land are complicated and work within homestead laws in Nevada. Allodial titles are not standard in the United States as a whole, but this can be something that needs consideration.  

Guiding Rules in Estate and Trust Litigations

Guiding rules are essential in estate and trust litigations.

Probate court is a time of complex challenges and will test family dynamics.

Usually, there are significant monetary stakes at risk. So here are some guiding rules to follow.

 

Try to solve issues before courtroom litigation.

• Winning a probate case at the end of the trial is excellent but often lengthy and expensive. Going to court can often be avoided by an experienced attorney who knows the estate law’s ins and outs. The involved parties should consider all possible solutions before taking the long road to a probate court verdict. Good estate litigation attorneys are not there to go to court but to be problem solvers. Financial challenges, delays, and emotional loss are all risks associated with pursuing probate litigation. It benefits everyone if an attorney can shorten the process with wise counsel.

 

Professionals must govern litigations.

• A licensed attorney’s skill and expertise must match the case’s specifics. Most lawyers use help and assistance from experts to aid them with estate planning, commercial, corporate, and complicated tax issues.

 

No substitute for experience

• There is no substitute for experience! A trust litigation lawyer should be familiar with the specific state laws that govern assets tied up in probate court. Attorneys who have dealt with many cases stand a better chance of achieving a favorable result for their clients. In addition, they should have a strong understanding of the fiduciary rules in play for a specific situation.

 

The need for a Trust and Estate Litigation Advocate

• A trust and estate litigation attorney becomes essential when issues arise between the structured distribution of assets and property from owners to their heirs or any other beneficiary specified in a will. An appropriately crafted trust contains all the rules and instructions which clearly define guidelines to avoid future complications. Unfortunately, problems may still arise at times and require the abilities and help of an attorney dealing with estate and trust property distribution.