When a trust does not seem to be managed properly, beneficiaries often ask: can a trustee—or a trust—be taken to court?
At Casey Lundregan Burns, P.C., we have guided Massachusetts families through trust and estate matters for generations, and we understand how concerns over mismanagement or unfair treatment can create real stress.
When Can a Beneficiary Initiate a Lawsuit?
Before going to court, it is helpful to understand the common conditions that allow beneficiaries to bring legal action against a trust’s management. When trustees fail to carry out their obligations or engage in unethical behavior, beneficiaries may hold them accountable.
Below, we explore some reasons why beneficiaries might sue to protect their interests. Each situation has its own details, so it is always wise to consult legal advice early if you suspect wrongdoing.
Breach of Fiduciary Duty
Trustees are held to high standards of honesty, loyalty, and diligence. They must always act for the benefit of the trust rather than for personal advantage. When this duty is broken, beneficiaries have grounds for action.
Examples include a trustee using trust assets inappropriately, hiding details about the finances, or breaking the trust’s rules when investing. All of these can undermine the beneficiaries’ expected distributions.
Self-Dealing
If a trustee finds a way to benefit themselves by dipping into trust resources, that is self-dealing. It typically shows up in transactions that enrich the trustee or their associates.
For instance, the trustee might buy real estate from the trust at a price below fair market value, or use trust funds to do personal favors. These acts can be stopped with legal intervention.
Negligence
Sometimes, a trustee does not act with malice but still causes loss through poor decisions or oversight. This can range from failure to pay proper attention to balancing investments to forgetting to pay taxes on time.
Even without ill intent, a trustee may be liable for trust losses if they did not manage the property with at least the level of care that a reasonable person would use in a similar position.
Failure to Distribute Assets
If the trust says certain funds or property must go to a beneficiary and the trustee refuses or drags out the payment, legal recourse can be an option. Trustees have a duty to follow the trust’s instructions on when to distribute.
Delays or refusals might occur for complicated reasons. Still, beneficiaries are entitled to answers and can bring matters to court if the trustee’s actions go beyond acceptable limits.
Fraud
Fraud may involve direct deceit, such as forging signatures, manipulating documents, or concealing accurate financial records. If a trustee commits fraud, beneficiaries may lose money or property that was rightfully theirs.
As soon as beneficiaries sense dishonest activity, they should keep records and consult legal counsel. Courts take fraud claims seriously and can order restitution or other relief.
Suing a Trustee vs. Contesting a Trust: Clarifying the Difference
It can be easy to confuse taking legal action against a trustee with challenging the trust document itself, yet they focus on different issues. Suing a trustee seeks to address harm caused by actions that violate obligations, often aiming for damages or corrective measures.
On the other hand, contesting a trust questions the validity of the trust instrument. People might do this if they suspect the grantor signed under undue influence, lacked the mental clarity to form a trust, or if the trust was forged. It is important to distinguish between a lawsuit targeting misconduct and one that tries to undo the trust or revise its terms.
Common reasons to dispute a trust’s legitimacy include mental incapacity, improper coercion, or fraudulent changes to the wording. If you suspect wrongdoing in the trust’s formation, that process is separate from holding a trustee liable for wrongful acts during administration.
Steps to Take Before Filing a Lawsuit
It is wise for beneficiaries to gather preliminary information and explore options short of courtroom conflict. A strong case starts with solid evidence, so learning the facts up front can prevent wasted time and effort.
Here is a brief list of steps that beneficiaries usually find useful:
- Collect essential records: trust documents, bank statements, tax filings, and communication with the trustee
- Consult an attorney to review your legal position and the strength of your claims
- Attempt a dialogue or mediation if the trustee seems open to resolution without a formal court battle
While settlement out of court is not always possible, it can sometimes resolve disagreements faster. If no fair solution is found, a lawsuit may be the next step.
Below is a quick reference table outlining various common documents and why they matter when building your side of the case:
| Document Type | Why It Is Helpful |
| Trust Agreement | Shows the trustee’s rules and responsibilities |
| Account Statements | Reveals fund transfers, income, and potential misuse |
| Correspondence with Trustee | Helps confirm attempts to request distributions or ask questions |
| Tax Filings | Can highlight discrepancies in reporting or investment activity |
The Process of Suing a Trustee in Massachusetts
Lawsuits involving trusts and estates in Massachusetts typically move through the Probate and Family Court. The opening phase is the filing of a complaint, followed by formal service of legal papers on the trustee. This is when the trustee officially learns about the claims.
Next comes discovery: a period where each side gathers data, trades documents, and interviews witnesses. Pre-trial motions in front of a judge happen if one party wants to dismiss parts of the case, or if clarity on legal issues is needed. If it proceeds, there may be a bench trial or jury trial, ending in a verdict on liability and possible damages.
Timelines and deadlines can be relatively strict. Missing a filing deadline or failing to present required materials can disrupt or weaken a case. For that reason, having knowledgeable counsel can be invaluable.
Remedies Available to Beneficiaries in Trust Litigation
Many beneficiaries want to know what forms of relief the court might grant if they win. A primary one is monetary compensation to reimburse losses or lost growth on trust assets. Courts can also remove a trustee and appoint a replacement when wrongdoing is proven.
Other remedies include requiring a formal trust accounting or forcing restitution, known as a surcharge, if the trustee’s acts caused measurable harm. Each remedy aims to bring the injured party back into the proper position under the trust’s original intent or to restore any losses caused by misconduct.
Protect Your Interests: Contact Casey Lundregan Burns, P.C., Today
We have proudly served Massachusetts families for generations and we understand the stakes when trust disputes arise. Our firm appreciates how personal these matters can feel, and we are focused on safeguarding the well-being of beneficiaries and their legacies. If you sense trustee misconduct or wish to learn about your rights, feel free to call us at 978-878-3519 or visit our Contact Us page. We are always here to help you move forward with confidence in securing your interests.
The information in this post is not intended as legal advice or as a substitute for the particularized advice of counsel. For more information, please consult an attorney.