One common reason for estate disputes is when the distributions to the beneficiaries are not fair and even. These are known as unequal bequests. Some evidence suggests they are becoming more and more common, but they also increase the odds of a dispute.
For instance, say that a parent leaves a trust to two siblings. In order to avoid frivolous spending, the trust is set up to give annual payouts for the next 10 years, rather than transferring the full balance.
But the distributions aren’t equal. One sibling gets $100,000 per year, while the other gets only $20,000 per year. This can create a lot of resentment between the two of them – and could lead to a dispute if the sibling who receives less believes it wasn’t what their parent wanted.
Would they have the grounds to challenge the trust?
They can legally challenge, as both a direct descendent and a beneficiary. They have the right, but is there any evidence that would support the challenge?
It depends on the unique situation. They may have a reason to challenge if they think the other sibling used undue influence to alter the way the trust was set up, for instance. They may have a valid reason if they believe that the trustee is not acting properly – for instance, perhaps they claim that the distributions are supposed to be equal, but the trustee is abusing their position and failing to make the payments correctly.
Every situation is different, but trust litigation may be possible. Those who find themselves in such a dispute must know what legal steps they can take as they seek a resolution.