If you are a business owner, it may be important to establish a trust that includes your business interests. Creating a trust is an aspect of estate planning. It allows you to protect your assets and transfer your wealth and business ownership as you see fit. However, disputes regarding trusts are possible among the beneficiaries, the trustee, or a third party. Such a dispute may lead to trust litigation, in which Murrieta trust litigation lawyer from Lockhart Law Firm can assist you.
At Lockhart Law Firm, our attorneys are experienced in business and estate law, and they can guide you through any disputes related to your trust, ensuring your business interests are well protected. They can employ their knowledge of California’s business and estate laws to represent you in your trust litigation case.
To understand trust litigation, you must know that a trust is a legal agreement between an entity or person (the guarantor) and a third party (the trustee), in which the guarantor allows the trustee to manage their assets and property for their beneficiaries. The trustee is responsible for the distribution of these assets to all beneficiaries listed in the trust.
Trust litigation is a legal conflict that arises in relation to a trust. The process of trust litigation often involves a court case in which arguments and evidence are presented by both parties to resolve the dispute. The main objective is to resolve all issues and address the interests and concerns of the parties. In the end, the court has the ability to make a decision on how to resolve the dispute based on the arguments and evidence presented.
There are many reasons why trust litigation can occur. Below are a few common cases:
It is recommended that you should consider creating a revocable living trust if you have a net worth of at least $100,000. The decision to establish a trust, however, is not only based on your net worth. Other factors to consider include your familial relationships, your goals for your business, and the type of assets you have.
Whether you are an entrepreneur or business owner, a trust can be vital in ensuring your business, large or small, continues running when you are gone. Seeking the help of a qualified estate planning lawyer to create your trust can reduce your chances of trust litigation in the future.
Whether a trust is better than a will depends on your specific circumstances. The purpose of a will and a trust are similar: to protect and distribute assets to beneficiaries. However, wills and trusts work somewhat differently. Creating a trust can be more complicated and expensive than setting up a will, but you typically have more control over your assets.
In Murrieta, California, a will often must go through probate in order for property and assets to be distributed. The probate process could take several months to years, requiring payment of court fees and possibly a probate lawyer. The public probate process could potentially make disputes among beneficiaries more likely, meaning litigation involving wills is just as likely, if not more so, than that involving trusts.
A trust is normally not required to go through the probate court. Therefore, a trust offers more direct control over your estate than a will.
By creating a trust, you can also protect your assets while you are still alive, which is especially important for business owners. A will may not provide the same protection for your property. Therefore, if you need an estate planning tool to protect your estate, a trust may be the better option. However, having both a will and a trust is also a useful option, particularly for business owners.
A will may include any property and assets that are not mentioned in the trust document, appoint a guardian for children, and be a general contingency plan. A trust can manage more business-related interests, such as the transition of management and ownership.
Choosing between a trust and a will, or choosing both, is ultimately dependent on the specifics of your situation. You should discuss your options with an experienced business estate planning attorney.
When faced with a trust litigation case, it is crucial to hire an experienced and skilled litigation attorney who can help you navigate the difficulties of estate law. If you are a business owner or entrepreneur in Murrieta who is involved in trust litigation, contact our team at Lockhart Law Firm for a consultation. We are dedicated to serving individuals and businesses with legal guidance and representation related to their business and estate planning needs.
Disclaimer: The information contained herein is for information purposes only and should not be construed as legal advice. You should not act or fail to act based on the information on this website. The content contains general information only, and may not reflect recent changes to the law. All cases differ – please contact an attorney in your area to get legal advice as it pertains to your situation.