Suing as a Beneficiary for Relief under the Florida Trust Code? You May Have to Pay the Trustee’s Expenses in Many Cases!

If you are a beneficiary of a trust in Florida you have a right to expect that the trustee will uphold his fiduciary   duty owed to you.  Sometimes a beneficiary can get somewhat trigger happy with litigation because they may see the potential gain from a victory regarding the trust. What often these beneficiaries forget is they are essentially fighting themselves. The attorney fees your trustee expels fighting you can be taken directly out of the trust in certain circumstances. A January 2015 case in Florida highlights how you might avoid these fees as a beneficiary litigating against a trustee.

In Van Vechten v. Anyzeski, the poor arguments by the beneficiary left the trustee collecting attorneys fees even though they failed to meet their burden, here’s how:

• The decedent exectured a trust which provided that upon death, the trustee would sitribute a life estate in the decedent’s real property plus $100,000 to the beneficiary.
• The decedent later amended the trust. The amendment provided that, upon the decedent’s death, the trustee was to distribute the decedent’s real property to the trustee in her individual capacity, and that the trustee was to distribute only $25,000 to the beneficiary.
• After the decedent’s death, the trustee opened the decedent’s estate and served notice of the existence of the decedent’s trust as amended.
• The beneficiary, without having filed any petition contesting the trust amendment’s reduction of his distribution, served discovery requests upon the trustee.
• Thereafter, the trustee filed a motion for attorney’s fees and costs against the beneficiary. The trustee alleged that the beneficiary’s refusal to accept his $25,000 bequest and his propounding of discovery requests constituted an “action” challenging the trustee’s exercise of her powers.
• More litigation took place and eventually the trustee sought attorney’s fees. Due to pleading failures the trustee shouldn’t have gotten the fees. Since the beneficiary did not dispute the fees properly the Court found it was not entitled to dispute the fees for the beneficiary.

What is the take away here?

1. Do it yourself trust challenges are risky. The Plaintiff / beneficiary here ended up paying the attorney fees they could have avoided had they sought more competent counsel.
2. Challenging a Trust Can Cost You. The Trust Code does take kindly to frivolous challenges you may end up paying the attorneys fees or worse losing the benefits awarded you if the charter has a clause regarding challengers.
3. Courts are not just concerned about what is right. Here is a direct quote from the judge who wrote this opinion, “Second, the trustee argues the court erred in finding that the beneficiary’s estate did not waive its objection to her alleged inadequate pleading of an entitlement to attorney’s fees. We agree with the trustee’s second argument and reverse. As a result, we do not reach the trustee’s first argument.” Its clear here Court’s do not just rule in favor of “who is right” you have to plead your case properly to get the relief you deserve.