Warren v. Weiner: Trust Dispute Turned Family Feud
Did you and your ex-wife or ex-husband create a irrevocable trust for the benefit of minor children? Are you joint trustees? Do you know what would happen in the event of marriage dissolution? That was the same problem faced by the Court of Appeals in Houston, take a look.
Jurisdiction
- These types of disputes (trust disputes grounded in family issues) can be difficult because of jurisdiction.
- If you and your husband are co-trustees of the trust do you take your disputes to family court because the matter involves the assets of a minor or do you take it to probate court because it is a trust dispute?
- Palm Beach courts do not like to issue orders when the matter belongs in another court.
- The court may dismiss a matter for lack of subject matter jurisdiction.
Trust Alternatives
- A trust is not the only way to transfer wealth to a minor although it may have the best tax consequences.
- All states have adopted Transfers to Minor Acts that allow for a process of guardianshipto be set up for minor’s assets.
- Do you know Florida’s guardianship rules for minor’s assets?
Warren v. Weiner: Trust Dispute Turned Family Feud
- A former wife as next friend (on behalf of the child) of her child filed a petition in probate court to modify the trust after the child attained the age of majority (18). Essentially she sought to terminate the trust and distribute the trust estate into a Uniform Transfer to Minors Act Account.
- Alternatively she sought removal of herself and the former husband as trustees and sought the appointment of a neutral independent trustee.
- In response the former husband petitioned to be made sole trustee of the trust.
- The court did not answer any of the family’s questions but dismissed the case for lack of jurisdiction over the family aspects of the case.
- Experienced Palm Beach probate litigators know how to litigate a matter in between multiple courts when necessary to bring about optimal results.
Want to learn more?
Check out the entire case by clicking here.