Removing a Beneficiary from a Florida Trust
A trust is one of the most popular estate planning tools utilized in today’s legal landscape. Utilizing a trust is a popular step for many reasons. One of the primary benefits of the legal document is that it enables the grantors of property, money, assets, etc., to manage and distribute the assets put into the trusts for the benefit of specific beneficiaries. This level of control is appealing to many grantors.
One potential upside that this measure of control grants to the grantor is that they can remove beneficiaries from a trust. Under a trust, a living grantor can make necessary changes with the guidance of an attorney. However, after a grantor passes away, if a beneficiary needs to be removed from a trust then the process becomes more complicated. This article will generally go over the main factors in removing beneficiaries, the removal process, and steps you can take if you have been removed as a beneficiary. Again, it is wise to engage with experienced will & probate attorneys for assistance in navigating such a complex legal issue.
Main Factors in Removing Beneficiaries
There is no one-size-fits-all reason for when and why it is appropriate to remove a beneficiary. The decision might be influenced by a plethora of ethical, legal, and personal considerations. For example, consider:
- Terms of the trust- A trust may outline circumstances that trigger removal of a beneficiary. Beneficiaries should carefully review a trust document, and ensure that they meet any requirements specified under the trust if they wish to maintain their status as beneficiary and benefit from the trust.
- Change in circumstances- Again, based on the specifics in a trust, a beneficiary’s change in circumstances relating to marriage, divorce, birth, death, etc. might affect the beneficiary’s standing in the trust.
- Beneficiary misconduct – If one of the beneficiaries engages in misconduct relating to the trust – such as mismanagement of trust funds or assets, or commission of fraud, the remaining beneficiaries may try to take action to remove that beneficiary in order to protect the trust.
Removing Beneficiaries
The process to remove beneficiaries from a Florida Trust will vary depending on the specifics of your case. First and foremost, a trust document will usually contain terms that specify the terms for removal of beneficiaries (or the addition of beneficiaries). If that information is clearly stated, trustees are to follow the terms of the trust.
If the trust document fails to list reasons to remove a beneficiary, then removal of a beneficiary must be consistent with the Florida Trust Code. Experienced will & probate attorneys can help you to navigate through the complexities of this process.
What Should I Do If I Lose Beneficiary Status?
Some beneficiaries may only find out after a grantor has passed away that they have been removed as a beneficiary from a trust as a result of a bad actor exerting undue influence on the grantor. If a person believes that they have been unjustly removed as a beneficiary under a trust they may want to consider the following steps:
- Consult an attorney. There are timelines (time constraints) applied in these cases. Time is of the essence. Consult with an attorney so they can help you determine what your options are, and how quickly you need to execute next steps.
- Gather evidence. It will be up to the petitioner to provide sufficient evidence that removal of beneficiary status was a result of undue influence.
- Contest the trust
Contact Suncoast Civil Law
Our Sarasota will & probate attorneys can help you analyze your own trust documents and assist you in navigating your best path forward.
Source:
floridabar.org/the-florida-bar-journal/where-the-presumption-of-undue-influence-should-not-apply-consider-the-dutiful-son-and-the-dutiful-daughter-exceptions/