In recent years there has been an uptick in trust and estate litigation in the state of California. Many people have been left wondering why.
The economic state of the world has a direct effect on the uptick in trust and estate litigation in California. Changing markets can reveal bad asset management and economic struggle may mean that principal distributions may go up and family members could get greedy.
Below, the trust attorneys of Westlake Village discuss why this might be happening and explain when to contact an attorney.
Changing Market
The effect of the constantly changing market plays a huge role in the uptick in trust and estate litigations in California. Diversification is extremely important to consider if one wishes to avoid a negative effect.
The trustees handling of the situation and individual assets should not be viewed in isolation but within the context of the trust portfolio as a whole. There must be an investment strategy with suitable risk and return objectives, according to one source.
Principle Distributions
Trust attorneys of Westlake Village explain, in one section of the probate code, states a trustee should not act in bad faith or disregard the original purpose of the trust. Rather, the trustee should act in accordance with fiduciary principles. This means that someone who is able to allow discretionary distributions for themselves must still act responsibly and within reason.
Relationships
If financial resources are quickly disappearing, family members are likely to want to get whatever they can. If people in retirement are experiencing shrinkages due to inflation and the current state of the economy, family members could get more assertive and demanding what they feel they are owed. This can put a strain on relationships, which is another good reason to contact an estate lawyer, to draw up a plan on how to deal with these situations.
When to Contact an Estate Attorney
An estate lawyer can draft a solid plan to deal with finances and property upon an individual’s inability to care for the estate, or death. These attorneys help create satisfactory documents and offer quality legal advice on trusts.
Contact an estate lawyer early to draft a plan to handle the complete financial picture and estate responsibly before it’s too late. Don’t burden family members with the responsibility of dispersing assets – be at peace knowing monies and the estate are going where they were planned to go. Reach out to an estate lawyer today and worry no more.
Conclusion
In conclusion, there are many factors that could play a role in the uptick in estate and trust litigation in the state of California. Due to the rapidly changing market, people could be experiencing more financial stress and therefore striving to achieve clarity on the issue through careful planning with a lawyer.