When individuals think about creating a trust, they often envision the protection of assets that comes along with such a legal entity. However, they may not consider the lawsuits that may be brought in connection with managing the trust. Being the trustee of a trust is a major responsibility, but if the trustee is not acting according to the trust creator’s wishes, legal action may be brought. Below are common questions and explanations about Texas trusts and when legal actions can—and should—be brought against a trustee.
What is a Trust?
A trust is a legal entity that manages assets on behalf of one or more people who are given the assets, called beneficiaries. The individual who manages the assets in the trust is called a trustee. Being a trustee is a time-consuming and critical role, so a person should not take on this position lightly. It can come with benefits—ensuring the assets in the trust are being distributed and managed according to the trust creator’s wishes—but also drawbacks too.