Legal Question in Wills and Trusts in Arizona

problem beneficiary

There are laws guiding Trustee actions. Are there any laws guiding beneficiary actions or would that fall under regular Tort law and actions for recourse? Primarily at issue is a beneficiary slandering/defaming(provable) the Trustee to other beneficiaries in apparent attempts to discredit the Trustee's administration. Clearly an unwanted situation, though problematic enough to warrant inquiry as it has created delays in being able to move administration forward and distribution thus effecting all beneficiaries, who also disagree with the actions of the ''problem'' beneficiary. If there is recourse, can any recourse expenses come from the Trust, or sought to come out of the problem beneficiary's share? What is the likelihood of success? Would a Trust attorney be utilized?


Asked on 7/19/05, 12:41 pm

1 Answer from Attorneys
Donald Scher Donald T. Scher & Associates, P.C.

Re: problem beneficiary

If you are the Trustee, you have the right to hire legal counsel, at the expense of the Trust, to carry out Trust business, adminstration and distribution actions. You can utilize the probate court to authorize and order action to be taken which protects the Trustee in cases where there may be question raised. The cooperation and approval of the other beneficiaries will be helpful and may help to settle all issues. Taking legal action for defamation of you as an individual, may be covered under the duties of trustee, but may be considered a personal expense and claim. The Trustee owes a fiduciary duty to all beneficiaries, so you would have to show that the defamation is damaging to the administration of the Trust or interferes with your administration. You should consult counsel that specializes in defamation cases.

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Answered on 7/19/05, 4:32 pm


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