A recent study published in the Washington University Law Review has shed light on the complexities of inheritance disputes related to trusts. Analyzing 640 contested trust cases, researchers found that selecting one heir to manage a family trust often leads to conflicts among siblings and other relatives. Christopher Ryan, a co-author of the study and a law professor at Indiana University, characterized this arrangement as a “recipe for conflict,” noting it can exacerbate feelings of favoritism among siblings.
The study identified trust disputes by reviewing civil filings in San Francisco Superior Court from 2014 to 2020. It revealed that nearly a quarter of disputes involved a descendant beneficiary suing another beneficiary who also served as trustee, primarily among siblings. Most cases involved revocable trusts—an estate planning instrument that allows a successor trustee to manage assets after the settlor’s death. Although trusts are typically used to bypass the high costs of probate, they can lead to long and expensive familial disputes, averaging about 481 days.
The findings highlighted that in 74% of cases, trustees faced accusations of misconduct, particularly breaches of duty. Furthermore, emotional factors often played a significant role, with many disputes driven by strong feelings rather than financial motivations. The authors suggest that open discussions about estate planning while still alive and the use of independent fiduciaries could help mitigate such conflicts.
The study underscores the unpredictability of inheritance-related legal matters, advocating for proactive communication to reduce potential family discord.
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