What Are Trust Disputes?
Trust disputes involve disagreements over the administration, terms, or distribution of assets held in trust. These conflicts may arise between trustees and beneficiaries, among co-trustees, or between family members who believe a trust is being misused or misunderstood.
In Ontario, trust law is governed by both statutory rules and equitable principles, and disputes are often resolved through litigation or negotiated settlement with legal guidance.
Common Causes of Trust Disputes
Trust disputes often result from:
Breach of Trust - Trustees failing to follow the terms of the trust or acting in their own interest.
Lack of Transparency - Trustees withholding financial information or refusing to account to beneficiaries.
Mismanagement - Poor investment decisions or failure to preserve trust assets.
Disagreements Over Distribution - Conflicts about when and how beneficiaries should receive funds.
Validity Challenges - Allegations that the trust was created under undue influence, or without capacity.
Legal Framework for Trust Disputes
Trustees in Ontario are subject to strict fiduciary duties and legal standards, including:
Duty of Loyalty - Trustees must act solely in the best interests of the beneficiaries.
Duty to Account - Trustees must maintain accurate records and provide regular reporting.
Duty to Preserve Assets - Trustees must manage the trust prudently and avoid unnecessary risk.
Interpretation of Trust Terms - Courts may be asked to resolve ambiguities or inconsistencies.
Remedies for Breach - Courts can remove trustees, order repayment, or vary trust terms where permitted by law.
Challenges in Trust Dispute Cases
Trust litigation can be emotionally charged and legally complex. Common challenges include:
Family Conflict - Many trusts are part of family estate plans, and disputes may involve siblings or close relatives.
Evidentiary Disputes - Proving breach of duty or misuse of assets often requires expert analysis and document review.
Multiple Jurisdictions - International trusts or beneficiaries in different provinces can complicate administration.
Blended Families - Disagreements may arise when second spouses or stepchildren are included or excluded.
Long-Term Trusts - Trusts that last decades may require court intervention as laws, relationships, or circumstances change.
How We Can Help
At ME Law, we represent both trustees and beneficiaries in trust-related disputes. Our legal services include:
Trust Review - Analyzing the trust document and assessing the rights and obligations of all parties.
Fiduciary Guidance - Advising trustees on their duties and how to stay compliant with the law.
Dispute Resolution - Handling negotiations, mediation, or litigation involving contested trusts.
Court Applications - Seeking judicial directions, trustee removal, or interpretation of trust terms.
Asset Protection - Ensuring that trust assets are preserved and distributed as intended.
Take the Next Step
If you’re involved in a trust dispute—whether as a beneficiary or trustee—ME Law can help you navigate the legal complexities and protect your interests. Contact us today to get clear, strategic advice tailored to your case.
Let's talk about your case
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