Preventing Trust Litigation

With $45 trillion expected to be transferred to heirs and charities via estates in the next 50 years, trust mismanagement and litigation are a growing concern.

George Raine, Too many err when providing for heirs, sfgate.com, Nov. 25, 2007, describes solutions offered by Barbara Suzanne "Sue" Farley, who has practiced law for more than 30 years, specializing in trusts and estates litigation.

For several years, Farley, of Piedmont, and software developer Ernest Freeman of Oakland have worked together on software and the architecture of an enterprise system that financial institutions could employ in administering trusts, as well as a template for consumers who could be precise about how assets are to be distributed.***

Farley's five steps to disaster-proof your estate plan

• Communicate with your heirs about the details of a trust or will.
• Ensure there is accountability in a trust, which means an accounting and written report is required of a fiduciary annually.
• Do not grant broad authority to your trustee.
• Establish a standard of performance for investments for a trustee to meet.
• Empower your beneficiaries