Even the most carefully drafted trusts can leave people with more questions than answers. Despite their long history and common use, trusts often contain language that doesn’t translate well to modern circumstances. Many rely on boilerplate provisions passed down over time, or include instructions that only made sense to the person who created the trust and the lawyer who wrote it. To others, such as trustees, beneficiaries, attorneys, judges, or financial institutions, the meaning of the words in a trust may be unclear. That lack of clarity can lead to confusion, conflict, and legal risk. Fortunately, the law provides a way to resolve these issues.
When a trust contains vague or conflicting terms, courts often call it an “ambiguity.” An ambiguity arises when language can reasonably be interpreted in more than one way, or when different provisions conflict with each other. In such cases, an interested party can petition the court to interpret the trust and clarify what the settlor intended.
Each party typically submits a written explanation of their interpretation. The judge considers the arguments, reviews the law, and issues an order directing the trustee how to proceed or explaining a beneficiary’s rights. If a beneficiary or trustee brings a good-faith request to clarify an ambiguity, the trust may cover their legal fees.
If you are a trustee or beneficiary facing uncertainty in a trust, King & Jones can help. Contact us to discuss your options and find the clarity you need.
