Detailed Answer
Under Washington’s Uniform Trust Code (RCW 11.98), trustees owe strict fiduciary duties to beneficiaries. If a trustee misuses trust funds, beneficiaries have several tools to challenge the misconduct.
1. Review the Trust and Trustee Duties
Trustees must honor the duty of loyalty (RCW 11.98.035), duty of prudence (RCW 11.98.040), and duty to inform and report (RCW 11.98.044). Misusing funds breaches all three duties.
2. Demand an Accounting
Under RCW 11.98.044, beneficiaries can formally request periodic accountings. An accurate accounting reveals withdrawals, expenses, and investment choices.
3. Petition the Court
If the trustee fails to provide an accounting or continues misusing funds, beneficiaries can file a petition in superior court. Washington courts can compel performance of duties or approve a special accounting.
4. Seek Removal of the Trustee
Under RCW 11.98.070, the court may remove a trustee for cause, including serious breach of trust or misconduct.
5. Pursue Financial Remedies
The court may surcharge the trustee for losses, order restoration of trust property, or award damages (RCW 11.98.070).
6. Utilize Alternative Dispute Resolution
Many trust documents allow mediation or arbitration. ADR can lower costs and resolve disputes more quickly than full litigation.
7. Consult Qualified Counsel
Trust litigation involves complex procedural rules and strict deadlines. An attorney experienced in Washington trust law can guide strategy, draft pleadings, and represent you in court.
8. Watch the Deadlines
Under RCW 11.98.090, beneficiaries generally must bring breach‐of‐trust claims within four years of discovering the breach or six years after the act or omission. Missing these windows may bar your claim.
Disclaimer
This content is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Helpful Hints
- Keep detailed records of all trust communications and financial transactions.
- Carefully review the trust agreement for notice, accounting, and dispute resolution provisions.
- Document any suspected misuse in writing and preserve original financial statements.
- Act promptly to protect your rights under Washington’s statutes of limitation.
- Consider informal settlement or mediation before filing court actions to save time and costs.
- Understand that court proceedings can be lengthy and carry filing fees and attorney costs.