If you are a party to a Trust Lawsuit will your case help all the Trust beneficiaries? The answer is a definite maybe. There are times when your lawsuit could help other beneficiaries that did not join the case, but there are also times when the non-participating beneficiaries could be left out in the cold.

Let’s start with an example. You are one of three children and all three of you were supposed to receive an equal share of your parents’ Trust—one-third each. But a few months before your last parent dies, a neighbor wiggles their way in and causes a Trust amendment to be signed that disinherits the children and gives everything to the neighbor.

Naturally, you are outraged. You know for certain that your parents would not have disinherited their children. So, you file a Trust contest lawsuit to invalidate the final amendment. But you are the only Beneficiary who sues. Your other two siblings choose not to participate in the lawsuit. If you win your lawsuit, will you benefit your siblings as well? That depends on how your case ends.

There are two ways in which all lawsuits come to an end

Either the court makes a forced decision (this usually takes place after a trial) Or the parties enter into a voluntary settlement during the litigation process.

When a court invalidates an amendment at trial, that means the document is considered to no longer exist. The earlier version of your Trust is then reinstated, in most cases (there are exceptions, but this is how it works in most cases). Thus, using our example above, if the final amendment your parents signed is invalidated, then the Trust would roll back to the earlier version where you and your siblings split the trust three ways—everyone benefits.

If, however, your case is settled before trial, then the parties have the right to cut a deal on any terms they like. For example, maybe the neighbor agrees to give you most of your one-third share and they keep the rest. This is not a fair result considering the overall circumstances, but parties to a lawsuit have the right to settle their case on any terms they agree to make. That includes, ignoring everyone outside of the lawsuit. And this happens a lot. If you are paying for attorney’s fees and all the other costs of a lawsuit, you probably are willing to enter into a favorable settlement when one is presented to you.

To make matters worse, most cases do settle before trial. That means in most cases the beneficiary who sues will be at the negotiating table during settlement talks and everyone else will be left out.

The bottom line: don’t be left out! If you are a beneficiary who has been harmed by a document, you really need to fight for what is rightfully yours. Join the lawsuit, be a party and be sure you have a voice when it comes time to settle.

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