Who pays the costs of an estate or trust dispute?
Key takeaway
Estate or trust dispute costs may be paid by an estate, trust, or the parties, depending on the proceeding and applicable rule. Florida courts have discretion to allocate fees and costs. Texas law permits equitable awards in proceedings under its code, while Utah law provides trust reimbursement for a trustee who acts in good faith. Documents and practitioner-described mediation may also affect how costs are handled.
Florida courts have discretion over allocation
A Florida court may assign attorneys' fees and costs based on the result of a suit, apportion them between the parties, or require the prevailing party to pay them. The court decides among those options in its discretion.
Texas awards depend on the proceeding
A Texas court may award costs and reasonable and necessary attorney's fees in a proceeding under its code. The court may set an award that seems equitable and just.
The rule covers proceedings under that code.
Utah provides reimbursement for good-faith proceedings
A Utah trustee who defends or prosecutes a proceeding in good faith is entitled to reimbursement from the trust for necessary expenses and reasonable attorney's fees. Success in the proceeding is not a condition of that entitlement.
Documents and mediation can affect payment
Florida practitioners describe provisions authorizing a personal representative or trustee to pay costs of a potential contest. Some state codes expressly authorize litigation on behalf of an estate or trust, and other documents may include such provisions.
Practitioners describe probate disputes as situations where mediation may be used because litigation costs can be prohibitive for both sides. A mediator may broker a resolution in one day.