Farm trust litigation

A trust dispute begins with the governing documents. The trust may own land directly, hold an interest in a separate business or receive income under a lease or other agreement. Those arrangements affect which decisions belong to the trustee and which belong to another person or entity.

MJB Law examines the trust terms, ownership structure and disputed conduct before deciding how to proceed. A beneficiary's interest in a trust does not necessarily confer authority to manage the farm, and disagreement with a decision does not automatically establish a breach of duty.

Issues may include:

• Access to information and questions about trust accounting.
• The interpretation of distribution provisions.
• Decisions concerning leases, sales or continued ownership of farm assets.
• Transactions involving a trustee, family member or related business.
• Disagreements about the allocation of income and expenses.
• The relationship between trust administration and operation of the farm.

Where multiple beneficiaries have different interests, the trust's terms and the trustee's duties require careful attention. Minnesota's trustee impartiality statute addresses the administration of trusts with multiple beneficiaries. Impartiality does not necessarily require identical distributions or identical treatment in every circumstance.

The right to obtain information depends on the trust, the beneficiary's status and applicable law. Minnesota's trust information statute provides a framework, including qualifications and exceptions that matter in evaluating a particular request.

The initial legal assessment should identify the decision being challenged, the documents needed to evaluate it and the remedy sought. Depending on the circumstances, a dispute may call for an accounting, a determination of authority, relief addressing a transaction or another appropriate court order. The facts and governing law determine which remedies are available.

Farm trust litigation can unfold while rent comes due, crops are planted or harvested, financing is renewed and assets require maintenance. Those events do not resolve the legal dispute, but they can affect how it should be managed.

Matthew combines litigation, negotiation and financial analysis in assessing disputes involving agricultural assets. The goal is a strategy grounded in the governing documents, the evidence and the practical consequences of the requested relief.

For additional background, read When the Next Generation Disagrees: Trust Disputes Involving the Family Farm.

Useful starting materials include the trust and amendments, relevant accountings, ownership records, disputed agreements and correspondence identifying the disagreement.

Contact Matthew Bialick
952-239-3095
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