Trustees have a legal duty to manage assets in the best interest of the trust’s beneficiaries. But what happens when a trustee starts selling or moving trust property before the grantor passes away? This kind of misconduct may qualify as an anticipatory breach of trust. It gives beneficiaries the right to act before it’s too late.

What Counts as an Anticipatory Breach?

An anticipatory breach happens when a trustee shows, through words or actions, that they don’t intend to follow the trust’s terms. This may look like selling property too early, hiding account details, or transferring money to outside parties without reason. Even before a loss occurs, the law allows beneficiaries to act if the trustee’s behavior clearly shows a plan to violate their duties.

Courts look for clear signs of misconduct. A vague excuse or slow response usually isn’t enough. However, if a trustee says they plan to ignore the trust or acts in a way that makes compliance impossible, a court may consider that a breach.

Using Financial Forensics to Prove Intent

These cases often depend on proving that the trustee acted with intent and not just by accident. Financial forensics experts can trace how funds were moved, compare records to the trust’s terms, and show patterns that point to misconduct.

Examples include:

  • Transfers made without explanation
  • Missing or delayed accounting
  • Personal expenses paid from trust accounts

This kind of evidence gives the court a clear picture of the trustee’s actions and can help show that the behavior wasn’t just sloppy but harmful.

Legal Tools Available to Beneficiaries

Beneficiaries can file a petition in probate court asking the judge to do the following:

  • Freeze the trust’s assets
  • Remove the trustee
  • Order repayment or damages

Quick legal action can prevent permanent losses. Courts are more likely to step in if you have records showing early misconduct and proof that the trustee’s choices put the trust at risk.

The Williams Litigation Group helps families hold trustees accountable for early mismanagement and asset loss. If you suspect a trustee is misusing funds before the grantor’s death, contact us. We’ll review the trust documents, examine the financial records, and help you take the right steps to protect your interests.