As a resident of Florida, you may have heard of a non-judicial settlement agreement (NJSA) in legal circles. NJSA is a legal document that allows family members or other parties to settle disputes with regard to a trust outside of court. It provides an alternative to probate, which can be time-consuming, expensive, and stressful. This article will explain what NJSA is, why it’s beneficial, and how you can create one in Florida.
What is a Non-Judicial Settlement Agreement?
A non-judicial settlement agreement is a legally binding document that allows parties to settle disputes related to trust administration without going to court. It’s also known as a trust settlement agreement. NJSA can be created by trustees, beneficiaries, and interested parties, as long as they all agree to the terms.
NJSA is typically used when beneficiaries believe that the trustee has mismanaged the trust or has not followed the wishes of the grantor. It can also be used to modify the terms of the trust. However, NJSA cannot be used to change the terms of the trust in a way that would be illegal or contrary to the grantor`s intent.
Why is NJSA Beneficial?
NJSA is beneficial for several reasons. First, it allows parties to settle disputes outside of court, which can be time-consuming, expensive, and stressful. NJSA is also less formal than probate court, which means that parties can negotiate on terms that are more flexible.
NJSA is also beneficial because it can be used to modify the terms of the trust. This means that if the grantor’s wishes change, or if there are unforeseen circumstances, beneficiaries and trustees can modify the trust without going through the probate court.
How to Create an NJSA in Florida?
Creating an NJSA in Florida is relatively simple. The first step is to hire an attorney who is experienced in trust administration to draft the document. All parties involved in the dispute must agree to the terms of the NJSA before it’s signed.
Once the NJSA is signed, it becomes legally binding. The trustee and beneficiaries must follow the terms outlined in the NJSA. If the trustee does not follow the terms of the NJSA, beneficiaries can file a lawsuit to enforce the agreement.
A non-judicial settlement agreement is an excellent alternative to probate court for settling disputes related to trust administration. It’s less formal, more flexible, and less expensive. If you’re facing a dispute related to trust administration, it’s essential to hire an attorney experienced in trust administration to draft an NJSA that meets your needs. By doing so, you can save time, money, and stress associated with probate court.