When Planning Fails: How Advisors Get Pulled Into Litigation Situations

No advisor wants to be part of a litigation matter.

And yet, in our experience, it happens more often than expected.

How It Starts

It usually begins with a breakdown:

• A dispute between family members
• Questions about decisions that were made
• A lack of clarity around authority

And as things escalate, advisors are often pulled in—not as decision-makers, but as witnesses to the process.

The Position Advisors Are Put In

We frequently see advisors navigating:

• Requests for information or documentation
• Questions about past decisions
• Tension between family members

Even when the advisor has acted appropriately, the situation itself can be uncomfortable.

What Could Have Helped Earlier

In many of these cases, the issue is not a single decision.

It is a lack of clarity leading up to it.

• Roles not clearly defined
• Communication not established
• Expectations not aligned

By the time it reaches litigation, the opportunity for easy resolution has often passed.

What We Recommend

To help reduce the likelihood of these situations, we encourage advisors to:

• Document key conversations and decisions
• Encourage clarity around roles and authority early on
• Identify and address tension points before they escalate
• Collaborate with legal counsel when uncertainty arises

We often work with advisors proactively to help structure plans and conversations in a way that reduces the risk of future disputes.

That collaboration can make a meaningful difference long before litigation is ever a consideration.