When litigation arises relating to administration of a trust, the procedural law of the forum state can have a profound effect on the proceeding. Likewise, the substantive law that would govern a trust's administration may vary significantly from state to state. As our society becomes more mobile, we are no longer so committed to one particular jurisdiction when creating a trust. But in determining where a trust will be administered or in the selection of a trust's situs or governing law, estate planners tend to limit their focus on issues other than the potential for litigation—for example, the creditor protection available in a particular jurisdiction, or the taxes that a particular state would impose on the trust's income.

In some cases, it could serve the grantor well to also consider the possibility of litigation and how a dispute might play out before the courts of one jurisdiction versus another. This can be particularly true where a grantor has specific concerns regarding a litigious beneficiary or family member.

As a general matter, the administration of a trust "is supervised by the courts of that state only in which the administration of the trust is located." Restatement (First) of Conflict of Laws §299. In the case of a testamentary trust, that is presumed to be the state of the testator's domicile upon her death. Id at §298, comment a; N.J.S.A. 3B:31-8(a). In re Johnston, 127 NJ Eq. 576 (Prerog. 1940), affirmed 129 N.J.Eq. 104 (E. & A. 1941).