Can a Living Trust Be Contested?

Many people put a lot of thought into estate planning. They may bypass a will altogether and put their assets into a living trust to make things easier for beneficiaries. After all, a living trust often skips the probate process.

But even though a living trust (also called a revocable living trust) is often used to avoid probate, it is not immune from legal challenge. To contest it, a challenger usually must file in probate (or trust) court.

Trust makers should be mindful of capacity, clarity of language, fairness to heirs and beneficiaries, and proper funding of the trust. Heirs or beneficiaries who suspect wrongdoing or invalidity should act quickly. This means that even with a trust in place, estate planning should be handled carefully to minimize potential disputes or litigation after death.

But while a trust can be contested, it is not common nor is it easy. Here is what you need to know.

Common Grounds for Contesting a Living Trust

The most frequent legal bases for contesting a living trust include:

• Lack of capacity. If the person who created the trust (the grantor) was not mentally competent at the time due to dementia or other impairment, then the trust may be invalid.
• Undue influence. If someone pressured, coerced, or manipulated the grantor into setting up or changing the trust in order to benefit themselves, that can be challenged.
• Fraud or forgery. If the trust was obtained through deception, or the signatures/documents were forged or altered, the trust might be invalidated.
• Improper execution or defective documents. Mistakes such as missing required signatures, lack of notarization or witnesses (where required), ambiguous language, or not following state formalities can give grounds for contesting the trust.
• Breach of fiduciary duty. After the grantor’s death, beneficiaries may contest if a trustee mismanages, misuses, or fails to properly administer trust assets.

Who Can Contest?

Not just anyone can challenge a living trust. Only those with a legitimate financial or legal interest have standing to file. That generally includes:

• Named beneficiaries under the trust.
• Heirs or legal heirs who might have inherited under intestacy or prior estate planning documents if the trust is invalidated.
• A successor, if they have a reason recognized under law to challenge.

Keep in mind that there needs to be a valid reason to contest a trust. Simple dissatisfaction with how assets were distributed or who is named does not automatically give someone the right to contest. There must be legally recognized grounds plus evidence.

Seek Legal Help

Disputes can still happen when a trust is involved. While a trust can be contested, there are challenges involved.

Have questions? Want to know the next steps? Get the legal help you need from Fort Lauderdale probate litigation lawyer Edward J. Jennings, P.A. We can help you achieve a just and equitable resolution. Schedule a consultation today by filling out the online form or calling our office at 954-764-4330.

Source:

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