Siblings Contesting a Trust… What You Need To Know

Contesting a Trust

There are few things as stressful as the passing of one’s parent or another close relative. Not only does one have to experience the loss of a loved one, but frequently the stress can bring out the unpleasant sides of some people, and issues such as sibling rivalry, resentment, or a sense of unfairness all rear their ugly heads.

Should a sibling (or even another family member) decide they wish to contest a parent’s final wishes, it’s crucial to know what goes into a trust being overturned and how you can defend against such an action.

Defining a Trust Contest

A trust contest is a lawsuit in which someone objects to the validity of a trust established by the recently deceased—usually a loved one or close relative, such as a parent.

Only an individual with “legal standing” can file such a lawsuit. Legal standing means that the person initiating the suit must be personally affected by the case’s outcome. Such individuals include disinherited or disadvantaged heirs. These would be family members who would have inherited more had a trust not been established, and under usual state law standards.

Others who might have legal standing could include disinherited or disadvantaged beneficiaries. These include family, friends, or charities that were named or given greater benefits in previous versions of a trust or will.

Ohio provides a concrete limitation framework for certain revocable trusts made irrevocable by death: earlier of (a) 2 years after death OR (b) 6 months after the trustee sends the trust + required notice. Missing the deadline to challenge a trust will prevent the objecting party from filing a contest.

Furthermore, some states, including Ohio, allow residents to establish the validity of their estate plan before death. This enables people to validate and confirm their estate planning decisions while defending them in person. This makes potential future challenges more difficult.

What Grounds Are There for Contesting a Trust?

In most cases, one can use four main grounds to challenge a trust’s validity.

1) Lack of Mental Capacity

Each state has legal standards that must be met to prove that a person lacks the adequate mental capacity to sign a trust, the cognitive ability to make a contract, and the ability to understand the purpose and effect of said contract.

2) Trust Fails To Meet Signature Requirements

Each state has specific requirements for how a trust must be signed to be valid. For example, a trust that is not entirely handwritten must be signed in front of two witnesses who meet specific requirements. Most trusts are written with an estate planner’s assistance, so this is usually not a problem, but it pays to be sure all signature requirements are met.

3) The Person Making the Trust Was Unduly Influenced

Sadly, it’s not unheard of for some people to suffer physically and mentally as they approach the end of life. Others may be particularly susceptible to outside pressure. Occasionally, they can be subject to undue influence over decisions, including estate planning.

Undue influence can mean more than nagging or verbal threats. It must be extreme enough to cause the person planning their estate to change their plans to favor the undue influencer.

4) The Trust Was Procured By Fraud

Similarly, a trust signed by someone who believes they are signing a different document—or a document containing provisions different from those intended—is considered procured by fraud.

When a Contest Is Successful

If a trust is successfully contested and declared invalid, the court nullifies the trust. This puts survivors in a situation where trust reverts to a previous state, or to a situation in which no trust was established. For many survivors, this could be harmful to the intended beneficiaries of the contested trust and result in an outcome entirely different from what the deceased intended.

It’s not unreasonable to assume that any trust established by the recently deceased was signed in an attorney’s office and is valid.

Unfortunately, this is not always the case.

Attorneys who do not specialize in estate planning may not be up to speed on all of the details and formalities required to make a trust legally valid in their state. Working with attorneys knowledgeable in your state’s inheritance, trust, and estate planning laws is essential.

Work With the Experts

If you’re looking to make sure an estate plan is challenge-proof or need to know how to defend an existing trust from a contest, you should acquire qualified, experienced help.

Let our experts help you navigate the laws surrounding trust and estate planning for your state. There is no reason to go it alone when you have options for guidance and representation available.