Can a Trust be Contested?

Despite popular myth- yes, similar to a Will a Trust can be contested under certain circumstances. When a Trust is created, it includes instructions on how the trust assets should be managed and distributed. However, interested parties who believe that the Trust is invalid or that the trustee is not fulfilling their duties can contest the Trust and/or its administration. Here are some common grounds for contesting a Trust:

  1. Lack of capacity: If the person who created the trust (the grantor) was not of sound mind or did not have the mental capacity to understand the consequences of creating the trust, it may be challenged.
  2. Undue influence: If it can be proven that the grantor was coerced, manipulated, or unduly influenced by someone into creating or amending the trust, it may be contested.
  3. Fraud or forgery: If the trust document or any related documents, such as amendments, were forged, or if there was fraudulent activity involved in the creation or execution of the trust, it can be contested.
  4. Mistake: If there was a mistake in the trust document, such as an error in the terms or provisions, it may be contested to correct the error.
  5. Breach of fiduciary duty: If the trustee is not acting in the best interests of the beneficiaries, mismanages the trust assets, or engages in self-dealing, the administration of the trust can also be contested on the grounds of breach of fiduciary duty.

It’s important to note that contesting a trust can be a complex legal process. It is advisable to consult with an experienced attorney who specializes in trust and estate law to under the specific requirements and procedures for contesting a trust in your jurisdiction.

-Stephanie A. Bivens, Esq. CELA

 

Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as offering legal advice or creating an attorney client relationship between the reader and the firm or author. You should not act or refrain from acting on the basis of any content included in this article without seeking appropriate legal advice about your individual facts and circumstances from an attorney licensed in your state. Bivens and Associates, P.L.L.C. expressly disclaims all liability with respect to actions taken or not taken based on any or all information contained in this article.