Chances of Successfully Contesting a Trust

The likelihood of winning a trust contest depends on several things, such as the reasons for the contest, how strong the evidence is, and the laws and court decisions in the area where the trust is located. Most people contest a trust because they think it doesn't show what the person who made the trust really wanted, because the person wasn't mentally fit when they made the trust, because someone influenced them too much, because there was fraud or forgery, or because the trust wasn't signed and witnessed properly. Trusts are also challenged when people disagree about how the assets should be divided or feel they were treated unfairly or left out.

Reasons for Contesting a Trust

You can contest a trust for different reasons, like if the person lacked mental capacity, was unduly influenced, if there was fraud or forgery, or if the trust wasn't executed correctly. Lack of mental capacity and undue influence are the most common reasons, but how often each reason works depends on the specific facts and evidence in each case.

Lack of Mental Capacity

One reason to contest a trust is if the person who made it didn't have the mental ability to understand what they were doing and how it would affect their assets and the people involved. Things like age-related memory loss, mental illness, and drug or alcohol abuse can affect a person's capacity. To prove this, you can use medical records, statements from doctors, family, or caregivers, and examples of the person acting strangely.

Undue Influence

Another reason to challenge a trust is if someone pressured or manipulated the person who made the trust into making decisions they wouldn't have made on their own. This is often done by family members, caregivers, or people who will benefit a lot from the trust. Signs of undue influence include sudden changes to the trust, keeping the person away from family and friends, the influencer being very involved in making the trust, and the trust favoring the influencer.

Fraud or Forgery

Fraud or forgery can also be grounds to contest a trust. Fraud means lying or hiding information to trick the person into making or changing the trust. Forgery means faking the person's signature on trust documents. Proof of fraud or forgery can include inconsistencies in the documents, handwriting analysis, and witnesses who saw suspicious behavior.

Improper Execution

A trust can also be challenged if it wasn't executed properly. The trust document must be in writing and signed by the person making it. Some places also require witnesses or a notary. Common mistakes include not signing the trust correctly, not having enough witnesses, and not following state laws. If a trust is not executed properly, it may not be valid, and the assets may have to go through probate or be given out according to state laws.

Factors Affecting the Success of a Trust Contest

The success of a trust contest hinges on the robustness of the evidence presented and the promptness of filing the contest. The statute of limitations for contesting a trust varies depending on the grounds for the challenge.

In New York, cases involving fraud or forgery must be filed within six years from the date of the fraudulent or forged act, or within two years from the date the fraud was discovered or reasonably should have been discovered, whichever is longer. Fraudulent acts may include misrepresenting the trust's provisions, deceiving the grantor about the nature of the assets, or forging the grantor's signature. Evidence of fraud may consist of discrepancies in the trust documents, handwriting analysis, and witness testimony.

Contests based on improper execution must be initiated within six years of the trust's creation. Improper execution may involve failure to properly sign the trust, lack of sufficient witnesses, or non-compliance with state legal requirements. If a trust is deemed improperly executed, it may be invalidated, and the assets may be subject to probate or distributed according to state intestacy laws.

Challenges asserting lack of mental capacity must be filed within six years of the trust's creation. Evidence supporting this claim may include medical records, testimonies from physicians, family members, or caregivers, and instances of the grantor exhibiting unusual behavior.

Contests alleging undue influence must be brought within six years of the trust's creation. Indicators of undue influence may include abrupt changes to the trust, isolation of the grantor from family and friends, the influencer's extensive involvement in the trust's creation, and the trust's favoritism towards the influencer.

Time is of the essence when contesting a trust. Delaying action can undermine the strength of the case and diminish the likelihood of success. As time progresses, evidence may become more difficult to obtain, and witnesses' recollections may fade.

Potential Outcomes of a Trust Contest

If you prevail in a trust contest, the court may invalidate the entire trust, effectively rendering it non-existent. Consequently, the trust assets will be distributed according to the individual's prior will or state intestacy laws, potentially excluding beneficiaries named in the nullified trust. In some instances, the court may opt to modify specific portions of the trust rather than invalidating it entirely, particularly when only certain aspects are contested. The court may strike or amend problematic provisions while preserving the remainder of the trust. Justifications for trust modification include rectifying errors, clarifying ambiguous language, and eliminating provisions that contradict the grantor's intentions or public policy. However, the court's authority to alter a trust is not boundless; it cannot completely rewrite the trust or fundamentally change its purpose. Modifications must align with the grantor's overall intent and objectives. Moreover, some trusts contain "no-contest" clauses that discourage beneficiaries from challenging the trust.

In many trust contest cases, the parties involved may prefer to resolve the dispute through an out-of-court settlement. Settling can be a more efficient and less stressful alternative to protracted litigation, allowing the parties greater control over the outcome and the ability to negotiate mutually agreeable terms. Factors that motivate settlement include preserving family relationships, avoiding further conflict, mitigating the uncertainties and risks associated with court proceedings, and preventing the public disclosure of private family matters. Typical settlement terms may involve redistributing trust assets among the beneficiaries, modifying trust provisions to address the concerns raised in the contest, and establishing a new trust with mutually agreed-upon terms and trustees.

Seeking legal counsel is crucial when contesting a trust, as such disputes often entail complex legal issues and procedural requirements. Attempting to navigate the legal system without proper guidance can be daunting and detrimental to your case. A knowledgeable trust and estate attorney can offer invaluable insights and strategies for the contest, assess the strength of the evidence and the probability of success based on applicable laws, and recommend the most viable grounds for challenging the trust and the likely outcomes.

Having a skilled attorney represent you can increase the chances of a favorable result, as we can draft compelling legal arguments, present evidence persuasively in court, negotiate with opposing parties, and explore settlement opportunities to resolve the dispute efficiently.

Should you need assistance in contesting a trust, the Law Offices of Albert Goodwin can provide you with personalized guidance. We are located in Midtown Manhattan in New York, NY. You can call us at [212-233-1233](tel:+12122331233) or send us an email at [[email protected]](mailto:[email protected]).

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