Petition To Invalidate Trust California

How To Invalidate A Trust

-Steps to Invalidate a Trust

If you’re considering petitioning the court to invalidate a Trust in California, it’s important to understand the trust litigation process. In California, you can sue a trust if you’re a beneficiary of the Trust, meaning you derive some benefit from it. However, you will need a trust litigation attorney.

Only a beneficiary can petition the courts to declare the Trust invalid. Before doing so, you must meet specific standards to avoid appearing unreasonable to the courts.

Beneficiaries often seek legal counsel due to the complexities of contesting a trust. You’ll need a solid reason and supporting evidence before attempting to petition the court. A Petition to remove a trustee is a common course of action.

What determines an invalid Trust? A key factor is “undue influence”, where it’s believed a loved one was coerced by another beneficiary to alter the Trust in their favor, potentially leaving you without your inheritance.

Example of Possible Invalid Trust Scenario

An example of siblings contesting a trust: A brother and sister are set to inherit from their parent. The sister, living with the parent to manage their finances, is present when significant changes are made to the Trust during hospice care. You might argue that the Trust amendment contradicts your parent’s wishes based on previous events.

Can a Trust be Invalidated in California?

In California, submitting a petition to invalidate a trust after the deadline may result in being disinherited. Although amendments to the Probate Code have made enforcing no-contest clauses more challenging, there’s still a risk of losing one’s inheritance if the contest is made without sufficient cause.

When Can I Contest a Trust in California?

While the settlor/grantor is alive, the Trust is considered “revocable,” allowing for modifications at any time, provided the settlor/grantor is competent. After the settlor/grantor’s death, the trust document becomes irrevocable, meaning no further changes are permitted. It’s crucial to start collecting evidence immediately due to statutes of limitations. At this stage, a successor trustee takes over estate management, holding a fiduciary responsibility towards the beneficiaries, including ensuring they are informed of any updates.

Given the various deadlines involved, it’s advisable to seek guidance from an estate planning attorney to ensure the best possible outcome.

Steps to Invalidate a Trust

To invalidate a trust, the first step is to retract all assets that have been transferred into it. Following this, you should fill out a revocation form, clearly stating the reasons for wanting to revoke the trust, often due to changes in circumstances. This process is commonly referred to as a “trust revocation declaration.”

Here is a partial list of reasons to invalidate a Trust:

• Incompetence and Undue Influence
• Requirement for the trustor to be mentally competent in all states
• No undue influence present
• No mental illness at the time of the trust’s signing, which can include conditions like dementia
• Substance abuse raising doubts about the trustor’s capacity to establish a legally binding document
• Issues with the trust document, such as forgery or documentary defects
• Violation of required provisions, such as the trust needing to be written or typed and signed by the trustor in the presence of two witnesses, who must also sign the document
• Complications arising from multiple wills and trusts, particularly in cases of remarriage and blended families, leading to disputes over the primary document

Takeaway: Often, trusts contain an “in Terrorem” clause, warning that any beneficiary contesting the trust may be disinherited.

At Hess-Verdon, we provide guidance on a wide range of estate disputes, including the investigation of potential claims, assessment of the viability of pursuing a claim, and the filing or defense of claims. When necessary, we also handle the litigation of claims through trial or settlement.

Thanks to our experienced team of trust litigators, we are often able to resolve such disputes without the need for a trial, considering the strengths of the arguments put forth by all parties involved and the applicable tax regulations.

As a full-service law firm, Hess-Verdon’s extensive experience with probate and trust litigation cases equips us with the knowledge of the critical steps needed for your specific situation, ensuring the best possible outcome for our clients.