Contesting a Trust California
What to know when you need to contest a trust
Are you considering contesting a trust? Did you receive a letter to contest the trust? Either way, Trusts can be contested on grounds of invalidity, particularly if the trust creator was mentally incapacitated at the time of creation, influenced unduly by others, or if the trust document contains forgeries or improper signatures. These challenges aim to protect the true intentions of the trust settlor.
GROUNDS FOR CONTESTING A TRUST
You can only file a lawsuit if you have legal standing, such as an heir or beneficiary, to contest the Trust, whether it was a living trust or an irrevocable trust. Finding a trustee attorney to guide you through the estate plan is essential. A trust attorney will guide you through the investigation, pleading, discovery, and potential trial and appeal stages to accomplish contesting the trust. Understand if there is a no-contest clause, to make sure if you are a beneficiary you properly review the situation with an expert trust litigator before contesting. Here at Hess-Verdon & Associates, we are well versed in California trust and probate litigation.
In California, to contest a living trust, i.e., a trust dispute, one must submit a petition to the county court overseeing the trust’s administration. This petition outlines the grounds for contestation. There’s a specific timeframe within which this action must be taken.
Now, as a brush-up, there are different types of Trusts, and they fall into two categories.
The categories are the following:
- Revocable Trusts
- Irrevocable Trusts
Both categories of Trusts are open to the trust contest.
You will have to file a lawsuit in the state’s probate court (also called venue) that has jurisdiction over the Trust. Note: Once the grantor / Trustor dies, all trusts created are considered “irrevocable.”
When you file your lawsuit, the probate court will determine the following:
Do you have the standing to sue, i.e., you can prove you have some vested interest in the revocable trust. Note: You have a legal argument that supports your trust contest.
In this article, we here at Hess-Verdon & Associates have put together information that will help guide you to the right decision before expending valuable time and effort in finding an estate litigation attorney. If you have one or more of the following possible reasons to contest, we would suggest contacting our firm. You will receive an upfront counsel and give you a percentage of outcomes based on your viewpoint. Learn about us here and why we are the choice for trust contests.
How to contest a trust in California
In California, challenging a trust requires filing a petition in the court overseeing its administration. This legal document must detail the grounds for contestation. It’s imperative to act within the statutorily prescribed timeframe to ensure your petition is considered.
How long do you have to contest a trust in california
In California, you have 120 days to contest a trust after receiving the mandatory notice under Probate Code 16061.7. This notice, which must include specific details, is sent to all legal heirs and trust beneficiaries, starting the countdown to challenge the trust’s terms.
Can someone sue a family trust
When contesting a trust in California, trust beneficiaries have the legal right to sue trustees for mismanagement of trust funds. While such lawsuits are intricate and demand thorough legal understanding, being aware of the types of claims that can be made is critical to discern if you have grounds for a case. This accountability is a cornerstone of trust law.
Can a beneficiary challenge a trustee
Only individuals with a vested interest in a trust are eligible to challenge it. Eligible parties typically include designated beneficiaries, heirs, relatives, caretakers, or those previously named in an earlier will or trust but now excluded. This ensures that only those directly affected by the trust’s terms can contest it.
Can annuity beneficiaries be contested
Annuity beneficiaries are typically irrevocable and named directly in the contract, allowing the funds to bypass the probate process. Since the beneficiary is explicitly specified, contesting the annuity is generally not an option in court proceedings.
Can you sue a trust in California
If a trustee breaches trust terms, commits fraud, or fails in fiduciary duties, beneficiaries can sue. Legal action is also viable if the trust owes money. Ensure compliance with trust agreements to uphold beneficiaries’ rights and interests.
Trust Contest Lawyer
Navigating the complexities of trust disputes in California requires the expertise of a seasoned trust contest lawyer. Whether you’re a trustee, beneficiary, or heir, understanding your rights and the intricacies of trust litigation is paramount. From challenging the validity of a trust due to undue influence, stealing trust assets, forgery, or state trust laws to ensure that the original intentions of the trust are upheld, a trust contest lawyer is your advocate. With the strict 120-day window for contesting a trust post-notification, having a legal expert by your side is crucial, guiding you through the probate court processes, ensuring you have the standing to sue, and presenting a robust legal argument. Trust disputes can be emotionally charged and legally intricate; partnering with a trust contest lawyer from a reputable firm like Hess-Verdon & Associates can make all the difference in safeguarding your inheritance rights.
Can a family trust be contested
In California, only beneficiaries of a family trust and heirs of the settlor can contest its terms or formation. They are typically informed of the trust agreement and their rights through advance notice from the trustee, as mandated by California Probate Code Section 16061.7. Grounds for contesting may include undue influence, fraud, or lack of capacity.
Can a non beneficiary contest a trust
In California, following the Supreme Court’s decision in Barefoot vs. Jennings, individuals with valid legal grounds can challenge a trust, even if they aren’t named beneficiaries. This allows those who believe they were unjustly omitted from a trust to contest its terms, especially if they can demonstrate wrongful exclusion or other valid reasons.
Can a trust be contested after death
In California, while rare, survivors can contest a trust or will when certain concerns arise. The state’s law permits challenges under specific circumstances. The legitimacy of the document can be contested immediately after the individual’s death.
Chances of successfully contesting a trust
What are the odds of winning a trust contest in California? Statistically, individuals who challenge a trust in California face a success rate of less than 33%. While each case is unique, it’s essential to weigh the potential benefits against the risks and costs before deciding to contest a trust’s provisions.
Grounds for contesting a trust
What are the most common reasons used to challenge a trust in California?
Valid grounds include:
Mental Incompetence: The grantor lacked the requisite mental capacity. Undue Influence: External pressure affected the grantor’s decisions. Forgery: The trust document is falsified. Defective Execution: The trust doesn’t meet California’s legal criteria. Multiple Contradictory Documents: Existence of varying trust documents.
Who can contest a trust
In California, only beneficiaries of the trust and heirs of the settlor possess the right to contest the terms or formation of the trust. They are typically aware of their status because the trustee provides them with advance notice of trust assets, as mandated by California Probate Code Section 16061.7.
Can you sue a trust in California
In California, you can sue a trust if the trustee isn’t adhering to the trust’s terms, has committed fraud, or breached their fiduciary duties. Additionally, if you’re owed money by the trust, legal action may also be pursued to claim the amount owed.
Trust Disputes and what to know
Trusts are very complex legal instruments. When disputes arise based for example on trustee administration disagreements, a trust dispute lawyer can help mitigate possible mediation, arbitration or litigation.
1st Takeaway: There is a window of 120 days in which an objection should be filed IF the Trust has already been admitted to probate.
Once the Trustee gives notice to the beneficiaries via the Notice of Irrevocability or Notice of Trust Administration sent via mail notice, you have 120 days under probate code section 16061.7 to act. Learn more about how long a trust can remain open after death.
What are the reasons to contest a trust?
We will outline the ideas here and how you should prove your challenge to the Trust.
You may find that someone has a trust to pass their assets upon death. Having a Trust is good news, as it allows the estate to avoid probate court. But, you don’t have to agree with the trust terms. You can contest trusts for many reasons.
Incapacity, also known as Lack of Capacity
Most trusts are challenged because the trust maker cannot understand (mental capacity) or is being influenced by another person. You could have dementia, mental illness, or be too young (under 18).
Undue influence
Undue influence is when one person manipulates another to sign documents that don’t reflect their wishes. Here at Hess-Verdon & Associates, to prove undue influence, a series of information would need to be collected, like the grantor’s medical records, for example.
Fraudulent inducements: i.e., Unduly pressured or coerced.
This section is the most difficult to prove. This section requires proof that the grantor was fraudulently induced to sign the trust instrument. The grantor must prove they wouldn’t have created the Trust if they had known about the fraudulent inducement. If you’re told that you are signing a contract to buy a car, but instead, you discover you have signed a trust instrument. In these circumstances, it might not be possible to claim that the grantor didn’t understand or read what they were signing.
Lack of Disclosure
An agent failing to disclose all relevant facts to the grantor is considered to lack disclosure. This section is simpler to prove as it doesn’t require evidence of deceit, misrepresentation, or fraud. It only involves failure to disclose all material facts.
Ambiguity in Trust instrument language
This section is easy to prove in court, as it only requires that the trust instrument language be ambiguous. It doesn’t matter if there was an intent to deceive. It is only essential that the language was unclear and caused a loss for one party. This can happen when standard forms are used, and specific provisions don’t fit particular situations.
More reasons to Contest a Trust:
- Incompetence and Undue Influence
- All states require the trustor to be mentally competent.
- No undue influence
- No Suffering from mental illness at the time of signing
- Can include dementia
- Substance abuse calls into question their capacity to create a legally binding document.
- Documentary defect Contest
- Forgery
- Violating Provisions
- Trusts should be written or typed and signed by:
- The maker of the will (trustor)
- It needs two witnesses who were present at the signing.
- Each witness should sign the Trust or the will.
- Multiple wills and Trusts
- Sometimes, a Trustor was married and later divorced and has a Trust. Then, the trustor remarries, creates another Trust, and considers their “blended family.” The question arises, which is the primary document, which is the bone of contention.
Not a Trust Contest; it’s the administration of the Trust. (will not trigger a no-contest)
- Administration of the Trust (Petitioning the court for relief)
- Engaging in corrupt acts, misappropriating, or wasting trust funds.
- Failing to make required distributions
- Failing to account for the beneficiaries
1st Takeaway: There is a window of 120 days in which an objection should be filed IF the Trust has already been admitted to probate.
Once the Trustee gives notice to the beneficiaries via the Notice of Irrevocability or Notice of Trust Administration sent via mail notice, you have 120 days under probate code section 16061.7 to act. Learn more about how long a trust can remain open after death.
Can a Living Trust be Contested in California?
In California, interested parties can contest the terms of a living trust. This includes spouses, children, heirs, beneficiaries, creditors, and anyone with a claim against the trust’s assets. Common grounds for contesting a trust include undue influence, fraud, or the settlor’s lack of capacity at the time of creating the trust.
2nd Takeaway:
There is a window of 120 days in which an objection should be filed IF the Trust has already been admitted to probate. Once the Trustee gives notice to the beneficiaries via the Notice of Irrevocability or Notice of Trust Administration sent via mail notice, you have 120 days under probate code section 16061.7 to act.
3rd Takeaway:
An extension is possible if the beneficiary requests a copy of the Trust document after receiving the initial notice.
4th Takeaway:
If you are a beneficiary and fail to file a Trust contest within the 120 days, you will forever be barred from contesting the Trust in the future.
Our stance: This is a crucial topic, and a competent estate planning attorney must review all aspects. Ensure your estate planning attorney works closely with probate litigation matters.
Are you still considering contesting a trust? Learn about Hess-Verdon. Over 30 years in trust contests! Call now at 949-706-7300.
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