Trusts are a common estate planning tool used to manage and distribute assets. However, there are situations in which someone may want or need to challenge a trust. If you are concerned about the terms, legitimacy or execution of a trust, it’s essential to understand the grounds for these challenges and the importance of seeking professional guidance.
Why do people set up trusts in the first place?
People create trusts to serve several purposes, including avoiding probate, minimizing taxes and ensuring the distribution of assets according to the grantor’s wishes. By setting up a trust, individuals can transfer ownership of their assets, such as real estate, investments and other properties, to the trust, which a trustee manages.
This arrangement allows for a more efficient and private transfer of assets while also protecting the beneficiaries.
Common reasons to challenge a trust
Despite the benefits of trusts and the intentions of the person who created the trust (grantor), there can be reasons why someone would want to contest a trust. Here are some of the most common grounds for challenging a trust:
- Lack of capacity: The person creating the trust (the grantor) must be of sound mind when signing the document. If someone believes the grantor wasn’t mentally capable when they made the trust, they might challenge it.
- Undue influence: If there’s evidence that someone pressured or manipulated the grantor into creating or modifying the trust to benefit themselves, it can lead to a challenge.
- Fraud: Parties may challenge a trust if they believe the grantor created it based on false information or with forged signatures.
- Breach of fiduciary duty: The person managing the trust (the trustee) must act in the beneficiaries’ best interests. If the trustee misuses funds or fails to follow the trust terms, beneficiaries might have grounds to challenge.
These issues can lead to serious disputes among beneficiaries and family members. If you spot any of these red flags, you might need to take action.
Seeking legal expertise is crucial
Challenging a trust in California involves complex legal procedures and requires strong evidence. If you believe a trust is invalid or are considering a challenge, it’s vital to consult with an experienced estate litigation attorney. They can assess your situation, explain your options and protect your rights throughout the process.