The ability to challenge the legality of a trust through litigation is no easy matter. Those who wish to move forward must meet many legal criteria. One of the first is establishing legal standing. Without proper standing, a challenge cannot move forward. A recent case dug into this question, along with another common cause of trust litigation: undue influence.
The importance of legal standing
Standing is a legal term that refers to the ability of a party to demonstrate a sufficient connection to the legal issue. Without legal standing, the court will dismiss the challenge.
In trust litigation, not everyone can challenge a trust. Generally, the following parties have standing:
- Beneficiaries: Individuals or entities named in the trust who stand to benefit from its provisions.
- Heirs at law: Individuals who would inherit under state intestacy laws if the trust did not exist. This can include the deceased individual’s spouse and children.
- Creditors: In some cases, creditors may have standing if they can demonstrate a direct financial interest affected by the trust.
Beneficiaries and heirs at law are the most common challengers because they have a direct interest in the trust’s administration and distribution. A case recently highlighted how these types of disputes move forward. In the case, two sisters attempted to challenge the legality of their sister’s trust. The case began when the creator of the trust, Dr. Laura Dean Head, fell ill with cancer. While at the hospital for treatment, Dr. Head stated she was estranged from her sisters and asked for her former student and friend, Zakiya Jendayi, to serve as her power of attorney and primary agent for her advanced healthcare directive. When released from the hospital, Dr. Head moved into Jendayi’s apartment where Jendayi provided hospice care. While in hospice, Dr. Head put together a trust that named Jendayi as the trustee and sole beneficiary.
Upon Dr. Head’s death, her sisters challenged the trust. One of the first questions the courts needed to determine was that of standing. As sisters and intestate heirs to the deceased, the lower court concluded that the sisters had legal standing to contest the trust.
Building a claim of undue influence
After establishing standing, the sisters could move forward with their argument to contest the trust. The contest was based primarily on allegations of undue influence. Undue influence occurs when someone exerts excessive pressure on the trustor, leading to decisions that do not reflect the trustor’s true intentions. Proving undue influence requires a strategic approach, focusing on several key elements that often include:
- Confidential relationship: Demonstrate that the trustee had a close relationship with the trustor, creating an opportunity for influence.
- Weakened mental state: Show that the trustor was in a vulnerable mental or physical state, making them susceptible to influence.
- Unnatural provisions: Highlight any trust provisions that significantly deviate from the trustor’s previous intentions or benefit the influencer disproportionately.
Building a successful claim involves gathering evidence that supports these elements. This may include witness testimony, medical records, and documentation of the trustor’s previous estate plans.
In the case noted above, the court found that Dr. Head was vulnerable and dependent on Jendayi. As such, the burden of proof to establish or refute the presence of undue influence shifted to Jendayi. Upon review of the evidence and the fact that Jendayi received all of Dr. Head’s assets, the court found Jendayi failed to overcome this burden and invalidated the trust.
The case provides an example of the importance of understanding who has standing to challenge a trust and how to build a claim of undue influence to challenge the validity of trust. The case shows how those who face similar legal obstacles can effectively navigate the complexities of trust litigation and protect their interests.