Can a Non-Beneficiary Contest a Trust?

Suppose you create a special box where you put your valuables. That could be money, real estate, or anything else. You set up the box to share your valuables with your loved ones, who are beneficiaries. But a beneficiary can also complain to a judge if they think you aren’t caring for the things in your box. And a beneficiary isn’t the only person who can complain. For example, people you owe money to might be able to complain.

This article discusses non-beneficiaries who can challenge your trust. You should contact an estate planning attorney with experience in trust planning. They can give you legal advice about your specific situation.

What Is a Trust?

A trust is a legal entity created by someone called a grantor or settlor. The grantor puts assets like money and real estate in the trust for the beneficiaries. These benefits are typically money the beneficiary can use for a particular purpose, like starting a business or paying for college.

The trustee manages the trust’s assets and makes payments to the beneficiaries. The trustee has a fiduciary duty to properly manage the trust and follow the creator’s wishes. A trust is a legal document that’s enforceable in court.

A trust is either revocable or irrevocable. The grantor can revoke or change a revocable trust. Only a court can change an irrevocable trust.

When Can Someone Challenge a Trust?

State law governs trusts. While most states have similar laws, there can be significant differences. States also vary in how they handle probate litigation to resolve a trust dispute in probate court.

Since laws differ, speaking with an attorney familiar with your state’s laws is a good idea. They’ll be able to help you challenge a trust in your state. The following are common reasons for contesting a trust:

• Lack of mental capacity: You must have the mental capacity to create a trust. Generally, that means you must be 18 years or older. You must also know what property you own and who your children are.
• Undue influence: You must create your trust using your own free will. Any provisions you put in a trust because someone deceived you may be invalid. Note that undue influence doesn’t necessarily invalidate the entire trust.
• Not following the required process: You must follow certain formalities when you make a trust. These often include signing the trust document in front of witnesses and a notary.
• The trustee isn’t following the trust’s terms: Your trust is your instructions to your trustee about what you want to happen after death. It could result in a trust contest if the trustee doesn’t follow your instructions.

Who Can Challenge a Trust?

You must have legal standing or legal grounds to challenge a trust. To have standing, you must prove to a court that you have a direct and substantial interest in the trust. The following people often have standing to dispute a trust:

• Beneficiaries who disagree with the trust’s terms: They can also challenge the trust if they think the trustee is violating its terms. Beneficiary contests are one of the most common trust contests.
• Heirs who the grantor left out of the trust: These heirs often claim a beneficiary influenced the grantor to leave them out of the trust.
• Interested parties: Anyone with a financial interest in the trust who isn’t a beneficiary can challenge the trust. Creditors are the most common people in this category.
• Trustees and successor trustees can challenge a trust: They often do so when the trust isn’t clear or can’t be carried out.

Contact an Estate Planning Attorney for Help

Estate litigation is complex. You must prove you have an interest in the trust to challenge it. A trust litigation attorney can help you determine if you have standing. They can also represent you in your trust dispute.