Trust contests in California typically arise when beneficiaries or potential heirs believe something went wrong in the trust’s creation or administration. While trusts are generally more difficult to challenge than wills, there are several legitimate grounds for contesting a trust in California.
Lack of capacity: The trustor (person creating the trust) must have had mental capacity when creating or modifying the trust. Under California law, this means understanding the nature of their assets and property, their natural heirs and relationships, what creating a trust means and how the trust will distribute their assets. Common scenarios involving lack of capacity include trusts created while the trustor suffered from dementia, was heavily medicated, or had other cognitive impairments affecting decision-making.
Undue influence: This occurs when someone exploits a position of power to manipulate the trustor into making trust decisions they wouldn’t otherwise make. Red flags include isolation of the trustor from family members, sudden changes to the trust benefiting a caregiver, changes made while the trustor was vulnerable or dependent and a beneficiary’s involvement in preparing the trust documents.
Fraud or forgery: A trust can be invalidated if it was created through deception or if signatures were forged. Examples include misrepresenting the nature of documents being signed, falsifying the trustor’s signature, making unauthorized amendments to trust documents and concealing material facts that would have affected the trustor’s decisions.
Procedural issues: California law requires certain formalities in trust creation and modification. Grounds for contest may include improper execution of trust documents, lack of required signatures or notarization, failure to comply with specific terms for trust modification and technical defects in trust amendments.
Time limitations: In California, contestants must generally act within these timeframes: 120 days after receiving notice of trust administration, 60 days after being served with a copy of the trust or three years from the trustor’s death if no notice was given.
Practical considerations: Before contesting a trust, potential challengers should consider several factors: the existence of a no-contest clause that could disinherit them, the strength of available evidence, the cost of litigation versus potential benefits, the impact on family relationships and the likelihood of success.
Success in trust contests often requires substantial evidence and expert testimony from medical professionals, handwriting experts or financial analysts. Given the complexity and cost of trust litigation, consulting with an experienced trust litigation attorney is essential to evaluate the merits of a potential contest.
Remember that just being unhappy with the trust’s terms isn’t sufficient grounds for a contest. The challenge must be based on legally recognized grounds and supported by compelling evidence to have a realistic chance of success.
Send your questions to ccolan@colanlegal.com and use “Alpine Mountaineer estate planning question” as the subject. We’ll answer your questions in our upcoming issues.
This article is provided by your local estate planning attorney, Corina Colan.
The Law Office of Corina I. Colan / (909) 265-3315 / www.colanlegal.com
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