Trust Contests and Challenges in Connecticut

Trusts are often created to simplify managing and distributing assets after a person’s death. While trusts can reduce many of the disputes that arise during probate, they are not immune from legal challenges. If there are disputes over the validity of a trust, it’s not uncommon for interested parties to file a lawsuit that would render in invalid.

If you’re involved in a trust-related dispute, it’s time to explore your legal options. Connecticut trust contests / challenges are complex legal issues that should be left to your attorneys to deal with. Reach out to our firm to learn how we can help.

What Is a Trust Challenge?

A trust challenge, sometimes called a trust contest, is a type of lawsuit that seeks to invalidate a trust or alter the way it is administered. Some trust contests focus on the validity of the trust itself. In those situations, the person bringing the challenge argues that the trust should not be enforced because it was created unlawfully.

Other disputes involve trustee conduct. Beneficiaries may pursue relief due to allegations of misuse or fraud at the hands of the trustee. This might involve altering how the trust is managed or even replacing the trustee entirely.

Trust litigation can become complex, but there’s no need to tackle this challenge alone. Let our team of experienced attorneys help you manage these conflicts.

Grounds for Challenging a Trust

There are several different ways to successfully challenge a trust under Connecticut law. Some of the most common examples include:

Undue Influence

Undue influence is one of the most common grounds for trust contests. This claim arises when someone exerts improper pressure over the person creating or modifying the trust. This might involve the use of unfair pressure or coercion to create or modify the trust documentation.

Lack of Capacity

A person creating a trust must have sufficient mental capacity to understand the nature and consequences of the trust arrangement, and any document they sign without it can’t be considered a valid trust. Many lawsuits are based on disputes over whether or not the trust creator had the capacity to make such an impactful decision.

Capacity challenges usually stem from dementia, Alzheimer’s disease, or some other serious illness that impacts their cognitive abilities.

It’s important to understand that just being diagnosed with one of these conditions isn’t enough to automatically strike down a trust. A judge could determine that despite these conditions, the person who created the trust had the capacity to do so at the time. This is true even if they no longer have that capacity.

Invalid Documents

It’s also possible to challenge a trust based on the documents themselves. Even seemingly minor errors involving missing signatures or inconsistent language could be enough to strike down a trust entirely.

Fraud

Fraud occurs when someone intentionally deceives the person creating the trust in order to obtain a financial benefit. These claims are serious, and they require significant evidence to prove. The courts are generally looking for evidence of deception leading to the creation or modification of a trust. It’s not enough to show that someone convinced the creator to do something; there has to be proof of deceptive behavior.

Forgery

Forgery is essentially a type of fraud where a trust creator’s signature or even the entire trust document was falsified. These fakes can be made in different ways, including by tricking a person into signing something or simply affixing a fake signature to the document without their knowledge. Forged trust documents can undermine the entire estate plan and may result in the trust being declared invalid, so it’s vital that you have a legal team that understands these claims on your side.

Challenges Involving Trustee Behavior

Not every trust dispute involves the validity of the trust itself. Many trust contests arise because beneficiaries believe the trustee is failing to perform responsibilities properly. The duties that a trustee holds include the following:

·        The Duty of Loyalty. Trustees must act in the interests of the beneficiaries rather than pursuing personal gain.

·        The Duty to Manage Assets Prudently. Trustees are responsible for managing trust property carefully and responsibly.

·        The Duty to Follow Trust Instructions. Trustees have to  administer the trust according to the terms established by the settlor.

·        The Duty to Provide Information. Beneficiaries typically are entitled to receive information and updates regarding the trust.

Some trust litigation involves a breach of these obligations. A breach of fiduciary duty occurs when a trustee violates legal obligations owed to the beneficiaries, whether that comes in the form of self-dealing or the misappropriation of trust funds.

Why Do I Need an Attorney for a Trust Challenge?

You’re never obligated to hire an attorney, but having the support of skilled legal counsel is crucial during trust litigation. These cases are complex, and relying on their guidance is helpful for the following reasons:

Evaluating the Strength of the Claim

Not every disagreement justifies a trust challenge. An attorney can review the facts, examine the trust documents, and determine whether legally sufficient grounds exist.

Gathering Critical Evidence

Whether you’re challenging a trust or fighting to uphold one, you’re going to need evidence that supports your side. Your attorney can review the relevant documents and identify other evidence that could support your claim.

Managing Complex Litigation

These cases are often far more serious than your average traffic ticket or fender bender claim. Estates can involve substantial resources, including invaluable family heirlooms and large real estate portfolios. Given the complexity of trust litigation, having an attorney who can manage these cases is in your best interest.

Answering Your Questions

If you aren’t involved in estate planning professionally, it’s natural for the process of trust disputes to be hard to understand. You’ll naturally have a lot of questions, and your attorney can provide you with the answers you deserve.

Negotiating Settlements

The reality of trust contests is that most of them never go to trial. While some claims are dismissed, it’s not uncommon for each side to come to a negotiated settlement and avoid litigation. Your attorney can negotiate on your behalf and help you get the outcome you deserve.

Preparing for Trial

Trial over trust conflicts might not happen very often, but it’s a good idea to always be prepared for them. Your attorney can proceed if a trial is a certainty, even if you hope to reach a settlement. This approach can make sure you’re never caught off guard should your case go to trial.

Common Mistakes During Trust Disputes

Unfortunately, it’s common for interested parties in trust disputes to make mistakes that harm their rights. This often comes in the form of waiting too long to act, as legal deadlines can quickly turn a winning case into a losing one.

Others assume that unfairness alone is enough to invalidate a trust. Your contest will only be successful if you can show that the trust is invalid or that the trustee has made some kind of unreasonable mistake, and evidence that the trust isn’t fair to you won’t be enough.

Emotion can get in the way in these cases, which makes it so important to have the support of strong legal counsel. Our team can review your case and help you avoid a major mistake.

Discuss Trust Challenges With Our Connecticut Attorneys

If you’re facing the possibility of a trust contest, now is the right time to talk with an attorney. The team at Disability Planning Partners can help you review your options and pursue the best possible outcome. Call today for a confidential consultation.

FAQ

Can a trust be challenged based on allegations of fraud or forgery?

Yes, fraud and forgery are recognized grounds for challenging a trust in Connecticut.

Who has legal standing to contest a trust in Connecticut?

Generally, only individuals whose legal or financial interests are affected by the trust have standing to challenge it. This may include beneficiaries, heirs, or individuals who would inherit under a prior trust or estate plan.

Can a trustee be removed by the court?

Courts may remove trustees who breach their fiduciary duties or otherwise fail to uphold their obligations to the beneficiaries. However, having a trustee removed requires strong evidence of inadequate management or bad behavior.

How long does a trust contest take?

There is no set amount of time for a trust contest to take, since every dispute is different. Some challenges are resolved in short order, while others can take years to play out in court.

What happens if a trust challenge is successful?

The specific outcome of the challenge varies depending on what the plaintiff is asking for. Some people seek the removal of the trustee or access to financial records, while others intend to terminate the trust entirely.