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What to Do When a Sibling Contests a Trust in Ohio
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Inheritance Issues With a Sibling?
There are few things as stressful as the passing of one’s parent or another close relative. In addition to grieving the loss of a loved one, family members may find themselves dealing with sibling rivalry, resentment, disagreements over inheritance, or claims that a parent’s estate plan should not be followed.
If a sibling or another family member decides to contest a parent’s trust, it is important to understand what a trust contest involves, the grounds that may be asserted, and what may be required to defend the trust.
Already facing a trust challenge? Preserve the trust, amendments, notices, correspondence, estate planning records, and any court papers you have received. Deadlines may affect the available response.
What Is a Trust Contest?
A trust contest is a lawsuit in which someone objects to the validity of a trust established by the recently deceased, usually a loved one or close relative, such as a parent.
Only an individual with legal standing can file such a lawsuit. Legal standing generally means that the person bringing the case is personally affected by the outcome. This can include disinherited or disadvantaged heirs who might receive more if the challenged trust were not enforced.
Others with standing may include disinherited or disadvantaged beneficiaries, such as family members, friends, or charities named or that received a greater benefit in a previous version of a trust or will.
Ohio trust-contest deadlines matter. Ohio provides a limitation framework for certain revocable trusts made irrevocable by death: the challenge generally must be brought by the earlier of two years after death or six months after the trustee sends the trust and required notice. Missing an applicable deadline may prevent an objecting party from pursuing the challenge.
Ohio law also provides procedures through which certain estate planning documents may be validated during the creator’s lifetime. When that has occurred, it can materially affect a later challenge.
What Grounds May Be Used to Contest a Trust?
A trust challenge can be based on different legal and factual theories. The correct analysis depends on the trust documents, amendments, circumstances surrounding their creation, and applicable Ohio law.
1) Lack of Mental Capacity
Each state has legal standards governing whether a person had sufficient mental capacity when creating or amending a trust. The analysis can involve the person’s ability to understand the nature and effect of the document and the circumstances existing at the relevant time.
2) The Trust Does Not Meet Applicable Legal Requirements
A trust’s validity depends on the applicable law, the type of trust, and the circumstances in which it was created or amended. Do not assume that the signing requirements for a will automatically apply to every trust. An Ohio attorney should review the trust documents, any amendments, and the relevant legal requirements before determining whether an execution problem supports a challenge.
3) Undue Influence
Some people become physically or mentally vulnerable later in life and may be susceptible to outside pressure. A challenge may allege that someone improperly influenced estate-planning decisions.
Undue influence generally requires more than ordinary persuasion, disagreement, or family pressure. The facts surrounding the estate-planning decision are important.
4) Fraud
A trust challenge may also involve allegations that the person creating the trust was deceived about the document being signed, its provisions, or other material facts affecting the estate-planning decision.
What Happens When a Trust Contest Is Successful?
If a trust is successfully challenged and declared invalid, the court may determine that the challenged trust, or a particular amendment or provision, cannot be enforced.
Depending on the documents and circumstances, an earlier trust or another estate-planning instrument may then become important. In other situations, property may need to be administered under a different legal framework.
The result can significantly affect beneficiaries and may differ greatly from the distribution described in the challenged document.
A Trust Challenge Will Resolve Itself
It may be tempting to assume that a trust signed as part of an estate plan is automatically valid and that a sibling’s objections will go nowhere. That assumption isn’t always safe.
A meaningful response may require reviewing the trust and amendments, determining what law applies, identifying applicable deadlines, examining medical or financial evidence, evaluating communications surrounding the estate plan, and understanding what the challenger is actually alleging.
When family members disagree over a parent’s final wishes, the documents and surrounding facts often matter more than accusations made after the parent’s death.
Need Legal Help?
A disagreement over a trust requires a careful review of the documents, the allegations, and any applicable deadlines. HML Law can evaluate the issues involved in challenging or defending an Ohio trust and explain the next steps supported by your circumstances.
