Disputes over trusts can be emotionally and legally complex, especially when family members feel the terms are unfair or unclear.
At Casey Lundregan Burns, P.C., we have served Massachusetts families for generations and understand how these issues can affect both relationships and legacies.
If you are concerned about a loved one’s intentions or facing a potential dispute, understanding the grounds for contesting a trust is a key first step.
Lack of Capacity
Sometimes, a trust may be challenged because the grantor may not have been of sound mind when signing the document. The law generally assumes that a person creating a trust has the mental ability to do so. However, you can contest this if there is solid proof that the grantor, also known as the settlor, did not grasp the scope of their assets or the consequences of granting property to others.
A trust formed by an individual who cannot properly identify loved ones or understand their financial details may not hold up in court. Still, overcoming the presumption of capacity requires evidence like medical data or witness accounts showing the person struggled mentally at the time.
Indicators of Lack of Capacity
A lack of capacity can come to light through behaviors and statements observed near the trust signing. You might recall the grantor mixing up family members or becoming unable to handle daily tasks that once felt effortless. It is also relevant if the individual showed memory deficits or conditions such as late-stage dementia, advanced Alzheimer’s, or serious disorientation.
Health or neurological conditions can weigh heavily in this analysis. Unclear thought processes, confusion, or repeated misplacing of vital information can suggest a deteriorating mind. While a doctor’s affidavit is not demanded by law, medical records and credible witness affidavits often help show the degree of incapacity.
Legal Procedures for Contesting Based on Capacity
For wills, you must file a formal appearance before the court’s citation deadline, followed later by an affidavit of objections. With a trust, you would submit a complaint in the appropriate court, laying out the facts that hint at mental impairment when the trust was formed. It is also wise to seek a court order early to prevent the trust assets from being transferred while the challenge is pending.
Undue Influence
Undue influence is another central ground for contesting a trust. It means someone used coercive methods to override the grantor’s true intentions, usually to claim more benefits than they would naturally receive. This manipulation can be subtle but has a serious impact on fairness and the settlor’s free will.
A grantor may not show visible distress while signing the trust yet could still be subject to an abuser’s manipulation. When caregivers, financial agents, or others in a position of authority wield their power for personal gain, the trust setup might not reflect the grantor’s real wishes.
Signs of Undue Influence
Signs often involve a person isolating the grantor from supportive relatives. The influencer might make negative claims about friends or family to discourage visits. In many situations, the alleged influencer struggles financially and pressures the vulnerable grantor for money or property. We also see scenarios where someone quietly shifts assets to themselves using a power of attorney.
- The perpetrator has control over finances or caregiving
- The victim is cut off from family or close companions
- There is a sudden or unexpected change to the trust that favors the influencer
Burden of Proof and Fiduciary Relationships
In Massachusetts, when a fiduciary relationship exists and the influencer benefits from that trust instrument, the law may shift the duty to prove there was no undue influence onto the person accused. This shift can trigger early settlements or encourage more open conversations among the interested parties.
Because undue influence claims can shake close bonds, the court looks at these carefully. If the evidence is strong, the trust arrangement may be trimmed or invalidated to protect the original intent of the grantor.
Legal Procedures for Contesting Based on Undue Influence
Anyone aiming to challenge a will on undue influence must file a formal probate petition. The court then issues a citation, which is served to heirs and other interested parties. If you are contesting a trust, you will file a complaint in the Probate or Superior Court and request an injunction to keep assets from being moved. Affidavits from family members, friends, or healthcare providers can be crucial in documenting the manipulative tactics used.
Lack of Clarity or Ambiguity in Trust Terms
When a trust is poorly worded, beneficiaries may argue over how to read its provisions. If the language is too vague, the court might have to interpret the settlor’s likely aims. Such ambiguities can derail the administration of the trust, causing drawn-out arguments about the distribution of funds or property.
When the trust language is unclear, courts can use external evidence to figure out what the grantor truly wanted. In many circumstances, beneficiaries will file a petition asking the court to interpret confusing terms or possibly adjust them to meet the grantor’s intended goal. Even so, as soon as conflict arises, it is best to consult counsel and seek a court ruling rather than allow informal debates to linger.
Mismanagement of Trust Assets
Trustees have a responsibility to manage trust assets in good faith. This role includes using reasonable care and loyalty to preserve or grow the funds for the beneficiaries. If you notice possible theft, financial self-dealing, or misappropriation, it is wise to step forward early.
Examples might involve a trustee failing to adhere to guidance on investments, diverting trust income for personal expenses, or refusing to provide an accounting of transactions. A court can remove the trustee for breaching that fiduciary duty. Beneficiaries who believe the trustee has taken funds can file suit to seek restitution.
- Excessive fees or commissions charged by the trustee
- Failure to keep accurate records or provide reports
- Inaction occurs when the trust’s value drops due to avoidable risks
Disputes Over Beneficiary Rights
Beneficiaries rely on timely updates about distributions and asset management. Massachusetts law expects trustees to communicate relevant details, such as trust holdings and planned payouts, unless the trust states otherwise. If a trustee withholds basic data, you might have reason to challenge their leadership.
Friction among beneficiaries can also erupt if the trustee interprets distribution terms in an unfair way. Arguments often arise about dividing real property, deciding if distributions should be made in cash or securities, or clarifying how trust income is spent. Clear trust documents help avoid these disagreements, but if they do happen, beneficiaries can ask the court to weigh in.
Improper Trust Construction
A trust may fail if it was never built to succeed from the start. This might happen if legal signing rules were not met or if the trust setup goes against Massachusetts statutes on trust formation. Sometimes, the trust’s administrative costs exceed any monetary blessings it provides, leading to beneficiary frustration.
In a few instances, clarifications or corrections can salvage the trust. Other times, a court may decide the trust is no longer viable. This risk can be reduced by consulting estate planning advisors, ensuring correct paperwork, and complying with the rules.
Trust Purpose is Unlawful or Against Public Policy
If a trust tries to accomplish something banned under Massachusetts law, it is subject to challenge. For example, a trust that funds illegal activity is not valid, and its role cannot be upheld. The Uniform Trust Code emphasizes that a trust’s goals must not clash with local statutes or common law principles.
Trusts deemed to conflict with accepted norms may be reworked to remove the objectionable segment. If that is not possible, the trust may be void. This helps protect the community from trusts that operate in ways the law does not permit. While these cases are rare, they underline the necessity for trust documents that fit the law.
Trustee Violations of Trust Terms
A trustee must follow all written instructions in the trust. If they fail to make timely distributions, keep assets separate, or handle responsibilities as stated, the trust can face legal scrutiny. Situations where trustees direct money to themselves or withhold beneficiary checks can trigger legal action.
When trust terms are ignored, beneficiaries can sue for breach of duty and ask the court to remove the trustee. Courts can instruct the trustee to reimburse the trust for lost or diverted funds. In tough cases, a trustee might be found personally responsible for harm done to the trust.
Challenging the Validity of the Trust
Sometimes, family members may want to attack the trust as a whole. The usual claims include lack of capacity, duress, undue influence, or fraud. If a court declares the trust invalid, the property might pass under Massachusetts intestacy rules or under a previously signed trust or will.
It is also important to note that Massachusetts enforces deadlines for those who want to bring a challenge, so you should act promptly if you suspect any wrongdoing. Missing these deadlines can result in forfeited rights to contest the trust. If you have questions, it is wise to reach out quickly.
Discuss Your Trust Dispute with Casey Lundregan Burns, P.C.
Our firm has spent generations guiding Massachusetts families in trust and estate matters. Feel free to call us at 978-878-3519 or visit our Contact Us page if you want a discussion about your situation. We stand ready to work toward positive options that support your goals and help preserve what your family has built.
The information in this post is not intended as legal advice or as a substitute for the particularized advice of counsel. For more information, please consult an attorney.