What Are The Basics Of Contesting A Trust In Boca Raton Florida

July 31, 2024 – Web Support

A trust contest may arise when a beneficiary believes a trust does not reflect the true intentions of the person who created it, due to factors like lack of mental capacity or undue influence at the time the trust was created or modified.

This blog, from a knowledgeable and experienced trust litigation attorney, provides an overview of the process to contest a trust in Boca Raton, Florida. Continue reading to learn more, then contact us at (561) 393-6005(561) 393-6005 to schedule a consultation.

What is a Trust?

A trust is a legal arrangement where one party, known as the grantor or settlor, transfers assets to a trustee to manage for the benefit of beneficiaries. Trusts are often used in estate planning to manage and distribute assets according to the grantor’s wishes while potentially avoiding probate.

Types of trusts include testamentary trusts, which are created through a will and take effect after the grantor’s death, and living trusts, which are created during the grantor’s lifetime. Living trusts can be revocable, meaning they can be altered or revoked by the grantor during their lifetime, or irrevocable, that is, once established, they cannot be altered or revoked without the consent of the beneficiaries.

A trust dispute may arise concerning the validity of a trust document, the administration of the trust, or the distribution of the trust assets, including proceedings to:

(a) Determine the validity of all or part of a trust;
(b) Appoint or remove a trustee;
(c) Review trustees’ fees;
(d) Review and settle interim or final accounts;
(e) Ascertain beneficiaries; determine any question arising in the administration or distribution of any trust, including questions of construction of trust instruments; instruct trustees; and determine the existence or nonexistence of any immunity, power, privilege, duty, or right;
(f) Obtain a declaration of rights; or
(g) Determine any other matters involving trustees and beneficiaries.

Standing to Contest a Trust

As an experienced trust litigation attorney knows, to contest a trust in Florida, you must have standing, meaning a direct interest in the trust, such as a beneficiary or trustee. Those who typically have standing include:

• Interested Persons. Under the Florida Trust Code, an interested person may petition the court regarding a trust.
• Beneficiaries, including contingent beneficiaries. The Florida Trust Code defines a “beneficiary” as a person who has a present or future beneficial interest in a trust, vested or contingent, or who holds a power of appointment over trust property in a capacity other than that of trustee.
• Trustees.
• Settlors. The settlor (also known as the grantor or trustor) has standing to sue concerning the trust while the trust remains revocable. Once the trust becomes irrevocable, the settlor typically loses standing unless they retain an interest in the trust or specific powers under the trust document.
• Creditors. In some circumstances, creditors may have standing to sue a trustee to the extent necessary to reach trust assets to satisfy a debt or judgment against the trust or the settlor.

A Trust Litigation Lawyer Explains the Grounds for Contesting a Trust

To successfully contest a trust, you must have valid grounds. For example, Florida provides that: “If the creation, amendment, or restatement of a trust is procured by fraud, duress, mistake, or undue influence, the trust or any part so procured is void.”

Common grounds to contest a trust include:

• Lack of capacity: A party may contest a trust on the grounds that the grantor lacked the capacity to understand the implications of creating or modifying the trust.
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  The standard for a settlor’s capacity to create, amend, revoke, or add property to a revocable trust is the same as the standard for a testator’s capacity to create a will under Florida law. That is, a settlor has capacity to create a revocable trust if they are over the age of 18 and of sound mind. Soundness of mind requires that the settlor understand: i) the nature and extent of the property to be disposed of; ii) their relation to those who would naturally inherit from them; and iii) the practical effect of the document they are executing.
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• Undue Influence: A party seeking to contest a trust might also argue that someone exerted excessive pressure on the grantor to change the trust in their favor. If a trust is the product of undue influence, then the trust, or the relevant portion of the trust, is invalid.
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  A trust is presumed to be the result of undue influence if the person alleged to have exerted such influence is a substantial beneficiary of the trust, had a confidential relationship with the settlor, and actively procured the document.

The Florida Supreme Court has identified a set of criteria to consider in evaluating whether a beneficiary “actively procured” the document at issue. These factors were established in In re Estate of Carpenter, 253 So. 2d 697 (Fla. 1971), and have been widely used to assess claims of undue influence.

The non-exclusive criteria considered in determining whether undue influence has been exerted include:

1. The presence of the beneficiary at the time the trust was executed.
2. The presence of the beneficiary at the time the settlor expressed a desire to create the trust.
3. A recommendation by the beneficiary of an attorney to draft the trust.
4. Knowledge of the contents of the trust by the beneficiary prior to its execution.
5. Giving of instructions on preparation of the trust by the beneficiary to the attorney drafting the trust;
6. Securing witness to the execution of the trust by the beneficiary;

If undue influence is proven, the trust may be declared invalid, either partially or in whole, depending on the extent of the undue influence. The burden of proving undue influence generally lies with the person challenging the validity of the document, but if a confidential relationship is established, the burden may shift to the proponent of the will or trust to prove that there was no undue influence.

• Fraud or Duress: A party contesting a trust might argue that the trust was procured by fraud or duress, rendering the trust void and unenforceable.
• Improper Execution: Florida law requires certain formalities for a trust to be valid. A party challenging a trust might argue that the trust’s execution fails to meet these formal requirements, such as proper execution, witnessing, or notarization, rendering the trust invalid or unenforceable.
• Revocation: If the grantor revoked the trust before their death, it may no longer be valid. Evidence of revocation might include written and signed statements by the grantor revoking the trust and/or statements from individuals who witnessed the revocation.

Procedure for Contesting a Trust

The process of contesting a trust involves several key steps:

• Filing a Complaint: The process to contest a trust begins with filing a complaint in the circuit court. Venue is proper in any county where venue is proper under general venue principles under Chapter 47, Florida Statutes, as well as “any county where the beneficiary suing or being sued resides or has its principal place of business” or “the county where the trust has its principal place of administration.”
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  The complaint should set out:
  • • Standing: The plaintiff’s interest in the trust, such as a beneficiary or a trustee.
    • Grounds for Contesting: The reasons the plaintiff believes the trust is invalid, such as undue influence or lack of capacity.
    • Requested Relief: The relief sought by the plaintiff, e.g., invalidating the trust.

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• Discovery: The discovery process involves gathering evidence to support the grounds for contesting the trust. This can include documents requests, interrogatories, requests for admissions, and depositions.
• Mediation and Settlement: Before going to trial, many trust disputes are resolved through mediation, which involves a neutral third party aiding the party in reaching an amicable resolution of the dispute. If a settlement is reached, the terms will be documented, and the court will typically approve it.
• Trial: If mediation fails or the case does not resolve by settlement, the case proceeds to trial.
• Post-Trial and Appeals: If a party is dissatisfied with the trial court’s decision, they can file post-trial motions to address issues that arose during the trial. They can also appeal the decision to the appropriate appellate court, which will review the trial court’s decision for legal errors.

When Assets are at Stake, You Can Rely on the Law Offices of Daniel A. Seigel, P.A. to Provide Exceptional Representation in Trust Disputes

When you’re seeking to contest a trust in Boca Raton, Florida, look no further than the Law Offices of Daniel A. Seigel, P.A., where our trust litigation attorneys place a premium on providing a concierge level of service, accessibility, responsiveness, and value for every client. Our firm was founded on several guiding principles that will always be hallmarks of our practice: zealous representation, extreme responsiveness, and unmatched value.

No one will work harder on your trust dispute — period. Attorney Seigel treats every matter as if it were his own. That means “dropping everything” to have a weekend meeting, taking a client’s phone call at 2:00 a.m., and being over-prepared for every deposition, hearing, and trial. Attorney Seigel responds to all phone calls, e-mails, and letters within 12 hours of receipt. Attorney Seigel’s clients know that he is accessible 24/7, and they will always have his undivided attention and feel that they are his most important client because they are. Our law firm offers competitive, billable rates and does not charge for paralegal time and internet research.

Looking for a seasoned trust litigation attorney? Contact us to schedule a consultation at (561) 393-6005(561) 393-6005 or complete our online form.

The Law Offices of Daniel A. Seigel, P.A. ~ When Assets are at Stake

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The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting based on any information included in or accessible through this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country, or other appropriate licensing jurisdiction.

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2600 N. Military Trail, Suite 260
Boca Raton, FL 33431
(561) 393-6005(561) 393-6005
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