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Steps to Challenging a Trust for Lack of Mental Capacity of the Grantor
A trust offers many benefits when it comes to estate planning. Depending on how it is set up, it can help reduce the estate tax burden, avoid probate, and make it easier and faster for beneficiaries to get their inheritances after the grantor passes. Putting some of your assets in a trust can also reduce the risk of disputes regarding your estate, but it is not guaranteed. Challenging a trust is possible, and the grantor’s suspected lack of mental capacity is one valid reason. Trust litigation may be an option if you are a beneficiary who believes a trust is invalid because of the grantor’s mental state when it was created. The following steps will help you know what to expect and what to do if you pursue this path.
1. Understand the Legal Definition of Mental Capacity
Before you can challenge a trust based on a lack of mental capacity of the grantor, you first need to understand how the courts define mental capacity. According to the California Probate Code, the legal definition of mental capacity is that the person can communicate, which can be verbally or through some other means, and understands and appreciates the decisions they’re making. This includes understanding the “rights, duties, and responsibilities” that are affected or created by the decision and the “probable consequences” of the decision, including any benefits or risks.
Potential factors that could affect a grantor’s mental capacity include the presence of any memory-related or cognitive disorders, such as dementia or Alzheimer’s, or a mental health condition, such as schizophrenia. Medical and mental health conditions may only affect mental capacity for a short time. For example, if someone is under the influence of medication that makes them confused or disoriented, they may have a lack of mental capacity at that time but are fine once the drug has been stopped. It is also possible for undue influence to affect mental capacity if the grantor is being pressured by others to create or change a trust.
2. Gather Evidence of the Grantor’s Mental State
To successfully challenge a trust based on the grantor’s lack of mental capacity, you will need compelling evidence of the grantor’s mental state at the time the trust was created or altered. It can be challenging to find out if the trust was created many years ago or if you were not aware of the trust until after the grantor passed. However, the more documentation you have, the better your chances will be in court. Medical records showing that the person had a medical or mental health condition or was under the influence of altering medication at the time can help. Journals, other estate planning documents, and testimony from those who knew the grantor well may also help strengthen your case.
3. Meet With a Trust Litigation Attorney
When you are considering challenging a trust, it’s essential to talk with a trust litigation attorney as early in the process as possible. This ensures you understand whether you have grounds to challenge the trust and the strength of your case, and it can help you know what to expect from the process and be prepared for potential consequences, such as strained relationships with family members. A trust litigation attorney can also help you identify and obtain records and other documentation that can help support your case.
4. File a Petition With the Probate Court
Once you are ready to move forward, the first official step to challenging a trust is to file a petition with the probate court for the county where the trust is being administered. The petition will include information such as the name of the petitioner, the trustee, any other beneficiaries, and details on the specific trust in question. It will also include the petitioner’s relationship to the grantor to establish that the petitioner has a legal interest in the trust and their grounds for contesting the trust. The petition will also generally include what the petitioner is requesting, whether that is removing the trustee or invalidating the trust entirely.
Once the petition is filed, you will have the chance to argue your case before a judge. They will make the decision based on whether there is enough evidence to show the grantor lacked mental capacity and, if so, whether to grant the petitioner’s request for relief. It is also possible for trust litigation cases to be settled out of court through mediation or similar processes.
5. Prepare for All Possible Outcomes
Trust disputes can be challenging, as they may strain family relationships as people are already dealing with their grief. When you challenge a trust, it is essential to ensure you understand and are prepared for all of the possible outcomes. This includes the possibility that a judge may uphold the trust and whether you will want to appeal the decision. An attorney can help you prepare for any possibility and guide you through each step until the case is resolved.
If you have doubts about the grantor’s mental capacity when creating or modifying a trust, a trust litigation attorney can explain your options and help you get the process of challenging the trust started. At Yonano Law Offices, P.C., we work with clients throughout Northern California, offering a variety of legal services for probate and trust litigation. Reach out by calling our office at 916-894-8790 to find out how we can help.
