Like many other estate planning documents, it is possible to challenge a living trust. Those who have a financial interest in the trust — whether that means getting assets or losing money that would otherwise go to them — may be able to challenge it.
However, that does not mean that a trust can get overturned simply because someone does not approve of the financial impact. There has to be a valid reason for the challenge. A few potential reasons include:
- The person who created the trust was not mentally competent at the time. This could happen because of Alzheimer’s or a similar disease. Aging can have a drastic impact on a person’s mental capacity and decision-making ability.
- The trustee did not use the trust properly, and there was a breach of fiduciary duty. Trustees have to manage the trust properly and in accordance with the wishes of the person who created the trust, even when that person can no longer participate in this process.
- The person who drafted the trust was influenced by outside factors. There may be undue influence from a caregiver or another family member. For instance, a caregiver could abuse their position of power to force the person to create a trust that specifically benefits them at the expense of other beneficiaries and family members.
Living trusts are useful when drafted properly, but things can become more complicated than intended. Those who are involved in the process, especially during a dispute, need to make sure they fully understand all of their legal options. A Florida estate planning attorney can provide more information.