When Can a Trust Be Contested in Virginia?
Trusts play a significant role in estate planning, helping individuals manage and distribute their assets efficiently after death. Trusts are often used to bypass the probate process, ensure privacy, and protect a family’s wealth.
Trusts usually have the effect of reducing disputes between a decedent’s heirs and beneficiaries, but conflicts can still arise. Read on to learn when you can contest a trust in Virginia to safeguard your rights as a beneficiary or resolve a family dispute. But, beware of the traps for the uninformed.
What Does It Mean to Contest a Trust?
Contesting a trust generally means challenging its validity in court, but other acts may also trigger a no-contest clause, such as challenging the transfer of property to the trust. This process often involves filing a lawsuit against the trust or its administrators and arguing that the trust was improperly created or managed.
Trust contests are serious legal disputes and typically focus on whether the trust creation complied with legal requirements when it was created, or whether the instrument truly reflects the grantor’s intentions. When you contest a trust, the court will carefully evaluate its formation, the circumstances surrounding its creation, and the evidence presented by all the parties involved.
Who Can Contest a Trust in Virginia?
In Virginia, not everyone can contest a trust. Only individuals with a direct financial interest in the trust have the legal standing to challenge it. This group generally includes:
- Beneficiaries named in the trust; and
- Heirs who would have inherited if the trust did not exist.
Courts will typically dismiss claims made by any individual without a clear financial interest in the trust. This ensures trust contests are only allowed for legitimate grievances rather than frivolous disputes.
Grounds for Contesting a Trust in Virginia
Only certain circumstances can give rise to a legitimate trust contest in Virginia. These include:
Lack of Capacity: You can contest a trust if the grantor (the person who created the trust) lacked the mental capacity to understand the implications of their actions when creating or modifying the trust. According to Virginia Code § 64.2-753, a grantor must fully comprehend the following:
- The nature and extent of their assets.
- The intended beneficiaries of the trust.
- The consequences of establishing or amending the trust.
If a grantor suffered from dementia or another cognitive impairment at the time of signing, their capacity may be questioned, potentially invalidating the trust.
Undue Influence: Undue influence occurs when someone manipulates or pressures the grantor into creating or changing a trust in a way that does not reflect their true intentions. In Virginia, courts often look for signs of coercion, such as isolation of the grantor, drastic changes in the trust, or unusual behavior by a caregiver or family member.
Fraud or Forgery: A trust is invalid if it was created or altered through fraudulent misrepresentation or if the grantor’s signature was forged. For example, if someone lied about a beneficiary’s intentions or altered trust documents without permission, those actions could be grounds for a legal challenge.
Violation of Virginia Law: Virginia law requires that trusts meet specific formalities. A trust can be declared invalid if improperly executed, such as lacking the required signatures or witnesses.
How to Contest a Trust
Contesting a trust in Virginia typically involves the following steps:
Step 1: Consult an Attorney and DO NOT tell anyone you intend to contest the trust.
Many trusts contain “No Contest” Clauses, which are also known as “in terrorrem” clauses (because they supposedly strike fear into the heart of the beneficiary.) They are disinheritance mechanisms. If you run afoul of the no-contest clause, then the Trust will treat you as if you and your kids had predeceased the decedent. But, a Trustee might be tempted to leverage the no contest clause inappropriately. Trustees tend to interpret no contest clauses as license to act like a king, which they are not. The Trustee role is better understood as a servant of the decedent and the beneficiaries, with strict standards for their conduct, and obligations for how they must act on behalf of the beneficiaries. Consulting with an attorney will help you figure out where you stand along the continuum of rights.
Step 2: Filing a Lawsuit
The next step in contesting a trust is filing a formal complaint in the appropriate Virginia court. This complaint should outline your legal standing, the grounds for the challenge, and the evidence supporting your claim. An experienced attorney can help you prepare this crucial document to ensure your case is presented correctly.
Step 3: The Court Proceedings
Once the lawsuit is filed, the court will review the evidence and hear arguments from all parties involved, including the trustee, beneficiaries, and any other interested individuals. The judge’s primary role is determining whether the trust complies with Virginia law and whether any grounds for contesting the trust are valid.
Step 4: The Time Limits
Virginia law imposes strict deadlines for trust contests. Generally, you must file your claim within the following time limits:
- Within two years of the grantor’s death, or
- Within six months after the trustee sends you a copy of the trust instrument and a notice informing you of the trust’s existence, of the trustee’s name and address, and of the time allowed for commencing a proceeding
Whichever comes earlier.
Failing to meet these deadlines could prevent your case from being heard, even if you have legitimate grounds to contest.
When Should You Contact a Virginia Estate Planning Attorney?
If you believe a trust is invalid or that you have been wrongfully excluded, contacting a Virginia estate planning attorney is essential. These professionals can review your case, explain your legal standing, and help you determine whether contesting the trust is the right decision.
The laws governing trusts in Virginia can be intricate and overwhelming. An experienced attorney understands the nuances of these laws and can guide you through the legal process. From filing the paperwork to presenting evidence in court, a skilled Virginia estate planning attorney can ensure your case is strong and your rights are protected.
Contact an Experienced Virginia Estate Planning Attorney Today
If you believe a trust is invalid or have questions about your inheritance rights, do not wait. Any delay can jeopardize your ability to protect your financial future. Contacting a knowledgeable estate planning attorney promptly can ensure you stay within the legal deadlines and get the help you need.
Contact our law firm today at (703) 553-2577 or use the contact form to consult an experienced Virginia estate planning attorney, and to clarify your legal options and gain peace of mind.
The information on this site is for general informational purposes only. The information presented in this site is not legal advice or a legal opinion. You should seek the advice of legal counsel of your choice before acting upon any of the information in this site.