Are there options if you believe a loved one’s trust does not reflect their true intentions? Sometimes, that can happen after a person passes away. Something might seem off, and you have questions. Can a trust be contested in Wisconsin?
If you have standing, you may challenge the validity of a trust based on certain legal grounds. Here is what you need to know to understand your rights and act quickly.
Why Would You Contest a Trust?
There are several reasons why someone might challenge a trust. Many times, this happens when you’re a beneficiary. You may have been unexpectedly cut out or received less than expected. In these cases, you may suspect something was wrong when the trust was created. And you have the right to question it.
There are a few legal grounds for contesting a trust in Wisconsin, such as:
Lack of Capacity
The person who created the trust (i.e., the settlor) must have been of sound mind at the time. In situations where they were suffering from dementia, Alzheimer’s, or another cognitive impairment, they may not have understood what they were doing. In turn, that can make the trust invalid.
Undue Influence
Sometimes, a caregiver, family member, or even a close friend will pressure the person to change the trust in their favor. If someone manipulated or coerced them into altering their trust, you might have a case for undue influence.
Fraud or Misrepresentation
If the person was tricked or misled into signing a trust document, that is considered fraud. For example, if they were told the trust specified one beneficiary but designated another, the document may not hold up in court.
Improper Execution
Wisconsin law has rules about how trusts must be created. It could be challenged if the trust was not signed properly or failed to meet legal requirements.
Who Can Contest a Trust?
You need to have standing to challenge a trust. In these cases, that needs to be someone directly affected by it, such as:
- A beneficiary who was disinherited
- A family member who would have inherited under the state’s intestacy laws
How Long Do You Have to Contest a Trust in Wisconsin?
Like any legal action, you have a short deadline. These situations can fall into two categories under Wisconsin law:
- One year from the settlor’s death: If you did not receive any official notice about the trust, you’ll have up to one year to contest it.
- Four months after receiving notice: If the trustee sends you a formal notice about the trust and details about your rights, you only have four months to file a challenge.
Missing these deadlines could mean losing your chance to contest the trust.
How Do You Contest a Trust?
If you suspect something is wrong, you need to contact an attorney. Trust disputes are legally complicated, and there are formalities to follow.
First, you will need to file a petition in probate court. With that, you need to explain why you believe the trust is invalid.
After that, all beneficiaries and trustees must be informed about the challenge. This will give them an opportunity to respond.
You will want to keep all documentation about why you believe the trust is invalid. While some trust disputes can be resolved through negotiation or mediation, the case may go to trial.
What Happens If Your Trust Contest Succeeds?
If the court agrees that the trust is invalid, there are several possible outcomes. The judge might:
- Reinstate a previous version of the trust
- Distribute assets according to Wisconsin intestacy laws
- Modify the trust terms to reflect the settlor’s true intent
On the other hand, if the court upholds the trust, it will remain in effect. As a result, the assets will be distributed as specified in the trust document.
You Have Options to Contest a Trust
Can a trust be contested in Wisconsin? The answer is yes, but it is not always easy. You will want to reach out to an estate litigation lawyer to consider your next move.
Contesting a trust is an option if you believe that your loved one’s wishes were not honored. At Collins Law Firm, we offer estate planning, administration, business, and elder law services.
Our experienced estate planning team helps individuals like you to build and protect your legacy. Schedule your free and confidential consultation today by contacting us or calling (414) 207-6292.