Like a Last Will and Testament, a Trust is an important component of an estate plan that is often created after careful consideration of what someone owns and who should receive the property, or receive dividends from its management, after the grantor’s death. When incapacity, undue influence, or duress alter the terms of a Trust, the grantor’s original wishes are not honored. Interested parties must understand their rights to challenge the validity of documents that may have been created or substantially altered under exceptional circumstances, such as undue influence or duress. If you are concerned that undue influence or other tactics for illegal manipulation may have played a part in a loved one’s Trust administration, consider contacting a knowledgeable Trust litigation lawyer from Harrison Law, PLLC for assistance. You can reach us by calling (480) 320-2310.
How Incapacity, Undue Influence, or Duress Affect Estate Plans
Wills, Trusts, and other estate planning documents provide important instructions and powers. For them to be legally valid, the person executing them must have legal capacity and must have them created of their own volition.
According to the Arizona Revised Statutes, there is a rebuttable presumption that a person who executes an estate planning instrument like a Last Will and Testament or Trust has capacity and has created the document free from excessive influence or duress. However, this presumption can be overcome by a preponderance of the evidence. If an interested party can provide compelling evidence that the grantor or testator was suffering from incapacity or operating under undue influence or duress at the time the relevant document was created and signed, the document may be declared invalid.
What Is Incapacity in the Context of a Trust?
Arizona Revised Statutes § 14-10402(A)(1) specifies that a Trust is only valid if the grantor has testamentary capacity at the time of the Trust’s creation. Testamentary capacity is a legal term referring to the cognitive ability and mental state necessary for clear, informed, rational decision-making. This type of capacity is traditionally as well as legally considered necessary for someone to grant informed consent to a variety of procedures, and also for them create a valid Will or Trust. In the context of Trusts specifically, testamentary capacity requires that the person making the Trust:
- Understands the instrument disposes of their property at death
- Knows the general nature and character of their property
- Knows who would logically inherit the property and their relationship to them
Testamentary Capacity and Medical Conditions
Testamentary capacity does not rely on whether a person has been diagnosed with a particular medical condition, or any medical condition at all. People may have testamentary capacity if they are lucid even if they have a serious illness; they can also lack it because they are temporarily under the influence of prescription medication, even if they have not been diagnosed with a serious medical condition. The relevant consideration is whether the person meets the requirements listed above at the time they sign the Will or Trust.
Incapacity and Legal Challenges
Trusts themselves may also specify the level of capacity necessary to create or administer a Trust. A Trust document may also establish criteria that may be used to determine testamentary capacity, or state that the grantor is to be considered incapacitated under certain circumstances, such as if their primary care physician and another doctor certify this to be the case.
If a loved one suspects that the grantor did not have capacity at the time of signing the Trust agreement, they may challenge the validity of the instrument on grounds of incapacity. If the grantor is found not to have had the requisite capacity, the Trust can be cancelled. However, it is up to the person challenging the validity of the Trust to provide evidence of lack of capacity.
What Is Undue Influence?
Undue influence occurs when someone overmasters the volition of the creator of the instrument through their power over the creator so that the instrument conforms to the influencer’s direction. Arizona courts consider many factors when determining whether a Trust or other estate planning document was subject to undue influence, including the following:
- Whether there was a confidential relationship between the influencer and grantor
- Whether the influencer lied or made fraudulent representations to the grantor
- Whether the document was signed quickly, without much time to review or consider it
- Whether the execution was hidden from others
- Whether the influencer played an active role in having the Trust prepared and executed
- Whether the grantor was vulnerable to undue influence
- Whether the provisions in the Trust were unreasonable, given the grantor’s circumstances, attitudes, views, and family
- Whether there was a close or confidential relationship between the influencer and grantor
- Whether the Trust was consistent with prior plans or versions of the Trust
Who Benefits From Undue Influence?
For an influence to be considered “undue,” it must be of such a nature and level that the grantor disregards their own desires and follows the influencer’s directions instead. The Arizona Revised Statutes specifically state that an instrument is presumed to be affected by undue influence if a person who had a confidential relationship to the person making the instrument was active in helping make and execute the document and is also a principal beneficiary of that document or is the preparer of the Will or Trust. There is also a presumption of undue influence when the preparer’s spouse is a principal beneficiary of the Will or Trust, or when the preparer’s children or parents are principal beneficiaries of the relevant document.
What Is Duress?
Duress that is imposed on a grantor to the extent that it causes them to do something against their will or judgment can void a Will or Trust. Duress typically involves the use of threats or violence. Under the Arizona Revised Statutes, Trusts can be voided in full or part if they are made under duress, fraud, or undue influence.
How an Estate Planning Lawyer Can Help
An Estate Planning lawyer from Harrison Law, PLLC can assist you with a claim regarding undue influence, incapacity, or duress. Some ways Estate Planning and Trust litigation lawyers may help include:
- Explaining your legal rights and options
- Securing medical evidence or testimony, if relevant
- Answering your questions
- Investigating your claims
- Interviewing witnesses
- Conducting formal discovery to obtain additional evidence
- Filing a contest of a Trust or other testamentary instrument
- Making legal arguments and filing pleadings and motions
- Taking your case to court, or determining if there is a way to resolve the dispute out of court
Contact an Experienced Estate Planning Lawyer for Help
Unduly influencing, imposing duress, or getting a person who is not of sound mind to make changes to their estate plan is wrong. If any of these factors have affected your loved one, you deserve to understand the legal options available to try to make things right. If you are concerned that undue influence, incapacity, or duress has affected your loved one’s estate plan, consider contacting an experienced Trust litigation lawyer from Harrison Law, PLLC for help. You can reach us at (480) 320-2310 to schedule your confidential consultation.
© 2023 Matthew W. Harrison and Harrison Law, PLLC All Rights Reserved
This website and article have been prepared by Harrison Law, PLLC for informational purposes only and does not, and is not intended to, constitute legal or financial advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.
