How to Contest a Trust in Florida

Contesting a trust in Florida is a legal process that challenges the validity of a trust instrument or specific amendments to it. Unlike contesting a will, which takes place within the probate process, a trust contest is a separate legal proceeding that is typically filed in the circuit court of the county where the trust is being administered. At the Law Offices of Albert Goodwin, PA, we represent beneficiaries, heirs, and other interested parties in trust contests throughout Miami-Dade County, Broward County, and Palm Beach County. Below is a step-by-step overview of how to contest a trust in Florida.

Step 1: Determine Whether You Have Standing

Before you can contest a trust in Florida, you must have legal standing, meaning you must be a person who has a sufficient legal interest in the trust to bring the challenge. Not everyone who is unhappy with a trust has the right to contest it. Under the Florida Trust Code (Florida Statutes Chapter 736), the following parties generally have standing:

Current beneficiaries. Persons who are named as beneficiaries in the current version of the trust instrument and who stand to be affected by the outcome of the contest have standing to challenge the trust.

Beneficiaries under a prior version. If the trust was amended or restated, persons who were beneficiaries under a prior version of the trust may have standing to challenge the amendment or restatement. If the contested amendment is invalidated, the prior version of the trust would be reinstated, and the earlier beneficiary's interest would be restored.

Heirs at law. The settlor's heirs who would inherit under Florida's intestacy statutes if the trust were declared entirely invalid may have standing, because they would benefit from the trust's invalidation.

Other interested parties. In certain circumstances, the personal representative of the settlor's estate, creditors of the settlor, or other parties with a financial interest affected by the trust may have standing.

If you are not sure whether you have standing, it is essential to consult with an experienced trust litigation attorney before taking any action. Filing a trust contest without proper standing will result in the case being dismissed, and you may be responsible for the other parties' attorney's fees.

Step 2: Identify the Grounds for Contesting the Trust

A trust cannot be contested simply because you are unhappy with its terms or believe the distribution is unfair. Florida law requires specific legal grounds to invalidate a trust or a trust amendment. The most common grounds include:

Lack of Mental Capacity

A trust is valid only if the settlor had the mental capacity to understand the nature and effect of the trust at the time it was executed. The standard for testamentary capacity in Florida requires that the settlor understood the nature and extent of their property, knew the natural objects of their bounty (the persons who would normally be expected to inherit), and understood the legal effect of signing the trust document. If the settlor was suffering from dementia, Alzheimer's disease, the effects of medication, or another condition that impaired their cognitive function at the time they executed or amended the trust, the trust or amendment may be invalid.

Undue Influence

Undue influence occurs when a person in a position of trust or authority exerts pressure on the settlor that overcomes the settlor's free will and causes the settlor to create or amend the trust in a way that benefits the influencer. Florida courts consider factors such as the influencer's presence at the execution of the trust, involvement in selecting or communicating with the drafting attorney, isolation of the settlor from family and friends, and a sudden change in the estate plan that disproportionately benefits one person.

Under Florida law, if a substantial beneficiary was in a confidential relationship with the settlor and was active in procuring the trust instrument, a presumption of undue influence arises, and the burden shifts to that beneficiary to prove the trust was not the product of undue influence.

Fraud

A trust may be contested if the settlor was deceived into executing it. Fraud in the inducement occurs when someone makes false statements that cause the settlor to create or amend a trust they would not otherwise have created. Fraud in the execution occurs when the settlor is deceived about the nature of the document they are signing.

Duress

A trust executed under duress, meaning the settlor was threatened or coerced into signing, is voidable. Duress claims may arise in cases involving elder abuse or domestic violence.

Improper Execution

Under F.S. § 736.0403, certain formalities may be required for a valid trust, particularly trusts that hold real property or that serve as will substitutes. If the trust instrument was not properly signed, witnessed (where required), or notarized, or if there is evidence that the settlor's signature was forged, the trust may be invalid.

Step 3: Act Within the Statute of Limitations

Timing is critical in a trust contest. Florida law imposes deadlines that vary depending on the nature of the claim and when the interested party received notice of the trust.

Under F.S. § 736.0604, after the settlor's death, the trustee may send a notice of trust to qualified beneficiaries. This notice informs beneficiaries that the trust has become irrevocable and provides information about the trustee and the beneficiary's right to request a copy of the trust instrument. Once a beneficiary receives this notice and a copy of the trust, the clock begins to run on any challenge to the trust's validity.

While the Florida Trust Code does not establish a single, uniform statute of limitations for all trust contests, courts have applied various limitations periods depending on the specific claim. Actions based on fraud are generally subject to a four-year statute of limitations under F.S. § 95.11(3)(j). Actions based on undue influence or lack of capacity may be subject to similar periods, depending on when the claimant knew or should have known of the grounds for the contest. Delay can result in the claim being barred by the applicable statute of limitations or by the equitable doctrine of laches.

Because the deadlines can be short and the consequences of missing them are severe, you should consult with a trust contest attorney as soon as you suspect that a trust may be invalid. Do not wait to investigate or gather evidence before seeking legal advice.

Step 4: File the Trust Contest in Circuit Court

A trust contest in Florida is filed in the circuit court of the county where the trust is being administered or where the trustee resides. Unlike a will contest, which is filed in the probate division, a trust contest is a separate civil proceeding, although it may be assigned to a probate judge or a circuit judge depending on the local court's procedures.

The trust contest is initiated by filing a complaint or petition that identifies the parties, describes the trust at issue, states the grounds for the contest, and requests the specific relief sought (such as invalidation of the trust, invalidation of a specific amendment, removal of the trustee, or an accounting). The complaint must be served on the trustee and all other interested parties in accordance with Florida's rules of civil procedure.

In some cases, the trust contest may be consolidated with other trust proceedings that are pending in the same court, such as proceedings for trustee removal, breach of fiduciary duty, or trust construction. Consolidation can promote efficiency and prevent inconsistent rulings on related issues.

Step 5: Engage in Discovery

After the trust contest is filed, both sides engage in discovery, the formal process of gathering evidence. Discovery in a trust contest may include:

Depositions. Oral testimony taken under oath from witnesses, including the attorney who drafted the trust, the witnesses who were present at the execution, the trustee, family members, caregivers, physicians, and other persons with knowledge of the settlor's mental state, the circumstances surrounding the creation or amendment of the trust, and the alleged wrongdoer's actions.

Interrogatories. Written questions served on the opposing party that must be answered under oath. Interrogatories are used to identify witnesses, documents, and factual contentions.

Requests for production of documents. Requests for relevant documents, including the trust instrument and all prior versions, correspondence between the settlor and the drafting attorney, the settlor's medical records, financial records, and any other documents that bear on the settlor's capacity, the existence of undue influence, or other grounds for the contest.

Requests for admission. Requests that the opposing party admit or deny specific factual statements, which can narrow the issues for trial and establish undisputed facts.

Subpoenas. The parties may issue subpoenas to third parties, such as banks, hospitals, physicians, and care facilities, to obtain records that are relevant to the trust contest.

Discovery in trust contests often focuses heavily on the settlor's medical records and the circumstances surrounding the preparation and execution of the trust. The drafting attorney's file is frequently a critical source of evidence, although the attorney-client privilege may need to be addressed, as the privilege generally does not survive the settlor's death with respect to disputes among the settlor's successors.

Step 6: Consider Mediation or Settlement

Many trust contests are resolved through mediation or settlement before trial. Florida courts frequently require the parties to participate in mediation as part of the case management process. Mediation is a confidential, non-binding process in which a neutral mediator helps the parties negotiate a resolution.

Settlement can be advantageous for all parties because trust litigation is expensive, time-consuming, and emotionally draining. A negotiated resolution may allow the parties to reach a compromise that partially satisfies everyone's interests, preserve family relationships that might be destroyed by a contested trial, avoid the uncertainty of a judicial decision, and reduce the legal fees and costs that would otherwise deplete the trust assets.

Any settlement of a trust contest should be carefully drafted and may require court approval, particularly if the settlement affects the interests of minor beneficiaries or other parties who are not directly participating in the negotiations.

Step 7: Trial and Remedies

If the trust contest is not resolved through mediation or settlement, the case proceeds to trial. Trust contests in Florida are tried before a judge (bench trial) rather than a jury, unless a jury trial is available and demanded under the specific circumstances of the case. The party challenging the trust generally bears the burden of proof, unless a presumption of undue influence has been established, in which case the burden shifts to the party defending the trust.

If the court finds that the trust or a trust amendment is invalid, several remedies may be available:

Invalidation of the trust or amendment. The court may declare the entire trust invalid or invalidate only the contested amendment. If an amendment is invalidated, the prior version of the trust is reinstated. If the entire trust is invalidated, the trust assets may pass under the settlor's will or, if there is no will, under Florida's intestacy statutes.

Reformation or modification. In some cases, the court may reform or modify the trust to carry out the settlor's probable intent, rather than invalidating it entirely.

Constructive trust. The court may impose a constructive trust on assets that were wrongfully obtained through fraud, undue influence, or other misconduct, requiring the wrongdoer to return the assets to the rightful beneficiaries.

Trustee removal and surcharge. If the trustee participated in or facilitated the wrongdoing, the court may remove the trustee and surcharge them for any losses caused by their misconduct.

Attorney's fees. Under F.S. § 736.1004, the court may award attorney's fees and costs in trust proceedings. The court has broad discretion to determine which parties should bear the cost of the litigation, and fees may be paid from the trust assets or charged to a specific party depending on the circumstances.

Contact a Florida Trust Contest Attorney

If you believe a trust was created or amended through undue influence, fraud, lack of capacity, or other improper means, you have the right to challenge it in court. However, trust contests are complex, time-sensitive, and require experienced legal representation. At the Law Offices of Albert Goodwin, PA, we have extensive experience representing clients in trust contests and trust litigation throughout South Florida. Our office is located at 121 Alhambra Plz #1000, Coral Gables, FL 33134. Call us at 786-522-1411 or email us at [email protected] to schedule a consultation about your case.