Most people know that under certain circumstances a Last Will and Testament may be contested by those with standing to contest. A person who has standing to challenge a will is typically someone who is named on the face of the will (such as the beneficiary) or someone who is not the beneficiary, but who would inherit (or lose) under the will if the will is deemed invalid.
Similarly, a trust may also be contested; however, due to the private nature of trusts, a person with standing to contest it may not even know of its existence. A trust is an instrument that does not go through probate like a will does. If someone you know passes away and after a period of time, there is no information about a will, you may have to check with the estate attorney to determine if a trust exists. If you determine that you were left out of a trust, you may be able to contest it if you can show any of the following grounds:
-the Grantor was not of sound mind when the trust was created;
-the Grantor was under duress or undue influence to create the trust;
-the trust was not properly executed according to Maryland state law;
-the trust was properly revoked; or
-the trust was superseded by a valid will.
In Maryland, while a grantor is alive and has capacity, the beneficiaries of the trust are not entitled to notice of its existence. If the grantor becomes incapacitated, the beneficiaries are entitled to notice only if they are to receive distributions per the terms of the trust during the grantor’s lifetime.
Within 90 days of a revocable trust becoming irrevocable, the trustee must notify the qualified beneficiaries of:
- The trust’s existence;
- The grantor’s identity;
- The qualified beneficiaries’ right to request a copy of the trust agreement; and
- The qualified beneficiaries’ right to a trustee’s report, which is an accounting of the trust property, liabilities, receipts, disbursements and other transactions involving the trust.
A contestant must bring any challenge to the validity of a trust within one year after the grantor’s death and notice informing the person of the trust's existence.
Keep in mind that some trusts contain no-contest clauses. And no-contest clause states that if a beneficiary contests the trust, they cannot claim the property that was left to them or they may have to take less than what was originally intended for them. A no-contest clause will not apply to anyone completely left out of a trust as there is nothing for them to give up. The purpose of a non-contest clause is to prevent unnecessary litigation.
Before contesting a trust, hire an experienced probate or trust attorney to make sure that you have valid reasons to contest the trust, that you are still within the statute of limitations and that the trust does not contain a no-contest clause that would end up harming you more than helping you. To get started, contact the experienced attorneys at Stouffer Legal in the Greater Baltimore area.
