The reality is that estates and trusts can vary considerably in size and complexity, as well as in the types of assets they contain. The facts of will and trust contests can also be drastically different from one another. As a result, it would be difficult for us to provide the average cost to contest a will or contest a trust, but we will do our best in this article to go over some of the factors that could contribute to the cost of a will or trust contest.
Clients frequently inquire about a fee structure in which they would only pay if our trust and will contest lawyers are successful in having the will or trust at issue invalidated. No win, no fee pricing structures are not the best option for every client, nor are they offered to every client. In this article, we will go over why this is.
Other questions we frequently are asked have to do with who pays to contest a will or trust. Can the cost of contesting a will or trust be paid from the estate or trust, respectively? Who pays if you contest a will or trust and lose? Who pays if you contest a will or trust and win? The question about who pays to contest a will or trust is complicated, and the answer can depend on the outcome and implications of the contest.
If you are thinking about contesting a will or trust and are concerned about cost, your best bet is to get in touch with a probate lawyer, who can provide a cost estimate based on the specifics of your trust or will dispute and work with you to find a legal strategy that fits your budget.
Does It Cost Money to Contest a Will or Trust?
If you are considering contesting a will or trust, it’s important to keep in mind that filing a will or a trust contest is just like filing any other type of lawsuit — it will cost money unless there is another type of fee structure you can negotiate with your attorney. Contests that settle early can be relatively inexpensive, but contests that span months or years can cost tens to hundreds of thousands of dollars or more.
While there is a possibility that you could recover your legal fees from the estate or trust or from the opposing party, it is not a guarantee. That is why it’s very important to 1) consult with a qualified trust and estate attorney prior to bringing a contest and 2) ensure you have the financial resources to pay for a contest if you end up having to cover all the costs on your own.
Is the Cost of Contesting a Will or Trust Worth It?
Whether the financial cost of contesting a will or trust is worth it is something you will have to decide for yourself, because even if a contest has the potential to substantially increase your inheritance, it may not be worth the emotional costs. For example, rifts could be created among beneficiaries as a result of them.
It is also important to think about how much money is at stake in the contest. If, for example, the amount at stake is $10,000, bringing a contest will not be worth it since the legal fees themselves will be more than this amount. In our experience, there has to be at least a few hundred thousand dollars at stake. A trust and estate litigation attorney can help you perform a cost-benefit analysis to determine whether bringing a contest would be a financially sound decision for you based on the facts of your case.
While we will go more into the specifics of who pays to contest a will or trust in a later section, it is worth noting that, in some instances, attorney fees and costs for defending a will or trust contest can be paid directly from the estate or trust, respectively. There is a caveat, however. If the estate or trust is not sizable, a contest could potentially drain it of its resources — in which case, you could win the contest but end up losing a substantial portion of your inheritance. If this is a concern for you, you should speak with an estate and trust litigation attorney about your options.
How Do Attorneys Charge for Contesting a Will or Trust?
After reviewing the details of your case during your free consultation, one of our trust lawyers will be able to provide you with a fee structure for your proposed will or trust contest. In some instances, law firms will collect a retainer (an upfront payment) and charge at its hourly rate, asking you to pay monthly.
While this is rare, a law firm may agree to only charge what is called a contingency fee — a no-win, no-fee pricing structure that provides the firm with a percentage of the inheritance it wins you. Most firms will not agree to contesting a trust or contesting a will no win, no fee unless they feel the case is strong and a potentially large recovery outweighs the risk of losing.
No win, no fee will disputes and trust disputes can be beneficial, in that no money has to be paid upfront; however, they are generally not a good option for clients whose potential shares of a will or trust are sizable, since contingency fees can range anywhere from 30% to 50%. If a client can afford to pay an attorney’s hourly rate, this almost always would be preferable to entering into an agreement for a contingency fee.
What Is the Average Cost to Contest a Will or Trust?
How expensive is it to contest a will or trust? This is an important question to ask if you are an interested party seeking to bring a contest. The cost of will and trust contests can vary based on the size of the estate or trust at issue, the nature of the contest, and on whether the disputed will or trust needs to be litigated.
Consequently, it is difficult to provide a range for how much a will or trust contest will cost. When litigating on a conservative budget, contests can cost tens of thousands of dollars.When contests are complex and a substantial amount is at stake, they can cost hundreds of thousands of dollars.
Clients should keep in mind that will and trust contests do tend to come with a high price tag, especially if the matter eventually has to be litigated. The longer litigation continues, the higher the price tag — and litigation can go on for years.
If cost is a concern, it is important to speak with a will and trust contest lawyer who is willing to work with you to devise a budget-friendly legal solution to your will or trust problem.
Who Pays to Contest a Will or Trust if You Win?
Who pays if you contest a will or trust and win? Are there ways to recover legal fees?
There is no straightforward response to these questions, as the responses will vary on a case-by-case basis, and often, you will not find out until after the contest has been settled or litigated whether your legal costs can be recovered.
Who Pays the Cost of Contesting a Will or Trust if You Are a Beneficiary or Heir?
Going into it, interested parties should assume they will be paying for their will or trust contest from their own pockets. If they win their contest, and the contest benefited the estate or trust, a petition could potentially be filed with the court to request an award of their attorney fees and costs from the estate or trust. But it is important to be aware that the vast majority of trust and will contests settle before trial so it may not be possible to recover your fees and costs from the estate or trust, that is unless the other interested parties to the action agree.
If you are a trust beneficiary, estate beneficiary or heir seeking to bring a contest, it is always a good idea to speak with the other beneficiaries and heirs to see if they are on the same page as you and willing to split legal costs. Many beneficiaries have made the ill-advised decision to not participate in a contest brought by other interested parties. While, in theory, beneficiaries should not have to participate in a legal battle they had no desire to be a part of, failing to participate in it could not only lose them a seat at the negotiating table but also their inheritance. (Read more about “freeloader beneficiaries.”)
Who Pays the Cost of Contesting a Will or Trust if You Are an Executor/Administrator or Trustee?
Since executors and trustees can only bring or defend contests to protect the interests of the estate or trust, respectively, they are generally entitled to use funds from the estate or trust to pay for the contest. An executor will have to seek permission from the court before using estate funds to pay for a contest, but a trustee can generally use their discretion when using trust funds to pay for a contest (unless the trust explicitly forbids this or the court orders otherwise).
Suppose the trustee finds out the decedent’s surviving spouse had unduly influenced the decedent into amending their trust from their deathbed, resulting in the decedent’s children being disinherited and the spouse getting everything. Would it be one of the trustee’s responsibilities to try to have the trust invalidated with a trust contest since the trust amendment at issue may have been the result of foul play?
While there is no straightforward answer to this question, the trustee may be justified in using trust funds to bring a trust contest, as the contest likely would be benefitting the decedent’s intended beneficiaries. That said, the trustee generally has the option to abstain from participating in trust disputes that solely concern trust fund distributions to beneficiaries.
When the executor or trustee is bringing or defending a contest because of suspected misconduct by another party, and that misconduct is successfully proven, the court could hold the other party liable for paying the opposing side’s legal fees, although that is usually the exception rather than the rule.
Learn more about the cost of contesting a trust or will by consulting with our probate attorneys.
How much does it cost to contest a will or trust? Who pays to contest a will or trust? Is contesting a trust or contesting a will on a no-win, no-fee basis possible?
Keystone’s probate attorneys are standing by to answer your questions about the cost of contesting a will or trust. Remember, the statute of limitations on contesting a will or trust is strict, so don’t delay discussing the merits of your case with a qualified probate attorney. Call Keystone today for a free consultation.