When siblings contest a trust, every decision matters. Whether you are a trustee or beneficiary, Keystone provides the strategic guidance needed to protect your interests.
Consider a scenario in which a mother created a trust more than 20 years before her death, naming all her children as equal beneficiaries. In the final year of her life, after receiving a terminal diagnosis, one child moved in and assumed the role of full-time caregiver. To show her gratitude, the mother amended her longstanding trust to leave the majority of her assets to that child, significantly reducing the inheritances of her other children.
Understandably, the remaining children view the amendment as unfair and suspect that their sibling may have exerted undue influence on their mother during a period of vulnerability. Believing the amendment does not reflect their mother’s true intent, they pursue legal action against their sibling seeking to invalidate the amendment while leaving the original trust intact.
While this scenario is emotionally fraught for the siblings involved, it is often just as complex — if not more so — for the successor trustee. The trustee must decide whether to actively defend the disputed amendment, join the contesting siblings or step aside and allow the trust beneficiaries to litigate the dispute among themselves.
If the trustee opts to defend the amendment, the contesting siblings may accuse the trustee of breaching their fiduciary duty of impartiality by siding with the beneficiary who received a disproportionately large share. Conversely, if the trustee joins or supports the contest because they suspect undue influence, the favored sibling may assert that the trustee has a conflict of interest by contesting the validity of a trust whose terms they are supposed to be adhering to. In either case, the trustee risks becoming a litigation target.
In situations like this — where only a trust amendment is under attack, not the trust itself — the most prudent course is often for the trustee to remain neutral and refrain from active participation.
Siblings contesting a trust must also carefully weigh the consequences of moving forward with a dispute. This requires an honest assessment of whether the challenge is grounded in legitimate concerns about the validity of a trust amendment, or whether it is being driven by longstanding family tensions or rivalries. Siblings must also evaluate whether the potential recovery justifies the significant financial, emotional and personal investment that trust litigation often demands.
As Keystone regularly advises, taking the wrong legal position in a trust contest can expose trustees to fiduciary misconduct allegations or lead beneficiaries to pursue trust contests that prove financially and strategically unsound. The good news is that experienced probate attorneys routinely guide both trustees and beneficiaries through these high stakes, emotionally charged disputes. With strategic legal counsel, parties can better understand their roles, evaluate risk and avoid costly missteps.
Can a Sibling Contest a Trust?
Generally, siblings (as in the children of a decedent) have the ability to contest a parent’s trust. Even if a child is not named as a beneficiary, they may still qualify as an heir under California intestate succession laws. This matters because if a trust were to be invalidated and no prior valid trust exists, the trust assets could pass to heirs through intestate succession, giving the decedent’s children a potential interest in the trust.
That said, qualifying as an heir is not enough — a sibling must also have legal standing to contest the trust. In this context, standing means that if the contest were successful, the sibling would receive a greater inheritance than they are entitled to under the existing trust. If the outcome would leave their inheritance unchanged or reduce it, they likely lack standing and cannot proceed with contesting the trust.
For example, a sibling may believe a trust fails to reflect a parent’s true intentions and instead favors a financially secure child who might have exerted undue influence over the parent. Even if another sibling was unfairly disadvantaged and lacks the resources to pursue litigation, a sibling whose own inheritance would not increase as a result of the contest typically cannot challenge the trust on that basis alone. Good intentions, standing by themselves, do not create legal standing.
Because standing can be nuanced and highly fact-specific, consulting a probate attorney is often essential. An experienced attorney can evaluate whether you or another sibling has standing to contest a trust and help determine whether pursuing a contest makes legal and strategic sense under the circumstances.
Can a Sibling Contest a Beneficiary of a Trust?
A sibling cannot directly contest another beneficiary’s status in a trust. However, it may be possible to contest a trust amendment — or the trust in its entirety — which, depending on the outcome, could reduce or eliminate a beneficiary’s inheritance. Importantly, any sibling pursuing a trust contest must have legitimate grounds and legal standing.
For example, suppose you have evidence that a sibling pressured your father into amending his trust to leave her the family home at a time when he lacked mental capacity due to a prior stroke. In this scenario, you would not challenge your sibling’s status as a beneficiary directly. Instead, you would challenge the trust itself on the grounds of undue influence and lack of capacity. If your challenge is successful, the court would invalidate the amendment, potentially removing the home from your sibling’s inheritance.
In short, a trust contest targets the trust instrument or specific provisions within it, not the beneficiaries themselves. That said, in many cases, successfully challenging an amendment can have the same practical effect as contesting a beneficiary, resulting in their removal from a portion or all of the trust.
4 Crucial Questions to Ask When Siblings Contest a Trust
Contesting a trust is inherently complex, no matter who initiates the dispute. When siblings are involved, however, an added layer of complexity often arises due to family dynamics and the sometimes-unclear role of the trustee.
To help guide you through these challenges, Keystone has compiled four critical questions to consider before deciding whether to move forward with a trust contest — or determining the role you should play in one.
Given the legal and emotional intricacies of sibling trust disputes, consulting an experienced probate attorney before making any final decisions is strongly recommended.
1. Are Siblings Contesting a Trust Amendment or the Entire Trust?
It makes a significant difference whether siblings are contesting a specific trust amendment or the entire trust, as courts treat these challenges differently.
When only an amendment is contested, the dispute typically revolves around who receives what, not whether the trust itself is valid. In other words, it is primarily a beneficiary dispute, which means the trustee generally should remain neutral.
By contrast, when an entire trust is challenged, the dispute questions the legitimacy of the trust as a whole, making it a true trust dispute. In this scenario, the trustee generally has an obligation to defend the contest and the authority to use trust funds to do so.
For trustees, this distinction is critical. When the entire trust is contested, a trustee is typically expected to defend it because the challenge threatens both the settlor’s intent and the trustee’s authority. When only an amendment is at issue, the trust remains valid regardless of the outcome, and a trustee’s active involvement can expose them to personal liability.
For example, imagine a parent amends their trust to leave a disproportionately large share to one child, and the other siblings believe this amendment resulted from undue influence. Because only the amendment is being challenged, the conflict is about asset allocation among beneficiaries, not trust validity. In this scenario, the trustee generally should avoid taking sides.
Conversely, consider a scenario in which siblings suspect one child forged their parent’s entire trust. Here, the challenge goes to the trust’s legitimacy, not just distributions. Because the trust itself — and by extension, the trustee’s authority — is under threat, the trustee may not only be justified in defending the trust but may have a duty to do so.
While sibling beneficiaries may not need to worry as much about this distinction, it carries profound implications for trustees, who could face personal liability for acting improperly. Even if a trustee has an opinion about the trust’s validity, it is often safest to remain neutral in amendment disputes and only intervene when the entire trust is challenged.
Exceptions do exist, which is why trustees and beneficiaries alike should carefully consider the legal implications and seek guidance before taking any action in a trust contest.
2. Are There Legitimate Reasons for Siblings Contesting the Trust?
Regardless of their relationship to the decedent, a beneficiary must have valid legal grounds for contesting a trust — simply being unhappy with an inheritance is not sufficient. This requirement is particularly important for beneficiaries, who must establish legitimate reasons for a challenge, whereas trustees are primarily concerned with administering the trust according to the decedent’s intent.
Since trust assets originally belonged to the decedent, and the trust reflects their decision to distribute them to chosen beneficiaries, a trust contest is appropriate only when there is a genuine reason to believe the trust does not reflect the decedent’s true intentions, such as evidence of undue influence, fraud, lack of capacity, lack of due execution or a mistake.
In California, valid grounds for contesting a trust include:
- Undue influence: Someone manipulated or applied excessive pressure on the decedent to create, amend or revoke their trust.
- Fraud: Someone intentionally deceived or misled the decedent to create, amend or revoke their trust for personal gain.
- Lack of capacity: The decedent lacked the capacity required to create, amend or revoke their trust.
- Forgery: Someone falsified the decedent’s signature on the trust instrument.
- Lack of due execution: The trust creator failed to follow established procedures to execute their trust.
- Mistake: The trust creator was mistaken about a law or fact related to the trust instrument that caused the instrument to deviate from their intentions.
- Revocation: The trust creator previously revoked the trust, rendering it invalid.
Understanding these factors is essential for successfully navigating a sibling-initiated trust contest, whether you are a sibling or the trustee. If you are uncertain whether a sibling’s grounds for contesting the trust are valid — or if you are a sibling seeking confirmation that your own grounds are legally sound — an experienced trust attorney can provide guidance.
3. What Costs May Result From Siblings Contesting the Trust?
Contesting a trust is inherently costly — both financially and emotionally. When siblings are involved, the stakes are often higher, as disputes frequently carry additional family tension and stress. At Keystone, our probate attorneys prioritize transparency, ensuring clients understand the full range of tangible and intangible costs associated with pursuing or defending a sibling-initiated trust contest.
The financial cost of contesting a trust can be substantial. For this reason, Keystone generally recommends that the potential recovery exceed $100,000 before litigation is likely to be worthwhile. While early settlement through mediation can reduce expenses, a contested trial can quickly escalate to six-figure legal fees. Even with valid legal grounds, if the potential inheritance is relatively small, pursuing a trust contest may not justify the time, money or emotional toll.
Trustees face a distinct challenge: they must balance preserving trust assets with defending the legitimacy of the trust and the settlor’s intent. Participating in a dispute over a trust amendment among beneficiaries usually does not make financial or legal sense and can expose trustees to liability if trust assets are spent unnecessarily. By contrast, when an entire trust is challenged, defending it may be prudent or even necessary, though complications arise if the trust has limited assets. Litigation costs can deplete the trust estate, potentially reducing or even eliminating inheritances for all the beneficiaries.
A trustee’s fiduciary duties require them to always act in the best interests of the beneficiaries, even if it conflicts with their desires. To mitigate risk, trustees should communicate openly, explaining how legal action could affect trust assets and exploring alternatives, such as settlement through mediation. When necessary, trustees can also seek court guidance to ensure that their actions protect the trust while remaining legally sound.
Whether you are a sibling considering a contest or a trustee navigating a sibling dispute, it is crucial to weigh the financial, emotional and legal costs before taking action. Even meritorious claims can become counterproductive if the potential costs outweigh the benefits — or if trust assets are unnecessarily depleted.
4. Can the Trust Contest Be Resolved Without Litigation?
In some sibling-initiated trust contests, the most appropriate path forward may not be immediately clear. For example, a trust may have limited assets, and a trustee may reasonably conclude that defending the trust through prolonged litigation would unnecessarily deplete the estate and ultimately harm the beneficiaries’ interests.
In these situations, informal settlement discussions or mediation may offer effective alternatives to litigation. These approaches allow the parties to work toward resolution, either without court involvement or with the assistance of a neutral mediator, helping to preserve trust assets and reduce the emotional and financial toll of a prolonged dispute.
With both approaches, parties can involve a probate attorney to represent them to ensure their interests remain protected and favorable outcomes are reached — all without exposing the trust assets to depletion as litigation might do.
If you are unsure whether informal settlement, mediation or court involvement is appropriate in your situation, consulting an experienced probate attorney can be invaluable. An attorney can help assess available options and determine the most effective strategy for resolving the dispute while protecting the trust and its beneficiaries.
FAQs: Siblings Contesting a Trust in California
Still confused what to do about siblings contesting a trust? Explore the frequently asked questions below for additional guidance.
Can siblings contest a trust with a no-contest clause?
Yes, siblings can contest a trust with a no-contest clause so long as they have standing and legitimate grounds. Contrary to popular belief, no-contest clauses don’t preclude contests; they just place beneficiaries at risk of disinheritance if their challenge is unsuccessful — though no-contest clauses have become increasingly difficult to enforce in recent years.
Are siblings always entitled to inherit from their parents’ trust?
No, siblings are not always entitled to inherit from their parents’ trust. They only have a right to an inheritance if they are named as beneficiaries.
Can siblings contest a will?
Yes, siblings can contest a will if they have standing and legitimate grounds. The rules for contesting a will are largely the same as the rules for contesting a trust.
What evidence is needed when siblings contest a trust?
Successfully contesting a trust generally requires clear and convincing evidence that directly supports the legal grounds for the challenge. For example, when a trust is contested on the grounds that the decedent lacked mental capacity at the time it was created or amended, relevant evidence may include medical records and documentation, testimony from treating physicians and, in some cases, a formal declaration of incapacity.
What should a trustee-beneficiary do when siblings contest a trust?
Because a trustee who is also a beneficiary faces an inherent risk of conflicts of interest when joining or defending a sibling’s trust contest, the decision of whether to oppose a trust contest is one that should be weighed carefully. Where the contest only concerns an amendment that distributed property among the beneficiaries (and not the trust itself), it is often better for the trustee to remain neutral. If the contest seeks to invalidate the entire trust, the trustee may have an obligation to oppose the contest.
Can siblings contest ambiguous trust terms?
When a trust contains ambiguities, the trustee or trust beneficiaries can seek guidance from the court on how to interpret that ambiguous language by filing a petition for instructions, rather than contest the trust, since the document’s validity is not in question.
Still have questions about siblings contesting a trust?
Navigating sibling-initiated trust contests can be challenging without experienced legal guidance, whether you are a trustee or a beneficiary.
Because Keystone exclusively specializes in probate litigation and administration, our attorneys have the experience and insight needed to effectively resolve even the most complex sibling disputes involving trusts.
Our compassionate and personalized approach is designed to address sensitive family dynamics, reduce unnecessary conflict and pursue favorable resolutions whenever possible. Contact us to learn how our probate attorneys can help guide you through the process.
