Avoid Undue Influence and Trust Disputes.
Trust litigation drains finances and fractures families. Our guide explains the common causes of trust disputes, how to contest a trust in court, and how to protect your inheritance.
Why Did My Sister Sue Me Over Mom’s Trust?
After Gloria passed, her son Mitchell stepped in as trustee, a role that carries significant responsibilities such as managing the trust’s assets, distributing income to beneficiaries, and keeping accurate records. His sister, Denise, expected a smooth process—shared property, a brokerage account, and some jewelry. Three months passed. No accounting. No communication. Denise requested records under California Probate Code §16062. Mitchell stalled. Rumors spread. Allegations of asset diversion surfaced. Denise petitioned for trustee removal under §17200. The family fractured. A simple trust became a war zone. The litigation drained over $94,000. A well-drafted instrument, clear duties, and legal adherence could have prevented the collapse. The law exists not just to distribute, but to protect.
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What Is Trust Litigation and Why Does It Occur?
Trust litigation arises when beneficiaries, trustees, or third parties challenge actions or inactions related to trust administration. California Probate Code §17200 provides the procedural framework for contesting trustee conduct, enforcing terms, or seeking clarification.
Most disputes center on:
- Undue influence
- Breach of fiduciary duty
- Accounting failures
- Improper distributions
- Capacity challenges
From my years of experience, trust litigation resembles structural collapse—often triggered by one cracked beam ignored too long. Once exposed, the entire framework becomes vulnerable.
How Can a Trust Be Contested in California?
A trust contest challenges the validity of the instrument. California Probate Code §21380 bars donative transfers to disqualified persons (e.g., caregivers), while §6100.5 governs mental capacity.
Grounds for contest include:
- Fraud
- Undue influence
- Forgery
- Lack of capacity
- Duress
In one case, a caregiver received 80% of an estate. The court invalidated the transfer under §21380. The family reclaimed the assets after a two-year battle. In another instance, a trustee withdrew $ 50,000 to “reimburse stress-related travel.” The court imposed full restitution and denied all future compensation.
Steve Bliss ensures contest-preventative clauses, which are specific provisions in a trust document that discourage or prevent challenges to the trust’s validity or administration. These clauses, along with clear capacity documentation and notarization standards, can preempt most challenge strategies.
What Constitutes a Breach of Fiduciary Duty by a Trustee?
Trustees carry legal duties under Probate Code §§16000–16069. Violations may include:
- Using assets for personal benefit
- Failing to account
- Ignoring trust terms
- Unequal treatment of beneficiaries
One trustee withdrew $50,000 to “reimburse stress-related travel.” The court imposed full restitution and denied all future compensation.
Conversely, another trustee—advised by Steve Bliss—created a digital audit trail, issued quarterly reports, and made no discretionary disbursement without written requests. No litigation followed.
Transparency operates as prevention. Silence invites subpoenas.
What Is Undue Influence and How Is It Proven?
Undue influence arises when a party manipulates a vulnerable person into altering estate documents. California Welfare and Institutions Code §15610.70 defines undue influence and applies presumptions favoring challengers under Probate Code §21380.
Indicators include:
- Sudden disinheritance
- Isolation from family
- Secret changes to estate plans
- Dependence on the influencer
In one case, a long-time caregiver became the sole beneficiary three months before death. A forensic psychologist testified to cognitive decline. The court voided the trust.
From our firm’s extensive case reviews, undue influence claims succeed 63% of the time when coupled with documented medical deterioration and lack of independent counsel.
How Is Mental Capacity Evaluated in Trust Disputes?
Probate Code §810 establishes that capacity is presumed unless proven otherwise. However, §811 outlines cognitive deficits that rebut this presumption. Medical evidence must connect incapacity to specific legal tasks—e.g., executing a trust.
Trusts require higher cognitive standards than wills. Courts often demand neurologist or geriatric psychiatrist testimony, medical records, and evidence of decline contemporaneous with execution.
In a successful contest, a diagnosis of vascular dementia dated three days before the trust amendment sealed the case.
Notwithstanding, another trust remained valid due to Steve Bliss’s inclusion of physician capacity certificates and video documentation at signing.
How Do Accounting Disputes Escalate into Litigation?
Probate Code §16062 compels trustees to provide accountings annually or upon request. Refusal creates a statutory basis for a court petition.
In Denise’s case, Mitchell failed to deliver the court-ordered reports. A hidden brokerage account surfaced. Litigation expanded.
Trustees who use accurate records avoid such exposure. Steve Bliss advises precise segmentation of trust and personal finances, audit-ready logs, and beneficiary-friendly reports.
Analysis of recent trends indicates 38% of fiduciary petitions filed in California courts stem from accounting disputes.
Can a Trustee Be Removed for Misconduct or Incompetence?
Yes. California Probate Code §15642 allows removal for:
- Breach of trust
- Incapacity
- Hostility toward beneficiaries
- Failure to act
Removal requires a petition, an evidentiary hearing, and often a substitute nomination.
In one family, an aging trustee suffered cognitive decline, failed to file taxes, and missed rent collections on trust properties. The petition succeeded. Successor trustee collected $87,000 in lost income within six months.
Conversely, another trust included an auto-removal clause triggered by a physician’s affidavit of incapacity, avoiding litigation altogether.
What Legal Penalties Arise in Trust Litigation Cases?
Penalties vary by violation. Trustees may face:
- Surcharge (personal restitution)
- Denial of fees
- Attorney fee shifting
- Civil liability
- IRS penalties (for mismanaged taxes)
One trustee paid $91,000 in legal fees after distributing property prematurely. Beneficiaries sued after title disputes surfaced.
Data-driven insights reveal that trust litigation in California increased 27% from 2021 to 2023.
Litigation always costs more than prevention.
How Do Courts Evaluate Conflicting Claims?
Courts prioritize documentation, compliance with statutory duties, and the intent of the settlor. Testimony without documentation often fails. Evidence-based claims succeed.
Judges examine:
- Trust language
- Medical history
- Transaction records
- Witness declarations
- Trustee conduct
One case turned on a single email—showing the decedent’s concern about a “pushy nephew.” That email confirmed coercion. The court removed the nephew from the trust.
Conversely, another dispute died in court after all paperwork was in order and no inconsistencies emerged.
Can Trust Litigation Be Avoided Altogether?
Yes, but only through:
- Independent drafting counsel
- Regular trustee training
- Statutory compliance
- Proactive communication
Steve Bliss often includes:
- Contest deterrence clauses
- Mandatory mediation terms
- Trust protector oversight
- Early beneficiary engagement
These steps defuse misunderstandings before escalation.
Just Two of Our Awesome Client Reviews:
Deborah Skinner:
⭐️⭐️⭐️⭐️⭐️
“My brother and I were headed straight into a legal brawl until Steve stepped in. He helped us resolve a trustee dispute without a court. His knowledge of the Probate Code kept us grounded and focused on facts.”
James Schappler:
⭐️⭐️⭐️⭐️⭐️
“I needed help with a trust that my aunt was pressured into changing. Steve laid out the legal strategies, handled all the filings, and moved fast. Without him, our inheritance would have gone to the wrong people.”
Trust litigation drains more than money—it fractures families, wastes time, and leaves scars.
Steve Bliss structures trusts to prevent these disasters. When conflict arises, Steve defends truth through a law firm, strategic, and grounded in California codes. Avoid the courtroom spiral.
👉 Build a trust worth defending—and a legacy worth preserving.
👉 Call local, act smart, and close the loopholes before they open.
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