Have Trust in Your Trust

What does it take to void a trust agreement? If the creation of a trust is born out of nefarious circumstances, there may be grounds to void it in its entirety. The law allows individuals to invalidate a legal transaction if there is fraud, duress, or undue influence.

However, the person claiming fraud, duress, or undue influence has a high threshold to surpass. The Michigan Court of Appeals recently explained in the case of In re Estate of Irene Sabaugh Trust the evidence necessary to successfully assert undue influence, including:

1. The existence of a confidential or fiduciary relationship between the grantor and the fiduciary,
2. That the fiduciary or an interest which he represents benefits from a transaction, and
3. That the fiduciary had an opportunity to influence the grantor’s decision in that transaction.

But what kind of evidence supports a “Confidential or Fiduciary Relationship?” Ultimately, the Court of Appeals stated that it is a highly fact-dependent scenario showing threats, misrepresentation, or physical or moral coercion stifling a person’s free will. It is not sufficient to merely demonstrate that motive, opportunity, or the ability to control existed without affirmative evidence that control was exercised.

If you have questions about undue influence claims or other probate issues, reach out to our knowledgeable attorneys at Wright Beamer at 248.477.6300.