Estate planning entails the creation and execution of several different legal documents. Unfortunately, this means it is easy for the untrained to make mistakes. As you may imagine, even one error could mean that your trust or will fails to function according to your wishes.
Further, an error or omission could lead to disputes between your heirs and beneficiaries. Trusts typically contain specific language and terms, rendering them vulnerable to conflict among beneficiaries and even legal disputes.
What can render a trust invalid?
One of the great things about trusts is that you have the flexibility to create them largely however you see fit. Instead of wondering what terms or language could render your trust invalid, it is better to ask what might raise the alarm among your loved ones. Below, we have listed three grounds your heirs or beneficiaries could use to challenge the validity of your trust:
- Undue influence. If your family believes someone coerced or manipulated you into creating a trust for their benefit, they may seek to invalidate the document.
- Lack of capacity. If someone close to you believes that you lacked the mental capacity to understand your actions when you signed the document, they may try to contest its legality.
- Fraud. If your loved ones suspect that another party got you to sign the document through fraud or misrepresentation, they could challenge the validity of your trust.
An ideal way to ensure your trusts remain valid and meet your needs is to work with trained legal and financial professionals. These individuals have the education and experience to help preserve your estate for yourself and your loved ones. We also suggest familiarizing yourself with Colorado estate planning laws.