When a loved one passes, family disputes over the decedent’s estate can emerge unexpectedly. Although it generally is preferable to resolve such conflicts outside of the courtroom, litigation is sometimes necessary.
The experienced Oakland County, Michigan, probate and trust attorneys at Collens Estate Law, can work toward conflict resolution for your family outside of litigation but can also provide skilled representation in probate court if the matter advances to trial.
We provide assertive, timely representation to protect the rights and interests of our clients and the value of the trust assets.
Trusts have become increasingly popular estate planning tools in Michigan. These legal vehicles are preferred for their privacy benefits and avoidance of probate processes. A Trust, like a will, can be contested in certain situations. It is important for you to know the specific requirements and procedures and rights provided to beneficiaries who suspect problems with a trust’s validity as well as for trustees defending against such challenges.
Trust contests typically originate when beneficiaries or heirs believe the trust document does not accurately reflect the grantor’s true intentions arising from undue influence, lack of capacity, or other legal issues.
The Michigan Trust Code (MTC), enacted as part of the Michigan Estates and Protected Individuals Code (EPIC) governs these disputes.
In Michigan, trust contests can target:
These challenges are different from claims against trustees for breach of fiduciary duty. (A trustee’s legal responsibility to act in beneficiaries’ best interests.) Such claims acknowledge the trust’s validity but question the trustee’s administration.
Schedule a consultation with one of our experienced attorneys to discuss your legal needs and get personalized advice. Call (248) 545-2500.
Michigan law establishes specific standing requirements for trust contests. These requirements are often more restrictive than requirements for will contests.
An “interested person” must have a property right in or claim against the trust that may be affected by the proceeding.
Beneficiaries who are – or were – directly named in the current or previous versions of the trust generally have standing to bring challenges in Michigan courts. Their standing derives from their direct financial interest in the trust’s assets – even if that interest is contingent or subject to trustee discretion.
Persons who would otherwise inherit under Michigan’s intestacy laws provided the trust were deemed invalid—may have standing to challenge the entire trust instrument. Their standing depends on demonstrating that they would receive more through intestate succession than under the terms of the trust.
Prior beneficiaries whose interests were reduced or eliminated by trust amendments have standing to contest those specific changes. Michigan courts have recognized that beneficiaries whose interests were diminished by amendments have standing. This standing is limited to contesting those specific amendments.
Trustees may have standing in some circumstances under Michigan law. However, their standing is limited to challenging provisions that directly impact their ability to fulfill their fiduciary obligations. This is particularly true when contesting amendments that dramatically alter their powers or create undue administrative burdens.
Michigan may recognize a creditor’s standing if transfers to the trust are suspected of being transacted fraudulently. The Michigan Uniform Voidable Transactions Act provides remedies for creditors when assets were placed in trust to hinder, delay, or defraud legitimate creditors.
Courts require a contestant to show a direct financial interest that would be advanced on their behalf if the trust contest should succeed. An expectation of inheritance, disappointment with the grantor’s choices, or moral objections to the distribution are insufficient to establish standing regardless of how compelling and substantive the grounds might be.
Michigan courts generally presume trusts were created validly and truly represent the grantor’s intentions. To overcome this presumption, contestants must provide clear and convincing evidence to the court so support one or more recognized legal grounds:
For a trust to be considered valid, the grantor must have been mentally competent when creating or amending the document. Michigan courts have established that capacity to create a trust requires the grantor to:
Trust and will creation require the same standard of capacity in Michigan.
Evidence in trust capacity cases include:
Michigan courts have developed numerous measures and standards specifically to address undue influence that apply to both wills and trusts. Michigan law presumes undue influence when evidence establishes:
Once this presumption is established, the burden shifts to the trust’s defenders to demonstrate the absence of undue influence.(A significant procedural advantage for contestants in Michigan courts.)
Michigan courts look for several indicators of undue influence, including isolation of the grantor from family and advisors, involvement of the influencing person in arranging for trust preparations, dramatic changes to long-standing estate plans, and signs that the grantor was dependent on the alleged influencing person..
Michigan recognizes fraud as a basis for invalidating trusts. Under Michigan law, fraud can involve:
In Michigan, proving fraud requires clear and convincing evidence of intentional misrepresentation of material facts, reliance on those misrepresentations by the grantor, and resultant harm to the claimant’s interests.
Legal formation of a trust must meet very specific requirements in order to be deemed valid. A trust is created only if:
Additional technical requirements apply to written trusts under Michigan law, creating potential avenues to disputes if these components are missing or defective.
Michigan recognizes the doctrine of substantial compliance for trusts as well as wills, allowing courts to disregard minor procedural and technical flaws if the grantor’s intent is clear. This does not however extend to the fundamental requirements of a trust’s formation.
While technically not a trust contest, Michigan law creates comprehensive remedies for trustee misconduct that often accompany validity challenges. These Michigan-specific provisions address:
These claims seek remedies like trustee removal, surcharge (financial responsibility), or specific performance rather than invalidation of the trust itself.
Have questions? Our our probate attorneys are ready to help.
Michigan imposes strict deadlines for trust contests. Challenges to the validity of a trust must be brought within the earlier of two years after the settlor’s death or six months after the trustee sent the potential contestant a copy of the trust instrument and a notice informing them of the trust’s existence, the trustee’s name and address, and the time allowed for commencing a proceeding.
For revocable trusts that become irrevocable due to the settlor’s incapacity rather than death, the two-year period begins when the trust becomes irrevocable.
These Michigan-specific deadlines create a mechanism for trustees to limit their exposure by providing notice to potential contestants. Once proper notice is given, the six-month window begins running regardless of other factors.
There are only limited exceptions in Michigan law for fraud or concealment. If someone concealed the existence of a trust or potential grounds for contest, Michigan courts may extend deadlines, but the contestant must still act within a reasonable time after discovering the relevant facts.
Before filing a formal contest you should conduct a thorough investigation. Start by obtaining and reviewing all trust documents, including prior versions and amendments. Obtain the grantor’s medical records and financial documents. Speak with potential witnesses about the grantor’s capacity and circumstances. If you are a beneficiary or heir, you have the right to request information from the trustee under Michigan’s mandatory disclosure provisions.
This investigation helps assess whether sufficient grounds exist to overcome Michigan’s presumption favoring trust validity.
In Michigan, trust contests are typically initiated in the probate court of the county where the grantor resided. Michigan probate courts have exclusive jurisdiction over proceedings concerning the internal affairs of trusts, including validity determinations. Filing requirements include a petition clearly stating the legal grounds and supporting facts, a filing fee, and service of process on all interested parties. It is highly recommended that you review petition requirements and rules of proper notice to interested persons with your attorney before starting the contest process.
Michigan Court Rules provide for comprehensive discovery in trust contests. The general civil discovery rules apply to probate proceedings, allowing:
Michigan’s discovery rules are particularly important for collecting evidence relating to capacity and undue influence, which often depends on records that may not be readily available without formal discovery.
The majority of trust contests resolve before trial through negotiation. Michigan law establishes mediation procedures that apply to trust disputes and many probate courts require attempted mediation before proceeding to trial. Our attorneys have mediated with many different qualified mediators who have probate experience. If a resolution can not be agreed upon, expect settlement discussions to occur throughout the litigation process.
Michigan courts strongly encourage settlement, recognizing the benefits of privacy and preservation of family relationships compared to contentious litigation.
If settlement fails, the case proceeds to trial in Michigan probate court:
Michigan probate courts generally issue written opinions explaining their decisions, which become part of the public record unless specifically sealed.
Have questions? Our our probate attorneys are ready to help.
Trust contests differ from will contests in several important ways:
While Michigan’s EPIC governs both wills and trusts, important procedural differences exist:
Michigan trust contests offer greater privacy than will contests:
Michigan imposes different timing requirements for trust and will contests:
Michigan law creates strategic distinctions between trust and will contests:
Many Michigan trusts contain no-contest clauses (in terrorem provisions) that disinherit beneficiaries who challenge the trust. Michigan law specifically addresses these clauses, adopting the same standard used for wills:
Michigan courts have provisions to allow good-faith challenges while discouraging frivolous or spite-based contests.
No-contest clauses generally don’t deter Michigan contestants who:
Trust contests in Michigan involve significant expenses:
Michigan follows the “American rule” regarding attorney fees, meaning each side typically pays their own legal expenses regardless of outcome. If a beneficiary’s contest was maintained or defended unreasonably, the court may award costs and attorney fees to the prevailing party.
Michigan courts generally permit trustees to use trust assets to defend against contests. However, trustees who unreasonably defend invalid instruments may face personal liability for depleting trust assets.
Michigan law provides several less adversarial approaches to addressing trust concerns:
Rather than challenging validity, Michigan beneficiaries can request court instructions regarding:
This approach accepts the trust’s validity while seeking clarity on its application. Michigan courts routinely handle these proceedings, which typically generate less family conflict than validity challenges.
Michigan’s Trust Code specifically authorizes non-judicial settlement agreements. This provision allows interested persons to enter binding agreements regarding virtually any trust matter without court approval, provided the agreement doesn’t violate a material purpose of the trust and could be properly approved by a court.
Michigan’s virtual representation provisions allow certain parties to represent the interests of minors, unborn beneficiaries, or incapacitated persons in these agreements.
Rather than contesting the trust itself, Michigan beneficiaries can object to specific trustee actions which requires trustees to provide reports and accountings to qualified beneficiaries. Specific remedies are available for breaches of fiduciary duty without invalidating the entire trust.
Have questions? Our our probate attorneys are ready to help.
Many Michigan trust contests strategically target amendments rather than original instruments. Courts have recognized that different standards may apply to capacity for amendments versus initial creation. Circumstances surrounding amendments often receive additional scrutiny — especially if executed during periods of declining health. Courts have authority to invalidate specific amendments while maintaining the original trust. Though, technical requirements for proper amendments create potential vulnerability even when substantive grounds might be difficult to prove
Michigan beneficiaries must strategically decide whether to contest the trust’s validity, accept the trust but challenge the trustee’s administration, or pursue both approaches simultaneously. Michigan’s comprehensive Trust Code provides distinct legal standards, remedies, and limitations periods for each approach, requiring careful strategic analysis.
Trusts involving multiple states present complex jurisdictional issues under Michigan law and trust provisions designating governing law are generally respected by Michigan courts.
If you are creating a Michigan trust, several preventative measures can reduce contest risk:
You may also need to:
Trust contests can be a complex process of meeting statutory requirements, court rules, and judicial precedents. The Michigan Trust Code should be consulted for both challenging and defending against trust validity claims.
If you are a potential contestant we suggest you speak with an attorney experienced in Michigan trust litigation before proceeding. You will want to consider all alternatives before embarking on formal litigation. It’s wise to consider the effects of expenses, the emotional toll, and uncertain outcomes.
As a trustee, balancing fiduciary obligations to all beneficiaries while respecting the grantor’s intentions can be challenging. If you are a trustee potentially facing involvement with a contest, proactive communication, organized documentation, and consideration of reasonable settlement options.
Schedule a consultation with one of our experienced attorneys to discuss your legal needs and get personalized advice. Call (248) 545-2500.
Our firm is ready to handle everything necessary to resolve your trust dispute, often without a costly, bitter lawsuit. When you meet with us, we will prepare you for the entire process and help you see how the courts are likely to interpret unclear or ambiguous language in the estate plan.
Many trust disputes arise from accusations of undue influence upon the estate holder. These disputes are most often among family members who are facing emotional turmoil over the death of a parent or grandparent. We will help you get to the core of the dispute, which is often the first — and most important — step in coming to a fair resolution among parties.
If parties in a trust dispute cannot come together to resolve an issue, a probate judge will generally order the lawyers on both sides to seek some form of alternative dispute resolution to attempt to resolve the issue out of court. We assist the client who is acting as trustee, personal representative or beneficiary by preparing for and participating in mediation and/or arbitration of contested probate and trust matters.
Although only the most extreme trust litigation cases end up going to trial, if that becomes necessary, we are prepared to fight for you.