The goal of estate planning is to ensure a smooth transition of assets to heirs and beneficiaries after someone passes.
Most wills and trusts are administered without much fuss. But every so often concerns or disagreements arise that turn routine administration into a full-blown estate dispute.
Take for example a parent who falls ill late in life. One child moves in to help care for the parent. But after passing, the other child learns that the will or trust was changed shortly before death.
This is precisely the type of incident that can trigger an estate dispute.
Under Illinois state law, interested parties can raise a challenge when there are valid concerns about a will, trust, or fiduciary. But simply being unhappy with a distribution isn’t enough.
Understanding the reasoning behind the most common estate disputes in Illinois can help you navigate potential conflicts and protect your rights.
The Root Causes of Estate Disputes in Illinois
To the surprise of no one, distributing the assets of an estate can easily heighten already tense emotions. That is especially true when the estate has a significant financial value or extensive assets.
One of the biggest drivers of estate disputes is perceived unfairness over how assets are being distributed. This is often the case when one heir receives significantly more than their siblings.
Sudden changes to a will or trust late in the testator or grantor’s life that remove an heir or significantly change distributions can raise suspicions, triggering an estate dispute.
However, estate disputes don’t always hinge on emotions. Sometimes creditors attempt to bring claims against an estate based on dealings with the deceased when they were still alive.
Still other times, estate disputes arise when there is evidence that the fiduciary, the person tasked with settling the will or trust, hasn’t been transparent with their handling of the estate. There may even be accusations that they have acted inappropriately, or tried to benefit themselves at the estate’s expense.
Regardless of the cause, estate disputes are serious. If they cannot be resolved through negotiation or mediation, they proceed to the Probate Division of the Illinois Circuit Court. This process can be time consuming and expensive, often requiring an estate dispute lawyer to help beneficiaries navigate the legal process.
Who Can Legally File an Estate Dispute?
In Illinois, estate disputes can only be made by an interested party.
An interested party is someone who has a legal right to an estate’s assets. That means typically biological heirs, like children or grandchildren.
This can also mean those who have been named as beneficiaries in the current will or trust, or in previous versions.
Interested parties can also include creditors and debtors who wish to collect money owed to them from the estate.
Legal standing of an interested party essentially functions as a way to weed out anyone without a legitimate reason to sue the estate.
The Most Common Estate Litigation Issues in Illinois
Now that we’ve learned why estate disputes arise, let’s look at the most common types of estate disputes in Illinois.
Estate disputes can be broken down into three main categories: Will and trust contests, executor or trustee misconduct, and creditor claims.
1. Will and Trust Contests
Will and trust contests allow interested parties to challenge the validity of a will by formally filing a petition with the Illinois probate court.
These contests aren’t based purely on emotion or dissatisfaction with estate distributions. There are specific situations where a will or trust contest may be valid:
- Lack of Testamentary Capacity: The person creating a will or trust must have the cognitive ability to understand the documents they are signing. Without that capacity, a will or trust is not legally valid.
- Undue Influence: This occurs when an interested party coerces an individual into changing their estate planning documents so that they benefit from the change.
- Fraud or Forgery: If the will filed with probate can be proven to be fraudulently created without the testator’s knowledge, or their signature forged, the court can throw out the will and revert to a prior version of a will. If one does not exist, the estate may revert to Illinois intestacy laws, which determine asset distribution when there is no will.
- Improper Execution: In Illinois, a will is required to be signed by the testator and witnessed by two individuals. If a will was improperly executed, its validity can be challenged.
It’s also important to note that under Illinois law, a will contest must be filed within 6 months of the will being admitted to probate. This is a very strict deadline. If it is missed, there may not be another opportunity to contest the will.
As for a trust challenge, Illinois’ Trust Code also allows a 6 month challenge window, provided that the trustee has properly notified the beneficiary of the trust’s existence. If the beneficiary has not been given proper notice, the window may be extended up to two years, depending on whether adequate disclosure was given to the beneficiaries.
Undue Influence
We briefly mentioned undue influence as part of will and trust contests, but it’s worth digging into more deeply.
Illinois courts have specific requirements for undue influence to be raised as grounds for an estate dispute:
- When a beneficiary held a closely trusted relationship with the decedent
- There are sudden or late changes to the estate plan that favors the trusted beneficiary
- The decedent was in a mentally or physically vulnerable state (such as requiring care from the beneficiary)
A common example is the child who cared for a parent and pressured them to change their will or trust to favor them financially. Late-life marriages can also raise suspicions of undue influence. Changes made that favor the new spouse at the expense of other beneficiaries are a classic form of undue influence.
Proving undue influence can be difficult. It requires the court to carefully examine the relationship and circumstances around the estate planning changes. It must be clear that the trusted beneficiary used pressure or manipulation to cause the decedent to alter their estate plan against their true intent.
2. Executor or Trustee Misconduct
In Illinois, trustees and executors have what is known as fiduciary duty. That means that they have a legal responsibility to administer the estate in the best interests of its beneficiaries, and not themselves.
That means that they should:
- Act impartially, without favoring one beneficiary over another
- Follow the will or trust terms explicitly
- Provide information to beneficiaries and maintain transparency in their actions
- Refrain from acting in their own interests, known as “self-dealing”
In Illinois, beneficiaries are entitled to detailed accounting. This includes a detailed report of the estate’s assets, expenses paid, distributions made, and the current balance.
Ignoring beneficiaries’ requests or refusing to provide distribution breakdowns can quickly lead to an estate dispute.
3. Creditor Claims Against the Estate
Unfortunately, when someone passes away their debts do not go with them. Under Illinois law, creditors can attempt to recover debts from the estate during probate.
Potential sources of creditor claims include:
- Unpaid credit card bills
- Outstanding medical bills
- Personal loans
- Business creditors
- Individuals claiming unpaid loans
These debts must all be paid before any assets can be distributed to beneficiaries. However, simply because a claim is made does not make it valid. This is where a substantial amount of estate disputes come from.
Many creditors attempt to claim inflated interest on a debt. They may try to assess significant late fees. They may even try to collect on a debt that has already been paid.
Part of an executor fiduciary duty is protecting the estate against improper claims. Fiduciaries should carefully evaluate each claim and reject those without proper documentation to support the claim.
If there is pushback from the creditor, it may be necessary to seek help from an estate dispute lawyer to defend the estate in court.
Resolving Estate Disputes in Illinois
Estate disputes naturally raise tensions. But the good news is that most estate disputes never reach trial. That is because negotiation and mediation are often able to resolve many types of estate disputes without ever reaching trial.
In practice, estate dispute litigation is most often used as a last resort. Disputes often arise due to miscommunication between family members, or a misunderstanding of the estate’s accounting.
So what steps can be taken to avoid estate dispute litigation?
- Informal Discussions: Start with simple, informal discussions between family members. Receiving an explanation of distributions and a formal accounting often clears up misunderstandings without getting attorneys involved.
- Attorney Negotiations: Sometimes emotions can prevent even simple discussions from taking place. If that is the case, estate litigation attorneys from each side may conduct direct negotiations and try to clear up any misunderstandings.
- Mediation: If direct negotiations fail, mediation is the next step. Mediation involves a neutral third party who can identify common ground and propose settlement options. This is a very common method of resolving estate disputes without the need for court. Mediations are private, typically quick, and less costly than a full-blown lawsuit.
- Litigation: When there is clear evidence of undue influence, self-dealing, or creditor legal action, litigation may be necessary. Even still, there are opportunities to settle outside of court.
The takeaway here is that litigation should be used only as a last resort, when all other options have been exhausted. In fact, Illinois probate judges will most likely push parties to explore negotiation and mediation as options before moving towards trial.
Stuck in an Estate Dispute? Staza Law is Your Illinois Estate Litigation Attorney
Most estates are administered without friction, but when estate disputes do arise, they most commonly revolve around three areas: Will and trust challenges, executor misconduct, and creditor claims.
Each of these is a serious issue, but Illinois law does offer ways to address estate disputes, while encouraging amicable resolution whenever possible.
Remember, litigation takes a substantial amount of time. It is also public and on top of that, legal costs can quickly eat into the estate’s assets, ultimately harming all beneficiaries.
Ask yourself, is litigation the only option, or are there better ways to resolve an estate dispute? You’ll likely find that litigation should be kept as a last resort.
If you are facing an estate dispute and need professional legal advice on how to proceed, Staza Law can help. Our team of experienced and compassionate estate litigation attorneys can help you understand your case and evaluate your options.
Contact Staza Law today to discuss your situation and determine your next steps.
**Disclaimer**
The content of this blog is for general informational purposes only, and does not constitute legal advice. Please consult with a qualified attorney for advice specific to your situation.