Table of Contents
Key Takeaways
- Trust reformation allows a California court to correct certain mistakes in an irrevocable trust.
- The petitioner must usually prove that the trust contains an inaccuracy caused by mistake or fraud.
- Courts may consider evidence outside of the trust document when determining the settlor’s intent.
- Once reformed, the trust is generally treated as though it had been written correctly from the beginning.
What Is Trust Reformation?
A trust is supposed to reflect its creator’s intentions. But sometimes mistakes happen. A drafting error, inaccurate language, or even fraud can result in a trust that says something very different from what the settlor intended.
Although California courts typically enforce trust provisions as written, beneficiaries and other interested parties may request court correction of a mistake through trust reformation.
When Can a Trust Be Reformed?
Not Every Trust Dispute Qualifies for Reformation
Generally, the person seeking reformation must show that the trust contains an error caused by:
- A drafting mistake
- Incorrect language in the trust instrument
- Fraud
- Other circumstances that caused the trust to fail to reflect the settlor’s intent
As a result, California courts are often reluctant to rewrite trust provisions. As a result, strong evidence is usually required before a judge will reform a trust.
How Does a Trust Reformation Case Work?
One unique aspect of trust reformation cases is that the court may consider evidence outside the trust document itself.
What Evidence Can Be Used to Prove a Mistake?
This evidence may include:
- Communications with the drafting attorney
- Earlier drafts of the trust
- Financial records
- Testimony from witnesses familiar with the settlor’s intentions
- Other documents showing what the settlor intended
If the court finds sufficient evidence of mistake or fraud, it may reform the trust.
Once reformed, the trust is generally treated as if the corrected language had been part of the trust from the beginning.
Why Trust Reformation Cases Can Be Difficult
Trust reformation is not a routine request.
Courts are careful when considering whether to rewrite a trust because they do not want to substitute their judgment for the settlor’s wishes.
As a result, beneficiaries pursuing trust reformation must present compelling evidence showing:
- A mistake or fraud occurred.
- The trust does not accurately reflect the settlor’s intent.
- The proposed correction aligns with the settlor’s actual intent.
In many cases, trust reformation becomes part of broader trust litigation involving trustee disputes, inheritance disagreements, or questions about the validity of trust provisions.
At The Grossman Law Firm, Attorney Scott Grossman represents beneficiaries and heirs in California trust litigation matters, including cases involving trust interpretation and fraud.
FAQ
Can a trust be changed after the person who created it dies?
Beneficiaries generally cannot change an irrevocable trust. However, a court may reform the trust if sufficient evidence of mistake or fraud exists.
What evidence is used in a trust reformation case?
Courts may review evidence beyond the trust document, such as witness testimony, attorney files, prior drafts, and other records that demonstrate the settlor’s intent.
Does trust reformation apply to every trust mistake?
No. The mistake must be significant enough to warrant court intervention and must be supported by substantial evidence.
What happens after a trust is reformed?
The corrected trust language is generally treated as though it had been part of the trust from the beginning.
Related Resources
How The Grossman Law Firm Can Help
If you believe a trust contains a mistake and is affecting your inheritance rights, legal action may be necessary to determine whether the trust accurately reflects the settlor’s intent.
For over twenty-five years, the Grossman Law Firm has assisted beneficiaries and heirs throughout California in enforcing their rights in probate and trust litigation.
Call (888) 443-6590 or fill out our Get Help Now form.
Our Intake Specialists can evaluate your case at no cost. Qualifying cases will be scheduled for a free phone consultation with Attorney Scott Grossman.
Originally Published: October 14, 2016