Common Forms of Probate Litigation: A Comprehensive Guide

Key Takeaways

• Probate litigation is not always necessary during the probate process but occurs when there is a dispute related to estate administration.
• Common forms of probate litigation and common disputes include will contests, executor disputes, and creditor claims against the estate.
• Probate litigation may often be avoided through mediation or negotiation with the help of a skilled attorney to facilitate a mutually agreeable resolution between all sides. 
• If you experience probate disputes, you should consult a skilled probate litigation attorney as soon as possible to discuss your potential options for addressing the dispute quickly and protecting the wishes of the will creator. 

Introduction

In some cases, probate litigation can derail the probate process by delaying the distribution of estate assets to beneficiaries, potentially causing a rift between beneficiaries and affecting family relationships. Probate is already a difficult time following the loss of a loved one, and disputes that lead to litigation can make this process even more emotionally taxing. It’s important to have a system in place to preserve the wishes of the testator, or the creator of a will.

A skilled probate litigation attorney can provide support in addressing disputes, either through mediation, negotiation, or litigation. By understanding the various forms of probate litigation, you can be more prepared for addressing these disputes and understanding how to move forward. This guide covers the most common forms of litigation and what to expect from each. 

Understanding Probate and Probate Litigation

Probate is the process of distributing an individual’s assets to their beneficiaries or legal heirs after they pass away, either with or without a will. Probate may not be necessary if an individual had a trust and all of their assets were included in it at the time of their death. 

However, if an individual, known as the decedent, had any assets that still belonged to them or their estate when they passed away, probate will be necessary for marshaling and inventorying these assets, administering them, and distributing them to the appropriate beneficiaries. 

Probate involves the following steps:  

1. Initiating Probate – The executor files a petition to begin probate, and the court officially appoints the executor to oversee the administration of the estate.
2. Validating the will – If a will exists, the court validates the will, ensuring it was executed properly and meets all legal requirements in the local jurisdiction. 
3. Marshalling and inventorying assets – The executor identifies all assets belonging to the estate and values these assets.
4. Paying debts and taxes – Before distributing estate assets, the executor pays off any outstanding debts left by creditors and any estate, income, or property taxes owed. 
5. Transferring assets – After settling all debts and taxes, the executor requests that the court approve asset distribution to estate beneficiaries and executes these transfers.

These are the steps involved in an uncontested probate. During this process, disputes may arise for a variety of reasons, resulting in the need for additional steps like mediation or litigation to resolve them. 

Difference Between Probate and Probate Litigation

Probate and probate litigation are two separate processes. While probate occurs to settle a deceased individual’s estate, probate litigation refers specifically to legal disputes that arise during this process. Probate litigation is not always a part of the process and only occurs when a dispute arises during probate.

Probate litigation is a lawsuit or legal action filed by an interested party in an estate against another party during the probate estate administration process. Incidents of probate litigation are often carried out by beneficiaries against an executor, administrator, heir, or other interested party.

The goal of probate litigation is often to ensure that beneficiaries receive their rightful inheritance and that the probate process upholds the interests and wishes of the decedent. Probate litigation can be a helpful action in cases where an executor is suspected of misconduct, the will appears to be invalid, and more. 

When Does Probate Litigation Become Necessary?

Probate litigation becomes necessary when a probate-related dispute cannot be resolved through an alternative dispute resolution, such as mediation or negotiation. It’s important to note that litigation is often a last resort—many attorneys will strive to resolve a dispute through mediation or negotiation first. However, if no other alternative approach works, then litigation will become necessary so that the case can go to court to be settled and an appropriate solution can be determined.

CommonTriggers for Disputes

Potential disputes that may lead to probate litigation can vary widely depending on the circumstances and family dynamics of the estate in question. Triggers that lead to more extensive disputes can vary, but there are a few common factors that commonly lead to disputes.

Common triggers for disputes may include any of the following:

• A beneficiary believes that they have a right to a larger share of an inheritance
• Assets being distributed differently than what was discussed in life
• A beneficiary suspects that an estate executor or administrator has breached their fiduciary duty
• An interested party believes that the will has been altered by fraudulent or invalid means

Keep in mind that these are just a few potential causes for disagreements during probate. There are many potential triggers that may lead to litigation.

Common Misunderstandings Leading to Litigation

In some cases, disputes leading to litigation may be the result of simple misunderstandings. Some common misunderstandings that may lead to litigation include:

• Beneficiaries not understanding the time it takes for an executor to administer the estate. 
• Misinterpreting actions taken by the executor as acts of wrongdoing.
• Ambiguity in the will that makes it difficult to understand the testator’s true intentions.
• Miscommunications between the estate executor or administrator and the estate beneficiaries about how assets will be handled.
• Beneficiaries disagreeing with an executor’s actions despite the executor acting in accordance with the will.

When simple misunderstandings occur, they may often be addressed quickly through simple communication or alternative dispute resolution methods like mediation or negotiation. It’s important to address potential probate issues early on with experienced legal counsel to minimize the risk of them leading to more advanced disputes.

Types of Probate Litigation

Probate litigation can occur for a variety of reasons relating to the validation of a will and the administration of an estate. The following are the most common reasons for probate disputes.

Will Contests

A will contest is a petition filed with the court to clarify or dispute the terms of a will. Interested parties can raise a will contest if they feel it’s necessary to ensure that a will is valid and that the administrator takes the appropriate steps to align with the wishes of the testator. However, a party cannot raise a will contest simply because they are unhappy with a will’s provisions—valid will contests occur most often in the following circumstances.

These reasons may include: 

• Fraud – A beneficiary believes the will was created with fraud and should not be used to guide the estate administration process.
• Undue Influence – Undue influence involves a bad actor taking advantage of a vulnerable individual and influencing them into making decisions against their true intentions. 
• Lack of Testamentary Capacity – An individual must have mental capacity to understand the consequences of their actions when they create the will; otherwise, the document may be contested and invalidated.
• Improper Execution – A will must follow state law in its execution, which often includes signing the will and doing so before multiple witnesses, and if it does not follow this approach, then the will may be invalidated.

To contest a will, the party making the accusation must present evidence that the wrongdoing occurred, whether it be evidence of a forged will document or medical records proving that the testator did not have mental capacity upon the creation of the will. If the court determines that the claim is legitimate, it may invalidate the will or any affected portions and require that the assets of the will be distributed through the process of intestate succession. 

Executor and Administrator Disputes

If a beneficiary disagrees with actions taken by an executor or the appointment of a personal representative entirely, it could potentially lead to a dispute. For example, if the executor decides to sell estate property for the sake of liquidating the assets, beneficiaries may raise disputes over whether this was an appropriate action. Beneficiaries may also contest the personal representative appointed to represent the estate if they do not have confidence. However, in any dispute, if the executor can prove that they were upholding their duties and acting within the best interests of the estate in the process, they are unlikely to be held liable for acting irresponsibly by the court.

Breach of Fiduciary Duty 

The executor or personal representative of an estate has a responsibility to uphold the best interests of an estate and its beneficiaries at all times, known as their fiduciary duty. This duty involves taking responsible action to act in the best interests of the estate at all times, including managing assets, paying estate taxes, and keeping beneficiaries informed of all transactions. If an executor fails to uphold any of these responsibilities, whether through negligence or malicious action, they may be considered in breach of their fiduciary duty. 

Common breaches of fiduciary duty include:

• Conflicts of interest, like self-dealing or using estate funds for personal benefit
• Failure to act impartially, such as distributing assets unfairly to beneficiaries
• Negligence, like failing to pay taxes on an estate or keep required accounting
• Mismanagement of assets, like making irresponsible investments

A breach of fiduciary duty claim may be resolved by the estate representative agreeing to take action to resolve the dispute during mediation. However, in cases of more serious breaches of fiduciary duty, the fiduciary may be removed from their role or even face legal action in search of damages to be repaid to the estate.

Creditor Claims Against the Estate

During probate, creditors have a right to submit claims for debts they were owed at the time of the decedent’s passing. An estate’s personal representative is responsible for determining the legitimacy of each claim and ensuring all legitimate claims are fulfilled by distributing the appropriate assets to creditors. Creditor claims against an estate may include credit card companies, mortgage companies, or other loan lenders.

If there are disagreements regarding the validity of creditor claims or determining appropriate compensation, litigation may be necessary to resolve these conflicts and determine the rightful asset distribution process. In these cases, it will be up to creditors to present a case for the legitimacy of their claim to a portion of the estate and the executor of the estate to defend against it.

If the creditor and executor are unable to reach an agreement regarding how to settle the claim, more extensive action may be necessary. A judge may determine whether a creditor’s claim is valid or if the request is unreasonable or unjustified.

Inheritance Disputes

Inheritance disputes arise when there are disagreements among beneficiaries surrounding who should inherit estate property and in what share. As a common example, one sibling may take issue if their designated share of an inheritance is lower than their siblings. If they believe they should be entitled to a greater share of the estate’s assets, they may take legal action against the estate to attempt to secure this inheritance.

Inheritance disputes can also arise in the case of omitted or pretermitted heirs, if an individual believes that they have been unintentionally excluded from the will. Meanwhile, other beneficiaries may contest that the omitted heir was in fact intentionally excluded from the will. In such a case, it may be necessary to complete an affidavit of heirship to prove heirship and have the document validated by the court in order to resolve the dispute. 

Mitigating Factors in Probate Litigation

There are factors that may minimize the risk of probate litigation or possibly prevent it entirely.

Role of No-Contest Clauses

A no-contest clause is a provision that an individual can add in their will in an attempt to prevent legal contests against the document. This clause stipulates that if an individual challenges a will and loses, then they will forfeit their right to the inheritance they were entitled to receive.

A no-contest clause may dissuade interested parties in a will from contesting a will or its content, which is beneficial for preventing frivolous claims against an estate. This clause essentially encourages interested parties to have established evidence and significant grounds for a case before initiating legal action.

However, no-contest clauses may not be enforceable in all cases, especially if the beneficiary had valid grounds for the contest, but it can help filter out unnecessary disputes. It’s advisable to discuss this option with an experienced probate litigation attorney if you believe a no-contest clause is in question.

Importance of Proper Estate Planning

Proper estate planning is crucial for addressing concerns that could lead to disputes or litigation. A detailed and well put-together estate plan is beneficial for clarifying who the beneficiaries of the will are, what assets are included in the estate, and how they should be distributed. By ensuring there is no ambiguity in the will and everything is accounted for, you can minimize the risk of disputes revolving around uncertainty. 

During the estate planning process, you should consider the following:

• Ensure that your health and mental capacity are proven and documented
• Choose a reliable and organized executor and discuss their responsibilities before they take on their role 
• Verify that all assets are listed and accounted for in your estate plan
• Communicate your intentions with your family so that they are not caught off guard by your wishes during probate

Consulting an estate planning attorney and financial advisors is important for ensuring you cover all your bases when developing your estate plan. It’s also advisable to consult a probate estate administration attorney to review your estate plan for potential holes before executing the estate plan. 

The Probate Process: Factors and Decisions

The type of probate process that occurs can also influence the likelihood of disputes and the difficulty to resolve them. The most common distinctions exist between formal probate and informal probate:

• Formal probate – Formal probate is the standard probate process that involves estate management and distribution under the close supervision of the courts, often common in complex estates.
• Informal probate – Known as a small estate affidavit in California, informal probate allows for the distribution of assets with minimal court intervention under the discretion of the estate administrator. 

In Texas are three different informal procedures: 

(1) Small estate affidavit when there’s no will

(2) Probate of will as muniment of title when there’s a will

(3) Order of no-administration and for family allowance when the spouse’s allowance would subsume the entire estate.

Formal probate generally takes several months or even years to complete. Because formal probate is associated with more complex and larger estates, disputes are often more common due to the larger number of assets and beneficiaries that can raise them. Meanwhile, informal probate often moves quicker than formal probate and disputes are less common because these estates are often clear and straightforward, although disputes are still possible. 

Engaging with Legal Counsel

Engaging legal counsel as soon as possible is critical to addressing and resolving any type of probate dispute. By addressing disputes early, you may be able to prevent them from dragging out for a long period of time and have more options for resolving the dispute, through methods like mediation or negotiation, before it leads to litigation.

Selecting an experienced probate litigation attorney will ensure that you have a reliable party on your side to help you navigate the necessary steps in probate litigation. A skilled attorney will not only be able to help you navigate the process, but they will also understand what potential strategies are available for strengthening your case and what may work in your favor.

Emotional and Financial Challenges of Probate Litigation

In an already difficult and emotional time after the loss of a loved one, litigation only adds to the stress between its emotional and financial challenges. The uncertainty of litigation, mixed with the added stress of having to go to court and build a case before a judge, can be particularly challenging on the family’s emotional state. Meanwhile, legal contests are costly processes with significant financial implications, adding to the natural stresses of probate and the potential outcomes of a dispute.

Litigation involves some of the following fees:

• Court filing fees
• Attorney fees
• Legal fees

The executor has to pay to defend the estate out of the estate funds, which means that long cases of litigation can drain extensive estate resources. All of these factors together make avoiding litigation extremely worthwhile, which is why many attorneys advise in favor of negotiation and mediation whenever possible.

Resolution Processes in Probate Litigation

If a dispute is not easily prevented, then potential arguments and probate litigation may be able to be resolved through multiple avenues. 

Negotiation and Mediation Techniques

The negotiation or mediation of estate disputes is a valuable step for seeking a less-contentious resolution to disputes than courtroom litigation by bringing all parties in the dispute together to discuss their grievances and goals for the process. Mediation offers the support of a neutral third party to help bring a mutually agreeable resolution amongst all interested parties.

Negotiations and mediation processes occur outside of the courtroom as an alternative step before litigation takes place. The mediator will serve as a facilitator for the conversation to analyze the situation as a group and explore potential solutions. These alternative dispute resolution methods may allow for not only a resolution to the dispute but also help preserve family dynamics by avoiding difficult “black-and-white” outcomes.

Court Litigation Procedures

If mediation or negotiations are unsuccessful, then litigation may be necessary as a last resort to resolving your dispute. If litigation is considered necessary, then an attorney should be engaged to help you resolve the dispute by navigating the court system.

This process will involve the following steps: 

1. Filing a case with the local probate court
2. Notifying all interested parties of the initiation of litigation
3. Gathering evidence for your case in discovery, including witness testimony, financial records, communications, and more
4. Presenting your evidence before the court and establishing your case
5. Receiving the judge’s decision 

Between filing the appropriate paperwork, gathering evidence, and building a strong argument for the court, litigation is a detailed and complex process. It’s advisable to consult a probate litigation attorney as soon as possible to receive their support and guidance.

Navigate Probate Litigation With RMO Lawyers

Probate litigation can be a time-consuming, costly, disruptive, and emotionally taxing process amidst the administration of a loved one’s estate. If you are facing an estate dispute, you should seek the support of an experienced probate attorney as soon as possible. An attorney can help you address disputes, and with proper guidance, potentially even help you avoid them entirely.

The probate and estate administration attorneys at RMO Lawyers can provide support and guidance as you navigate the probate process, helping you minimize the risk of disputes along the way. With decades of experience in probate litigation and related legal matters, our attorneys are prepared to support you in building a strong case. Whether that includes defending an estate against litigation or initiating a lawsuit, we are prepared to protect the best interests of an estate and its beneficiaries to secure access to one’s rightful inheritance.

Schedule a consultation with the team at RMO Lawyers to start discussing your case. 

Glossary 

Beneficiaries – A beneficiary is an individual or entity identified in a will as being entitled to receive benefits from the estate

Executor – An individual appointed by a probate court who is responsible for managing and administering an estate and is named as executor in the deceased’s will.

Testator – An individual who creates a will to be followed upon their death, explaining their wishes for the distribution of their assets to relevant beneficiaries.

Decedent – A person who has died and must have the assets of their estate administered after their death.

Formal probate – Formal probate is the most common type of probate administration and involves the administration of estate assets under close supervision of the probate court.

Informal probate – Also known as a small estate affidavit or informal family settlement, informal probate is the process in which estate assets are administered and distributed with minimal court intervention. 

Intestate succession – The legal process for facilitating the distribution of estate assets based on state intestacy law regarding inheritance priority when someone passes away without leaving a will.

Probate litigation – A lawsuit filed by an interested party in an estate against another during the probate estate administration process

Will contest – A probate proceeding where interested parties can dispute the validity of a will as long as they have legal grounds to do so, such as suspicion of mental incapacity or undue influence against a will creator.

Fiduciary duty – The legal obligation that an estate executor or administrator has to an estate and its beneficiaries to act in their best interests.