A constructive trust is not a cause of action. It is a remedy. Specifically, it is a remedy in cases where one who has acquired property under such circumstances as make it inequitable for him to retain it by making him or her a trustee for the person(s) injured. Ralls County Mut. Ins. Co. v….
Legal Articles
Common Fund Exception
The general rule (i.e., the “American Rule”) is that a party to a lawsuit cannot recover attorney fees. This is true even if the party wins the lawsuit. A narrow exception to this rule is the common fund exception. Under this common fund exception to the American Rule, a litigant may recover attorney fees where…
Undue Influence
An undue influence claim is one of the two most common ways to legally attack a trust, will, or non-probate transfer. There is a “presumption” of undue influence if: (1) the influencer obtains a substantial benefit from the document, (2) the influencer was active in procuring the document, and (3) there was a confidential relationship…
Fiduciary Litigation, Breach of Fiduciary Duty
The existence of a fiduciary duty is a question of law for the court to decide, while whether a breach of fiduciary duty occurs is a fact question. Scanwell Freight Express STL, Inc. v. Chan, 162 S.W.3d 477, 481 (Mo. 2005). So, in any fiduciary litigation, there are two main steps: (1) establishing that a…
Creditor Claims Against Trust-Maker
During the lifetime of a settlor (i.e., trust-maker), the property of a revocable trust is subject to claims of the settlor’s creditors. Section 456.5-505.1, RSMo. Upon the settlor’s death, most revocable trusts are structured to where the trustee may pay the settlor’s last debts and expenses. Because these expenses can arise down the road and…
Trust Amendments and Modifications
When interpreting trusts, the intent of the settlor when the trust was created governs, and subsequent modifications are effective only in the manner expressed in the trust instrument. Banks v. Central Trust and Inv. Co., 388 S.W.3d 173, 176 (Mo. Ct. App. 2012). Generally, the settlor can modify the trust only in the manner provided…
Standing: Breach of Trust and Trustee Removal
Trust law distinguishes between “qualified beneficiaries” and “beneficiaries.” A “beneficiary” is a person that has a present or future beneficial interest in a trust or holds a power of appointment over trust property. Section 456.1-103(3), RSMo. A “qualified beneficiary” is different. It includes a beneficiary who is currently eligible to receive trust distributions, as well…
Surviving Spouse Inheritance Rights
In Missouri, there are three main benefits a surviving spouse can receive in probate: (1) certain exempt property, (2) a one year support allowance, and (3) a homestead exemption. The surviving spouse automatically receives from the estate the family bible, one automobile, all clothing, electrical appliances, instruments, furniture, and utensils and implements. See Section 474.250,…
Exculpatory Clauses in Trust, Trust Litigation
An exculpatory clause is a provision which authorizes the trustee to engage in conduct that would otherwise be a breach of fiduciary duty. Before enacting the Uniform Trust Code, Missouri law was that “[a]n exculpatory clause is valid and not contrary to public policy…absent a showing that the settlor was improperly induced to insert it.”…
Expert Witness Standards in Probate
Section 490.065.1, RSMo governs the admissibility of expert testimony in all proceedings in the probate court. So, this applies to most or all trust and estate litigation, including breach of trust claims and trust contest claims. Among other things, the statute requires that the facts or data on which the expert relied must be the…