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Standing is a legal concept which we have seldom discussed on our blog. Standing refers to the legal capacity to bring a lawsuit in a particular context; in other words, if someone has standing, then they have the ability to initiate a viable lawsuit against a particular defendant or respondent. Any suit initiated by a party without standing can be collapsed on that basis alone. Hence, the issue of whether standing does exist in any given situation is a highly critical determination, as it establishes the viability of any future legal action.
The case of Jacobson v. Jacobson (also In the Matter of Jacobson, 2022 – initially from the Circuit Court of Montgomery County) was a relatively recent case involving the issue of standing in a will which involved trusts, powers of attorney, and various potential benefits. As we will see, this case added an important layer to the construction of standing in scenarios involving disinherited parties.
Let’s unpack this case in detail.
Facts of the Case
Between 2018 to 2019, the decedent in this case executed multiple estate planning documents – wills, trusts, and POAs) which initially benefited her niece and her niece’s son. But, the decedent ultimately changed these documents so that her niece and niece’s son were removed as beneficiaries and the decedent’s sister and her sister’s daughters were added as beneficiaries.
The decedent’s niece attempted to bring a suit against the decedent’s estate, arguing that undue influence had been exerted by the sister. The sister countered by arguing that the niece lacked standing because she was no longer a direct beneficiary of the estate, but merely a disinherited prior beneficiary. At the trial court level, the sister was successful, as the court held that a party needs a present or direct financial interest in the estate to sustain a viable suit, and that a past interest will not suffice. The case then went before the appellate division.
Ruling & Analysis
On review, the appellate division affirmed the trial court’s determinations, finding that the niece lacked standing and that therefore the lawsuit’s dismissal must be affirmed. The decision rested in part on the niece’s “distance” from the decedent: because the niece wasn’t a biological descendant, or within the same lineage, the niece didn’t qualify as an “heir at law.” This meant that she stood no potential to gain under any circumstances, as the amendments to the 2018 / 2019 estate documents were accepted by the court. If she had been an heir at law, then she may have gained standing since she would have potentially stood to benefit in the event of actual undue influence.
Had the niece acquired proper guidance prior to filing her cases, she may have been able to avoid substantial cost and hassle. An experienced and skilled estate planning attorney would have likely been able to deduce in advance that standing would be denied because of the amendments to the 2018 / 2019 documents and the lack of heir in law status. Prior to initiating any suit – especially an appeal – you need to thoroughly research every legal issue and understand your likelihood of success. That is an essential element of any pre-lawsuit strategy.
Contact the Murphy Law Firm for Additional Information
To learn more about standing in estate law contexts, filing a petition to formally challenge a will, establishing an irrevocable or revocable trust, or any other relevant estate planning matter, contact one of the estate planning attorneys at the Murphy Law Firm today by calling 240-219-1187.
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