Can an Heir Sue on Behalf of an Estate or Trust?

Disputes over wills and trusts can become especially complicated when family members believe something went wrong. A recent Nebraska Supreme Court case, Reilly v. Pansing Hogan Ernst & Bachman, helps explain who has the legal right to bring a lawsuit in these situations—and who does not.

The case arose after George Kubat made major changes to his estate plan shortly before his death in April 2021. At the time, Kubat was in a relationship with Maureen Walsh. While hospitalized, he modified his trust to leave her millions of dollars, then increased that amount just days later. On the day he died, Kubat and Walsh married, and he signed a new will reflecting those changes.

After his passing, Kubat’s children and others challenged those last-minute decisions, arguing that Walsh had improperly influenced him and questioning whether he had the capacity to make such changes. A jury ultimately found that Kubat did have the mental capacity required, but that he had been subjected to undue influence. As a result, the most recent changes to his will and trust were declared invalid.

Christine Reilly, an heir and trust beneficiary, pursued a separate legal claim. She sued Kubat’s attorney and his law firm, arguing that they mishandled the estate planning process. She brought the case not only on her own behalf, but also claiming to act on behalf of the estate and the trust. Among other things, she sought to recover her personal legal expenses.

The court, however, did not reach the merits of her claims. Instead, it focused on a threshold issue known as “standing.” In simple terms, standing asks whether a person has the legal right to bring a lawsuit at all. Even if someone feels wronged, they cannot proceed unless the law recognizes their authority to sue.

In this case, the court concluded that Reilly did not have that authority. Under Nebraska law, the responsibility for bringing legal claims on behalf of an estate belongs to the court-appointed representative, such as a personal representative or special administrator. Reilly did not hold that role. Although she argued that she should be allowed to step in because the appointed administrator refused to pursue a claim, the court found that she had other remedies available. For example, she could have asked the court to remove the administrator or appoint someone else specifically to pursue the claim. Because she chose not to pursue those options, the court determined she could not proceed on behalf of the estate.

A similar principle applied to the trust. The trustee is the person charged with protecting the trust and deciding whether to bring legal action. While beneficiaries can sometimes step in, that is generally limited to situations where the trustee is acting improperly or failing to carry out its duties. Here, the trustee—a bank—made a decision not to sue the attorney and concluded that doing so was not in the best interest of the trust. Reilly did not provide evidence that this decision was improper, so the court ruled that she could not bring a claim on the trust’s behalf.

Reilly also attempted to pursue claims in her individual capacity, arguing that the attorney owed her a legal duty. The court rejected that argument as well. The attorney’s client was Kubat, not Reilly, when it came to estate planning. Even though Reilly may have interacted with the attorney in other contexts, that did not create an attorney-client relationship for purposes of Kubat’s estate plan. Courts are also cautious about extending duties to non-clients in estate planning matters, since doing so could create conflicts between competing beneficiaries. The attorney’s obligation, the court explained, was to carry out Kubat’s wishes—not to protect the individual interests of any particular heir.

The decision underscores a key takeaway: being affected by an estate or trust does not automatically give someone the right to file a lawsuit. Legal authority matters. Only certain individuals—such as appointed representatives and trustees—have the power to act on behalf of an estate or trust, and there are specific procedures that must be followed if those individuals are not fulfilling their roles.

For families navigating estate disputes, the case serves as a reminder that the path to legal action is not always straightforward. Understanding who has the authority to act, and what steps must be taken before filing suit, can make all the difference. ES Law’s estate litigation attorneys, Bonnie Boryca and Erin Robak, can guide through these tough issues and determine what rights you may have.