When a loved one makes an important decision, like writing a will, signing a contract, or making a large financial gift, we usually trust they’re acting freely and in their best interest. However, what happens when someone else uses pressure, manipulation, or emotional tactics to influence that decision?

What Is Undue Influence And Why Does It Matter?

Undue influence occurs when a person takes advantage of a position of trust or authority to pressure another into making decisions they might not otherwise make. It’s a problem that can arise in families, friendships, and business relationships.

When undue influence is present, it undermines a person’s free will to make decisions and redirects those decisions away from the vulnerable person’s actual wishes. When courts find undue influence is present, it allows them to invalidate documents like wills, contracts, or gifts that were obtained unfairly. This helps protect a vulnerable person and ensures fairness for everyone involved.

Recognizing The Signs Of Undue Influence

Although undue influence often happens in private, certain signs may indicate someone is at risk.

  • Isolation: If a vulnerable person is cut off from friends and family, they may become more dependent on a single person’s advice and opinions.
  • Unexplained Changes: Sudden changes to important decisions or agreements that significantly shift benefits or responsibility can raise concerns about undue influence, especially if these changes differ from the vulnerable person’s long-standing wishes or established decision-making.
  • Secrecy and Pressure: Look for signs of secrecy around major decisions. Is the vulnerable person reluctant to discuss changes? Do they seem nervous or pressured when talking about certain topics?
  • Financial Changes: Large, unexplained transfers of money or property to someone who’s recently become close to them, especially if they have a caregiving or advisory role, should raise questions.

Common Scenarios Where Undue Influence Arises

Undue influence can creep into many areas of life. Some of the most common situations where undue influence might arise, leaving interests at risk, are:

  • Wills and Estate Planning: This is likely the most frequent context for undue influence. It usually involves last-minute changes to a will or trust, particularly when made under suspicious circumstances or when a beneficiary (i.e. someone who benefits from the will or trust) is involved in making the change.
  • Financial Transactions: Undue influence isn’t limited to wills. It can affect decisions like large gifts, property transfers, or even co-signing a loan.
  • Contract and Business Relationships: Business partners, advisors, or family members might use their position of trust to pressure someone into signing unfavorable agreements.

The Legal Obstacle: Proving The Presence Of Undue Influence

Typically, courts look at a few key factors when determining whether undue influence was present. At trial, there must be more than a mere suspicion, a person must prove all factors are present to win their case. While the exact elements may differ depending on the case, courts often look at a few common elements to evaluate whether undue influence is present:

  1. The Person is Vulnerable: This refers to someone who is susceptible to being influenced due to factors like old age, illness, certain medications, or diminished mental capacity.
  2. There was an Opportunity to Influence: This considers whether the influencer had the opportunity to apply pressure or manipulate the vulnerable person. Often, the influencer is using a relationship of trust to take advantage of the vulnerable person. For example, courts have found this element present when the influencer controls who has contact with the vulnerable person.
  3. There is Evidence of Influence: Here, the focus is whether there are signs that the influencer used pressure to influence the vulnerable person’s decision. An example is the vulnerable person drafting their will using a list provided by the influencer; like who the recipients are or how money is distributed.
  4. The Results Appear to be the Effect of Influence: Lastly, this element assesses whether the end result benefits the influencer. This includes the influencer receiving more money, property, or control that they otherwise would not have had if the vulnerable person was not influenced.

Conclusion

Proving the present of undue influence is extremely complex. It is important to have an experienced attorney in this area of the law to assist you with these matters. If you think a loved one’s decision was affected by undue influence in North Dakota, please contact us. For future articles, check out our blog. This article is for informational purposes only and is subject to our disclaimer.