What is Undue Influence?

Undue influence is a common ground for will contests.  The issue usually arises when someone – usually a caregiver – receives a gift from a person who is arguably weak and dependent upon the recipient.  Someone will then object on the grounds of undue influence, arguing that the recipient had so much control over the giver that the gift would not have occurred without the “undue influence” of the recipient.  It is essentially a claim that a greedy caretaker, family member, or other individual used his or her position of influence to take advantage of a weak-minded individual by causing that individual to make a gift to the caretaker.  Undue influence claims can arise for gifts made during life (inter vivos) and at death (by a will).

While the law of undue influence will differ from state to state, the concept is generally the same.  In the typical undue influence case, the giver and the recipient are in a relationship that gives the recipient the opportunity to wrongfully cause the giver to turn over his or her property.  This is known as a confidential relationship.

A confidential relationship, sometimes known as a fiduciary relationship, is one in which one of the people in the relationship is in a position to influence the other person because of some created dependency. The dependency can arise from physical or mental disability, being in a position of power or authority over the other person, or if one person creates an environment of trust. Any of these scenarios could be characterized as a fiduciary or confidential relationship.

As a practical matter, undue influence cases often turn on the existence of a confidential relationship.  The factors necessary to establish a confidential relationship may vary depending on what state is involved.  In Mississippi, the existence of a confidential relationship depends on the following:

1. Whether the recipient needs to be taken care of by someone;
2. Whether a close relationship exists between the two individuals;
3. Whether the giver has her transportation and medical care needs provided for by the recipient;
4. Whether the parties maintain joint accounts;
5. Whether the giver is physically or mentally weak;
6. Whether the giver is of poor health or advanced age; and
7. Whether there is a power of attorney between the two parties.

If all of these factors exist, then a confidential relationship will be found.  This means that the recipient is in a position to “exercise a dominant influence” over the giver due to the giver’s dependence on the recipient.  And that is half the battle.  The confidential relationship usually raises a presumption that undue influence caused the challenged transfer. The burden is then on the recipient to prove that there was no undue influence.