There is a legal term for exactly what you describe: "a real mess".
Have a look at http://wiki.lawdepot.com/wiki/Quitclaim_Deed_FAQ_-_United_States#Property_Transfers
Does Hank have the power to dispute the farm being in the living trust?
Yes, anyone can dispute anything they like, however, it will almost certainly end in court and his prospects of success are OK at best.
Can there be consequences for the attorney who put the farm into the trust despite knowing there was a quit claim deed?
This rather begs the question: was there a quit claim deed? That is, I am not suggesting that there isn't a piece of paper so described but is it actually what it says it is at law?
Given that the answer to these questions is ambiguous; it would be difficult to state that the attorney has done anything that would be actionable.
Is the new quit claim deed inside the trust worthless or is the quit claim deed from circa 2003 worthless?
If they are valid then all they can do is transfer whatever interest Adam had in the land to Hank and Tango respectively.
If the 2003 deed is valid then Hank owns what Adam owned and all the new deed can do is transfer whatever rights remain to him (for example, a right to live there for the rest of his life).
It is important to remember that a quit claim deed does not make any claim that Adam has title to the land - I could give you a quit claim deed over it knowing that I really do not have an interest in it.
The Land Mines
Here are some of the legal issues that I can see
- Registration with the country appears to be a prerequisite of a valid quitclaim deed
- A quitclaim deed can only transfer whatever ownership Adam had in the land - it doesn't mean that other people (e.g. Tango) don't also have a claim
- Did Hank/Tango use "undue influence" to induce Adam to sign the quitclaim deed?
- Did Hank/Tango give "valuable consideration" to Adam?
- Did Adam intend that the documents he signed would be legally binding?
- Did Adam at 87/99 years old respectively have legal capacity to sign the deeds?
Your friend is going to need professional legal advice and needs to seriously consider the consequences to the family of initiating legal action - no matter who wins; relationships will be changed.