joint trusts

What is a Trust (Boshernitsan v. Bach (2021 61 Cal.App.5th 883)?

Published on: May 12, 2023 | By Underwood Law Firm, P.C.

5122023-300x300 “A trust is any arrangement which exists whereby property is transferred with an intention that it be held and administered by the transferee for the benefit of another.” (Higgins v. Higgins (2017) 11 Cal.App.5th 648, 662.) Essentially, a trust is a legal relationship that allows a person to hold property for the benefit of another person.

In a trust relationship, there are typically three main people involved: (1) the settlor; (2) the trustee; and (3) the beneficiary. The settlor is the person that creates the trust and transfers the property he/she owns in the trust to be held by the trustee. The trustee is the person that administers the trust. The trustee holds legal title to the property transferred into the trust by the settlor and acts as a fiduciary to the beneficiary to protect the assets in the trust. The beneficiary holds equitable title to the trust property and is the person that benefits from the property in the trust. In some cases, the settlor and the trustee are the same person.

In sum, a trust is a fiduciary relationship where property is transferred by one person to another on behalf of a third party. At the Underwood Law Firm, our attorneys are more than familiar with trusts and the requirements that follow.

Continue reading →

What is the proper venue for a trust (Probate Code section 17005)?

Published on: April 21, 2023 | By Underwood Law Firm, P.C.

4212023-300x300 Anytime a litigant wants to file a lawsuit, a threshold question is where the lawsuit should be filed. Specifically, the question is what county should get to hear the action. This process is called determining “venue,” and it can become quite a complicated endeavor. This is because the “correct” county for action will depend on a number of factors.

One such factor is the “nature” of the action. If it concerns the “internal affairs” of a trust, then specific venue rules come into play. But making this determination isn’t easy. And filing suit in the wrong county could result in both a transfer and sanctions for the plaintiff who didn’t do their homework.

What is Venue?

Continue reading →

What is a Heggstad petition (Estate of Heggstad (1993) 16 Cal.App.4th 943)?

Published on: February 24, 2023 | By Underwood Law Firm, P.C.

2242023-300x300 A Heggstad petition is a unique legal maneuver in probate court that a party can use to establish the existence of a trust. Normally, if a party wants to show that the property at issue is in a family trust, they have to produce evidence of a transfer of the property into the trust. (Prob. Code § 15200 (b).) This is usually accomplished with a deed, which conveys the property from the owners (the “settlors”) to the trustees of the trust.

But what happens when the settlor and trustee are the same person? That’s where Heggstad comes in. Under Heggstad, no formal transfer of the property by deed is needed. Instead, a written declaration of trust by the owner of the property is enough, provided the owner names themself as the sole trustee. (Carne v. Worthington (2016) 246 Cal.App.4th 548, 559.)

Nonetheless, a successful Heggstad petition still requires proper planning and execution. A faulty property description, for instance, can doom the action from the outset. At Underwood Law firm, our attorneys know how tough a situation like this can be. Thankfully, our attorneys are well-versed in estate planning, and we know the best ways to tackle the disputes that accompany property in probate. Our team has the legal acumen and skills necessary to help you achieve your litigation goals.

Continue reading →