Here’s an awkward fact pattern Grandfather establishes a testamentary trust, which trust was confirmed in 1971 court order. The trust provides for distributions to the “grandchildren.” A decade later, an individual (Mr. Quick) learns that he is a grandchild, and strikes up a friendship with his father, who is also a trustee of the trustee. …
Continue reading “Court Permits 35 Year Delay in Filing Claim for Breach of Trust”
A recent case emphasizes that the probate court has broad powers to prevent the looting of a decedent’s estate, and can award penalty damages, as well. In Estate of Kraus (April 27, 2010) 184 Cal.App.4th 103, the decedent’s brother used an invalid power of attorney to clean out her bank accounts in the hours before …
Continue reading “Stiff Penalty for Looting Assets From Decedent’s Estate”
In the recent decision in Estate of Hastie, the court invalidated a transfer of real property made several years before Mr. Hastie’s death. In a matter of first impression under Probate Code section 21350, the court held that the gift to a caretaker was could be challenged years after the deed was recorded. This, surely, …
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A recent decision involving a deed to an estate planning trust achieved the correct result, but with unnecessary effort. The facts in Luna v. Brownell (June 15, 2010) 2010 DJDAR 8811 were simple. “On August 13, 2006, Al executed a quitclaim deed transferring his interest in the Property as an individual to himself as trustee …
Continue reading “Deed to Estate Planning Trust – Struggling for the Right Result”
A recent case affirms that California does not recognize a claim based on “intentional interference with an inheritance expectancy.” However, the court’s analysis leaves the door open to future litigation arising from different fact patterns. The lawsuit in Munn v. Briggs, 2010 DJDAR 8680 (4th Dist. June 11, 2010) was based on the following claim. …
A recent decision from the Florida court of appeals exalts form over substance to a achieve an unjust decision. Here is the case in a nutshell. Mom set up an irrevocable trust for benefit of one of sons. The trust contained a spendthrift provision, meaning that creditors could not reach trust assets before distribution to …
Continue reading “Florida Court of Appeal Permits Assets to be Hidden in Trust”
Professors Robert Cooter and Bradley J. Freedman analyzed the economic character and legal consequences of the fiduciary relationship. As discussed below, their strongest point is to explain that not all fiduciary duties are the same – it depends on the nature of the relationship. As a starting point, they acknowledge that “Legal theorists and practitioners …
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Trusts have been employed in the English legal system for hundreds of years. In 1979, Prof. R.H. Hehnholz reviewed court records to examine the early history of trusts. Prof. Hehnholz started by noting, “As a means of avoiding feudal incidents and of evading the common law rule prohibiting devises of freehold land, the feoffment to …
Continue reading “The Enforcement of Trusts in the Medieval Legal System”
The California Supreme Court recently considered when a transfer of ownership occurs in the context of an estate planning trust. The dispute arose in under Proposition 13, which sets the rules for property tax reassessment. According to the court, “When Helfrick died, the residence’s assessed value for tax purposes was $96,638, with total taxes due …
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Legal scholar John Langbein addresses a question that has been on my mind – When did trust agreements evolve from classic fiduciary relationships into will substitutes? The answer is – a long time ago. Explains Prof. Langbein, “Trust law is an ancient field. The enforcement of trusts in the English court of Chancery can be …
Continue reading “Professor John Langbein Discusses the Modern Trust as a Will Substitute”