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 …
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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 …
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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 …
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A second recent opinion reinforces the fundamental rule that an inter-vivos revocable trust is not an entity separate from the trustee. In Presta v. Tepper, 2009 DJDAR 16603 (Nov. 27, 2009), the court provided the following analysis: “Two men enter into a real estate investment partnership, each acting in his capacity of trustee of a …
Continue reading “A Revocable Trust Is Not a Separate Legal Entity – Part 2”
A pair of decisions from last month reinforce the fundamental rule that an inter-vivos revocable trust is not an entity separate from the trustee. The first opinion, 1680 Property Trust v. Newman Trust, 2009 DJDAR 16161 (Nov. 17, 2009) states the rule with elegant simplicity, to wit: “Unlike a corporation, a trust is not a …
Continue reading “A Revocable Trust Is Not a Separate Legal Entity – Part 1”
A decision handed down this month involved an all-too-common situation. In King v. Johnson, 2009 DJDAR 15871 (Nov. 9, 2009), the husband provided for a testamentary trust. After the husband’s death in 1991, his widow became the trustee. The widow later suffered from declining health. One of the daughters was apparently close to her mother. …