Beneficiaries cannot be bound by an arbitration clause in testamentary trust documents. In Diaz v. Bukey, the California Court of Appeal affirmed a probate court ruling that denied a trustee’s motion to require a beneficiary to arbitrate a petition to remove the trustee. The trustee’s motion was premised

A testamentary trust is a common estate planning device.  To fund the trust, the person establishing the trust must transfer his or her assets to the trustee of the trust.  In a recent case, Kucker v. Kucker, the California Court of Appeal discussed the level of specificity required to make such a transfer effect with… read more

A common problem faced by a successor trustee administering a testamentary trust is determining how to satisfy trust provisions requiring the payment of specific amounts to trust beneficiaries.  It is not unusual for a trust to be short on cash, but to own significant amounts of property.  In Estate of Cairns, the California Court of… read more

Under California’s Proposition 13, property may be reassessed for property tax purposes under very limited circumstances.  One circumstance that can trigger reassessment is a change in ownership.  If a property has not changed hands for a significant period of time, reassessment may lead to a dramatic increase in property tax.  Three provisions of the California… read more

In Luna v. Brownwell, the California Court of Appeal ruled that a deed executed in anticipation of the creation of a trust is effective to transfer property to the trust as soon as the trust is created.  In Luna, a property owner initially attempted to plan his estate by adding his sisters to title.  Later,… read more

Trust beneficiaries who act in bad faith to delay the legitimate administration of the trust may find themselves funding the trust’s attorney’s fees and court costs.  In Rudnick v. Rudnick, the California Court of Appeal held that the probate court has the equitable power to require trust beneficiaries who use the courts to delay administration… read more

Everyone in California has an estate plan.  Some people have an estate plan, either in the form of a trust or a will, that reflects the wishes of the person who made the plan.  People who do not have a trust or a will also have a plan, one created under California’s intestate succession laws. … read more