One dilemma many of our clients face is trying to see if they can include assets in their trust after their family member has already passed away.
In California probate law, it may be possible.
The Heggstad petition provides a unique solution when certain assets are unintentionally left out of a trust. Understanding how this petition works, who it benefits, and why it matters can save you time, money, and stress.
What is the Heggstad Petition?
The Heggstad Petition is a legal tool that allows assets to be included in a trust after the trust creator’s (also known as: the settlor) death – even if those assets were not formally transferred to the trust during their lifetime. This petition stems from the California Court of Appeal case, Estate of Heggstad (1993), which established that a written declaration of trust ownership can be sufficient to transfer assets into the trust without requiring a formal deed or title change.
The Heggstad petition is filed with the probate court and seeks an order confirming that specific assets should be considered part of the trust based on the settlor’s intent, as expressed in the trust documents.
Who Is Impacted by the Heggstad Petition?
The Heggstad Petition can come into play for 4 types of people:
- Trustees: Individuals responsible for managing a trust who discover assets not formally included in the trust.
- Beneficiaries: Heirs who stand to inherit assets and want to avoid the delays and costs associated with probate.
- Estate Planning Attorneys: Lawyers who want to help resolve issues related to incomplete asset transfers on behalf of their clients.
- Families of the Deceased: Loved ones navigating the estate planning process.
The Heggstad Petition is most useful when the trust includes a clear schedule of assets or other written evidence showing the settlor’s intent to include specific property in the trust.
What are the Benefits?
- Avoids Probate: Without the petition, assets left outside the trust might require probate, which is a lengthy and expensive court process.
- Preserves the Settlor’s Intent: It ensures that the settlor’s wishes are honored, even if administrative oversights occurred during their lifetime.
- Saves Time and Money: The Heggstad petition can expedite the asset transfer process and reduce legal fees compared to probate.
- Minimizes Family Conflict: By clarifying the ownership of assets, the petition helps prevent disputes among beneficiaries.
When is a Heggstad Petition Required?
- Real Estate Oversight: A settlor includes real estate in the trust’s schedule of assets but fails to execute a deed transferring the property into the trust.
- Bank or Investment Accounts: Accounts listed in the trust’s documentation but not formally retitled.
- Unanticipated Property Acquisitions: Assets acquired after the trust’s creation that were not explicitly transferred into the trust.
Potential Challenges and Limitations
While the Heggstad petition is a powerful tool, it’s not always guaranteed to succeed. Some challenges could be:
- A Lack of Documentation: Without clear evidence of the settlor’s intent, the petition may be denied.
- Disputes Among Beneficiaries: Conflicts over the inclusion of certain assets can complicate the process.
- Legal Complexities: Some assets, such as those requiring specific titling, may still need additional steps to transfer.
This is why it’s important to have an experienced estate lawyer on your side. At Best Coast Estate Law, Pc our team can help navigate these challenges. Give us a call for a consultation.
Best Coast Estate Law, PC is Here to Help
If you’re in a situation where assets were mistakenly left out of a will, reach out to our powerful probate attorneys so we can help you navigate the legal process and help you get what you deserve.
Disclaimer: The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. Brittany Britton is licensed to practice law in the state of California only
