The Heggstad case, formally known as the Estate of Heggstad (1993), 16 Cal. App. 4th 943, is a landmark case in California trust law.
It has significant implications for how property is handled when it comes to living trusts, especially when dealing with the inclusion of real property in a trust.
Overview of the Heggstad Case:
Background: The case involved a situation where the decedent, Carl Heggstad, had created a living trust and declared in the trust document that he held certain real property in trust. However, he never executed a deed transferring that property into the trust's name.
Legal Issue: After Heggstad’s death, the question arose whether the real property was part of the trust, even though no formal deed had been executed transferring the property to the trust.
Court's Decision: The California Court of Appeal ruled that the property was indeed part of the trust. The court found that a written declaration of trust by the settlor, stating that they held the property in trust, was sufficient to transfer the property into the trust, even in the absence of a formal deed.
Key Implications: Written Declaration Sufficiency: The ruling clarified that a written declaration by the settlor (trust creator) indicating that property is to be held in trust is sufficient to include that property in the trust. There is no need for a separate deed if the settlor's intent is clear.
Probate Avoidance: This decision allows for property to be included in the trust after the settlor's death without the need for probate, provided the trust document clearly shows the settlor's intent to include the property.
Trust Administration: The Heggstad ruling provides a way for trustees or beneficiaries to petition the court to include property in the trust that was intended to be part of it but wasn't formally transferred before the settlor's death.
The Heggstad case is often cited in situations where property needs to be added to a trust after the settlor's death, helping to streamline trust administration and avoid probate.
SE Fiduciary Services 619.850.4923
Copyright © 2024 SE Fiduciary Services - All Rights Reserved.
Powered by Integrity, Trust and Transparency