Estate of Heggstad

Estate of Heggstad
Court	California Courts of Appeal First Appellate District
Full case name	Estate of Halvard L. Heggstad
Decided	June 21, 1993
Court membership
Judges sitting	Michael J. Phelan, J. Anthony Kline, John E. Benson
Case opinions
Affirm

Estate of Heggstad, 16 Cal. App. 4th 943 is a legal case heard by the California Court of Appeal concerning the probate the estate of Halvard L. Heggstad and mislabeling of property within a trust.

Background

On May 10, 1989, Halvard Heggstad created a revocable living trust with him as the trustee and his son Glenn P. Heggstad as successor trustee. Halvard placed all the property that he wanted in the trust, including the real property into an attachment to his trust document titled "Schedule A". During drafting a piece of property was mislabeled as "Partnership interest in 100 Independence Drive, Menlo Park, California.", in which Halvard had an undivided 34.78% interest as a tenant in common. The Menlo Park Property remained in his name as an unmarried man and there was no grant deed reconveying this property to his trust. A month after drafting his testamentary documents, Halvard married Nancy Rhodes Heggstad. Nancy was not provided for in the will or trust, but was entitled to one third of the estate outside the trust as her intestate share as an omitted spouse.

After Halvard died on October 20, 1990, Glen became the successor trustee and petition the probate court in San Mateo for disposition of the Menlo Park Property, claiming the language in the trust allows the creation of a separate trust and the property was not part of his father's estate. Nancy objected and appealed the decision claiming the property not transferred to the trust by a properly executed document or by operation of law and that the trustee had a conflict of interest as a beneficiary of the trust. The appeals court determined that written a declaration of trust by the decedent was sufficient to create a trust and a separate deed transferring the property to the trust was not required. A written declaration of trust by the owner of real property is sufficient to create a trust in that property.

California Probate Code 850

California Probate Code 850, also known as a Heggstad petition is a judicial proceeding used to remedy property that was not properly transferred into the trust where the title did not reflect the trust ownership upon death or incapacitation of the trustee. The Heggstad petition requires the court to be petitioned by the successor trustee, where the court confirms the assets of the trust.

References

• Trust and Estate Litigation Lawyers