Trusts and Estates Case Alerts

Marcie Weber was convicted of theft from an elder, Philippa Johnston, and was ordered to pay restitution to the victim’s estate. Following Johnston’s death, her conservator, Sarah Kerley, filed a restitution action and an 850 petition to recover civil damages for the wrongful taking from an elder. In the restitution action, the parties stipulated to a judgment of $700,000. In the 850 action the court, based on principles of res judicata, granted the petition and awarded double damages of $1.4 million. Read more

Decedents Fusae Obata and Emi Obata died intestate in 2013, unmarried, and leaving no issue. In 1911, their father Tomejiro Obata had been adopted in Japan under the Japanese practice of yōshi-engumi. Tomejiro’s descendants from his biological parents claimed under the laws of intestate succession, arguing that Tomejiro’s adoption was not valid under California law because (1) it did not create a sufficient parent/child relationship between the adoptee and the adopting parents; (2) it did not terminate the parent/child relationship between the adoptee and the biological parents; (3) it did not require a judicial or neutral third party review process; and (4) it did not result in a permeant relationship – all of which are requirements for a valid adoption in California. Read more

M.B., a minor, appealed an order appointing the Public Guardian as the conservator of her person pursuant to the Lanterman-Petris-Short (“LPS”) Act. Minor contended that the court should have applied the definition in Welfare Institutions Code section 5585.25, which defines “grave disability” of a minor as “a minor who, as a result of a mental disorder, is unable to use the elements of life that are essential to health, safety, and development, including food, clothing, and shelter, even though provided to the minor by others,” instead of the definition contained in section 5008, subdivision (h)(1)(A). Read more

Arthur and Hildis created a trust and named their children as remainder beneficiaries. Under the trust their son John held a power of appointment over his interest in the trust that, if not exercised, would pass to the other trust beneficiaries. In order to validly exercise the power of appointment it had to be exercised in “a will specifically referring to and exercising this general testamentary power of appointment.” Read more

A’Yana was the beneficiary of a special needs trust established by court order in 2004 and funded with proceeds from the settlement of a medical malpractice lawsuit. Melodie, a professional fiduciary, was appointed trustee in 2004 and signed the trust instrument. Although the trust required biennial court accountings Melodie filed her first accounting in 2012, asserting she was unaware the trust was court-supervised. Read more

Christie, a professional fiduciary, served as conservator of Lorraine’s person and estate until Lorraine died in 2015. After Lorraine’s death, Christie filed a combined petition seeking (1) approval of her final accounting and (2) conservator’s fees. At the hearing, the probate court expressed concern over Christie’s billing practices, including what appeared to be duplicate time entries charged to several different client files. Read more

When Francesca died in 1997, her husband, Robert, became sole successor trustee of her trust. Robert was the lifetime beneficiary and Francesca’s two daughters from a prior marriage were the remainder beneficiaries. Christina, one of the remainder beneficiaries, filed a petition alleging Robert breached his fiduciary duties as trustee of Francesca’s trust. Read more

Settlor’s daughter Joan challenged the validity of eight amendments to and restatements of the Trust executed by the settlor in a three year period, which ultimately resulted in Joan’s disinheritance and removal as successor trustee of the Trust. Joan’s sister Shana benefited as a result of the challenged amendments with a larger share of the Trust and appointment as successor trustee. Read more

After a family dispute over a former trustee’s management of trust assets, the grantors removed the former trustee and appointed Claudia, a private professional fiduciary, as successor trustee. Claudia filed and obtained court approval of her first two trust accountings without objection. In 2016, after the second grantor died, Charles, one of the trust beneficiaries, demanded the third trust accounting as well as all supporting documents, including bank statements, attorney billing statements, and engagement letters. Read more

Arthur died in 2011, leaving most of his assets in trust for his four children in unequal subtrusts. The trust provided that Arthur’s son, Raymond, was to receive 35% of the trust and that Raymond’s subtrust would include Arthur’s ranch, which was worth $7.2 million at Arthur’s death. The trust also provided that the income tax of any subtrust was to be paid by that subtrust’s beneficiary. In 2014, the ranch sold for $14 million. Read more