Trusts and Estates

Colvis, et al. v. Binswanger, et al.  

Please share:

Cite as A166997
Filed October 13, 2023
First District, Div. Five

By Golnaz Yazdchi
Sheppard Mullin Richter & Hampton LLP

Headnote: Litigation – Standing

Summary: In addition to a trustee or beneficiary, an interested person may have standing to respond or object in a trust proceeding.

Trustors established a trust for the benefit of their five children.  The trust held a 70% interest in a company, of which the children, personally, owned the remaining 30% in equal shares.  Two of the five beneficiaries filed a petition to instruct the trustee to take certain actions, including directing the company to borrow substantial sums to pay estate taxes owed by the trust.  The company filed a response to the petition.  Petitioners objected to the company’s involvement, claiming the company did not have standing to participate because it was neither a beneficiary nor trustee of the trust.  The court agreed, and found the company lacked standing.

The appellate court reversed.  Although only a trustee or beneficiary can petition the court for instructions in a trust proceeding, an interested person can respond or object to a petition so long as the interested person has a property right in, or claim against the trust estate, that may be affected by the proceeding.

Forgot Password

Enter the email associated with you account. You will then receive a link in your inbox to reset your password.

Personal Information

Select Section(s)

CLA Membership is $99 and includes one section. Additional sections are $99 each.