Trusts and Estates
Estate of Tarlow
Cite as B333665
Filed Feb. 20, 2025 (Cert. for Pub. Feb. 27, 2025)
Second District, Div. Four
By: Nicholas W. Yang
Hanson Bridgett LLP
https://www.hansonbridgett.com
Headnote: Estate Litigation – Standing
Summary: A trustee of a testamentary trust has standing to file a petition in an estate proceeding since the trustee is a devisee under the will.
Decedent executed a will in which he left the balance of his estate equally between his sister and brother. Brother was to receive his share outright whereas sister’s share was to be held in trust for her benefit with decedent’s friend serving as trustee. Upon sister’s death, all trust assets were to be distributed to brother outright or to a charitable fund if brother predeceased sister. After decedent’s death, sister purchased the charitable fund’s remainder interest. She then disclaimed that residual interest in the Trust in exchange for brother disclaiming his interest in tangible personal property. As a result, the siblings argued, the estate was to be fully distributed without the need to fund the testamentary trust since sister would receive the tangible personal property that brother disclaimed, and brother would receive everything else that sister disclaimed. Trustee disagreed and filed a petition under Section 11700 seeking to distribute sister’s interest to himself as trustee and to rescind sister’s purchase of the charitable fund’s remainder interest as an illegal contract. Sister and brother demurred to trustee’s petition based on lack of standing. The trial court sustained the demurrer without leave to amend and trustee appealed.
The appellate court reversed and remanded. Where a will creates a trust, the named trustee is a devisee under the will entitled to receive property from the estate, and therefore has standing to file a petition under Section 11700.