As more living trusts are created, more Heggstad Petitions are filed in California’s probate courts. What is a Heggstad Petition ? It is a legal way to put a deceased person’s property into their living trust that had been inadvertently excluded. Although there are less costs, time and steps involved in filing a Heggstad than filing a regular probate, why would anyone want to put their loved ones and beneficiaries through that? The whole point of the living trust was to save time, money, headaches and keep your affairs private. Don’t let this happen to your loved ones.
It’s very simple to avoid a Heggstad petition from being filed. Just make sure your property is formally transferred into your living trust, also referred to as “funding the trust”. Make sure the trust transfer deed is prepared and recorded at the county recorder in the county where the property is located. Many do-it-yourselfers skip this last and most important step. Sometimes people don’t know or forget, or thought it had been done. Sometimes, sadly maybe their health declined or they died before the process could be completed.
A Heggstad petition won’t work unless it is clear that the property that wasn’t transferred into the trust was intended to be in the trust. Most commonly, the property would have been specifically listed in the Schedule of Assets. Once the court can clearly see that the decedent meant for the property to be distributed to the beneficiary(ies) outside of the probate process, the court can grant an order approving the petition. A certified copy of the court order will need to be recorded so that the successor trustee can proceed to carry out their duty to transfer the property as the decedent wished.
We prepare Heggstad Petitions. Please give us a call if you need our help.
This article is not intended to be legal advice. Any legal questions need to be answered by a licensed attorney. Tax matters should be answered by a CPA or other tax professional.