What is a Probate Code 850 Petition aka a Heggstad Petition?
California Probate Code 850 (commonly referred to as a Heggstad petition) guides the legal process of avoiding lengthy court probate administration procedures by asking a court to order properties that should have been but were not titled in the name of a trust. A powerful, cost-effective tool, Heggstad petitions can save you time and money. They can also help smoke out any potential trust contests, trust challenges, trustee suspension, trustee removal, or breach of fiduciary duty that may be lurking in the wings.
What is a Probate Code 850 Petition?
California Probate Code 850 (commonly referred to as a Heggstad petition) guides the legal process of avoiding lengthy court probate administration procedures by asking a court to order properties that should have been but were not titled in the name of a trust. A powerful, cost-effective tool, Heggstad petitions can save you time and money. They can also help smoke out any potential trust contests, trust challenges, trustee suspension, trustee removal, or breach of fiduciary duty that may be lurking in the wings.
A California Probate Code 850 Petition, or Heggstad petition, governs the “conveyance of transfer of property claimed to belong to decedent or other person.” Generally, lawyers us an 850 Petition where a decedent created a trust but failed to title one or more properties in the name of the trust. This could be real property, a bank account, or an investment account.
In Heggstad, the decedent transfered property to the trust, removed the property from the trust to refinance it ,and never transfered it back. Without Heggstad, the executor goes through probate, distributes to the trust, the trust is administered and then distributes. A Heggstad petition avoids this cumbersome, duplicative, time-consuming, and expensive process and saves the estate significant time and money.
How Do I File a Heggstad Petion (850 Petition) to Add Properties to a Trust?
You should always consult an experienced trust attorney regarding your case. Why? Firstly, an 850 petition may not be appropriate. There are specific factual scenarios under which a court will grant an 850 Petition. Counsel can examine your facts and tell you whether you are likely to succeed, or just wasting time and money.
Second, Probate council will work with courts probate examiner and provide supplemental information to avoid delays and continuances. An experienced Lawyer can address the courts concerns on the first filing and avoid uncessary delays.
Third, although seemingly administrative in nature, 850 Petitions tend to smoke out unhappy heirs and beneficiaries who may be contemplating challenging the trust, seeking suspension or removal of a trustee, or pursuing breach of fiduciary duty claims. A trustee interested in pursuing an 850 Petition would be well-advised to understand and take into account these considerations when deciding to pursue an 850 Petition and in drafting the 850 Petition to avoid potential future pitfalls. Fourth, some jurisdictions favor Heggstad petitions, where other jurisdictions do not. An experienced trust lawyer can help you analyze whether your local court is likely to grant your Heggstad Petition.
Challenges to Probate Code 850.
In recent years, litigation trust litigation about the contents of the decdents trust has become more popular. These suits claim there was no clear intent to add those properties to the trust. These contestants see the ability to object to a Heggstad as a possible opportunity to avoid the asset going to the trust and instead pass via intestacy or a will (normally the will just distributes the asset to the trust anyway). A trust litigation attorney will be needed to protect the trustee and its beneficiaries.
Can I Remove Properties from a Trust with a Heggstad (850) Petition?
Not directly. Probate Code 850 provides guidance that can be used to request that the court return property or assets illegally taken from a trust. To discourage stealing from the trust, a California probate code provision (Probate Code 859) asks the person proven to be stealing from the trust to return the stolen assets and up to “twice the value of the property recovered.”
When Do I Need a Trust Litigation Attorney?
Contact a trust litigation attorney when you’ve lost a loved one and don’t know what the next steps are. An early call to a trust litigation attorney experienced with the local probate courts can go a long way to ensure a smooth and cost-effective administration. At Bassin Law , the consultation is always free, so email scott@bassinlaw.net or call: (415) 753-5245.
Do I Need a Trust Litigation Attorney Near Me?
Hire an experienced trust litigation attorneys familiar with the local probate court where the decedent lived. If the decedent lived in San Francisco or San Jose, we recommend working with a trust litigation attorney in San Francisco. A San Francisco Angeles probate lawyer will generally be more familiar with the San Francisco Superior Court Probate Division.
Have questions? Call right now. It’s totally free. (415) 753-5245.