Everything was perfect.
The trust was prepared. The estate plan was signed. The assets were supposed to be properly titled. The family thought they had done everything necessary to keep the estate out of probate.
Except for one line on one deed.
That single overlooked detail created a problem that could have forced the family into a lengthy and expensive probate proceeding.
This is where a Heggstad Petition can sometimes make all the difference.
The Problem Wasn’t the Estate Plan. It Was the Paperwork.
One of the most common misconceptions in estate planning is that signing a trust means everything automatically belongs to the trust.
It doesn’t.
Assets generally need to be properly titled or otherwise legally connected to the trust. Real estate, in particular, requires careful attention to the deed transferring the property into the trust.
And that’s where things can go wrong.
Maybe the grantor’s name was spelled incorrectly.
Maybe the trust’s legal name was missing or incorrect.
Maybe the deed was signed but never recorded.
Maybe a property was unintentionally left out altogether.
The estate plan can be beautifully drafted, but if the paperwork doesn’t match the plan, there can be a serious problem after death.
Enter the Heggstad Petition
A Heggstad Petition is a California probate court procedure that may allow a trustee to ask the court to determine that an asset actually belongs to a trust, even though the asset was not properly titled in the trust’s name.
The procedure comes from Estate of Heggstad, a California case that established an important principle: under the right circumstances, evidence of the decedent’s intent and ownership can allow the court to recognize an asset as belonging to the trust.
In other words, a paperwork problem doesn’t necessarily mean the family has to start from scratch with a full probate proceeding.
But that doesn’t mean Heggstad Petitions are a magic fix.
The facts and documentation matter.
How Does a “Typo” Become a Million-Dollar Problem?
Imagine a family trust that owns virtually everything the parents intended it to own.
There is one property worth $1 million.
The parents intended that property to be part of the trust. Their estate plan reflects that intention. But the deed contains an error—or the deed was never properly recorded.
Years later, one of the parents dies.
The family discovers the problem while trying to administer the trust.
Suddenly, the trustee may be unable to simply treat that property as a trust asset.
Without another legal solution, the property could potentially become subject to probate.
That’s a huge problem for something that may have started with a single line on a piece of paper.
A Heggstad Petition May Be the Missing Piece
When the circumstances support it, a trustee may be able to file a Heggstad Petition asking the probate court to determine that the property belongs to the trust.
The court may consider evidence such as:
- The trust agreement
- Schedules of trust assets
- Deeds and other title documents
- Estate planning documents
- Statements demonstrating the decedent’s intent
- Other evidence showing that the asset was intended to be held by the trust
If the court grants the petition, the asset can potentially be recognized as a trust asset without requiring a traditional probate administration of that property.
The key word is potentially.
Every case is different, and a Heggstad Petition is not appropriate in every situation.
The Bigger Lesson: Estate Planning Doesn’t End When You Sign the Documents
The most important lesson isn’t really about Heggstad Petitions.
It’s about funding.
Creating a trust is only part of an effective estate plan. Making sure the right assets are properly connected to the trust is just as important.
That’s why estate planning should include an ongoing review of how assets are titled and whether the estate plan still reflects what you actually own.
Because sometimes, the biggest estate-planning problem isn’t a complicated legal issue.
It’s one unchecked line.
One missed deed.
One property that never made it into the trust.
And years later, that small mistake can become a very big problem.
Don’t Wait Until There’s a Probate Problem to Check Your Deeds
If you’re a trustee who has discovered that a piece of real estate or another asset may not have been properly transferred into a trust, don’t assume that probate is your only option.
A Heggstad Petition may provide a path forward depending on the circumstances.
And if you’re still planning your estate, take the opportunity to review your deeds and asset titling before your family has to discover a problem.
Because the best Heggstad Petition is often the one you never have to file.
Have a question about a property that may have been left out of a trust? Snyder Law can help you understand whether a Heggstad Petition may be appropriate for your situation.
