A Deep Dive into the Heggstad Petition

In the realm of estate planning and decedent’s estates, a Heggstad Petition is a powerful tool. Named after a California court case, Estate of Heggstad, this unique petition allows you to transfer assets into a trust after the death of the trust’s creator, when they have been unintentionally left out of the trust.

By filing a Heggstad Petition, you can avoid the lengthy and often costly probate process for these overlooked assets. This is especially useful in situations where an asset was acquired after the trust was created, and the trustor forgot or was unable to transfer it to the trust before passing away, if all the necessary elements are present.

Pinpointing the Perfect Timing for a Heggstad Petition

The timing for using a Heggstad Petition is critical. This legal process comes into play after the trustor's demise when it becomes apparent that certain assets intended to be part of the trust were not formally or properly transferred.

The decision to file a Heggstad Petition requires an understanding of the deceased's intentions regarding their estate. If it can be shown that they intended to include the overlooked assets in their trust, a Heggstad Petition might be the right tool to effectuate their wishes.

It's worth noting that while a Heggstad Petition can save time and resources, it's not a shortcut to bypass proper estate planning. It's more of a remedial step to rectify an oversight in an otherwise well-structured trust.

Understanding the Heggstad Petition's Mechanism

The underlying principle of a Heggstad Petition is the demonstrated intention of the deceased to include the overlooked assets in their trust. If the trust document lists the assets, even without formal transfer, the court often views it as a clear indication of intent.

However, success isn't guaranteed. Each case is evaluated independently, and the outcome hinges on how convincingly you can demonstrate the deceased's intent. Thoroughly drafted trust documents that detail all assets, even those not formally transferred, will stand a better chance of a successful Heggstad Petition.

A Step-By-Step Guide to Preparing and Filing a Heggstad Petition

Review Trust Documents: Examine the trust documents to confirm that the overlooked assets are listed or mentioned, indicating that the trustor intended for these assets to be part of the trust. Alternatively, the asset’s chain of title might show such intent even if the final formal vesting is not under the trust. 

Compile Supporting Documents: Gather any additional supporting evidence that indicates the intent, such as previous documents, emails, letters, tax or financial records.

Prepare the Petition: Draft the Heggstad Petition, clearly outlining the facts of the case and presenting a compelling argument demonstrating the trust’s creator's intent to include the overlooked assets in the trust.

File the Petition: Submit the petition, along with the filing fee, to the probate court in the county where the decedent lived or where the property is located.

Court Hearing: Attend the court hearing, present your case, and address any objections or concerns raised by the court.

Receive the Court Order: If the court is convinced of the intent, it will issue an order to transfer the assets into the trust.

Transfer the Assets: Upon receiving the court order, you can proceed with administering the assets as trust assets.