Trusts & Estates Bulletin

A Compendium of Recent Cases

  Brought to you by LACBA's Trusts & Estates Section   *  Volume II, Number 12  *  April, 2007  *  Contact Us  *  Join the T & E Section  *  Archived Issues


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Trusts & Estates Bulletin is published monthly by the Trusts & Estates Section of the Los Angeles County Bar Association (LACBA).

David C. Nelson,
Loeb & Loeb LLP, Editor


  (Cases appear in chronological order, with the oldest cases appearing first.) 

-  Healthcare Law-
Where decedent had signed a Probate Code Sec. 4701 health care power of attorney that authorized her daughter to make health care decisions for her, including the selection of health care providers, which impliedly included the power to execute contracts of admission when having the decedent admitted to a long-term health care facility, and the decedent had not elected to restrict the powers of the daughter as her agent so as to exclude the power to enter into arbitration agreements, daughter’s execution of arbitration agreements that were part of the package of admissions documents was binding in action charging nursing home with wrongful death, elder abuse, and violation of patient rights.
     Hogan v. Country Villa Health Services - filed March 1, 2007, Fourth District, Div. Three
     Cite as SOS 2007 1177
     Full text 

-  Trusts and Estates-
Where corporation’s distributions to shareholders in connection with a single transaction were less than 20 percent of the corporation’s gross assets, those distributions did not constitute a "partial liquidation" of the corporation, so general rule that distributions by a corporation to a shareholder that is a trust are allocated as trust income applies. Parent corporation’s advice to shareholders that a subsidiary was selling certain stock and intended to divest itself of specified tangible property, and make distributions to its shareholders, including parent corporation, did not constitute an indication by parent corporation that it was partially liquidating, so resulting distributions to trust were properly allocated as income rather than as principal under the "entity" exception to the general rule. Rule that distributions to trust in exchange for stock constitute principal does not apply where distributions did not alter or reduce the trust’s share ownership or its percentage ownership of corporation.
     Hasso v. Hasso - filed March 6, 2007, Fourth District, Div. Three
     Cite as 2007 SOS 1129
     Full text 

-  Civil Procedure-
Plaintiff's claim that decedent breached a promise to devise property to her in his will was time-barred where filed more than one year after death, which is the limitations period for such claims under Code of Civil Procedure Sec. 366.3, even though action was filed within three months of the date of service of notice of rejection of plaintiff's creditor's claim based on same allegations.
     Stewart v. Seward - filed March 28, 2007, Second District, Div. Three
     Cite as 2007 SOS 1511
     Full text