Court Blocks Conservator’s Attempt to Create SNT

A California appeals court recently upheld a trial court’s denial of a conservator’s petition to establish a first-party special needs trust for a 66-year-old woman, because, under federal law trusts cannot be created for the benefit of people of individuals who are ages 65 and older. 

Elaine Abbott is a professional conservator who was in charge of managing Carla Horton’s estate.  When Ms. Horton was 66, Ms. Abbott petitioned the probate court to create a trust for Ms. Horton’s benefit.  When the probate court denied the request for the aforementioned reason, Ms. Abbott appealed.  When the appeals court asked Ms. Abbott why her appeal was not moot due to Ms. Horton’s age, Ms. Abbott submitted a brief proposing that the court create a pooled trust, because pooled trusts can be funded by beneficiaries of any age.  The court denied the appeal and required her to pay all costs and legal fees since the appeal did not benefit Ms. Horton.  Estate of Horton, Cal. Ct. App., No. B253487, Jan. 15, 2015.

See Conservator Fails in Attempt to Establish SNT for 66-Year-Old, Resourceful Law, 2015.