Probate Avoidance Just Became Easier In California

When Larry Mabee created a revocable trust with himself as trustee, he transferred to the trust all his real property holdings but failed to transfer the deed. When he died, the successor trustee claimed all the real estate assets but was challenged in probate by creditors of the estate.

In Ukkestad v. RBS Asset Finance, Inc., the California Court of Appeals held that a transfer of real property to a revocable trust will be sufficient without a formal transfer of deed if two requirements are met. First, the settlor must also be the trustee and, second, must comply with the statute of frauds. This is not an ideal method to accomplish a transfer but may be useful in some situations.

See Gregory Monday, Court Approves Easy Probate Avoidance for Real Estate, Wealth Management, June 1, 2015.