What is a Probate Code 850 Petition?

A Probate Code 850 petition is a streamlined court procedure used to transfer assets into or out of trusts without full probate litigation, commonly used for Heggstad petitions when assets were intended for trust ownership but not properly transferred. This process provides an efficient alternative to formal probate proceedings for resolving specific asset ownership issues.

Understanding Probate Code Section 850

Legal Authority and Purpose

California Probate Code Section 850 provides courts with broad authority to:

• Determine asset ownership: Resolve questions about proper title to property
• Order asset transfers: Move property to appropriate ownership
• Avoid formal probate: Streamlined alternative to full probate proceedings
• Protect beneficiary interests: Ensure assets reach intended recipients
• Resolve trust issues: Address problems with trust funding

Relationship to Section 850 Petitions Generally

Probate Code 850 petitions include various specialized procedures:

• Heggstad petitions: Most common type for trust funding issues
• Asset recovery petitions: Reclaim property wrongfully held by others
• Trust modification petitions: Make changes to trust terms
• Property clarification petitions: Resolve unclear ownership situations

Heggstad Petitions: The Most Common Application

What Qualifies for Heggstad Relief

Heggstad petitions are appropriate when:

• Asset listed on trust schedule: Property appears on trust's Schedule of Assets
• Clear trustor intent: Evidence shows trustor intended asset to be in trust
• Technical transfer failure: Asset should be in trust but wasn't properly transferred
• No dispute about intent: All parties agree on trustor's intention
• Trust still exists: Trust is valid and in effect

Common Heggstad Situations

• Bank accounts: Listed on schedule but never retitled
• Real estate: Described in trust but deed never transferred
• Investment accounts: Intended for trust but ownership not changed
• Business interests: Corporate shares or LLC interests
• Personal property: Valuable items listed but not formally transferred

Required Documentation for 850 Petitions

Essential Trust Documents

Successful petitions require comprehensive documentation:

• Complete trust agreement: Original trust document and all amendments
• Schedule of Assets: Detailed listing of intended trust property
• Trustor's will: If executed and relevant to asset disposition
• Trust certificates: Summaries of trust terms for third parties
• Successor trustee documentation: Evidence of current trustee authority

Asset-Specific Documentation

• Property deeds: Current ownership documents
• Account statements: Financial account records
• Insurance policies: Life insurance or property coverage
• Business records: Corporate or LLC documentation
• Purchase records: Evidence of asset acquisition

Supporting Evidence

• Attorney communications: Letters discussing trust funding
• Trustor statements: Written or recorded expressions of intent
• Family testimony: Witness statements about trustor's intentions
• Financial records: Bank records showing attempted transfers
• Professional correspondence: Communications with financial institutions

The 850 Petition Process

Pre-Filing Preparation

Before filing, petitioners must:

1. Document collection: Gather all relevant trust and asset documents
2. Evidence development: Compile proof of trustor's intent
3. Legal analysis: Confirm petition qualifies for relief sought
4. Beneficiary identification: Identify all interested parties
5. Professional consultation: Work with experienced estate planning attorneys

Filing Requirements

The petition must include:

• Detailed allegations: Specific claims about asset ownership and trustor intent
• Supporting exhibits: All relevant documents attached
• Requested relief: Precise description of desired court action
• Verification: Sworn statement under penalty of perjury
• Filing fees: Required court costs

Notice and Service Requirements

• Interested parties: All beneficiaries and potential claimants
• Attorney General: California Attorney General if charitable interests involved
• Personal service: Proper legal service on all parties
• Publication: Newspaper notice if parties cannot be located
• Proof of service: Filed documentation of proper notice

Court Review and Decision Process

Initial Court Review

After filing, the court:

• Schedules hearing: Sets date for petition consideration
• Reviews documentation: Examines evidence and legal arguments
• Considers objections: Addresses any opposition from interested parties
• May request