Can I recover property held by a trustee, guardian, or another fiduciary?
Yes, California Probate Code Section 850 petitions allow you to recover property wrongfully held by trustees, guardians, or other fiduciaries without full probate litigation. These petitions provide a streamlined court process to transfer assets into or out of trusts, recover misappropriated property, and resolve disputes about asset ownership.
Understanding Section 850 Petitions
Purpose and Scope
Section 850 petitions serve several important functions:
- Property recovery: Reclaim assets wrongfully held by fiduciaries
- Trust funding corrections: Add assets that should be in trust
- Asset removal: Remove assets that shouldn't be in trust
- Ownership disputes: Resolve questions about proper asset ownership
- Simplified process: Avoid expensive full probate litigation
Legal Authority
California Probate Code Section 850 provides authority for:
- Broad court jurisdiction: Wide-ranging power to order property transfers
- Flexible procedures: Streamlined compared to formal litigation
- Quick resolution: Faster than traditional probate proceedings
- Cost-effective relief: Less expensive than full trust contests
Common Uses for Section 850 Petitions
Trust Funding Issues
Section 850 petitions help resolve:
- Omitted assets: Property that should have been transferred to trust
- Incomplete transfers: Assets partially but not properly transferred
- Post-death discoveries: Assets discovered after trust creation
- Title problems: Property with unclear or incorrect ownership
- Heggstad petition situations: Assets intended for trust but not formally transferred
Fiduciary Misconduct
- Trustee self-dealing: Trustees who improperly benefit from trust assets
- Guardian misappropriation: Guardians who misuse ward's property
- Executor overreach: Estate representatives exceeding authority
- Attorney misconduct: Lawyers who improperly hold client funds
- Conservator abuse: Conservators mismanaging protected person's assets
Business and Investment Disputes
- Partnership property disputes: Business asset ownership questions
- Investment account problems: Brokerage accounts held by wrong parties
- Real estate ownership: Property held in wrong entity or name
- Insurance policy ownership: Life insurance held by wrong beneficiary
Section 850 vs. Heggstad Petitions
Heggstad Petition Requirements
Heggstad petitions are specific types of Section 850 petitions used when:
- Trust schedule inclusion: Asset listed on trust schedule but not formally transferred
- Clear intent shown: Evidence trustor intended asset to be in trust
- No dispute about intent: All parties agree on trustor's intention
- Technical transfer failure: Asset should be in trust but wasn't properly transferred
Broader Section 850 Applications
General Section 850 petitions cover situations beyond Heggstad requirements:
- Disputed intent: Questions about what trustor really wanted
- Misconduct allegations: Claims of improper fiduciary behavior
- Third-party claims: Outside parties holding trust property
- Complex ownership issues: Multiple potential owners or claimants
Who Can File Section 850 Petitions
Interested Parties
California law allows these parties to file Section 850 petitions:
- Trust beneficiaries: Current and remainder beneficiaries
- Successor trustees: Those authorized to administer trusts
- Estate representatives: Executors and administrators
- Creditors: Those owed money by estate or trust
- Family members: Heirs with potential claims
- Other interested persons: Anyone with legitimate stake in outcome
Standing Requirements
Petitioners must demonstrate:
- Legitimate interest: Real stake in petition outcome
- Legal relationship: Connection to trust, estate, or property
- Potential benefit: Would gain from successful petition
- Good faith basis: Reasonable belief petition has merit
Section 850 Petition Process
Filing Requirements
Section 850 petitions must include:
- Specific allegations: Clear statement of what property is involved
- Supporting evidence: Documentation supporting claims
- Legal basis: Authority for requested relief
- Requested relief: Specific action sought from court
- Notice requirements: Proper service on all interested parties
Court Procedures
The petition process typically involves:
- Petition filing: Submit petition to appropriate court
- Notice service: Serve all interested parties
- Response period: Allow time for objections
- Discovery process: Exchange evidence if contested
- Court hearing: Present evidence to judge
- Court order: Judge decides on property transfer
Evidence Required for Section 850 Petitions
Proving Trustor Intent
For trust-related petitions, evidence may include:
- Trust documents: Original trust and amendments
- Asset schedules: Lists of intended trust property
- Attorney communications: Letters about asset transfers
- Financial records: Account statements and transfer documents
- Witness testimony: People who knew trustor's intentions
Misconduct Evidence
For fiduciary misconduct claims:
- Financial records: Account statements showing improper transactions
- Communication records: Emails, letters, or texts showing misconduct
- Witness testimony: People who observed improper behavior
- Expert testimony: Professional opinions on fiduciary standards
- Comparative evidence: How proper fiduciary would have acted
Defenses to Section 850 Petitions
Common Defenses
Respondents may argue:
- Lack of standing: Petitioner has no right to bring action
- No trustor intent: Decedent didn't intend asset to be in trust
- Proper fiduciary conduct: Actions were appropriate and authorized
- Statute of limitations: Petition filed too late
- Laches: Unreasonable delay prejudices other parties
Procedural Defenses
- Improper notice: Required parties not properly notified
- Wrong court: Petition filed in incorrect jurisdiction
- Insufficient evidence: Petitioner cannot prove claims
- Other pending proceedings: Related cases in other courts
Benefits of Section 850 Petitions
Efficiency Advantages
- Streamlined procedures: Simpler than full probate litigation
- Faster resolution: Cases typically resolved in 6-12 months
- Lower costs: Less expensive than traditional litigation
- Focused issues: Address specific property problems
- Preserves relationships: Less adversarial than full contests
Practical Benefits
- Immediate relief: Can obtain temporary orders pending resolution
- Asset protection: Prevents further misuse of property
- Clear title: Resolves ownership questions definitively
- Ongoing administration: Allows trust administration to proceed
Limitations of Section 850 Petitions
Scope Restrictions
Section 850 petitions cannot address:
- Complex trust contests: Challenges requiring extensive discovery
- Will validity disputes: Questions about will authenticity
- Comprehensive accounting: Full financial audits of fiduciary conduct
- Damages claims: Monetary compensation for losses
- Criminal matters: Issues requiring criminal investigation
Evidentiary Challenges
- Intent proof difficulties: Showing what decedent really wanted
- Missing documentation: Lost records or incomplete evidence
- Conflicting evidence: Different interpretations of same facts
- Witness availability: Key witnesses may be unavailable
Strategic Considerations
When to Use Section 850 Petitions
Section 850 petitions work best when:
- Clear evidence exists: Strong proof supporting your position
- Limited dispute scope: Focused issue about specific property
- Quick resolution needed: Time-sensitive property issues
- Cost concerns: Need efficient alternative to full litigation
- Ongoing administration: Trust or estate administration being held up
Alternative Approaches
Consider other options when:
- Complex misconduct: Extensive fiduciary breach requiring full investigation
- Trust validity questions: Challenges to trust authenticity or capacity
- Damage claims needed: Seeking monetary compensation
- Multiple issues: Various problems requiring comprehensive resolution
Working with Professionals
Attorney Assistance
Experienced probate attorneys help by:
- Case evaluation: Assessing whether Section 850 petition is appropriate
- Evidence development: Gathering supporting documentation
- Legal strategy: Developing strongest case presentation
- Court procedures: Handling all filing and service requirements
- Settlement negotiation: Exploring resolution alternatives
Expert Witnesses
Cases may benefit from:
- Estate planning attorneys: Testimony about standard practices
- Financial experts: Analysis of transactions and valuations
- Trust officers: Professional fiduciary standards
- Forensic accountants: Investigation of financial misconduct
Costs and Timeline
Typical Costs
- Court filing fees: $435-$465 depending on county
- Attorney fees: $300-$600 per hour for experienced counsel
- Service costs: Process server and notification expenses
- Expert witness fees: If professional testimony needed
- Discovery expenses: If contested and discovery required
Timeline Expectations
- Uncontested cases: 3-6 months for resolution
- Contested cases: 6-12 months depending on complexity
- Discovery phase: Additional 3-6 months if extensive discovery needed
- Appeal considerations: Additional time if case is appealed
Related Legal Procedures
Coordination with Other Proceedings
Section 850 petitions may coordinate with:
- Probate proceedings: Estate administration cases
- Trust contests: Challenges to trust validity
- Conservatorship matters: Adult guardianship proceedings
- Civil litigation: Related damage claims or lawsuits
Complementary Legal Tools
- Temporary restraining orders: Emergency protection of assets
- Accounting petitions: Require fiduciary financial reporting
- Removal petitions: Remove unsuitable trustees or executors
- Surcharge actions: Seek monetary damages from fiduciaries
Prevention Strategies
Proper Estate Planning
Prevent Section 850 petition needs through:
- Complete asset transfers: Properly fund trusts during lifetime
- Clear documentation: Document all transfer intentions
- Regular updates: Keep estate plans current
- Professional guidance: Work with experienced estate planning attorneys
Fiduciary Best Practices
- Detailed record keeping: Document all decisions and transactions
- Regular communications: Keep beneficiaries informed
- Professional advice: Consult attorneys and accountants
- Conservative approach: Avoid conflicts of interest
Key takeaway: Section 850 petitions provide an efficient mechanism for resolving specific property disputes without the expense and delay of full probate litigation. While these petitions offer significant advantages for focused issues, they require careful legal analysis to determine appropriateness and strong evidence to succeed. Working with experienced probate attorneys helps ensure the best strategy for recovering property and protecting beneficiary rights.
