The following section is designed for professionals in the California estate planning field. It is an update of various matters that pertain to changes in the law (federal and California), court decisions, and other matters that affect probate and estate planning for California residents.

August 10, 2008—California legislature revamps "no contest" clauses in wills and trusts
The California legislature recently passed SB 1264 and the Governor signed it. This legislation changes the provisions regarding "no contest" clauses that drafters have put into wills and trust documents. Problems have arisen when beneficiaries contest a will or trust document but the document provides if a beneficiary contests it, they forfeit their inheritance. The courts have carved out exceptions but this area is very complicated as to what a beneficiary can or cannot do to avoid triggering this "no contest" clause.

The legislation takes effect January 1, 2010, and applies to all wills and trusts that became irrevocable (the testator or trustor died) on or after January 1, 2001. more

July 22, 2008—new California trust pet law
How can people provide for pets when they die? Although attorneys have previously drafted provisions in wills or trusts for animals, some of these have not been upheld by the courts.

This legislation, SB 685, sets up procedures for handling trusts for pets or domestic animals, appointing a trustee if one is not designated, and the disbursement of trust assets when the trust terminates. more

July 1, 2008—Estate representative must give legal notice to California Franchise Tax Board
When a California probate is undertaken and an executor or administrator is appointed, the personal representative must give notice to various government agencies if the decedent was receiving state benefits or if an estate beneficiary is incarcerated in a California penal facility.

Where a probate is undertaken and "Letters" issued to the personal representative on or after July 1, 2008, the personal representative must now also give legal notice of the death to the California Franchise Tax Board within 90 days of the issuance of these letters. When the probate is concluded the personal representative, in the petition to close the estate, must allege that this notice has previously been given. more

May 30, 2008—Appellate Court holds graduated probate filing fees unconstitutional
Since august 17, 2003, California Superior courts have charged, in many cases, a higher fee for filing probate matters than other civil court filings. This "graduated" schedule provided that the filing fee would be based on the inventory value of assets that were probated. The base fee has been $244.50 to $320.00 over the year, with some, limited additional charges, depending on the county involved. However, the top filing fee rate, for estates with a value of over $3,500,000 was $3,635 plus .2% of the value over $3,500,000.

In a probate in Santa Barbara County, an estate had a value of over $35,000,000 and paid a filing fee of more than $74,000. The Second District Court of Appeal held this filing fee to be unconstitutional, and was a disguised death tax, which is unconstitutional in California. Anyone who paid an excess amount, above the minimum, is now entitled to a refund. more.