Filing a Heggstad Petition for Unfunded Trust PropertySandy McCarthy2018-05-21T09:00:54-07:00
The Benefits of a Heggstad Petition
A Solution for Property Left Out of a Trust
TRANSFERS PROPERTY INTO TRUST
A Heggstad Petition is typically filed when trust assets identified in a living trust have not properly been titled in the name of the trust. When you file a Heggstad Petition, you allege that it was the Trustee’s intent to have these omitted assets part of the trust and, in doing so, ask that the court allow the assets to be transferred to the Trust post-death of the Trustee so that they do not need to be probated.
If the court grants a Heggstad Petition, the assets that were inadvertently omitted from the Trust can be easily transferred into the Trust after a court order. If the court determines the assets to be trust assets, they will not need probate and can be easily distributed through the trust administration process to the trust beneficiaries.
NOT AS EXPENSIVE
Filing a Heggstad Petition through our office costs about 2/3rds less than the cost of filing a full probate. In adddition, a Heggstad Petitiion does need newspaper publication or a probate referee appraising the assets. This could save the estate over $3,000 in fees and costs.
A Heggstad Petition takes about 2-3 months to complete. This is substantially faster than a probate proceeding which can take 8-12 months or longer.
The Heggstad Timeline
First the Heggstad Petition is prepared and filed with the Probate Court. The proposed Order is lodged and Notice prepared.
All interested parties must be notified with formal Notice and required attachments. Notice should be given to all named successor Trustees of the Trust, beneficiaries named in the Trust or back-up Will and any disinherited persons.
The court will schedule the hearing usually 45-60 days after the Petition was filed. Prior to the hearing, you should check probate notes and file any required Supplements. The Petitioner must attend the hearing or appear through CourtCall if available.
If the court grants the hearing, the Judge will sign the Order. Ths Order will allow the Trustee the authority to transfer the omitted trust assets into the decedent’s Trust.
Once the Order has been recorded, the Trustee can execute all necessary documents to retitle the assets in the name of the Trust. This may include recording title transfer deeds to real property.