Hon. JAMES A. STEELE (Ret.) Representative Cases Probate, Trusts & Estates

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1 Hon. JAMES A. STEELE (Ret.) Representative Cases Probate, Trusts & Estates Dispute involving Probate Code 850 Petition between two individuals both claiming to be decedent s surviving spouse and entitled to decedent s pension, retirement and death benefits. Property in dispute included multiple parcels of real property in various third parties names, some of whom were parties related to decedent. Dispute involving reimbursements to personal representative for amounts representative claimed had been expended on maintaining multiple real properties, in some cases paid to unlicensed contractors for work requiring a license pursuant to B&P Dispute between guardian ad litem on behalf of surviving minor children and surviving (second) spouse involving conflicts between estate planning instruments and payable on death ( POD ) provisions on bank accounts and life insurance policies. Dispute between conservatorship estate, various family members and lender involving allegations of financial elder abuse whereby son allegedly obtained reverse mortgage on mother s behalf and absconded with proceeds. Dispute involving demand for accounting by trust beneficiaries, for removal of designated family member as trustee and for surcharge arising out of alleged Prudent Investor Act violations as well as mismanagement of multi- family residential and commercial income properties. Dispute among family members involving particularly contentious disagreement over mother s conservatorship, control of conservatorship estate and purported need for substituted judgment petition Avenue of the Stars, Suite 250 Los Angeles CA (800) 558-ADRS Tel (310) Fax (310)

2 Dispute between siblings involving claims that trustee/sibling received significant pre- death distributions from father which allegedly should have been taken into account in calculating distributions in order to achieve purpose of trust provisions calling for equal distributions among all adult children of settlor. Case was complicated by multiple intervening appeals and somewhat rarely asserted in probate context of violation of 5 year statute. Dispute involving interpretation of trust language and issues regarding capacity of Settlor and alleged undue influence with regard to later executed trust amendments. Dispute between two brothers regarding purported trust amendment of Survivor s Trust which would revoke certain provisions resulting in disproportionate distribution contrary to the initial trust instrument s terms. Dispute included allegations of forgery as to the revocation necessitating testimony by multiple handwriting experts. Controversy also included a dispute over the interpretation of no contest provisions in one instrument which would apply as to a direct contest as to the instrument itself but not necessarily to another instrument revoking same. Dispute between surviving spouse and remaindermen children of non- surviving spouse involving scope of surviving spouse s rights vis- à- vis certain partnership rights which had, upon transfer, converted from general to limited partnership interests. Dispute involving whether or not an untitled document deleting a previously conferred gift constituted an amendment to Settlor s trust including whether or not Settlor had capacity at the time of the execution of the document. Dispute involving institutional trustee s claim of insufficient liquidity to administer trust, change in circumstances and resulting petition for instructions regarding proposed sale of trust- owned $50+ million building. Petition was opposed by one or more beneficiary family members on various grounds including their desire to purchase the building for themselves and/or to permit a third party to do so on allegedly more advantageous terms than proposed by institutional trustee. Dispute involved real estate, trust, construction as well as tax issues. Dispute involving conservatorship and appointment of family member versus professional fiduciary as conservator over 90+ year old proposed conservatee who

3 had been taken advantage of financially by caregiver who had obtained considerable loans from proposed conservatee in favor of caregiver s son. Dispute involving trustee s petition for instructions for distribution of fractional interests in real property to one or more beneficiaries and determination of value of same for calculation of equalizing payments to remaining beneficiaries as required by testamentary instrument. Case involved extensive testimony as to value of somewhat unique home and what were to be characterized either as repairs or capital improvements. Cross- petition sought removal of trustee. Numerous disputes involving the sufficiency and effect of a Trustee s notification pursuant to Probate Code Numerous disputes involving the propriety of gifts or other transfers to instrument drafters, care custodians, fiduciaries, etc. pursuant to Probate Code Dispute between surviving spouse and non- surviving spouse s adult children involving surviving spouse s departure from instrument terms with respect to distributions upon non- surviving spouse s death. Instrument also provided for one or more non- surviving spouse s adult children to serve as successor trustee in the event of non- surviving spouse s loss of capacity. Dispute included determination of whether or not non- surviving spouse, who suffered major stroke, had capacity to continue as trustee. Dispute involving claims of undue influence, etc. pertaining to cancellation of instruments, trust revocation, etc. executed by decedent just prior to his death naming his daughter as sole trustee in his place and effectively disinheriting, in large part, his surviving spouse, the formerly named successor co- trustee. Dispute also involved construction of premarital agreement between settlor and his surviving spouse as well as a determination of what amounts were to be allocated to a special needs trust in favor of one of the settlor s adult children. Dispute involving approximately $800,000 in extraordinary fees claimed by a law firm, $350,000 of which had already been paid without prior court order, pertaining to work performed on behalf of an estate involving a number of underlying litigation matters involving, among other things, IP issues.

4 Dispute brought by decedent s daughter involving decedent s marriage to a homeless woman who then subjected decedent to psychological and physical abuse and who obtained fee title to decedent s home prior to his death. Numerous disputes involving the sufficiency and accuracy of probate, guardianship and conservatorship estate, and trust accountings. Dispute involving the amounts properly chargeable for fees concerning establishment of conservatorship as well as compromise of multi- million dollar personal injury/products liability action against third party. Numerous disputes involving whether or not a particular will should be admitted to probate. Dispute on trustee s petition for instructions involving a determination of whether or not given language of trust and existing financial conditions including relative illiquidity of trust, surviving spouse should be permitted to continue to reside in former marital residence or whether it should be sold. Dispute between family members and professional trustee involving trust terms permitting home to remain available to settlor s pets after settlor s death. Dispute involving interpretation of a prior settlement agreement governing, among other things, review and approval of family member s expenses incurred on behalf of settlor/conservatee and reimbursement for same to family member from trust. Dispute involving trustee and attorneys fees of $100+ million trust. Dispute between 2 siblings involving a claim by one that the other had agreed to sell his ½ interest in real property inherited by the siblings from their father. In reliance upon the purported agreement, the purchasing sibling, not only allegedly made valuable improvements to the property, but also paid substantial sums to the other. The purchasing sibling had also made a claim for adverse possession. Dispute involving a claim by family members that non- family member exercised undue influence over decedent installing himself as trustee and being named as beneficiary resulting in his obtaining the bulk of the decedent s property to the exclusion of the family members.

5 Dispute involving a claim that family member trustee had breached fiduciary duties to beneficiary in allegedly failing to enforce and secure approximate $10 million note held by LLC of which trust was a member, in failing to require pay down on note upon sale of publicly- held stock, pertaining to start- up of proprietary technology venture. Beneficiary further claimed that trustee failed to keep beneficiary informed of trust affairs, etc. Allegations had been alleged against third party borrower for, among other things, breach of fiduciary duty in failing to hold in trust amounts obtained after purported receipt of funds obtained in selling publicly- traded stock. Dispute involving claims by beneficiaries and representatives concerning various trust entities which included a land trust which owned and operated income properties in Hawaii and Southern California. Dispute between beneficiaries/adult children of deceased settlor and purported fiancé involving finance s claims as to entitlement to entirety of $30 million estate as well as right to continue to occupy $12 million residence which was the subject of a pending Unlawful Detainer action. Numerous disputes regarding the reasonableness of private fiduciary s fees in conservatorship estate matters. Dispute involving claim by law firm seeking approximately $1 million in attorneys fees incurred on behalf of estate pertaining to intellectual property and other claims. Dispute between and among numerous family members as beneficiaries of various related irrevocable trusts and subtrusts on the issue whether or not, based on purported changed circumstances, one or more of the trusts could be amended to alter composition of trusteeship groups comprised of both family and outside members. Dispute involving claim by current as well as residual beneficiaries of trust, holding and operating numerous multi- family residential and commercial income properties, that trustee mismanaged and overcharged trust for his services.

6 Dispute among beneficiaries and others involving the authenticity of various purported testamentary instruments. Dispute involving issues of validity and interpretation of tax motivated, single purpose, life insurance Crummey trust, status and entitlement of child claimed to be omitted or post- death heir who had been included as lifetime beneficiary but whose interest had been periodically disclaimed by settlor father on child s behalf and validity and effect of such periodic disclaimers challenged by child s mother. Numerous disputes regarding the sufficiency of Trustees recordkeeping substantiating fees and expenses and/or regarding the propriety or amounts of charges incurred. Numerous disputes involving beneficiaries residing in various trust or estate properties without payment of rent and trustee s/representative s efforts to marshal and make assets productive. Dispute involving purported putative domestic partnership (defectively prepared and improperly filed notice and defectively filed termination) between now deceased man and younger woman who was alternatively, either romantic interest or caretaker, as well as claims involving validity of various estate planning instruments executed prior to and following entry into relationship. Dispute involving purported holographic codicil pertaining to claims of legal invalidity as well as authenticity of handwriting. Dispute involving whether professional trustee was grossly negligent in failing to secure trust deed which, by its terms, was to have been secured by real property. Initial trustor/trustee failed to obtain deed of trust. By the date of maturity, real property s equity had been substantially diminished. Dispute involving elderly man who moved out of state and married caretaker. Man moved back to California and conservatorship was imposed. During pendency of marriage nullity action, conservatee died. Out of state wife claimed priority entitlement to representative appointment and to bulk of assets pursuant to testamentary instruments.

7 Dispute among several family members pertaining to real property utilized for religious purposes, which had passed through various family partnerships, trusts and similar entities, a related dispute involving fiduciary accountings, as well as a related dispute pertaining to a special needs trust required for the benefit of a developmentally disabled family member. Dispute regarding just and reasonable compensation due a private professional fiduciary in a heavily contested conservatorship matter. Dispute among three sons of traditional Japanese parents involving competing will and trust contests on various grounds including lack of testamentary capacity and undue influence, and disposition to one son of highly valuable real property previously utilized in the family business and a claim by that son to a portion of significant liquid assets left to his siblings. Dispute involved extensive medical expert testimony as well as expert testimony regarding traditional Japanese culture. Dispute alleging surcharge for investment losses against private professional fiduciary who selected and oversaw consulting investment manager during period when corpus declined by several million dollars. Dispute between siblings, one of whom was an initial co- trustee with father, involving alleged agreement, partially oral and partially in writing, by which co- trustee obtained several hundred thousand dollars in reimbursements for caring for father. Upon death of first spouse estate was to have been divided among survivor s trust, exemption trust and qualified trust however qualified trust, which would hold an interest in $5+ million residence, was never funded. Matter also included claims regarding failure to fund exemption trust and distribute same for benefit of grandchildren, diversion of trust assets into a non- trust checking account over which co- Trustee sibling had power of attorney and signatory rights, Trustee sibling favoring her own issue with respect to trust distributions, trust accounting and objections thereto and alleged violation of no- contest clause. Dispute involving claims that family member trustee in a number of inter- related family trusts involving numerous family members, charged up to 6 times what an institutional trustee would charge for managing securities and cash account assets, made unwarranted loans from one trust to another in order to fund trustee s fees and expenses including reimbursements for alleged personal items, funded a

8 harassing litigation campaign against objecting beneficiary with trust assets, and used inflated appraisals for purposes of calculating trustee s fees in merely monitoring income properties managed by others. Dispute involving objection to amount of fees charged by member of trust advisory committee for Special Needs Trust. Dispute involving CPA s alleged abuse of fiduciary relationship by, among other things, obtaining rights to IRA account, occupying trust property without payment of rent, failing to invest trust assets productively, and charging exorbitant fees and expenses to trust. Dispute among family members pertaining equalizing distributions wherein one sibling had occupied family residence for over 10 years after settlor s passing, allegedly made valuable improvements to the property but paid no rent, payments as to various secured loans on the residence, and real property expenses and taxes having been paid in part by occupying family member and also in part by private professional fiduciary on behalf of trust. Matter also included widely disparate appraisals as to unique residence, and whether or not doctrine of ouster applied as to occupying sibling s alleged refusal to permit other siblings access to the residence. Dispute involving heirs and estate claimant who had allegedly married celebrity decedent in Las Vegas and maintained secret marital relationship for over 25 years. Dispute encompassing several various civil and probate cases pertaining to rights to celebrity decedent s extensive music library and royalties. Dispute involving surcharge and removal petition pertaining to attorney trustee who drafted estate plan, who allegedly favored one group of family members over another in permitting occupancy of various properties for many years, in failing to make proper distributions after one or more sales of other properties in order to subsidize certain real property expenses, and in paying himself allegedly unwarranted trustee s fees and expenses. Dispute between father and daughter over conservatorship of person and estate of mother. Father had incurred well over $1 million litigating conservatorship issues including multiple appeals all the way to the U.S. Supreme Court.

9 Dispute involving whether an individual was properly holding position of trustee with respect to primary or master trust as well as multiple subtrusts comprised of an Exempt Residuary Trust and a Non- Exempt Residuary Trust. The Exempt Residuary Trust was to be funded with the amount of the federal generation skipping tax exemption available to the trustor prior to her death and the additional amount beyond the legal exemption, was to fund the Non- Exempt Residuary Trust and each of these trusts was ultimately to be funded with commercial properties in various states. Facts were undisputed and only interpretation of trust instruments was in question. Dispute involving alleged victims of scheme involving life settlement policies whereby numerous investors bought interests therein however insufficient resources resulted in significant losses. Insureds also alleged lost opportunities in that once their policies were canceled for non- payment, they were unable to reinstate any such coverage. Additional disputes involved corporate shareholders who alleged controlling director/officer usurped opportunities and pocketed proceeds from various transactions. Matter had been pending in 5 related actions in both probate and civil courts.