Sometimes, people are surprised by news of an unexpected inheritance. And sometimes, this news might take the form of an unpleasant surprise. Imagine finding out that your grandmother left her entire estate to her attorney. Or her parakeet. Or her pharmacist. Could it happen?
Strange as those “what ifs” may sound, the California Probate Code contains within it a law known as The Law of Prohibited Transferees. This statute clearly and specifically sets down the rules about who may and who may not be named as beneficiary in a will or trust.
People who are absolutely prohibited include:
- The attorney who drafts the will or trust, and anyone related to that lawyer by blood or by marriage. (There are legal exceptions to this, as in cases in which attorneys prepare wills or trust for their own relatives, and are named in those documents as beneficiaries.)
- Fiduciaries: people who may be already in place as a trustee, conservator or agent.
- Caregivers (in legal-ese, “care custodians”) of the deceased. There are many aspects to this designation; often a caregiver is a relative, and there have been many court cases around the country as well as in California concerning the eligibility of caregivers to receive gifts in a will or trust.
An unexpected and illegal beneficiary, added to the grief of losing a loved one, can help to create an almost perfect storm of conflict and anger, which could lead to possibly lengthy and expensive legal actions.That’s why the counsel of an experienced estate planning attorney is so invaluable, and is time well-spent.
I am here to assure that your choice of beneficiaries complies with both your wishes as well as the standards of California law. I center my legal practice on all the elements of estate planning, including wills and trusts. So please give me a call at 818.956.9200 to set up a meeting, regarding any and all of your estate planning questions and concerns.
Glendale Location
616 E. Glenoaks Boulevard, Suite 203
Glendale, CA 91207
Sherman Oaks Location
15303 Ventura Boulevard, Suite 900
Sherman Oaks, CA 91403