What is a Heggstad Petition

I recently had a client, Emily, who was devastated to learn her father’s meticulously planned estate was facing significant delays – and costs. He’d spent years funding a living trust, intending to bypass probate entirely. However, a simple oversight – failing to formally transfer the deed to a property into the trust – meant it remained in his individual name. Emily faced over $40,000 in probate fees and a six-month wait just to access the funds to cover his final expenses. This is a shockingly common scenario, and a Heggstad Petition can often prevent it.

As an Estate Planning Attorney and CPA with over 35 years of experience here in Moreno Valley, I’ve seen firsthand how easily a seemingly perfect plan can unravel due to technicalities. My CPA background gives me a crucial edge. Often, these issues aren’t just legal; they involve maximizing the step-up in basis for inherited assets, minimizing capital gains taxes, and accurately valuing property – all things a traditional attorney might overlook.

What exactly is a Heggstad Petition?

Technically not a “probate” type process, a Section 850 Petition – often called a Heggstad Petition, named after a landmark case – is a procedure available under the California Probate Code to correct titles to assets that rightfully belong to a trust. It’s a powerful tool when an asset was intended to be owned by the trust, but for some reason, title remained in the decedent’s individual name. This could be due to a forgotten deed transfer, a misunderstanding of how trust funding works, or simply an administrative error.

How does a Heggstad Petition work?

The process involves filing a petition with the probate court, providing evidence that the decedent intended the asset to be held by the trust. This evidence can include the trust document itself, letters of intent, and testimony from witnesses who knew the decedent’s wishes. The court then issues an order directing the transfer of the asset from the decedent’s estate to the trustee of the trust. It’s a relatively streamlined process compared to full probate, often taking just a few weeks or months.

What assets can a Heggstad Petition cover?

• Real Property: The most common use is for real estate, like Emily’s father’s house. If the deed wasn’t transferred, a Heggstad Petition can force the transfer without full probate.
• Bank and Brokerage Accounts: Similar to real estate, if funds were meant to be held in a trust account but remained titled to the individual, the petition can correct that.
• Vehicles: Although often handled more simply, vehicles can also be subject to a Heggstad Petition if necessary.
• Personal Property: Higher-value personal property, like art or collectibles, can be addressed this way.

What are the advantages of using a Heggstad Petition?

Stronger Tax Benefits: As a CPA, I always stress this point. Properly transferring assets to a trust allows for the step-up in basis to occur at the time of death, minimizing capital gains tax when beneficiaries eventually sell the asset. Probate can complicate this.
• Avoids Creditor Claims: Assets held in trust are generally protected from the decedent’s creditors.
• Faster Transfer: Much quicker than going through the entire probate process, allowing beneficiaries to access funds sooner.
• Lower Costs: Significantly less expensive than full probate, as it requires less court involvement and fewer administrative tasks.

Is a Heggstad Petition right for every situation?

No. If the estate is complex or there are disputes among beneficiaries, a full probate might be necessary. If the estate falls under the small estate limits – for deaths on or after April 1, 2025, if the gross value of the estate is under $208,850, you generally do not need to open a full probate. You can use the ‘Affidavit for Collection of Personal Property.’ Note: This limit excludes cars, boats, and trust assets. – a simpler procedure might suffice. However, for many clients with well-funded trusts and a few overlooked asset transfers, a Heggstad Petition is a lifesaver. It’s about protecting your client’s wishes and minimizing the burden on their loved ones.

What causes California probate cases to spiral into delay, disputes, and extra cost?

Success in probate court depends less on the size of the estate and more on the accuracy of the petition and the behavior of the fiduciary. Whether the issue is a forgotten asset, a contested creditor claim, or a disagreement among siblings, understanding the procedural triggers for court intervention is the best defense against prolonged administration.

A stable probate administration outcome usually follows from clarity, consistency, and readiness for court review, especially when multiple stakeholders and competing interpretations are involved. When documentation supports enforcement and timelines are respected, families are less likely to face preventable escalation.

Verified Authority on Types of California Probate

• Spousal Property Petition: California Probate Code § 13650
  The gold standard for surviving spouses. This petition allows for the transfer of community and separate property to the surviving spouse without the delays of full probate. There is no dollar limit on the value of assets transferred under this section.
• Small Estate Affidavit ($208,850 Limit): California Probate Code § 13100
  For smaller estates (valued under $208,850 as of April 1, 2025), this procedure allows successors to collect money and tangible personal property by presenting a notarized affidavit to the holder (e.g., the bank), bypassing the courts entirely.
• Petition for Succession (AB 2016): California Probate Code § 13151
  Designed for “house-only” estates. If the primary residence is worth less than $750,000, this court-supervised summary proceeding allows for the transfer of the property. It is faster and cheaper than full probate but requires a judge’s order to clear title.
• Ancillary Administration (Foreign Domicile): California Probate Code § 12501
  If the decedent lived in another state (e.g., Nevada) but owned a vacation home in California, the California courts have jurisdiction over that real estate. “Ancillary Probate” is the process used to admit the foreign will and distribute the California property.
• Special Administration (Emergency): California Probate Code § 8540
  When time is of the essence. If assets are in danger or a business needs immediate management, the court can appoint a Special Administrator. These powers are temporary and specific, intended only to hold the line until a general executor is appointed.
• The “Heggstad” Petition (Trust Cure): California Probate Code § 850
  Often mistaken for probate, this is actually a petition to avoid it. If a decedent had a trust but forgot to title an asset in the trust’s name, a Section 850 petition asks the court to declare that the asset belongs to the trust, bypassing the need for a full estate administration.