California Court Says Crime Victim Is Not Allowed To Receive Restitution From Attacker’s Trust
A California Appeals Court says that it cannot order a trustee to pay restitution to a victim of a violent crime that was committed by a beneficiary of the trust—if a trust’s terms give the trustee discretion over whether to pay the trustee and the trustee hasn’t made any payments.
Division One was affirming an earlier ruling by a Los Angeles Superior Court judge, who said that he didn’t have the authority to order the trustee to use trust funds to pay Richard Young’s restitution.
Richard Young sustained injuries in 1997 after being shot by his brother Steve at his mother’s house in Woodland Hills. Steve was convicted of attempted murder and sentenced to life in prison plus 13 years. Richard then sued his brother for his injuries, obtaining a $1.275 million default judgment.
Lucille Young, their mother, had amended her testamentary trust to name Kathy Jayne McCoy as her successor trustee. She also asked that the trust be held for Steve Young for the rest of his life. The remaining assets would go to the Christian Science Foundation after his passing. Mrs. Young passed way in 2005.
Richard has petitioned the court to have his judgment enforced against Steve via the trust’s assets. McCoy, however, says she has not paid Steve anything from the trust since his “basic needs” are being met in prison by the state.
By denying the petition, the L.A. Superior Court judge ruled (Probate Code Sec. 15305.5(c)) that a probate court can only order payments to the beneficiary’s restitution judgment creditor if the trustee has decided to make payments to the beneficiary. The Appeals Court agreed.
Union Bank of California provides information regarding Testamentary Trusts:
Created by your will and established at your death, a testamentary trust directs how your assets will be invested or distributed to your beneficiaries over a specified period. You need not transfer ownership before your death. Our trust specialists will work closely with you and your advisors to ensure that the trust fulfills your goals.
Satisfy Long-term Wishes
A testamentary trust is designed to accomplish any vision you have for the future: providing income for your family, directing funds for a child's education, or leaving a lasting legacy to your favorite charity. A testamentary trust:
· Allows you to retain ownership of your assets during your lifetime
· May include provisions to reduce estate taxes
· Is established after death and is irrevocable
· Requires a will and probate
At Sagaria Law, P.C., our estate planning attorneys will be happy to help you set up a testamentary trust, will, living while, or any other estate planning tool that you might need. We represent clients from cities throughout Monterey County, Alameda County, and Santa Clara County, including San Jose, Fremont, Berkeley, Carmel, and Palo Alto. Contact Sagaria Law, P.C. today for your free consultation.
Crime Victim Cannot Collect Restitution From Attacker’s Trust—C.A., Metropolitan News-Enterprise, February 22, 2007
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