Understanding Heggstad Petitions—And Why They Matter for Advisors

As a trusted advisor, you’re often the first to spot red flags in your clients’ planning. One situation we see far too often—and one that can create a costly mess—is when a client has a trust… but not all their assets are actually in it.

That’s where a Heggstad petition can make a crucial difference. But what exactly is it, and why should you be paying attention?

What Is a Heggstad Petition?

A Heggstad petition (named after the 1993 California case Estate of Heggstad) allows a successor trustee to request that a probate court confirm that an asset—most commonly real estate—belongs to a trust, even if the title was never formally transferred before the client’s death.

In other words, it’s a legal workaround to avoid full probate when an asset was intended to be part of the trust, but wasn’t properly funded into it.

Why This Matters for Advisors Like You

Your clients rely on you to help them preserve wealth and reduce unnecessary costs. Here’s how understanding Heggstad petitions can support your role:

1. Spot Gaps in Trust Funding Early

You might be helping a client with a real estate transaction, managing investment accounts, or preparing taxes—prime opportunities to notice whether assets are titled correctly. If a home is still in the client’s individual name but they have a trust, that’s a potential issue. Flag it before it becomes a post-death emergency.

2. Reduce Family Stress and Conflict

When assets aren’t properly funded into a trust, it can lead to confusion and conflict among beneficiaries. A Heggstad petition helps avoid probate court delays—but the process is still time-consuming, public, and costly. Preventing the need for one altogether (through good funding and regular reviews) protects family harmony.

3. Coordinate with Legal Professionals

Being aware of the Heggstad process gives you language to advocate for your clients when legal coordination is needed. If you’re managing a trust administration or estate case, you can help connect families to attorneys who understand how to navigate the courts efficiently.

4. Add Value to Your Relationship

Clients and their families appreciate when you bring up “unknown unknowns” before they become disasters. Demonstrating your knowledge of real-world estate planning pitfalls strengthens your role as a holistic, trusted advisor.

Key Signs a Heggstad Petition May Be Needed

• Real property still titled in the decedent’s name, but their trust lists it as a trust asset.
  
• A trust schedule or assignment document refers to a specific asset (e.g., “all real property located at 123 Main Street”) even though the deed was never updated.
  
• A client died without completing trust funding after a refinance, sale, or new acquisition.
  

Our Takeaway for You

The best estate plan is only as strong as its execution. As an advisor, you’re uniquely positioned to prevent issues by encouraging proper trust funding and recommending regular reviews.

And when mistakes do happen, it’s helpful to know that a Heggstad petition can be a powerful tool to keep families out of probate court—if the legal foundation is there.

Have questions about how this works or want to learn more? Our team regularly partners with financial and professional advisors to help spot risks and support clients with practical solutions.