Judge: Steven A. Ellis, Case: 22STCV28810, Date: 2024-07-26 Tentative Ruling

Case Number: 22STCV28810    Hearing Date: July 26, 2024    Dept: 29

Petition for Approval of Minor’s Compromise for (Mystic Varley, Age 8)

Tentative:

The Court excuses the personal appearance of the claimant and the guardian ad litem. Counsel may appear by telephone or video conference call.  

The Petition is GRANTED.

Discussion

Petitioner Peter Varley Rivera filed the most recent version of the Petition to Approve Minor’s Compromise on July 5, , 2024.

The Court has reviewed the Petition and Proposed Order. The Court finds the settlement and fees reasonable and fair.

The Court notes that Item No. 1 on the Proposed Order lists an incorrect date for the hearing.  The Judicial Assistant is requested to correct that date.

The petition settlement contemplates the creation of a minor’s settlement trust.  Accordingly, additional analysis of the trust issues is required.

Petitioner proposes to fund the proceeds into a minor’s trust (not a special needs trust (SNT)) that would become revocable at plaintiff’s election when plaintiff/beneficiary reaches 18 years old.  Minor’s trusts must become revocable at the 18^th birthday, and in fact the settlement funds should not be encumbered past plaintiff’s 18^th birthday.  This issue was corrected from the original proposed trust instrument and it now meets requirements by specifying that the trust simply is revocable by the plaintiff trust beneficiary at age 18. 

PROPOSED TRUST INSTRUMENT:

Petitioner provides the text of the proposed trust instrument at Attachment 18b(7), court’s pdf at p. 127. 

The main requirements for court created or funded trusts are set forth at California Rules of Court (CRC) rule 7.903(c) and LASC rule 4.116(b). 

The proposed trust instrument now meets those requirements and is ready for approval for creation and/or funding.

TRUSTEE AND BOND:

The proposed initial trustee is petitioner/father, Peter Varley.  Normally, bond must be required of a trustee unless the trustee is a corporate fiduciary.  (California Rules of Court, Rule 7.903(c)(5), Probate Code section 2320.). The proposed trustee does not meet the definition of a corporate fiduciary and bond should be required. 

Petitioner does not calculate bond but, as set forth in the Court’s minute order of May 6, 2024, the correct amount of the bond is $173,000. 

The Court orders that a bond in the amount of $173,000 must be submitted by trustee to this department (which will later be resubmitted to the Probate court in any trust supervision action).    

ORDERS/PROPOSED ORDER:

Proposed Order received stamp date:  7/5/24

The proposed order meets all requirements.

The proposed order requires filing of a Notice of Commencement of Proceedings for a Court Supervised Trust on LASC Form PRO 044 within 60 days. 

The Judicial Assistant is directed to add the 60 day calendar date at blank provided at order pdf, p. 16, para. 6.

The Judicial Assistant is also directed to add to the order a date for an OSC in this department in approximately 60 days to ensure funding of settlement, submission of bond, and filing of LASC Form PRO 044 to open trust supervision action in probate.  

Conclusion

The Petition is GRANTED.

The Judicial Assistant is directed to correct the hearing date in Item No. 1 of the Proposed Order lists an incorrect date for the hearing.  

The Judicial Assistant is directed to add the 60 day calendar date at blank provided at order pdf, p. 16, para. 6.

The Judicial Assistant is also directed to add to the order a date for an OSC in this department in approximately 60 days to ensure funding of settlement, submission of bond, and filing of LASC Form PRO 044 to open trust supervision action in probate.

Moving party to give notice.