Countless situations can arise that require California trust litigation, but they often share similar elements of exploitative and callous individuals who abuse their position for their own gain. These cases are almost always fraught with intense emotions, and the repercussions can ripple across generations. So, having a good attorney is essential. At Gokal Law Group, we have spent years helping beneficiaries enforce their probate rights to successfully contest trusts when there has been foul play. Read a case study to learn how we can help you if litigation is your only option.
A Case Study of How Gokal Law Group Position Clients for California Trust Litigation Success
Let’s examine a California trust litigation case that involved undue influence and the financial elder abuse of a widowed, elderly woman, named Cisco (the Decedent). In doing so, we will explore how trust fraud and financial elder abuse, unfortunately, too often overlap.
Cisco was married to William, who had a sister named Peggy. Peggy was an important person in Cisco’s life, and also a big sister and mother figure for William throughout his entire life. The three maintained an extremely close bond.
Peggy came to us to bring Charles and Karrie to justice for exploiting her sister-in-law, who she cared for deeply. We represented Peggy in court.
Cisco and William lived in their home, the “Davis Property” for almost 50 years. Between the two, William was responsible for paying their household bills and managing his and Cisco’s finances. The couple had a neighbor on their street, Paul, who in 1985 had moved in several houses down with his mother when he was a young boy. Paul grew up to be an attorney who prepared Cisco’s original trust documents.
Charles and his wife Karrie lived across the street from William and Cisco, and it would be these individuals who ended up exploiting Cisco in her vulnerable state.
Related Article: How Do I Sue a Trustee With an Orange County Trust Litigation Attorney?
What Happened That Led to Trust Litigation and Required Gokal Law Group to Help?
On January 27, 2017, William passed away unexpectedly following a massive heart attack. William did not have an estate plan. So, what led to California trust litigation?
At the time of his passing, William was collecting the financial information and documents to create a trust. But he had not yet taken the information and documents he was gathering. Having been neighbors for some time, Charles grew close with Cisco and William, and Charles is the one who called Peggy to inform her of William’s death.
In the conversation, Charles told Peggy he took financial and trust-related records from William’s office and was retaining possession of them for “safekeeping.” In his deposition testimony, Charles admitted to taking William’s financial papers from his desk but claims he did so with Peggy during her visit. Charles refused to provide these papers to Peggy.
Charles also set up several joint checking and savings accounts with Cisco and, eventually, began paying Cisco’s bills and managing her finances as William had done, under the guise of being a helpful neighbor.
Charles helped Cisco retain Paul as her estate planning attorney to prepare an estate plan for her. The resulting estate plan was the Setsuko Trust, which lists among its assets the Davis Property and a Trust Account Checking titled “The Tetsuko Trust Account.” As of 2017, the assets of the Trust amounted to over $1,176,000 in cash, along with Cisco’s house.
The Trust named Cisco as acting trustee, Peggy as the First Successor Trustee and sole beneficiary, and her adult daughter, Sherry, as the Second Successor Trustee beneficiary.
The original Trust, drafted by Paul and notarized by Charles’ wife, Karrie, honored William and Cisco’s desire to distribute the Trust to Peggy. Over the ensuing months, Charles:
- Isolated Cisco and increased control: Charles asserted increasing control over Cisco’s finances and isolated her from Peggy and other close friends.
- Persuaded Cisco to remodel her house: Of his own admission, Charles convinced Cisco to remodel her house and allow him to manage the project while Karrie and Deborah, another neighbor who Charles and Karrie involved, redecorated and purchased furniture, costing hundreds of thousands of dollars from the recently created trust.
- Suggested amending the trust: Charles convinced Cisco to talk with Paul about amending her original Trust to make gifts to Charles, Karrie, and Deborah, going so far as to suggest to Paul that they could split the estate if he helped.
- Moved out Cisco: When they began remodeling, Cisco was moved out of the Davis Property to stay with Charles and Karrie for two weeks and then into her friend Yoshi’s house for over two months. She was unhappy because it was uncomfortable, so they moved her into a rental house near the Davis Property.
- Amended her trust: Nine days before her death, when Cisco was vulnerable and displaced from her home, Charles took her to an attorney, Timothy, to amend her trust to disinherit Peggy and make him and Karrie the new beneficiaries.
Cisco eventually ended up in the hospital, and while she was eventually discharged, it was to a senior care facility, never regaining her ability to walk after medical complications.
Related Article: What Does a California Trust Litigation Lawyer Do?
What Did We Discover During California Trust Litigation?
Throughout this case, the Gokal Law Group team leveraged our resources and litigation experience to uncover the truth, challenge the trust, and recover losses based on evidence that Cisco was under undue influence when creating and amending it.
By identifying key witnesses and obtaining an accounting of the trust, we were able to piece together the full extent of Charles’ manipulation, revealing the harsh truth that elder abuse and trust fraud often go hand-in-hand.
We also gained access to communications and video records of conversations to prove what Charles was doing. When Cisco passed away on February 17, 2022, neither Charles nor Karrie notified Peggy, who only learned of her passing weeks later.
On December 22, 2022, with our help, the court ordered that Charles file an account from January 27, 2017, to the present. For expert testimony, we used:
- Gary, a licensed psychologist specializing in geriatric psychology and capacity, testified that the amendments are clear products of undue influence and financial elder abuse as there was evidence she was suffering from severe dementia.
- Jackie, a Certified Public Accountant with a practice focus on forensic accounting and damages analysis, to testify regarding the unexplained transactions and damages to the trust that Charle carried out. These transactions included cash withdrawals totaling $224,882, checks payable to himself and Karrie totaling $32,805, paying unidentified credit cards from Cisco’s account for $177,126, and over $264,605 spent remodeling the house that Charles and Karrie would inherit after Cisco passed away.
With our help, Peggy successfully challenged the trust amendments, recovered lost trust assets, and reverted the trust back to how it was originally drafted before Charles got involved, reflecting Cisco’s true wishes.
“This case was so egregious that the Orange County District Attorney’s Office went on to open an independent, separate criminal investigation of Charles for the same undue influence and financial elder abuse allegations at issue in this petition. Ultimately, this illustrates how elder abuse and trust fraud are often interconnected. Still, it also is a good example of why you need a seasoned team of attorneys in your corner to compile the evidence you need and get the testimony you need to contest a trust in these situations.”
– Ronald V. Larson, Partner, Gokal Law Group
Related Article: California Trust Law: Can a Trustee Be Held Personally Liable?
Do You Need Attorneys with a Proven Track Record of Success in California Trust Litigation? Contact Gokal Law Group Today!
As the case above illustrates, California trust litigation is often a complex web of betrayal and intense emotions, especially following the loss of a loved one. You deserve a battle-tested team of lawyers who will tirelessly defend and enforce your rights.
At Gokal Law Group, that’s what you get. Visit our Contact Page to schedule a free consultation and enforce your rights.
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