California Legal Implications: The Importance of Clear and Specific Intent in Your Estate Plan
A recent California appellate court decision, *Gordon v. Ervin Cohen & Jessup*, provides a critical lesson for anyone creating an estate plan: your intentions must be clearly and separately stated for each component of your plan. According to a summary of the case available from the California Courts, an individual hired an attorney to amend her trust to specifically disinherit three of her grandchildren. Later, the same attorney helped her create several LLCs, which she then gifted to her sons. The LLC operating agreements did not include the same disinheritance language. After her death, other family members sued the attorney, arguing that the disinheritance from the trust should have been carried over to the LLCs., an individual hired an attorney to amend her trust to specifically disinherit three of her grandchildren. Later, the same attorney helped her create several LLCs, which she then gifted to her sons. The LLC operating agreements did not include the same disinheritance language. After her death, other family members sued the attorney, arguing that the disinheritance from the trust should have been carried over to the LLCs.
The court sided with the attorney, ruling that the attorney did not have a duty to the other family members. Crucially, the court found that the client’s intent to disinherit the grandchildren from a testamentary instrument (the trust, which distributes assets after death) was not “clear, certain, or undisputed” evidence that she had the same intent for her inter vivos gifts (gifts made during her lifetime via the LLCs). gifts (gifts made during her lifetime via the LLCs).
This case underscores a fundamental principle for California families: you cannot assume your wishes stated in one document will automatically apply to all your other assets or legal structures. Each part of your estate plan must be treated with precision.
Key Takeaways for California Estate Planning
Clarity is Paramount
Your revocable living trust or will is the cornerstone of your estate plan, but it doesn’t always control assets held in other legal forms, like an LLC or assets with beneficiary designations. If you intend for a specific rule, such as a disinheritance, to apply across all your assets, this must be explicitly and properly documented in each relevant legal instrument. Ambiguity can lead to costly and painful family litigation. is the cornerstone of your estate plan, but it doesn’t always control assets held in other legal forms, like an LLC or assets with beneficiary designations. If you intend for a specific rule, such as a disinheritance, to apply across all your assets, this must be explicitly and properly documented in each relevant legal instrument. Ambiguity can lead to costly and painful family litigation.
Testamentary Gifts vs. Lifetime Gifts
The law distinguishes between gifts made after death (testamentary) and gifts made during your life (inter vivos). The *Gordon* case shows that courts will not automatically apply the rules from your will or trust to lifetime gifts. If you are gifting shares of a family business, real estate, or other assets during your life, you must clearly specify any conditions or restrictions attached to that specific gift at the time it is made.). The *Gordon* case shows that courts will not automatically apply the rules from your will or trust to lifetime gifts. If you are gifting shares of a family business, real estate, or other assets during your life, you must clearly specify any conditions or restrictions attached to that specific gift at the time it is made.
An Attorney’s Duty is to You, the Client
An estate planning attorney’s primary legal and ethical obligation is to their client—the individual creating the plan. Their job is to understand and execute the client’s wishes. This case reinforces that disappointed beneficiaries generally cannot sue the creator’s attorney for legal malpractice. The exception is narrow and typically requires showing that the attorney’s error frustrated the client’s clear intent to benefit that specific heir.
An estate planning attorney’s primary legal and ethical obligation is to their client—the individual creating the plan. Their job is to understand and execute the client’s wishes. This case reinforces that disappointed beneficiaries generally cannot sue the creator’s attorney for legal malpractice. The exception is narrow and typically requires showing that the attorney’s error frustrated the client’s clear intent to benefit that specific heir.
Holistic and Regular Plan Reviews
Your life and assets are not static. When you create a new business, acquire significant property, or make other financial changes, it is essential to review your entire estate plan. A new LLC or investment account should be integrated thoughtfully into your overall plan to ensure it aligns with your objectives and doesn’t create unintended loopholes or contradictions. Working with an experienced attorney ensures that all pieces of your financial life work together to achieve your goals.
Your life and assets are not static. When you create a new business, acquire significant property, or make other financial changes, it is essential to review your entire estate plan. A new LLC or investment account should be integrated thoughtfully into your overall plan to ensure it aligns with your objectives and doesn’t create unintended loopholes or contradictions. Working with an experienced attorney ensures that all pieces of your financial life work together to achieve your goals.
About This Case
Source: Gordon v. Ervin Cohen & Jessup (Estate Planner Duty to Nonclients)
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– Free consultations: (866)-674-1130
– Experienced California estate planning
– Schedule consultation
– Learn more: cpt.law
Legal Disclaimer
This article is for informational purposes only. Consult with a qualified California estate planning attorney for advice specific to your situation.