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California Probate Estate Planning Trusts

What California Property Owners Can Learn from This Lakewood Dispute: Estate Planning Lessons from Problem Properties

Source: KDVR – Lakewood Dilapidated Property Dispute

Who This Article Is For

If you own California property or will inherit property through an estate, this Lakewood case illustrates critical estate planning lessons about property maintenance, code enforcement, and protecting your legacy. This guide helps California property owners avoid becoming the problem property in their neighborhood and protects heirs from inheriting legal nightmares.

The Lakewood Problem: A Decade of Neglect

What happened in Colorado offers lessons for California:

A severely dilapidated property near West 13th Avenue and Urban Street in Lakewood, Colorado has plagued neighbors for nearly a decade:

The problems:

  • Property filled with junked cars, RVs, trash, and debris
  • Located next to Daniels Preschool and Community Center
  • Automotive fluids and chemicals on ground
  • Potential soil and groundwater contamination
  • Public safety and environmental hazards
  • Enforcement failures:

  • Neighbors complaining for 10+ years
  • Multiple code enforcement citations
  • Owner taken to municipal court
  • Most recent case dismissed on procedural violation
  • Code enforcement building new case
  • No visible change despite decade of complaints
  • Why this matters:

    This is likely an estate planning failure. Properties that deteriorate for a decade often have:

  • Elderly or incapacitated owners who can’t maintain property
  • Deceased owners with estates in probate limbo
  • Disputed ownership among heirs
  • Owners with hoarding disorders or mental health issues
  • Financial problems preventing maintenance
  • How Problem Properties Start: Estate Planning Failures

    Most neglected properties share common origins:

    1. No Power of Attorney When Owner Becomes Incapacitated

    Scenario:

    Elderly property owner suffers stroke, dementia, or other incapacity:

  • Can no longer maintain property
  • Family has no legal authority to hire maintenance
  • Cannot access owner’s funds to pay for upkeep
  • Property deteriorates while family seeks conservatorship
  • By time court grants authority (6-12 months), property is seriously degraded
  • California example:

    Roseville homeowner, age 78, develops advanced dementia:

  • No power of attorney in place
  • Adult children cannot hire landscaper or handyman
  • Cannot pay property taxes or HOA dues
  • Yard becomes overgrown, house falls into disrepair
  • Code enforcement cites property
  • Children must go to court for conservatorship
  • Legal fees: $15,000
  • Code enforcement fines: $8,000
  • Property remediation: $25,000
  • Total cost: $48,000
  • With power of attorney:

  • Children immediately hire maintenance: $200/month
  • Property maintained throughout incapacity
  • Annual cost: $2,400
  • 2. Probate Delays Leave Property Unmanaged

    The probate problem:

    Owner dies, property enters probate:

  • 12-18 months before executor can act
  • Utilities may be shut off
  • Maintenance stops
  • Vandalism and squatters move in
  • Code violations accumulate
  • Property value plummets
  • California probate timeline for problem property:

    Months 1-3:

  • Owner dies, house sits empty
  • Mail piles up, yard unmaintained
  • First code enforcement notice
  • Months 4-8:

  • Probate filed, still no authority for repairs
  • Additional code violations
  • Neighbors complain
  • Property attracts crime
  • Months 9-18:

  • Executor finally has authority
  • Faces $20,000+ in code fines
  • $30,000+ in deferred maintenance
  • Property value decreased $50,000+
  • With living trust:

  • Successor trustee has immediate authority
  • Property maintained continuously
  • No probate delay
  • Value preserved
  • 3. Heir Disputes Prevent Property Management

    Multiple heirs, no agreement:

    Three siblings inherit family home:

  • One wants to sell immediately
  • One wants to move in
  • One wants to rent it out
  • Nobody pays for maintenance (dispute over who pays)
  • Property deteriorates during family conflict
  • Court partition action required ($30,000+ legal fees)
  • Property sold at auction below market
  • Estate planning solution:

    Trust provisions that:

  • Designate decision-making authority (one heir or professional trustee)