Banner image

Trust Disputes and Minor Children

Probate attorney Orange County
News & Blog Aug 02, 2022

In California trust disputes, it’s often the case that the interests of parents and their minor children are involved—and sometimes those interests can conflict. When this occurs, it’s important to understand the mechanisms by which the court can act on behalf of a minor child to protect them against settlement agreements that may not be to their advantage.

A probate court can appoint a guardian ad litem (GAL)—a neutral party with no personal stake in the distribution or restructuring of the trust—to advocate for the interests of a minor. However, a recent appellate court case in California confirms that while a court may appoint such a guardian, it doesn’t need to in order to consider whether a settlement is appropriately in the interest of a minor child.

Chui v. Chui: Litigation over Trust Assets

The case in question, Chui v. Chui (2022) 75 Cal.App.5th 873, involved the estate of King Chui and May Chui, a married couple who had put significant assets, including residential apartment complexes, related business entities, and other real property, into a revocable trust. The couple had three children: Robert, Margaret, and Esther. May passed away in 2004, and her share of the assets was allocated to irrevocable subtrusts. Her husband’s share was put into a revocable subtrust, which he subsequently amended multiple times to favor his son Robert and Robert’s wife, Christine.

In 2011, King resigned as trustee due to his decline in cognitive abilities, at which point Robert and his sister Margaret became successor co-trustees. In 2012, Esther, the other sister, filed a petition in Los Angeles Superior Court, alleging that her siblings had improperly delegated their co-trustee duties to Christine. Esther requested that a GAL be appointed for Christine’s children, then ages 10 (Jacqueline) and 8 (Michael). Over objections from the children’s mother, the court appointed Jackson Chen, an attorney, to serve as GAL.

Robert died in 2013, followed by his father in 2014. Litigation continued over the next several years, with Esther alleging that Robert and Christine had committed elder financial abuse against King and improperly taken trust assets amounting to $10 million. As trial was set to begin in 2018, however, the parties informed the court they had reached a settlement agreement.

Contesting the Settlement

Within months of the settlement, Christine sought to have it set aside, despite the fact that her counsel had recited the terms to the court at the time of settlement and she had affirmed she understood and agreed to them. She claimed her consent was legally invalid because she had been under the influence of codeine, sleep-deprived, and ill. The court denied her motion and enforced the agreement.

Shortly thereafter, GAL Chen, who had not been party to the initial agreement, provided a report to the court in which he detailed changes he felt should be made to the agreement to protect the interests of the minor children. He ultimately agreed to adjusted terms that the judge approved.

The Appellate Decision

In 2022, the Court of Appeal confirmed the validity of the agreements. In the appeal, Christine’s daughter, Jacqueline, had claimed GAL Chen could not enter into an agreement on her behalf because he had only been appointed guardian in one of several pending cases related to the trust. The court rejected that argument because the appointment of a GAL is discretionary, not mandatory; when one is not appointed, the probate judge serves as the “guardian of the minor.” Thus, she had not been left without representation, as the judge maintained an oversight role protecting her rights.

Christine alleged that, having been appointed guardian of her children’s estates, she had the right to repudiate the agreement the GAL had entered into on behalf of her children. The probate judge found that this objection was inconsistent with the interests of the children, and the appellate court agreed. Because overturning the agreements would favor her over her children as to trust assets, she had a clear conflict of interest.

Additionally, the court rejected the argument that the minor children could disaffirm the agreement, holding that the GAL had the statutory right to reach an agreement on their behalf to protect them from their own improvidence or the manipulation of others.

The ultimate takeaway from this case is that a California judge may appoint a guardian ad litem to protect the interests of minor children in a settlement agreement, but does not have to. As a practical matter, however, judges are inclined to do so, given the volume of business before the courts and the necessity for careful consideration in complex disputes. A GAL is more likely than a judge to have the time necessary to determine whether a settlement agreement serves the best interests of children unable to advocate for themselves.

Trust Litigation

When conflict arises over the administration of a trust, litigation can be complicated and costly. Expert legal representation is critical to protecting your rights and resolving the case effectively. At NM Law, we specialize in estate law, and we can defend your interests in court when necessary. To find out more about our services, contact us here.

NOELLE MINTO, ESQ.

Ms. Minto has been a business and estates transactional attorney based in California since 2003. Her practice is now located in Tustin, CA but represents individuals and entities based throughout the United States and abroad. Phone: (949) 253-0000, Email: info@mintocounselors.com

Testimonials

  • NM Law is an excellent law firm to work with! Noelle and her team are very thorough and knowledgeable. They explained the estate planning process to us and kept us informed every step of the way. We…

    Monique S
  • I greatly appreciate Noelle’s assistance in making difficult decisions. When she provides counsel I know she puts herself and her family in my shoes. I feel comfortable knowing my attorney has analyzed every angle and leaves out…

    Cinda H.
  • For those of you that are looking for the perfect attorney to handle any of your estate issues, well Noelle is the one for you! I can’t say enough about Noelle! She recently handled a case for…

    Suzie F.
  • One of the most important things you can do for your family is have a good Living Trust done by an attorney you can trust to take care of your business. I highly recommend Noelle Minto, an…

    Sandy Z.
  • Working with Noelle on litigation and transactional matters was truly a valuable experience for me. Not only was she a great communicator with clients and personnel, but zealous and passionate about her clients. I would recommend her…

    Darren S.
  • I’ve known Noelle as a colleague and friend for close to seven years. Working “across the aisle” in the fast-paced and partisan world of LA County politics, I found Noelle remarkable for her ability to quickly grasp…

    Kerjon L.
  • Noelle and her team were professional, courteous and diligent with my case. It was a small matter but they took it as though it was a large one. They reached a settlement quickly and very little effort…

    Doug S.
  • After my mother’s death, The bank locked all her accounts and the insurance company was playing games. Our family lawyer never call me back. I called Noelle for help! My paper work was not in order at…

    Randy B.
  • Noelle is awesome. Handled everything I needed in a timely manner. Very professional!

    Tammy W.
  • I have worked with Noelle on my Estate Planning and was very impressed by the way she handled my business. Noelle was extremely professional and available for all my questions. I would highly recommend anyone looking for…

    Zac C.
  • I have worked with many attorneys, and there are very few that I would ever recommend. Noelle and her team have gone above and beyond to help all of our clients that we have referred to her….

    Robert Sousa
  • I was first referred to Noelle Minto by my family law attorney Mike Monarch to provide oversight on my husband’s Trust conforming with our Post Marital Agreement. Her outstanding legal insights helped me to feel secure that…

    Sharon McCubbin
  • Noelle and Samantha and their team are amazing. They are extremely knowledgeable and professional (they are the best). They have and continue to support me and my family while dealing with my parents Will and Trust. Samantha…

    Greg Bishop
  • I had a great experience with Noelle and Samantha at NM Law. They were fast, clear and got the result we wanted under budget. I am very happy and impressed.

    John Arens
  • NM Law is an exceptional place to work! Our office is located in the City of Tustin, off the 55 Freeway, between the 5 and 405 Freeways. Our main cross streets are Redhill Avenue and Edinger Avenue…

    Samantha Smith
  • The N.W Law team in Tustin Ca was instrumental in achieving a just result in our family trust dispute. We had the privilege of being represented by Samantha Smith and her staff, during one of my saddest…

    Herman baldonado
  • Amazing service. So happy with the whole team!

    Mitchell Hilde
  • So glad to work with this team of professionals

    Noelle Minto
  • As an attorney who has used two other wills & trusts lawyers prior to seeing Noelle, I have a pretty good idea of what to expect and what it should cost. I recommend Noelle to anyone who…

    Lynne Boisineau
  • Highly recommend NM Law. I recently worked with Noelle and her team on my family trust and the process could not have gone smoother. Very knowledgeable and professional. I have since recommended all of my family members…

    Nathan Perkins
  • A very professional approach and action to fulfill our personal requirements

    Waldo ortega
  • My husband and I decided to update our 12 year old trust. We initally had a call with Noelle, and were instantly very comfortable with her approach. Noelle was great to work with, very patient, was willing…

    Cheri Ondatje
  • Vey helpful with good insight to take the proper steps with difficult situations and have my questions answered. Noelle and her team are professional and courteous and great to work with!

    Corine Cojocaru
  • Samantha and the team are professional compassionate and get the job done. She articulates very well what needs to be done. Her and the firm do Probate and Trust at its finest to protect their clients. She…

    Silvana Sarkis
  • I was referred to NM Law after dealing with a myriad of problems in settling a complicated Trust in Riverside County. At the initial meeting, Noelle Minto and Samantha Smith listened to the mess I was in…

    Aleathea Rayburn
  • Love this firm. I’ve worked on a wide range of legal issues with NM law, and the attorneys here are top notch, reasonably priced, and a pleasure to work with. They truly care about each of their…

    Colette
  • Ms. Minto, I want to thank you and your staff for the courtesy extended to us during our family’s pending emergency deadline. Mr. O’Grady spoke to my brother and gave us his best recommendation regarding my father’s…

    Abraham Torres

Charities We Support

We dedicate pro bono time, volunteer services, and a percentage of our gross revenue to these organizations. In 2023, we sponsored a refugee family of five to come to the United States and start a new life.

Each year our law firm decides as a group which charities to assist with our time, money, and expertise. Please feel free to click on any of the charities below and make a donation of your own.

  • Charities
  • Charities
  • Charities
  • Charities
  • Charities
  • Charities
Top