Thursday, January 14, 2021
In In re Estate of Horst Revocable Trust, "the Nevada Supreme Court considered what a trustee must include in a notice to beneficiaries under NRS 164.021 to trigger the 120-day limitation period deadline to challenge the validity of a trust."
Ella E. Horst established the Ella E. Horst Revocable Trust for the benefit of her children and grandchildren. After the trust was established, Ella moved to Las Vegas to live with her granddaughter Patricia. Through the trust, Ella bought a home with Patricia and Patricia's partner. The trust paid for 50% of the purchase price for the home and retained a 50% interest therein.
The trust was amended a couple of times over the next few years and those amendments are below:
- Ella executed a second amendment to the Trust that removed a $20,000 specific gift to Patricia, provided Patricia with a specific gift of the Trust’s interest in the Home, and named Patricia as successor trustee.
- Ella signed a third amendment that gave an additional specific gift of real property to Patricia.
- Patricia’s partner conveyed her 25% interest in the Home to the Trust, and Ella purportedly executed a fourth amendment, adding a specific gift of the Trust’s recently acquired 25% interest in the home to Patricia.
When Ella died, Patricia became the successor trustee and on January 27, 2017 Patricia gave notice to the other beneficiaries, heirs, and interested persons. However, the notice did not include the fourth amendment to the trust. In May 2018, Patricia sought to have the validity of the court amendment confirmed.
Brian Holiday, one of the beneficiaries, filed an objection to the petition claiming that the amendments were the result of undue influence.
The district court barred the objection because Holiday filed more than 120 days after Patricia served the initial notice. However, in respect to the fourth amendment, the district court found that the objection was timely.
The Nevada Supreme Court ultimately held that Holiday's objections to the second and third amendments were also timely because the initial notice did not include the fourth amendment and was therefore insufficient notice to the beneficiaries.
See Nevada Supreme Court: Include All Trust Documents To Trigger 120-Day Trust Challenge Deadline, Probate Stars, January 8, 2021