California Living Trust Law – Arbitration Provisions

living trust  Your Los Angeles & Glendale Living Trust Lawyer provides you with an update regarding living trusts and arbitration provisions requiring the arbitration of disputes. In a recent California Court of Appeal decision, the First Appellate District upheld the lower Court’s ruling which had denied a beneficiary’s Motion to Compel the Arbitration of a dispute between beneficiaries of a living trust.

In McArthur v. McArthur, a dispute arose after one of the beneficiaries of a living trust allegedly compelled the settlor to provide one of the beneficiaries with an increased inheritance in a living trust amendment, which also required the arbitration of disputes.  After the settlor’s death, the living trust became irrevocable, and two of the three beneficiaries contended that financial elder abuse was the reason why this living trust was amended to provide one of the beneficiaries with more of an inheritance, along with the requirement of the arbitration of disputes that arose under the living trust.

An issue arose whether the arbitration provision in the living trust amendment was binding upon the non-signatory beneficiaries. The lower trial Court had denied the moving beneficiary’s Motion to Compel Arbitration, which the Court of Appeal upheld because the beneficiaries weren’t signatories to the arbitration provision and because they hadn’t benefitted from the living trust instrument containing the arbitration provision at issue.

If you have any issues pertaining to living trusts in Los Angeles or Glendale, or require living trust administration assistance, please contact The Shirvanian Law Firm at (818) 835-5396 for a consultation.

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