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CONFIDENTIAL

Mar. 22, 2001

Probate and Trusts
Trust
Fraud

Confidential

Settlement –  $255,000

Court

L.A. Superior Central


Attorneys

Plaintiff

Robert S. Scuderi
(Law Office of Robert S. Scuderi)


Facts

On Jan. 16, 1985, the decedent executed a living trust leaving all her property in equal shares to her two children,
the petitioner and respondent in this case. Throughout the years, the decedent made various changes in the
trust, but the distribution remained the same.
In May 1998, the decedent was diagnosed with cancer and moved in with respondent. In June, the decedent
had an attorney prepare a change in her living Trust. The Trust now left petitionerÆs total estate of
approximately $1.4 million to respondent, except for $50,000 to petitioner and $50,000 to his daughter. The
petitioner signed the change nine days before her death on July 17, 1998. Estate taxes were estimated to be
$350,000. The net disbursements would be approximately $950,000 to respondent and $100,000 to petitioner
and his daughter.
The petitioner filed an elder abuse action and contest disputing the existence and validity of the last change to
the trust. A mediation was held and the matter was settled for an additional $130,000 to be paid to the
petitioner.
Prior to signing of the settlement agreement, it was discovered that the annuities and life insurance of
approximately $310,000 was not part of the Trust as originally had been represented. The petitioner contended
he was entitled to the $130,000 settlement, plus one half of the annuities and life insurance, since the
designated beneficiaries were petitioner and respondent.
The respondent refused to sign the settlement agreement or acknowledge that the petitioner had an interest in
the annuities and life insurance. The petitioner filed a motion to amend the petition to add a second cause of
action for breach of a settlement agreement.
The court denied the motion. The Court of Appeal issued a writ ordering the court to grant the motion.

Settlement Discussions

Prior to trial, the matter was settled for $100,000, plus one-half the annuities and life insurance, which was valued at $155,000. In addition, petitioner and his daughter will receive $100,000 in the trust. The petitioner and his daughter will receive a net $355,000, while respondent will receive a net $695,000.


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