Araiza v. Younkin

116 Cal.Rptr.3d 315 (2010)

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Nature of the Case

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Facts

Howery opened a checking account and a savings and named D as the beneficiary of the savings account. Howery was the only person authorized to withdraw funds from it. Howery eventually established a living trust. The trust will “hold, administer, and distribute all property” allocated to it for Howery's own benefit. At her death, the successor trustee “shall make the following distributions: I give my 2004 Infinity automobile to LORI YOUNKIN. I give the following savings and checking accounts to GABRIELLA REEVES, Bank of America [checking account], contents of my safe deposit box at Bank of America, and Bank of America [savings account].” Howery authorized Reeves to sign checks written on the checking account. She received a single monthly statement for both accounts; the statements were addressed to both Howery and Reeves. D was still listed as the beneficiary. Howery died and P became the successor trustee. P petitioned the trial court for an order allowing him to convey the accounts to Reeves. D objected on the sole ground that she is the owner of the savings account. The trial court found that Howery's living trust changed the beneficiary to Reeves. It made no finding on the question of whether Reeves is disqualified under section 21350 from receiving the savings account. D contends she is the sole owner of the savings account because Howery named her as the beneficiary and never changed that designation in a manner authorized by section 5303. She further contends that section 21350, subdivision (a)(2) invalidates any transfer because P is the attorney who drafted the living trust and Reeves is his mother.