Outspoken, outlandish, but is he completely out of his **** mind??? At a recent court hearing Los Angeles Clipper’s owner Donald Sterling addressed his wife Shelly Sterling’s accusations that Donald is mentally incapacitated, as part of her attempt to take over the couple’s trust and unilaterally sell the Los Angeles Clippers. Not only did Mrs. Sterling accuse Donald of being mentally incapacitated, she had two physicians evaluate and determine that Donald Sterling was in fact mentally incapacitated! His attorneys, of course, dispute these claims. And, while a late discovery that he has been suffering from early stages of dementia may ease public resentment towards Mr. Sterling, Donald made it clear that he has no interest in reaching for public sympathy.
When Sterling’s wife’s attorney questioned Sterling’s motivation for attempting to block the sale of the team, Mr. Sterling denied that his efforts were an attempt to “restore his dignity” and added: “the reason you are handling the case is because you want to charge millions in fees, right?” Furthermore, Mr. Sterling was described as being combative in court, and was even warned by the judge not to try to control the courtroom. While it remains unclear how Sterling’s antics will affect his case, all signs point towards a lengthy dispute between the Sterlings. The good news for Donald Sterling is that he has the money to fund a lengthy battle in court. The bad news for you is that you are not a beneficiary to the Sterling Family Trust account! So how can you avoid and/or resolve common trust disputes without an extended battle in court?
- Don’t Leave Anything To Chance
Donald Sterling Sterling’s trust dispute falls on one provision of the Sterling Family Trust; a provision that is common in to most revocable living trusts. The provision provides that if one trustee becomes mentally incapacitated the other can act as the sole trustee. So, what’s the problem? Well, like most provisions of its kind, all that it takes to determine a trustee incapacitated is a single physician’s diagnosis, which of course can be refuted by another physician’s diagnosis, and the result is a dispute over capacity. The solution, however, is not to avoid incapacity clauses, as these serve a valuable purpose. Rather, the solution is to make sure that you (read your experienced attorney) draft a comprehensive and detailed document that clearly lays out the procedure for resolving common issues, such as capacity.
- No-Contest Clauses
Another common provision that you may want to make sure is in your revocable living trust and is enforceable as written, is a “no-contest” clause. A “no contest” clause, under California law, penalizes beneficiaries who contest a trust or will in court without probable cause.
- Do Not Try To Navigate California’s Probate Code On Your Own
While it may seem counter-intuitive to hire an attorney to save money, there is no better way to insure that your rights are protected following the death of a loved one, or during a trust dispute, than to seek legal advice from an experienced California attorney. Attempting to navigate the Probate Code alone can be very confusing at best, even for those who have some background in law; such as Donald Sterling.
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