Pacific Palisades Trust and Estate Disputes

In brief: After the Palisades Fire, a trustee deciding whether to rebuild or sell must protect the property, act as a prudent investor, and treat all beneficiaries impartially (Probate Code §§ 16003, 16006, 16047). Insurance proceeds belong to the trust and must be accounted for. Hackard Law handles these cases on contingency: no fee and no costs if there is no recovery, unless your written agreement provides otherwise.

The Palisades Fire began in Pacific Palisades on January 7, 2025, and destroyed much of the community. For families whose parents held their homes in trust, the questions now are not only about grief. Who decides whether to rebuild? Where did the insurance money go? Why did the trustee accept the first offer?

A Methodist founding on the bluffs

Pacific Palisades was founded in 1922 by Rev. Charles H. Scott and the Methodist Episcopal Church; founders’ lots were drawn under the oaks of Temescal Canyon on January 14, 1922. Its name likens its coastal bluffs to the Hudson River Palisades. It is a neighborhood of the City of Los Angeles.

Rebuild or sell: the trustee’s duties

A trustee must take reasonable steps to protect trust property (Probate Code § 16006), act with the care, skill, and caution of a prudent investor (§ 16047), and treat all beneficiaries impartially (§ 16003). A trustee can usually sell trust real estate without court approval, but a sale for less than a fair, well-documented price, or to an insider, can be challenged.

Insurance proceeds are trust property and must be accounted for. After a loss in a declared emergency, an owner generally has at least 36 months from the first actual-cash-value payment to collect full replacement cost (Insurance Code § 2051.5), and additional living expenses run at least 24 months (Insurance Code § 2060). In ZIP code 90272, AB 851 bars any unsolicited offer to buy residential property until January 1, 2027 (Civil Code § 2079.26 et seq.).

Warning signs

  • A quick sale of a burned lot without an appraisal or open marketing.
  • Insurance checks deposited without an accounting to beneficiaries.
  • A trustee who will not say whether replacement-cost benefits were claimed.
  • Unsolicited offers, or a buyer connected to the trustee.

Pacific Palisades at a glance

  • Status: Neighborhood of the City of Los Angeles
  • ZIP code: 90272
  • Founded: 1922
  • The Census Bureau does not publish figures for neighborhoods within the City of Los Angeles.

Where your case is heard

Trust and probate cases for Pacific Palisades are heard in the probate departments of Los Angeles County Superior Court, Stanley Mosk Courthouse, 111 North Hill Street, Los Angeles, California 90012, approximately 21 driving miles from Pacific Palisades. Actual distance varies by starting point and route. Hackard Law’s office is in Sacramento County. The firm handles matters in Los Angeles County Superior Court and throughout California.

How fees work

Hackard Law represents families on a contingency basis. The fee is a percentage of the recovery, stated in a written agreement before work begins. The firm advances the costs of the case, which are repaid from the recovery. If there is no recovery, you owe no fee and no costs, unless your written agreement provides otherwise.

Frequently Asked Questions

The trustee, within the trust’s terms. The trustee must protect the property, act as a prudent investor, and treat all beneficiaries impartially (Probate Code §§ 16003, 16006, 16047). Beneficiaries can petition the court for instructions or to review a sale, and insurance proceeds must be accounted for.

Not in the listed ZIP codes. AB 851 (Civil Code § 2079.26 et seq.) bars any unsolicited offer to buy residential property in designated Los Angeles fire-area ZIP codes, including 90272, whatever the price, until January 1, 2027. The seller may cancel a contract made in violation within four months.

Rebuilding a substantially equivalent home on time does not trigger reassessment; only improvements beyond that are taxed at current value (Revenue & Taxation Code § 70). Heirs and trustees should confirm any disaster tax relief with the county assessor before selling or rebuilding.

Michael Hackard
Michael HackardHackard Law
California State Bar #71067

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