Estate of Goulet

In Estate of Goulet, 10 Cal. 4th 1074, 898 P.2d 425 (Cal. 1995), the California Supreme Court held that a trustee has a duty to defend against any action that would diminish the funds to be distributed to the decedent's intended beneficiaries. 898 P.2d at 429. In Goulet, decedent's ex-wife, a trust beneficiary, filed a petition for an order determining whether her creditor's claim against the estate to enforce her rights under a premarital agreement would constitute a contest within the meaning of the no contest clause of the will and trust. Id. at 426. The probate court issued an order declaring that the proposed filing would not constitute a contest. Id. The trustees appealed the order. The Court of Appeals dismissed the trustee's appeal on the ground that the trustee lacked standing. Id. at 427. The Supreme Court reversed, holding that the trustee did have standing to appeal the order. The Court in Goulet agreed that a fiduciary did not have standing regarding "conflicting claims of beneficiaries" but distinguished the case before it. Id. at 428. The court reasoned that if the trustee was not permitted to appeal in such a situation, then the "trustor's intent is left undefended" because there may not be any other beneficiary who is "aggrieved" and who is "financially or otherwise motivated or situated to pursue an appeal." Id.