Appel

Fisch, Spiegler, Ginsburg & Ladner, a professional legal corporation (Fisch) appeals an order declaring valid the homestead exemption of Daniel and Marlene Appel (the Appels). Title to the subject property was in a revocable living trust, an estate planning device whose popularity has increased in recent years. (Drafting Cal. Revocable Living Trusts (Cont.Ed.Bar 2d ed. 1984) p. ix.) We determine the Appels qualify for the homestead exemption even though the trust held title and therefore affirm the trial court’s order.

Factual and Procedural Background

The Appels are trustees of the Appel revocable family trust dated April 19, 1989 (trust). Fisch drafted the trust instrument. In 1989, in reliance on legal advice from Fisch, the Appels quitclaimed the home in which they resided to the trust.

On June 20, 1990, upon Fisch’s advice, the Appels as trustees recorded a declaration of homestead on the property. On September 4, 1991, Fisch obtained a judgment against the trust and Daniel Appel. The judgment was entered the next day.

On January 3, 1992, Fisch filed an application for an order for sale of the home. As of the date of the application, the balance due on the…