Estate planning and a proposed living trust took center stage during a much publicized California divorce case. Frank and Jamie McCourt continue to argue about who owns what as their divorce proceedings play out.

The couple purchased the Los Angeles Dodgers ball club about six years ago, then signed a post-nuptial agreement putting the couple's property in Jamie's name. The question is whether the Dodgers were covered by the agreement, and the court looked to the couple's estate planning attorney for some insight.

The attorney testified that she recommended and drafted a living trust for the McCourts. Such a trust would keep the couple's assets out of probate if one of them died.

An asset not in probate is transferred upon the death of the testator. Life insurance, for example, is not subject to probate. It is possible for an estate with significant real estate holdings not to escape probate.

Had they signed the agreement, all assets would have become community property. The court was looking at the trust to determine what the McCourts' intent was with regard to the ball club. An executed trust would mean that the Dodgers were community, which, in California, is split 50-50 in a divorce.

The trust was never executed. Frank apparently refused to sign, and the attorney was not able to persuade them to resolve the matter. She hasn't represented the couple for a year.

According to Frank, Jamie was concerned about the risks of the ball club investment and bowed out of that deal in exchange for some real estate. Jamie's attorney says his client had no intention of giving full control to Frank.

The back-and-forth he-meant/she-meant arguments are scheduled to go on for a few more days.

If nothing else, the case has shown that living trusts aren't only valuable in estate planning.

Resource: Southern California Public Radio "McCourt Divorce Trial: Frank's Turn at Bat" 8/31/10