Probate Code — Part 4 | PROB — United States — California law | Esheria

Probate Code

Part 4 of 14 · provisions 601–800

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A personal representative may sell estate real or personal property if the chapter’s limits and conditions are met. If a personal representative refuses or neglects to sell property, an interested person may ask the court to order the sale in specified cases. If a will gives directions for how estate property must be sold, the personal representative must follow them unless the court orders otherwise. A personal representative may choose what estate property to sell first, may sell all or part of the estate’s interest in the property, and may sell by public auction or private sale, if the sale is otherwise allowed and subject to specified sections. A personal representative may treat estate assets as a unit for sale, but a private unit sale must meet a 90% minimum price and any sale involving real property must follow real-property sale rules.

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Provisions of Probate Code

Showing 200 of 2,672

  1. 15640.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Resignation and Removal of Trustees [15640 - 15645] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    A trustee who has accepted the trust may resign only through specified methods, including trust-instrument terms, required consents, or a court order.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Resignation and Removal of Trustees [15640 - 15645] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 15640. A trustee who has accepted the trust may resign only by one of the following methods: (a) As provided in the trust instrument. (b) In the case of a revocable trust, with the consent of the person holding the power to revoke the trust. (c) In the case of a trust that is not revocable, with the consent of all adult beneficiaries who are receiving or are entitled to receive income under the trust or to receive a distribution of principal if the trust were terminated at the time consent is sought. If a beneficiary has a conservator, the conservator may consent to the trustee’s resignation on behalf of the conservatee without obtaining court approval. Without limiting the power of the beneficiary to consent to the trustee’s resignation, if the beneficiary has designated an attorney in fact who has the power under the power of attorney to consent to the trustee’s resignation, the attorney in fact may consent to the resignation. (d) Pursuant to a court order obtained on petition by the trustee under Section 17200. The court shall accept the trustee’s resignation and may make any orders necessary for the preservation of the trust property, including the appointment of a receiver or a temporary trustee. (Enacted by Stats. 1990, Ch. 79.)
  2. 15641.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Resignation and Removal of Trustees [15640 - 15645] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    A trustee’s resignation does not release or change liability for the trustee’s acts or omissions, and it does not affect any sureties on the trustee’s bond.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Resignation and Removal of Trustees [15640 - 15645] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 15641. The liability for acts or omissions of a resigning trustee or of the sureties on the trustee’s bond, if any, is not released or affected in any manner by the trustee’s resignation. (Enacted by Stats. 1990, Ch. 79.)
  3. 15642.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Resignation and Removal of Trustees [15640 - 15645] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    A trustee may be removed by the trust instrument, by the court, or on petition of a settlor, cotrustee, or beneficiary. The court also has power to remove a trustee for listed grounds and to shift costs in some cases.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Resignation and Removal of Trustees [15640 - 15645] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 15642. (a) A trustee may be removed in accordance with the trust instrument, by the court on its own motion, or on petition of a settlor, cotrustee, or beneficiary under Section 17200. (b) The grounds for removal of a trustee by the court include the following: (1) Where the trustee has committed a breach of the trust. (2) Where the trustee is insolvent or otherwise unfit to administer the trust. (3) Where hostility or lack of cooperation among cotrustees impairs the administration of the trust. (4) Where the trustee fails or declines to act. (5) Where the trustee’s compensation is excessive under the circumstances. (6) Where the sole trustee is a person described in subdivision (a) of Section 21380, whether or not the person is the transferee of a donative transfer by the transferor, unless, based upon any evidence of the intent of the settlor and all other facts and circumstances, which shall be made known to the court, the court finds that it is consistent with the settlor’s intent that the trustee continue to serve and that this intent was not the product of fraud or undue influence. Any waiver by the settlor of this provision is against public policy and shall be void. This paragraph shall not apply to instruments that became irrevocable on or before January 1, 1994. This paragraph shall not apply if any of the following conditions are met: (A) The settlor is related by blood or marriage to, or is a cohabitant with, any one or more of the trustees, the person who drafted or transcribed the instrument, or the person who caused the instrument to be transcribed. (B) The instrument is reviewed by an independent attorney who (1) counsels the settlor about the nature of their intended trustee designation and (2) signs and delivers to the settlor and the designated trustee a certificate in substantially the following form: “CERTIFICATE OF INDEPENDENT REVIEW I, _____ (attorney’s name) _____ , have reviewed _____ (name of instrument) _____ and have counseled my client, _____ (name of client) _____ , fully and privately on the nature and legal effect of the designation as trustee of _____ (name of trustee) _____ contained in that instrument. I am so disassociated from the interest of the person named as trustee as to be in a position to advise my client impartially and confidentially as to the consequences of the designation. On the basis of this counsel, I conclude that the designation of a person who would otherwise be subject to removal under paragraph (6) of subdivision (b) of Section 15642 of the Probate Code is clearly the settlor’s intent and that intent is not the product of fraud, menace, duress, or undue influence. _____ (Name of Attorney) _____ (Date) ” This independent review and certification may occur either before or after the instrument has been executed, and if it occurs after the date of execution, the named trustee shall not be subject to removal under this paragraph. Any attorney whose written engagement signed by the client is expressly limited to the preparation of a certificate under this subdivision, including the prior counseling, shall not be considered to otherwise represent the client. (C) After full disclosure of the relationships of the persons involved, the instrument is approved pursuant to an order under Article 10 (commencing with Section 2580) of Chapter 6 of Part 4 of Division 4. (7) If, as determined under Part 17 (commencing with Section 810) of Division 2, the trustee is substantially unable to manage the trust’s financial resources or is otherwise substantially unable to execute properly the duties of the office. When the trustee holds the power to revoke the trust, substantial inability to manage the trust’s financial resources or otherwise execute properly the duties of the office may not be proved solely by isolated incidents of negligence or improvidence. (8) If the trustee is substantially unable to resist fraud or undue influence. When the trustee holds the power to revoke the trust, substantial inability to resist fraud or undue influence may not be proved solely by isolated incidents of negligence or improvidence. (9) For other good cause. (c) If, pursuant to paragraph (6) of subdivision (b), the court finds that the designation of the trustee was not consistent with the intent of the settlor or was the product of fraud or undue influence, the person being removed as trustee shall bear all costs of the proceeding, including reasonable attorney’s fees. (d) If the court finds that the petition for removal of the trustee was filed in bad faith and that removal would be contrary to the settlor’s intent, the court may order that the person or persons seeking the removal of the trustee bear all or any part of the costs of the proceeding, including reasonable attorney’s fees. (e) If it appears to the court that trust property or the interests of a beneficiary may suffer loss or injury pending a decision on a petition for removal of a trustee and any appellate review, the court may, on its own motion or on petition of a cotrustee or beneficiary, compel the trustee whose removal is sought to surrender trust property to a cotrustee or to a receiver or temporary trustee. The court may also suspend the powers of the trustee to the extent the court deems necessary. (f) For purposes of this section, the term “related by blood or marriage” shall include persons within the seventh degree. (Amended by Stats. 2020, Ch. 36, Sec. 43. (AB 3364) Effective January 1, 2021.)
  4. 15643.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Resignation and Removal of Trustees [15640 - 15645] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    A trustee office becomes vacant if any listed event happens, such as rejection of the trust, inability to identify or find the named trustee, resignation or removal, death, certain guardianship or conservatorship appointments, bankruptcy relief, or specified actions affecting a trust company.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Resignation and Removal of Trustees [15640 - 15645] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 15643. There is a vacancy in the office of trustee in any of the following circumstances: (a) The person named as trustee rejects the trust. (b) The person named as trustee cannot be identified or does not exist. (c) The trustee resigns or is removed. (d) The trustee dies. (e) A conservator or guardian of the person or estate of an individual trustee is appointed. (f) The trustee is the subject of an order for relief in bankruptcy. (g) A trust company’s charter is revoked or powers are suspended, if the revocation or suspension is to be in effect for a period of 30 days or more. (h) A receiver is appointed for a trust company if the appointment is not vacated within a period of 30 days. (Amended by Stats. 2009, Ch. 500, Sec. 57. (AB 1059) Effective January 1, 2010.)
  5. 15644.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Resignation and Removal of Trustees [15640 - 15645] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    When a trustee vacancy occurs, the former trustee must deliver trust property to the successor trustee or a court-appointed recipient and remains responsible until delivery.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Resignation and Removal of Trustees [15640 - 15645] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 15644. When a vacancy has occurred in the office of trustee, the former trustee who holds property of the trust shall deliver the trust property to the successor trustee or a person appointed by the court to receive the property and remains responsible for the trust property until it is delivered. A trustee who has resigned or is removed has the powers reasonably necessary under the circumstances to preserve the trust property until it is delivered to the successor trustee and to perform actions necessary to complete the resigning or removed trustee’s administration of the trust. (Enacted by Stats. 1990, Ch. 79.)
  6. 15645.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Resignation and Removal of Trustees [15640 - 15645] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    If the court removes a trustee and appoints a successor trust company, it may award the petitioner’s costs and reasonable attorney’s fees.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Resignation and Removal of Trustees [15640 - 15645] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 15645. If the trustee of a trust that is not revocable has refused to transfer administration of the trust to a successor trust company on request of the beneficiaries described in subdivision (c) of Section 15640 and the court in subsequent proceedings under Section 17200 makes an order removing the existing trustee and appointing a trust company as successor trustee, the court may, in its discretion, award costs and reasonable attorney’s fees incurred by the petitioner in the proceeding to be paid by the trustee or from the trust as ordered by the court. (Enacted by Stats. 1990, Ch. 79.)
  7. 15660.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Appointment of Trustees [15660 - 15660.5] ( Article 4 enacted by Stats. 1990, Ch. 79. )

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    This section explains how a trustee vacancy must or may be filled.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Appointment of Trustees [15660 - 15660.5] ( Article 4 enacted by Stats. 1990, Ch. 79. ) ## 15660. (a) If the trust has no trustee or if the trust instrument requires a vacancy in the office of a cotrustee to be filled, the vacancy shall be filled as provided in this section. (b) If the trust instrument provides a practical method of appointing a trustee or names the person to fill the vacancy, the vacancy shall be filled as provided in the trust instrument. (c) If the vacancy in the office of trustee is not filled as provided in subdivision (b), the vacancy may be filled by a trust company that has agreed to accept the trust on agreement of all adult beneficiaries who are receiving or are entitled to receive income under the trust or to receive a distribution of principal if the trust were terminated at the time the agreement is made. If a beneficiary has a conservator, the conservator may agree to the successor trustee on behalf of the conservatee without obtaining court approval. Without limiting the power of the beneficiary to agree to the successor trustee, if the beneficiary has designated an attorney in fact who has the power under the power of attorney to agree to the successor trustee, the attorney in fact may agree to the successor trustee. (d) If the vacancy in the office of trustee is not filled as provided in subdivision (b) or (c), on petition of any interested person or any person named as trustee in the trust instrument, the court may, in its discretion, appoint a trustee to fill the vacancy. If the trust provides for more than one trustee, the court may, in its discretion, appoint the original number or any lesser number of trustees. In selecting a trustee, the court shall give consideration to any nomination by the beneficiaries who are 14 years of age or older. (Amended by Stats. 1992, Ch. 871, Sec. 17. Effective January 1, 1993.)
  8. 15660.5.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Appointment of Trustees [15660 - 15660.5] ( Article 4 enacted by Stats. 1990, Ch. 79. )

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    The court may appoint the county public guardian or public administrator as trustee only if the stated requirements are met.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Appointment of Trustees [15660 - 15660.5] ( Article 4 enacted by Stats. 1990, Ch. 79. ) ## 15660.5. (a) The court may appoint as trustee of a trust the public guardian or public administrator of the county in which the matter is pending subject to the following requirements: (1) Neither the public guardian nor the public administrator shall be appointed as trustee unless the court finds, after reasonable inquiry, that no other qualified person is willing to act as trustee or the public guardian, public administrator, or his or her representative consents. (2) The public administrator shall not be appointed as trustee unless either of the following is true: (A) At the time of the appointment and pursuant to the terms of the trust, the entire trust is then to be distributed outright. For purposes of this paragraph, a trust that is “then to be distributed outright” does not include a trust pursuant to which payments to, or on behalf of, a beneficiary or beneficiaries are to be made from the trust on an ongoing basis for more than six months after the date of distribution. (B) The public administrator consents. (3) Neither the public guardian nor the public administrator shall be appointed as a cotrustee unless the public guardian, public administrator, or his or her representative consents. (4) Neither the public guardian nor the public administrator shall be appointed as general trustee without a hearing and notice to the public guardian or public administrator, or his or her representative, and other interested persons as provided in Section 17203. (5) Neither the public guardian nor the public administrator shall be appointed as temporary trustee without receiving notice of hearing as provided in Section 1220. The court shall not waive this notice of hearing, but may shorten the time for notice upon a finding of good cause. (b) (1) If the public guardian or the public administrator consents to the appointment as trustee under this section, he or she shall submit a written certification of the consent to the court no later than two court days after the noticed hearing date described in paragraph (4) or (5) of subdivision (a). The public administrator shall not be appointed as trustee under subparagraph (A) of paragraph (2) of subdivision (a) if, after receiving notice as required by this section, the public administrator files a written certification with the court that the public administrator is unable to provide the level of services needed to properly fulfill the obligations of a trustee of the trust. (2) If the public administrator has been appointed as trustee without notice as required in paragraph (4) or (5) of subdivision (a), and the public administrator files a written certification with the court that he or she is unable to provide the level of services needed to properly fulfill the obligations of a trustee of the trust, this shall be good cause for the public administrator to be relieved as trustee. (c) The order of appointment shall provide for an annual bond fee as described in Section 15688. (Repealed and added by Stats. 2008, Ch. 237, Sec. 5. Effective January 1, 2009.)
  9. 15680.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. )

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    If a trust instrument sets trustee compensation, the trustee is entitled to that compensation. A court may later change it up or down on proper showing, and the change applies only going forward.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. ) ## 15680. (a) Subject to subdivision (b), and except as provided in Section 15688, if the trust instrument provides for the trustee’s compensation, the trustee is entitled to be compensated in accordance with the trust instrument. (b) Upon proper showing, the court may fix or allow greater or lesser compensation than could be allowed under the terms of the trust in any of the following circumstances: (1) Where the duties of the trustee are substantially different from those contemplated when the trust was created. (2) Where the compensation in accordance with the terms of the trust would be inequitable or unreasonably low or high. (3) In extraordinary circumstances calling for equitable relief. (c) An order fixing or allowing greater or lesser compensation under subdivision (b) applies only prospectively to actions taken in administration of the trust after the order is made. (Amended by Stats. 2008, Ch. 237, Sec. 6. Effective January 1, 2009.)
  10. 15681.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. )

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    If a trust instrument does not set the trustee’s pay, the trustee is entitled to reasonable compensation.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. ) ## 15681. If the trust instrument does not specify the trustee’s compensation, the trustee is entitled to reasonable compensation under the circumstances. (Enacted by Stats. 1990, Ch. 79.)
  11. 15682.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. )

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    The court may set a periodic compensation amount under Sections 15680 and 15681, and it can let that amount continue as long as the court thinks proper.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. ) ## 15682. The court may fix an amount of periodic compensation under Sections 15680 and 15681 to continue for as long as the court determines is proper. (Enacted by Stats. 1990, Ch. 79.)
  12. 15683.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. )

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    If a trust has two or more trustees, their compensation must be divided among the cotrustees based on the services each rendered, unless the trust instrument says otherwise or the trustees agree otherwise.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. ) ## 15683. Unless the trust instrument otherwise provides or the trustees otherwise agree, if the trust has two or more trustees, the compensation shall be apportioned among the cotrustees according to the services rendered by them. (Enacted by Stats. 1990, Ch. 79.)
  13. 15684.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. )

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    A trustee may be repaid from trust property for properly incurred trust administration expenses, and also for other expenses if they benefited the trust.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. ) ## 15684. A trustee is entitled to the repayment out of the trust property for the following: (a) Expenditures that were properly incurred in the administration of the trust. (b) To the extent that they benefited the trust, expenditures that were not properly incurred in the administration of the trust. (Enacted by Stats. 1990, Ch. 79.)
  14. 15685.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. )

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    A trustee has an equitable lien on trust property against the beneficiary for certain advances, interest, expenses, losses, and liabilities tied to protecting or administering the trust.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. ) ## 15685. The trustee has an equitable lien on the trust property as against the beneficiary in the amount of advances, with any interest, made for the protection of the trust, and for expenses, losses, and liabilities sustained in the administration of the trust or because of ownership or control of any trust property. (Enacted by Stats. 1990, Ch. 79.)
  15. 15686.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. )

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    A trustee may not increase a trustee’s fee for a particular trust unless it gives at least 60 days’ written notice to the required beneficiaries first.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. ) ## 15686. (a) As used in this section, “trustee’s fee” includes, but is not limited to, the trustee’s periodic base fee, rate of percentage compensation, minimum fee, hourly rate, and transaction charge, but does not include fees for extraordinary services. (b) A trustee shall not charge an increased trustee’s fee for administration of a particular trust unless the trustee first gives at least 60 days’ written notice of that increased fee to all of the following persons: (1) Each beneficiary who is entitled to an account under Section 16062. (2) Each beneficiary who was given the last preceding account. (3) Each beneficiary who has made a written request to the trustee for notice of an increased trustee’s fee and has given an address for receiving notice. (c) If a beneficiary files a petition under Section 17200 for review of the increased trustee’s fee or for removal of the trustee and serves a copy of the petition on the trustee before the expiration of the 60-day period, the increased trustee’s fee does not take effect as to that trust until otherwise ordered by the court or the petition is dismissed. (Amended by Stats. 2017, Ch. 319, Sec. 86. (AB 976) Effective January 1, 2018.)
  16. 15687.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. )

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    This section limits when a trustee who is also an attorney, and certain relatives or related firms, may be paid for legal services connected to the trust.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. ) ## 15687. (a) Notwithstanding any provision of a trust to the contrary, a trustee who is an attorney may receive only (1) the trustee’s compensation provided in the trust or otherwise provided in this article or (2) compensation for legal services performed for the trustee, unless the trustee obtains approval for the right to dual compensation as provided in subdivision (d). (b) No parent, child, sibling, or spouse of a person who is a trustee, and no law partnership or corporation whose partner, shareholder, or employee is serving as a trustee shall receive any compensation for legal services performed for the trustee unless the trustee waives trustee compensation or unless the trustee obtains approval for the right to dual compensation as provided in subdivision (d). (c) This section shall not apply if the trustee is related by blood or marriage to, or is a cohabitant with, the settlor. (d) After full disclosure of the nature of the compensation and relationship of the trustee to all persons receiving compensation under this section, the trustee may obtain approval for dual compensation by either of the following: (1) An order pursuant to paragraph (21) of subdivision (b) of Section 17200. (2) Giving 30 days’ advance written notice to the persons entitled to notice under Section 17203. Within that 30-day period, any person entitled to notice may object to the proposed action by written notice to the trustee or by filing a petition pursuant to paragraph (21) of subdivision (b) of Section 17200. If the trustee receives this objection during that 30-day period and if the trustee wishes dual compensation, the trustee shall file a petition for approval pursuant to paragraph (21) of subdivision (b) of Section 17200. (e) Any waiver of the requirements of this section is against public policy and shall be void. (f) This section applies to services rendered on or after January 1, 1994. (Amended by Stats. 1995, Ch. 730, Sec. 10. Effective January 1, 1996.)
  17. 15688.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. )

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    A public guardian or public administrator appointed as trustee under Section 15660.5 must be paid from trust property for reasonable trust administration expenses, specified compensation, and an annual bond fee.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Trustees [15600 - 15688] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Compensation and Indemnification of Trustees [15680 - 15688] ( Article 5 enacted by Stats. 1990, Ch. 79. ) ## 15688. Notwithstanding any other provision of this article and the terms of the trust, a public guardian or public administrator who is appointed as a trustee of a trust pursuant to Section 15660.5 shall be paid from the trust property for all of the following: (a) Reasonable expenses incurred in the administration of the trust. (b) Compensation for services of the public guardian or public administrator and the attorney of the public guardian or public administrator, as follows: (1) If the public guardian or public administrator is appointed as trustee of a trust that provides for the outright distribution of the entire trust estate, compensation for the public guardian or public administrator, and any attorney for the public guardian or public administrator, shall be calculated as that provided to a personal representative and attorney pursuant to Part 7 (commencing with Section 10800) of Division 7, based on the fair market value of the assets as of the date of the appointment, provided that the minimum amount of compensation for the public guardian or the public administrator shall be one thousand dollars ($1,000). Additionally, the minimum amount of compensation for the attorney for the public guardian or the public administrator, if any, shall be one thousand dollars ($1,000). (2) For a trust other than that described in paragraph (1), the public guardian or public administrator shall be compensated as provided in Section 15680. Compensation shall be consistent with compensation allowed for professional fiduciaries or corporate fiduciaries providing comparable services. (3) Except as provided in paragraph (1), reasonable compensation for the attorney for the public guardian or public administrator. (c) An annual bond fee in the amount of twenty-five dollars ($25) plus one-fourth of 1 percent of the amount of the trust assets greater than ten thousand dollars ($10,000). The amount charged shall be deposited in the county treasury. (Amended by Stats. 2008, Ch. 237, Sec. 7. Effective January 1, 2009.)
  18. 15800.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Beneficiaries [15800 - 15805] ( Chapter 2 enacted by Stats. 1990, Ch. 79. )

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    When a revocable trust has a competent person with power to revoke, that person gets the beneficiary rights and the trustee owes duties to that person. If no one with revocation power is competent, the trustee must notify affected beneficiaries and send the trust instrument and amendments within 60 days, subject to the stated exceptions.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Beneficiaries [15800 - 15805] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## 15800. (a) Except to the extent that the trust instrument otherwise provides or where the joint action of the settlor and all beneficiaries is required, during the time that a trust is revocable and at least one person holding the power to revoke the trust, in whole or in part, is competent, the following shall apply: (1) The person holding the power to revoke, and not the beneficiary, has the rights afforded beneficiaries under this division. (2) The duties of the trustee are owed to the person holding the power to revoke. (b) Except to the extent that the trust instrument otherwise provides or where the joint action of the settlor and all beneficiaries is required, if, during the time that a trust is revocable, no person holding the power to revoke the trust, in whole or in part, is competent, the following shall apply: (1) Within 60 days of receiving information establishing the incompetency of the last person holding the power to revoke the trust, the trustee shall provide notice of the application of this subdivision and a true and complete copy of the trust instrument and any amendments to each beneficiary to whom the trustee would be required or authorized to distribute income or principal if the settlor had died as of the date of receipt of the information. If the trust has been completely restated, the trustee need not include the trust instrument or amendments superseded by the last restatement. (2) The duties of the trustee to account at least annually or provide information requested under Section 16061 shall be owed to each beneficiary to whom the trustee would be required or authorized to distribute income or principal if the settlor had died during the account period or the period relating to the administration of the trust relevant to the report, as applicable. (3) A beneficiary whose interest is conditional on some factor not yet in existence or not yet determinable shall not be considered a beneficiary for purposes of this section, unless the trustee, in the trustee’s discretion, believes it is likely that the condition or conditions will be satisfied at the time of the settlor’s death. (4) If the interest of a beneficiary fails because a condition to receiving that interest has not been satisfied or the trustee does not believe that the condition will be satisfied at the time of the settlor’s death, the duties in paragraphs (1) and (2) shall be owed to the beneficiary or beneficiaries who would next succeed to that interest at the relevant time or period as determined under the trust instrument, as amended and restated. (c) Incompetency, for the purposes of subdivision (b), may be established by either of the following: (1) The method for determining incompetency specified by the trust instrument, as amended or restated. (2) A judicial determination of incompetency. (Amended by Stats. 2022, Ch. 420, Sec. 42. (AB 2960) Effective January 1, 2023.)
  19. 15801.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Beneficiaries [15800 - 15805] ( Chapter 2 enacted by Stats. 1990, Ch. 79. )

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    If a trust is revocable and the person who can revoke it is competent, that person—not the beneficiary—has the power to consent or refuse consent before an action is taken.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Beneficiaries [15800 - 15805] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## 15801. (a) In any case where the consent of a beneficiary may be given or is required to be given before an action may be taken, during the time that a trust is revocable and the person holding the power to revoke the trust is competent, the person holding the power to revoke, and not the beneficiary, has the power to consent or withhold consent. (b) This section does not apply where the joint consent of the settlor and all beneficiaries is required by statute. (Enacted by Stats. 1990, Ch. 79.)
  20. 15802.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Beneficiaries [15800 - 15805] ( Chapter 2 enacted by Stats. 1990, Ch. 79. )

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    When a revocable trust’s holder of the power to revoke is competent, notices meant for a beneficiary must be sent to that holder instead of the beneficiary.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Beneficiaries [15800 - 15805] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## 15802. Notwithstanding any other statute, during the time that a trust is revocable and the person holding the power to revoke the trust is competent, a notice that is to be given to a beneficiary shall be given to the person holding the power to revoke and not to the beneficiary. (Enacted by Stats. 1990, Ch. 79.)
  21. 15803.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Beneficiaries [15800 - 15805] ( Chapter 2 enacted by Stats. 1990, Ch. 79. )

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    A person with a presently exercisable general power of appointment or power to withdraw trust property has the same rights as a person who can revoke the trust, but only within the person’s power over the trust property.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Beneficiaries [15800 - 15805] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## 15803. The holder of a presently exercisable general power of appointment or power to withdraw property from the trust has the rights of a person holding the power to revoke the trust that are provided by Sections 15800 to 15802, inclusive, to the extent of the holder’s power over the trust property. (Enacted by Stats. 1990, Ch. 79.)
  22. 15804.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Beneficiaries [15800 - 15805] ( Chapter 2 enacted by Stats. 1990, Ch. 79. )

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    This section says notice to a person who can represent and bind another person counts as notice to the represented person, and it lists when representation is allowed or not allowed.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Beneficiaries [15800 - 15805] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## 15804. (a) Notice to a person who may represent and bind another person pursuant to this section is sufficient to comply with a requirement in this division that notice be given to the represented person, and has the same effect as if notice were given directly to that represented person. (b) A person may serve as a representative as provided in this section and bind another person, except as follows: (1) The representative and the represented person shall not have a conflict of interest during the representation with respect to the particular matter that is the subject of the representation. (2) A settlor shall not represent and bind a beneficiary regarding the termination or modification of an irrevocable trust. (c) (1) A person who provides consent for another person pursuant to this section shall do so in writing. (2) The consent of a person who may represent and bind another person pursuant to this section is binding on the represented person unless the represented person objects to the representation before the consent would have become effective. (3) A fiduciary who acts in reliance upon a representation made pursuant to this section shall not be liable for any resulting loss, unless the fiduciary committed a breach of trust intentionally, with gross negligence, in bad faith, or with reckless indifference to the interests of a beneficiary. (d) An action taken by the court under this division is conclusive and binding upon a person represented pursuant to this section. (e) The following representation is permissible: (1) A parent may represent and bind the parent’s minor children and children subsequently born if a guardian or guardian ad litem for the child or children has not been appointed. (2) A conservator of the estate may represent and bind the conservatee. (3) A guardian of the estate may represent and bind the minor ward. (4) A guardian ad litem with authority to act with respect to the matter may represent and bind the ward. (5) An agent with authority to act with respect to the matter may represent and bind the principal. (6) A trustee may represent and bind the beneficiaries of the trust. (7) A personal representative may represent and bind persons interested in the estate. (f) Unless otherwise represented, a minor, an incapacitated person, a person subsequently born, or a person whose identity or location is unknown and not reasonably ascertainable may be represented by and bound by another person having a substantially identical interest with respect to the particular question or dispute. (g) The following representation of successive interests is permissible: (1) If an interest has been given to persons who comprise a certain class upon the happening of a future event, the living persons who would constitute the class as of the date the representation is to be determined may represent and bind all other members of the class as of that date. (2) If an interest has been given to a living person or to a class of persons, and a substantially identical interest is to pass to another person or class of persons, or both, upon the happening of a future event, the living person or the living members of the class of persons who hold the interest may represent and bind all of the persons and classes of persons who might take on the happening of all future events. (3) If an interest will be given to a living person or to a class of persons upon the happening of a future event and a substantially identical interest would pass to another person or class of persons, or both, upon the happening of one or more future events, the living person or the living members of the class of persons who will hold the interest on the happening of an earlier event may represent and bind all of the persons and classes of persons who might take on the happening of all future events. (h) The holder of a lifetime or testamentary power of appointment may represent and bind persons who are permissible appointees or takers in default of that exercise. (i) This section does not affect any of the following: (1) Requirements for notice in a court proceeding to any of the following: (A) A person who has requested special notice. (B) A person who has filed notice of appearance. (C) A particular person or entity required by statute to be given notice. (2) Availability of a guardian ad litem pursuant to Section 1003. (3) A representative’s previously existing duties. (j) For purposes of this section, “notice” includes other papers. (Repealed and added by Stats. 2025, Ch. 39, Sec. 2. (AB 565) Effective January 1, 2026.)
  23. 15805.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Beneficiaries [15800 - 15805] ( Chapter 2 enacted by Stats. 1990, Ch. 79. )

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    The Attorney General is bound by the limits that Sections 15800 to 15802 place on beneficiaries’ rights in revocable trusts.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 3. TRUSTEES AND BENEFICIARIES [15600 - 15805] ( Part 3 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Beneficiaries [15800 - 15805] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## 15805. Notwithstanding any other provision of law, the Attorney General is subject to the limitations on the rights of beneficiaries of revocable trusts provided by Sections 15800 to 15802, inclusive. (Enacted by Stats. 1990, Ch. 79.)
  24. 1600.

    ## Probate Code - PROB ## DIVISION 4. GUARDIANSHIP, CONSERVATORSHIP, AND OTHER PROTECTIVE PROCEEDINGS [1400 - 3925] ( Division 4 enacted by Stats. 1990, Ch. 79. ) ## PART 2. GUARDIANSHIP [1500 - 1611] ( Part 2 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Termination [1600 - 1602] ( Chapter 2 enacted by Stats. 1990, Ch. 79. )

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    This section says a guardianship ends when the ward reaches majority, dies, is adopted, or is emancipated, with some exceptions for extending a person guardianship and other specified laws.

    ## Probate Code - PROB ## DIVISION 4. GUARDIANSHIP, CONSERVATORSHIP, AND OTHER PROTECTIVE PROCEEDINGS [1400 - 3925] ( Division 4 enacted by Stats. 1990, Ch. 79. ) ## PART 2. GUARDIANSHIP [1500 - 1611] ( Part 2 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Termination [1600 - 1602] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## 1600. (a) A guardianship of the person or estate or both terminates when the ward attains majority unless, pursuant to Section 1510.1, the ward requests the extension of, or consents to the extension of, the guardianship of the person until the ward attains 21 years of age. (b) A guardianship of the person terminates upon the death of the ward, the adoption of the ward, or upon the emancipation of the ward under Section 7002 of the Family Code. (c) A guardianship of the estate terminates upon the death of the ward, except as provided by Section 2467 and Article 4 (commencing with Section 2630) of Chapter 7 of Part 4, and except as otherwise provided by law. (Amended by Stats. 2018, Ch. 73, Sec. 1. (AB 2113) Effective January 1, 2019.)
  25. 1601.

    ## Probate Code - PROB ## DIVISION 4. GUARDIANSHIP, CONSERVATORSHIP, AND OTHER PROTECTIVE PROCEEDINGS [1400 - 3925] ( Division 4 enacted by Stats. 1990, Ch. 79. ) ## PART 2. GUARDIANSHIP [1500 - 1611] ( Part 2 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Termination [1600 - 1602] ( Chapter 2 enacted by Stats. 1990, Ch. 79. )

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    The court may end a guardianship on petition by certain people if it finds termination is in the ward’s best interest, and must end it if a ward age 18 or older petitions.

    ## Probate Code - PROB ## DIVISION 4. GUARDIANSHIP, CONSERVATORSHIP, AND OTHER PROTECTIVE PROCEEDINGS [1400 - 3925] ( Division 4 enacted by Stats. 1990, Ch. 79. ) ## PART 2. GUARDIANSHIP [1500 - 1611] ( Part 2 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Termination [1600 - 1602] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## 1601. Upon petition of the guardian, a parent, the minor ward, or, in the case of an Indian child custody proceeding, an Indian custodian or the ward’s tribe, the court may make an order terminating the guardianship if the court determines that it is in the ward’s best interest to terminate the guardianship. Upon petition of a ward who is 18 years of age or older, the court shall make an order terminating the guardianship. Notice of the hearing on the petition shall be given for the period and in the manner provided in Chapter 3 (commencing with Section 1460) of Part 1. (Amended by Stats. 2015, Ch. 694, Sec. 5. (AB 900) Effective January 1, 2016.)
  26. 1602.

    ## Probate Code - PROB ## DIVISION 4. GUARDIANSHIP, CONSERVATORSHIP, AND OTHER PROTECTIVE PROCEEDINGS [1400 - 3925] ( Division 4 enacted by Stats. 1990, Ch. 79. ) ## PART 2. GUARDIANSHIP [1500 - 1611] ( Part 2 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Termination [1600 - 1602] ( Chapter 2 enacted by Stats. 1990, Ch. 79. )

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    When a guardianship is terminated, the court can address ongoing visitation between the former guardian and the former minor ward, and it must file the visitation order in custody proceedings.

    ## Probate Code - PROB ## DIVISION 4. GUARDIANSHIP, CONSERVATORSHIP, AND OTHER PROTECTIVE PROCEEDINGS [1400 - 3925] ( Division 4 enacted by Stats. 1990, Ch. 79. ) ## PART 2. GUARDIANSHIP [1500 - 1611] ( Part 2 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Termination [1600 - 1602] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## 1602. (a) The Legislature hereby finds and declares that guardians perform a critical and important role in the lives of minors, frequently assuming a parental role and caring for a child when the child’s parent or parents are unable or unwilling to do so. (b) Upon making a determination that a guardianship should be terminated pursuant to Section 1601, the court may consider whether continued visitation between the ward and the guardian is in the ward’s best interest. As part of the order of termination, the court shall have jurisdiction to issue an order providing for ongoing visitation between a former guardian and his or her former minor ward after the termination of the guardianship. The order granting or denying visitation may not be modified unless the court determines, based upon evidence presented, that there has been a significant change of circumstances since the court issued the order and that modification of the order is in the best interest of the child. (c) A copy of the visitation order shall be filed in any court proceeding relating to custody of the minor. If a prior order has not been filed, and a proceeding is not pending relating to the custody of the minor in the court of any county, the visitation order may be used as the sole basis for opening a file in the court of the county in which the custodial parent resides. While a parent of the child has custody of the child, proceedings for modification of the visitation order shall be determined in a proceeding under the Family Code. (Added by Stats. 2004, Ch. 301, Sec. 2. Effective January 1, 2005.)
  27. 16040.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Trustee’s Standard of Care [16040 - 16042] ( Article 2 enacted by Stats. 1990, Ch. 79. )

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    The trustee must manage the trust with reasonable care, skill, and caution. The settlor may change that standard in the trust instrument, and a trustee is not liable for good-faith reliance on those express provisions.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Trustee’s Standard of Care [16040 - 16042] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16040. (a) The trustee shall administer the trust with reasonable care, skill, and caution under the circumstances then prevailing that a prudent person acting in a like capacity would use in the conduct of an enterprise of like character and with like aims to accomplish the purposes of the trust as determined from the trust instrument. (b) The settlor may expand or restrict the standard provided in subdivision (a) by express provisions in the trust instrument. A trustee is not liable to a beneficiary for the trustee’s good faith reliance on these express provisions. (c) This section does not apply to investment and management functions governed by the Uniform Prudent Investor Act, Article 2.5 (commencing with Section 16045). (Amended by Stats. 1995, Ch. 63, Sec. 4. Effective January 1, 1996.)
  28. 16041.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Trustee’s Standard of Care [16040 - 16042] ( Article 2 enacted by Stats. 1990, Ch. 79. )

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    A trustee’s standard of care and performance in administering a trust is not changed by whether the trustee is paid.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Trustee’s Standard of Care [16040 - 16042] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16041. A trustee’s standard of care and performance in administering the trust is not affected by whether or not the trustee receives any compensation. (Enacted by Stats. 1990, Ch. 79.)
  29. 16042.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Trustee’s Standard of Care [16040 - 16042] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A public guardian acting as trustee may deposit or invest trust funds in the same manner and under the same terms as the public administrator does for a decedent’s estate fund.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Trustee’s Standard of Care [16040 - 16042] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16042. (a) Notwithstanding the requirements of this article, Article 2.5 (commencing with Section 16045), and the terms of the trust, all trust funds that come within the custody of the public guardian who is appointed as trustee of the trust pursuant to Section 15660.5 may be deposited or invested in the same manner, and would be subject to the same terms and conditions, as a deposit or investment by the public administrator of funds in the estate of a decedent pursuant to Article 3 (commencing with Section 7640) of Chapter 4 of Part 1 of Division 7. (b) Upon the deposit or investment of trust property pursuant to subdivision (a), the public guardian shall be deemed to have met the standard of care specified in this article and Article 2.5 (commencing with Section 16045) with respect to this trust property. (Added by Stats. 1997, Ch. 93, Sec. 4. Effective January 1, 1998.)
  30. 16045.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. )

    Verify source ↗

    This section says Article 2.5, together with subdivision (a) of Section 16002 and Section 16003, makes up the prudent investor rule and may be cited as the Uniform Prudent Investor Act.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. ) ## 16045. This article, together with subdivision (a) of Section 16002 and Section 16003, constitutes the prudent investor rule and may be cited as the Uniform Prudent Investor Act. (Added by Stats. 1995, Ch. 63, Sec. 6. Effective January 1, 1996.)
  31. 16046.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. )

    Verify source ↗

    A trustee who invests and manages trust assets must follow the prudent investor rule, unless subdivision (b) applies. The settlor may change that rule by express trust provisions, and a trustee is not liable for good-faith reliance on those provisions.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. ) ## 16046. (a) Except as provided in subdivision (b), a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule. (b) The settlor may expand or restrict the prudent investor rule by express provisions in the trust instrument. A trustee is not liable to a beneficiary for the trustee’s good faith reliance on these express provisions. (Added by Stats. 1995, Ch. 63, Sec. 6. Effective January 1, 1996.)
  32. 16047.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. )

    Verify source ↗

    A trustee must invest and manage trust assets prudently and may invest in any kind of property or strategy if it complies with the chapter’s standards.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. ) ## 16047. (a) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. (b) A trustee’s investment and management decisions respecting individual assets and courses of action must be evaluated not in isolation, but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust. (c) Among circumstances that are appropriate to consider in investing and managing trust assets are the following, to the extent relevant to the trust or its beneficiaries: (1) General economic conditions. (2) The possible effect of inflation or deflation. (3) The expected tax consequences of investment decisions or strategies. (4) The role that each investment or course of action plays within the overall trust portfolio. (5) The expected total return from income and the appreciation of capital. (6) Other resources of the beneficiaries known to the trustee as determined from information provided by the beneficiaries. (7) Needs for liquidity, regularity of income, and preservation or appreciation of capital. (8) An asset’s special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries. (d) A trustee shall make a reasonable effort to ascertain facts relevant to the investment and management of trust assets. (e) A trustee may invest in any kind of property or type of investment or engage in any course of action or investment strategy consistent with the standards of this chapter. (Added by Stats. 1995, Ch. 63, Sec. 6. Effective January 1, 1996.)
  33. 16048.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. )

    Verify source ↗

    A trustee must diversify trust investments when making and carrying out investment decisions, unless it would be prudent not to diversify.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. ) ## 16048. In making and implementing investment decisions, the trustee has a duty to diversify the investments of the trust unless, under the circumstances, it is prudent not to do so. (Added by Stats. 1995, Ch. 63, Sec. 6. Effective January 1, 1996.)
  34. 16049.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. )

    Verify source ↗

    A trustee must, within a reasonable time after accepting the trust or receiving trust assets, review the assets and make and carry out decisions about keeping or disposing of them.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. ) ## 16049. Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust, and with the requirements of this chapter. (Added by Stats. 1995, Ch. 63, Sec. 6. Effective January 1, 1996.)
  35. 16050.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. )

    Verify source ↗

    A trustee may incur only costs that are appropriate and reasonable when investing and managing trust assets.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. ) ## 16050. In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation to the assets, overall investment strategy, purposes, and other circumstances of the trust. (Added by Stats. 1995, Ch. 63, Sec. 6. Effective January 1, 1996.)
  36. 16051.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. )

    Verify source ↗

    Compliance with the prudent investor rule is judged from the facts and circumstances at the time of the trustee’s decision or action, not with hindsight.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. ) ## 16051. Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee’s decision or action and not by hindsight. (Added by Stats. 1995, Ch. 63, Sec. 6. Effective January 1, 1996.)
  37. 16052.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. )

    Verify source ↗

    A trustee may delegate investment and management functions if doing so is prudent, and must act prudently when choosing the agent, setting delegation terms, and reviewing performance.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. ) ## 16052. (a) A trustee may delegate investment and management functions as prudent under the circumstances. The trustee shall exercise prudence in the following: (1) Selecting an agent. (2) Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust. (3) Periodically reviewing the agent’s overall performance and compliance with the terms of the delegation. (b) In performing a delegated function, an agent has a duty to exercise reasonable care to comply with the terms of the delegation. (c) Except as otherwise provided in Section 16401, a trustee who complies with the requirements of subdivision (a) is not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom the function was delegated. (d) By accepting the delegation of a trust function from the trustee of a trust that is subject to the law of this state, an agent submits to the jurisdiction of the courts of this state. (Added by Stats. 1995, Ch. 63, Sec. 6. Effective January 1, 1996.)
  38. 16053.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. )

    Verify source ↗

    Certain trust-language terms authorize investments or strategies permitted under this chapter, unless the trust limits or modifies that authority.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. ) ## 16053. The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under this chapter: “investments permissible by law for investment of trust funds,” “legal investments,” “authorized investments,” “using the judgment and care under the circumstances then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital,” “prudent man rule,” “prudent trustee rule,” “prudent person rule,” and “prudent investor rule.” (Added by Stats. 1995, Ch. 63, Sec. 6. Effective January 1, 1996.)
  39. 16054.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. )

    Verify source ↗

    This article applies to trusts existing on its effective date and to trusts created after that date.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2.5. Uniform Prudent Investor Act [16045 - 16054] ( Article 2.5 added by Stats. 1995, Ch. 63, Sec. 6. ) ## 16054. This article applies to trusts existing on and created after its effective date. As applied to trusts existing on its effective date, this article governs only decisions or actions occurring after that date. (Added by Stats. 1995, Ch. 63, Sec. 6. Effective January 1, 1996.)
  40. 16060.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    The trustee must keep trust beneficiaries reasonably informed about the trust and its administration.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16060. The trustee has a duty to keep the beneficiaries of the trust reasonably informed of the trust and its administration. (Enacted by Stats. 1990, Ch. 79.)
  41. 16060.5.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    This section defines “terms of the trust” for this article.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16060.5. As used in this article, “terms of the trust” means the written trust instrument of an irrevocable trust or those provisions of a written trust instrument in effect at the settlor’s death that describe or affect that portion of a trust that has become irrevocable at the death of the settlor. In addition, “terms of the trust” includes, but is not limited to, signatures, amendments, disclaimers, and any directions or instructions to the trustee that affect the disposition of the trust. “Terms of the trust” does not include documents which were intended to affect disposition only while the trust was revocable. If a trust has been completely restated, “terms of the trust” does not include trust instruments or amendments which are superseded by the last restatement before the settlor’s death, but it does include amendments executed after the restatement. “Terms of the trust” also includes any document irrevocably exercising a power of appointment over the trust or over any portion of the trust which has become irrevocable. (Amended by Stats. 2000, Ch. 34, Sec. 2. Effective January 1, 2001.)
  42. 16060.7.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    If a beneficiary asks, the trustee must provide the trust’s terms, unless Section 16069 says the trustee is not required to do so.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16060.7. On the request of a beneficiary, the trustee shall provide the terms of the trust to the beneficiary unless the trustee is not required to provide the terms of the trust to the beneficiary in accordance with Section 16069. (Added by Stats. 2010, Ch. 621, Sec. 2. (SB 202) Effective January 1, 2011.)
  43. 16061.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee must provide requested trust-administration information to a beneficiary when the beneficiary makes a reasonable request, unless Section 16069 provides otherwise.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16061. Except as provided in Section 16069, on reasonable request by a beneficiary, the trustee shall report to the beneficiary by providing requested information to the beneficiary relating to the administration of the trust relevant to the beneficiary’s interest. (Amended by Stats. 2010, Ch. 621, Sec. 3. (SB 202) Effective January 1, 2011.)
  44. 16061.5.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee must give a true and complete copy of the irrevocable trust terms to requesting beneficiaries, certain heirs, and—if the trust is charitable and supervised by the Attorney General—to the Attorney General in specified situations.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16061.5. (a) A trustee shall provide a true and complete copy of the terms of the irrevocable trust, or irrevocable portion of the trust, to each of the following: (1) Any beneficiary of the trust who requests it, and to any heir of a deceased settlor who requests it, when a revocable trust or any portion of a revocable trust becomes irrevocable because of the death of one or more of the settlors of the trust, when a power of appointment is effective or lapses upon the death of a settlor under the circumstances described in paragraph (3) of subdivision (a) of Section 16061.7, or because, by the express terms of the trust, the trust becomes irrevocable within one year of the death of a settlor because of a contingency related to the death of one or more of the settlors of the trust. (2) Any beneficiary of the trust who requests it, whenever there is a change of trustee of an irrevocable trust. (3) If the trust is a charitable trust subject to the supervision of the Attorney General, to the Attorney General, if requested, when a revocable trust or any portion of a revocable trust becomes irrevocable because of the death of one or more of the settlors of the trust, when a power of appointment is effective or lapses upon the death of a settlor under the circumstances described in paragraph (3) of subdivision (a) of Section 16061.7, or because, by the express terms of the trust, the trust becomes irrevocable within one year of the death of a settlor because of a contingency related to the death of one or more of the settlors of the trust, and whenever there is a change of trustee of an irrevocable trust. (b) The trustee shall, for purposes of this section, rely upon any final judicial determination of heirship. However, the trustee shall have discretion to make a good faith determination by any reasonable means of the heirs of a deceased settlor in the absence of a final judicial determination of heirship known to the trustee. (Amended by Stats. 2010, Ch. 621, Sec. 4. (SB 202) Effective January 1, 2011.)
  45. 16061.7.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    Trustees must send a notice to beneficiaries and certain others when specified trust events occur, and must do so within 60 days.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16061.7. (a) A trustee shall serve a notification by the trustee as described in this section in the following events: (1) When a revocable trust or any portion thereof becomes irrevocable because of the death of one or more of the settlors of the trust, or because, by the express terms of the trust, the trust becomes irrevocable within one year of the death of a settlor because of a contingency related to the death of one or more of the settlors of the trust. (2) Whenever there is a change of trustee of an irrevocable trust. (3) Whenever a power of appointment retained by a settlor is effective or lapses upon death of the settlor with respect to an inter vivos trust which was, or was purported to be, irrevocable upon its creation. This paragraph shall not apply to a charitable remainder trust. For purposes of this paragraph, “charitable remainder trust” means a charitable remainder annuity trust or charitable remainder unitrust as defined in Section 664(d) of the Internal Revenue Code. (4) The duty to serve the notification by the trustee pursuant to this subdivision is the duty of the continuing or successor trustee, and any one cotrustee may serve the notification. (b) The notification by the trustee required by subdivision (a) shall be served on each of the following: (1) Each beneficiary of the irrevocable trust or irrevocable portion of the trust, subject to the limitations of Section 15804. (2) Each heir of the deceased settlor, if the event that requires notification is the death of a settlor or irrevocability within one year of the death of the settlor of the trust by the express terms of the trust because of a contingency related to the death of a settlor. (3) If the trust is a charitable trust subject to the supervision of the Attorney General, to the Attorney General. (c) A trustee shall, for purposes of this section, rely upon any final judicial determination of heirship, known to the trustee, but the trustee shall have discretion to make a good faith determination by any reasonable means of the heirs of a deceased settlor in the absence of a final judicial determination of heirship known to the trustee. (d) The trustee need not provide a copy of the notification by trustee to any beneficiary or heir (1) known to the trustee but who cannot be located by the trustee after reasonable diligence or (2) unknown to the trustee. (e) The notification by trustee shall be served by any of the methods described in Section 1215 to the last known address. (f) The notification by trustee shall be served not later than 60 days following the occurrence of the event requiring service of the notification by trustee, or 60 days after the trustee became aware of the existence of a person entitled to receive notification by trustee, if that person was not known to the trustee on the occurrence of the event requiring service of the notification. If there is a vacancy in the office of the trustee on the date of the occurrence of the event requiring service of the notification by trustee, or if that event causes a vacancy, then the 60-day period for service of the notification by trustee commences on the date the new trustee commences to serve as trustee. (g) The notification by trustee shall contain the following information: (1) The identity of the settlor or settlors of the trust and the date of execution of the trust instrument. (2) The name, address, and telephone number of each trustee of the trust. (3) The address of the physical location where the principal place of administration of the trust is located, pursuant to Section 17002. (4) Any additional information that may be expressly required by the terms of the trust instrument. (5) A notification that the recipient is entitled, upon reasonable request to the trustee, to receive from the trustee a true and complete copy of the terms of the trust. (h) If the notification by the trustee is served because a revocable trust or any portion of it has become irrevocable because of the death of one or more settlors of the trust, or because, by the express terms of the trust, the trust becomes irrevocable within one year of the death of a settlor because of a contingency related to the death of one or more of the settlors of the trust, the notification by the trustee shall also include a warning, set out in a separate paragraph in not less than 10-point boldface type, or a reasonable equivalent thereof, that states as follows: “You may not bring an action to contest the trust more than 120 days from the date this notification by the trustee is served upon you or 60 days from the date on which a copy of the terms of the trust is delivered to you during that 120-day period, whichever is later.” (i) Any waiver by a settlor of the requirement of serving the notification by trustee required by this section is against public policy and shall be void. (j) A trustee may serve a notification by trustee in the form required by this section on any person in addition to those on whom the notification by trustee is required to be served. A trustee is not liable to any person for serving or for not serving the notice on any person in addition to those on whom the notice is required to be served. A trustee is not required to serve a notification by trustee if the event that otherwise requires service of the notification by trustee occurs before January 1, 1998. (Amended by Stats. 2017, Ch. 319, Sec. 87. (AB 976) Effective January 1, 2018.)
  46. 16061.8.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    A person served with the trustee’s notice must file any trust contest within the stated deadline, which is generally 120 days from service or 60 days from delivery of the trust terms, whichever is later.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16061.8. A person upon whom the notification by the trustee is served pursuant to paragraph (1) of subdivision (a) of Section 16061.7, whether the notice is served on the person within or after the time period set forth in subdivision (f) of Section 16061.7, shall not bring an action to contest the trust more than 120 days from the date the notification by the trustee is served upon the person, or 60 days from the date on which a copy of the terms of the trust is delivered pursuant to Section 1215 to the person during that 120-day period, whichever is later. (Amended by Stats. 2022, Ch. 30, Sec. 1. (AB 1745) Effective January 1, 2023.)
  47. 16061.9.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    A trustee may consider an unexpired trust-contest period when deciding the timing and nature of trust distributions. A trustee who fails to give required notice under Section 16061.7 can be liable for damages, attorney’s fees, and costs, unless the trustee made a reasonably diligent effort to comply.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16061.9. (a) A trustee who fails to serve the notification by trustee as required by Section 16061.7 on a beneficiary shall be responsible for all damages, attorney’s fees, and costs caused by the failure unless the trustee makes a reasonably diligent effort to comply with that section. (b) A trustee who fails to serve the notification by trustee as required by Section 16061.7 on an heir who is not a beneficiary and whose identity is known to the trustee shall be responsible for all damages caused to the heir by the failure unless the trustee shows that the trustee made a reasonably diligent effort to comply with that section. For purposes of this subdivision, “reasonably diligent effort” means that the trustee has delivered notice pursuant to Section 1215 to the heir at the heir’s last address actually known to the trustee. (c) A trustee, in exercising discretion with respect to the timing and nature of distributions of trust assets, may consider the fact that the period in which a beneficiary or heir could bring an action to contest the trust has not expired. (Amended by Stats. 2017, Ch. 319, Sec. 89. (AB 976) Effective January 1, 2018.)
  48. 16062.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    Trustees must account to current beneficiaries at least annually, at trust termination, and when a trustee changes, subject to stated exceptions.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16062. (a) Except as otherwise provided in this section and in Section 16064, the trustee shall account at least annually, at the termination of the trust, and upon a change of trustee, to each beneficiary to whom income or principal is required or authorized in the trustee’s discretion to be currently distributed. (b) A trustee of a living trust created by an instrument executed before July 1, 1987, is not subject to the duty to account provided by subdivision (a). (c) A trustee of a trust created by a will executed before July 1, 1987, is not subject to the duty to account provided by subdivision (a), except that if the trust is removed from continuing court jurisdiction pursuant to Article 2 (commencing with Section 17350) of Chapter 4 of Part 5, the duty to account provided by subdivision (a) applies to the trustee. (d) Except as provided in Section 16064, the duty of a trustee to account pursuant to former Section 1120.1a of the Probate Code (as repealed by Chapter 820 of the Statutes of 1986), under a trust created by a will executed before July 1, 1977, which has been removed from continuing court jurisdiction pursuant to former Section 1120.1a, continues to apply after July 1, 1987. The duty to account under former Section 1120.1a may be satisfied by furnishing an account that satisfies the requirements of Section 16063. (e) Any limitation or waiver in a trust instrument of the obligation to account is against public policy and shall be void as to any sole trustee who is either of the following: (1) A disqualified person as defined in former Section 21350.5 (as repealed by Chapter 620 of the Statutes of 2010). (2) Described in subdivision (a) of Section 21380, but not described in Section 21382. (Amended by Stats. 2016, Ch. 86, Sec. 250. (SB 1171) Effective January 1, 2017.)
  49. 16063.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    An account given under this section must include specified trust financial and administrative information, and filed accounts must follow the court presentation procedure in the referenced chapter.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16063. (a) An account furnished pursuant to Section 16062 shall contain the following information: (1) A statement of receipts and disbursements of principal and income that have occurred during the last complete fiscal year of the trust or since the last account. (2) A statement of the assets and liabilities of the trust as of the end of the last complete fiscal year of the trust or as of the end of the period covered by the account. (3) The trustee’s compensation for the last complete fiscal year of the trust or since the last account. (4) The agents hired by the trustee, their relationship to the trustee, if any, and their compensation, for the last complete fiscal year of the trust or since the last account. (5) A statement that the recipient of the account may petition the court pursuant to Section 17200 to obtain a court review of the account and of the acts of the trustee. (6) A statement that claims against the trustee for breach of trust may not be made after the expiration of three years from the date the beneficiary receives an account or report disclosing facts giving rise to the claim. (b) All accounts filed to be approved by a court shall be presented in the manner provided in Chapter 4 (commencing with Section 1060) of Part 1 of Division 3. (Repealed and added by Stats. 1997, Ch. 724, Sec. 26. Effective January 1, 1998.)
  50. 16064.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    A trustee generally does not have to account to a beneficiary in the listed waiver situations, but a court may still order an accounting if a material breach of the trust is reasonably likely.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16064. The trustee is not required to account to a beneficiary as described in subdivision (a) of Section 16062, in any of the following circumstances: (a) To the extent the trust instrument waives the account, except that no waiver described in subdivision (e) of Section 16062 shall be valid or enforceable. Regardless of a waiver of accounting in the trust instrument, upon a showing that it is reasonably likely that a material breach of the trust has occurred, the court may compel the trustee to account. (b) As to a beneficiary who has waived in writing the right to an account. A waiver of rights under this subdivision may be withdrawn in writing at any time as to accounts for transactions occurring after the date of the written withdrawal. Regardless of a waiver of accounting by a beneficiary, upon a showing that is reasonably likely that a material breach of the trust has occurred, the court may compel the trustee to account. (c) In any of the circumstances set forth in Section 16069. (Amended by Stats. 2010, Ch. 621, Sec. 7. (SB 202) Effective January 1, 2011.)
  51. 16068.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    A settlor cannot waive the trustee’s duty to provide trust terms or requested information to a beneficiary; any such waiver is void.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16068. Any waiver by a settlor of the obligation of the trustee of either of the following is against public policy and shall be void: (a) To provide the terms of the trust to the beneficiary as required by Sections 16060.7 and 16061.5. (b) To provide requested information to the beneficiary as required by Section 16061. (Added by Stats. 2010, Ch. 621, Sec. 8. (SB 202) Effective January 1, 2011.)
  52. 16069.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    A trustee generally does not have to account to a beneficiary, provide the trust terms, or provide requested information in the listed circumstances, but in one revocable-trust situation the accounting duty shifts to specified beneficiaries.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries [16060 - 16069] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16069. (a) The trustee is not required to account to the beneficiary, provide the terms of the trust to a beneficiary, or provide requested information to the beneficiary pursuant to Section 16061, in any of the following circumstances: (1) In the case of a beneficiary of a revocable trust, as provided in subdivision (a) of Section 15800, for the period when the trust may be revoked. (2) If the beneficiary and the trustee are the same person. (b) Notwithstanding subdivision (a), in the case of a revocable trust, if no person holding the power to revoke the trust, in whole or in part, is competent, the trustee’s duties to account shall be owed to those beneficiaries specified in paragraph (2) of subdivision (b) of Section 15800. (Amended by Stats. 2021, Ch. 749, Sec. 2. (AB 1079) Effective January 1, 2022.)
  53. 16080.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Duties With Regard to Discretionary Powers [16080 - 16082] ( Article 4 enacted by Stats. 1990, Ch. 79. )

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    A trustee must exercise any discretionary power reasonably, unless Section 16081 provides otherwise.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Duties With Regard to Discretionary Powers [16080 - 16082] ( Article 4 enacted by Stats. 1990, Ch. 79. ) ## 16080. Except as provided in Section 16081, a discretionary power conferred upon a trustee is not left to the trustee’s arbitrary discretion, but shall be exercised reasonably. (Enacted by Stats. 1990, Ch. 79.)
  54. 16081.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Duties With Regard to Discretionary Powers [16080 - 16082] ( Article 4 enacted by Stats. 1990, Ch. 79. )

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    Trustees with broad discretion must still follow fiduciary principles and avoid bad faith. Beneficiary-trustees who can make discretionary distributions for themselves are limited to reasonable, standard-based decisions, and some self-benefitting powers may be used only for health, education, support, or maintenance unless a broader power is clearly stated.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Duties With Regard to Discretionary Powers [16080 - 16082] ( Article 4 enacted by Stats. 1990, Ch. 79. ) ## 16081. (a) Subject to the additional requirements of subdivisions (b), (c), and (d), if a trust instrument confers “absolute,” “sole,” or “uncontrolled” discretion on a trustee, the trustee shall act in accordance with fiduciary principles and shall not act in bad faith or in disregard of the purposes of the trust. (b) Notwithstanding the use of terms like “absolute,” “sole,” or “uncontrolled” by a settlor or a testator, a person who is a beneficiary of a trust that permits the person, either individually or as trustee or cotrustee, to make discretionary distributions of income or principal to or for the benefit of himself or herself pursuant to a standard, shall exercise that power reasonably and in accordance with the standard. (c) Unless a settlor or a testator clearly indicates that a broader power is intended by express reference to this subdivision, a person who is a beneficiary of a trust that permits the person, as trustee or cotrustee, to make discretionary distributions of income or principal to or for the benefit of himself or herself may exercise that power in his or her favor only for his or her health, education, support, or maintenance within the meaning of Sections 2041 and 2514 of the Internal Revenue Code. Notwithstanding the foregoing and the provisions of Section 15620, if a power to make discretionary distributions of income or principal is conferred upon two or more trustees, the power may be exercised by any trustee who is not a current permissible beneficiary of that power ; and provided further that if there is no trustee who is not a current permissible beneficiary of that power, any party in interest may apply to a court of competent jurisdiction to appoint a trustee who is not a current permissible beneficiary of that power, and the power may be exercised by the trustee appointed by the court. (d) Subdivision (c) does not apply to either of the following: (1) Any power held by the settlor of a revocable or amendable trust. (2) Any power held by a settlor’s spouse or a testator’s spouse who is the trustee of a trust for which a marital deduction, as defined in Section 21520, has been allowed. (e) Subdivision (c) applies to any of the following: (1) Any trust executed on or after January 1, 1997. (2) Any testamentary trust created under a will executed on or after January 1, 1997. (3) Any irrevocable trust created under a document executed before January 1, 1997, or any revocable trust executed before that date if the settlor was incapacitated as of that date, unless all parties in interest elect affirmatively not to be subject to the application of subdivision (c) through a written instrument delivered to the trustee. That election shall be made on or before the latest of January 1, 1998, three years after the date on which the trust became irrevocable, or, in the case of a revocable trust where the settlor was incapacitated, three years after the date on which the settlor became incapacitated. (f) Notwithstanding the foregoing, the provisions of subdivision (c) neither create a new cause of action nor impair an existing cause of action that, in either case, relates to any power limited by subdivision (c) that was exercised before January 1, 1997. (g) For purposes of this section, the term “party in interest” means any of the following persons: (1) If the trust is revocable and the settlor is incapacitated, the settlor’s legal representative under applicable law, or the settlor’s attorney-in-fact under a durable power of attorney that is sufficient to grant the authority required under subdivision (c) or (e), as applicable. (2) If the trust is irrevocable, each trustee, each beneficiary then entitled or authorized to receive income distributions from the trust, or each remainder beneficiary who would be entitled to receive notice of a trust proceeding under Section 15804. Any beneficiary who lacks legal capacity may be represented by the beneficiary’s legal representative, attorney-in-fact under a durable power of attorney that is sufficient to grant the authority required under subdivision (c) or (e), as applicable, or in the absence of a legal representative or attorney-in-fact, a guardian ad litem appointed for that purpose. (Amended by Stats. 1996, Ch. 410, Sec. 1. Effective January 1, 1997.)
  55. 16082.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Duties With Regard to Discretionary Powers [16080 - 16082] ( Article 4 enacted by Stats. 1990, Ch. 79. )

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    Unless the trust instrument specifically says otherwise, a person with power to appoint or distribute trust income or principal may not use that power to pay their own legal obligations.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Duties With Regard to Discretionary Powers [16080 - 16082] ( Article 4 enacted by Stats. 1990, Ch. 79. ) ## 16082. Except as otherwise specifically provided in the trust instrument, a person who holds a power to appoint or distribute income or principal to or for the benefit of others, either as an individual or as trustee, may not use the power to discharge the legal obligations of the person holding the power. (Enacted by Stats. 1990, Ch. 79.)
  56. 1610.

    ## Probate Code - PROB ## DIVISION 4. GUARDIANSHIP, CONSERVATORSHIP, AND OTHER PROTECTIVE PROCEEDINGS [1400 - 3925] ( Division 4 enacted by Stats. 1990, Ch. 79. ) ## PART 2. GUARDIANSHIP [1500 - 1611] ( Part 2 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Permanent and Stable Home [1610 - 1611] ( Chapter 3 added by Stats. 2002, Ch. 1118, Sec. 7. )

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    The section says children’s best interests are served by a permanent, safe, stable, and loving home, and warns that unwarranted petitions, applications, or motions can harm children after guardianship is established.

    ## Probate Code - PROB ## DIVISION 4. GUARDIANSHIP, CONSERVATORSHIP, AND OTHER PROTECTIVE PROCEEDINGS [1400 - 3925] ( Division 4 enacted by Stats. 1990, Ch. 79. ) ## PART 2. GUARDIANSHIP [1500 - 1611] ( Part 2 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Permanent and Stable Home [1610 - 1611] ( Chapter 3 added by Stats. 2002, Ch. 1118, Sec. 7. ) ## 1610. (a) The Legislature finds and declares that it is in the best interests of children to be raised in a permanent, safe, stable, and loving environment. (b) Unwarranted petitions, applications, or motions other than discovery motions after the guardianship has been established create an environment that can be harmful to children and are inconsistent with the goals of permanency, safety, and stability. (Amended by Stats. 2006, Ch. 493, Sec. 6. Effective January 1, 2007.)
  57. 16100.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts [16100 - 16105] ( Article 5 enacted by Stats. 1990, Ch. 79. )

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    This section defines “charitable trust,” “private foundation,” and “split-interest trust” for this article.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts [16100 - 16105] ( Article 5 enacted by Stats. 1990, Ch. 79. ) ## 16100. As used in this article, the following definitions shall control: (a) “Charitable trust” means a charitable trust as described in Section 4947(a)(1) of the Internal Revenue Code. (b) “Private foundation” means a private foundation as defined in Section 509 of the Internal Revenue Code. (c) “Split-interest trust” means a split-interest trust as described in Section 4947(a)(2) of the Internal Revenue Code. (Enacted by Stats. 1990, Ch. 79.)
  58. 16101.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts [16100 - 16105] ( Article 5 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    When a trust is treated as a charitable trust or private foundation, the trustee must distribute income for each taxable year, and principal if needed, in a way that avoids tax under Section 4942.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts [16100 - 16105] ( Article 5 enacted by Stats. 1990, Ch. 79. ) ## 16101. During any period when a trust is deemed to be a charitable trust or a private foundation, the trustee shall distribute its income for each taxable year (and principal if necessary) at a time and in a manner that will not subject the property of the trust to tax under Section 4942 of the Internal Revenue Code. (Enacted by Stats. 1990, Ch. 79.)
  59. 16102.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts [16100 - 16105] ( Article 5 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    When a trust is treated as a charitable trust, private foundation, or split-interest trust, the trustee must not do certain prohibited transactions.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts [16100 - 16105] ( Article 5 enacted by Stats. 1990, Ch. 79. ) ## 16102. During any period when a trust is deemed to be a charitable trust, a private foundation, or a split-interest trust, the trustee shall not do any of the following: (a) Engage in any act of self-dealing as defined in Section 4941(d) of the Internal Revenue Code. (b) Retain any excess business holdings as defined in Section 4943(c) of the Internal Revenue Code. (c) Make any investments in such manner as to subject the property of the trust to tax under Section 4944 of the Internal Revenue Code. (d) Make any taxable expenditure as defined in Section 4945(d) of the Internal Revenue Code. (Enacted by Stats. 1990, Ch. 79.)
  60. 16103.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts [16100 - 16105] ( Article 5 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    This section excludes certain split-interest trusts and certain trust amounts from Section 16102.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts [16100 - 16105] ( Article 5 enacted by Stats. 1990, Ch. 79. ) ## 16103. With respect to split-interest trusts: (a) Subdivisions (b) and (c) of Section 16102 do not apply to any trust described in Section 4947(b)(3) of the Internal Revenue Code. (b) Section 16102 does not apply with respect to any of the following: (1) Any amounts payable under the terms of such trust to income beneficiaries, unless a deduction was allowed under Section 170(f)(2)(B), 2055(e)(2)(B), or 2522(c)(2)(B) of the Internal Revenue Code. (2) Any amounts in trust other than amounts for which a deduction was allowed under Section 170, 545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), or 2522 of the Internal Revenue Code, if the amounts are segregated, as that term is defined in Section 4947(a)(3) of the Internal Revenue Code, from amounts for which no deduction was allowable. (3) Any amounts irrevocably transferred in trust before May 27, 1969. (Enacted by Stats. 1990, Ch. 79.)
  61. 16104.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts [16100 - 16105] ( Article 5 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    For trusts covered by this article, Sections 16101, 16102, and 16103 are treated as part of the trust instrument, and any conflicting instrument term has no effect.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts [16100 - 16105] ( Article 5 enacted by Stats. 1990, Ch. 79. ) ## 16104. The provisions of Sections 16101, 16102, and 16103 shall be deemed to be contained in the instrument creating every trust to which this article applies. Any provision of the instrument inconsistent with or contrary to this article is without effect. (Enacted by Stats. 1990, Ch. 79.)
  62. 16105.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts [16100 - 16105] ( Article 5 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    An organization involved may start certain proceedings under Section 17200. Named beneficiaries and the Attorney General must be parties, and if a trust instrument has been recorded, a notice of pendency and any final judgment or decree must also be recorded.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 5. Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts [16100 - 16105] ( Article 5 enacted by Stats. 1990, Ch. 79. ) ## 16105. (a) A proceeding contemplated by Section 101(l)(3) of the federal Tax Reform Act of 1969 (Public Law 91-172) may be commenced pursuant to Section 17200 by the organization involved. All specifically named beneficiaries of the organization and the Attorney General shall be parties to the proceedings. Notwithstanding Section 17000, this provision is not exclusive and does not limit any jurisdiction that otherwise exists. (b) If an instrument creating a trust affected by this section has been recorded, a notice of pendency of judicial proceedings under this section shall be recorded in a similar manner within 10 days from the commencement of the proceedings. A duly certified copy of any final judgment or decree in the proceedings shall be similarly recorded. (Enacted by Stats. 1990, Ch. 79.)
  63. 1611.

    ## Probate Code - PROB ## DIVISION 4. GUARDIANSHIP, CONSERVATORSHIP, AND OTHER PROTECTIVE PROCEEDINGS [1400 - 3925] ( Division 4 enacted by Stats. 1990, Ch. 79. ) ## PART 2. GUARDIANSHIP [1500 - 1611] ( Part 2 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Permanent and Stable Home [1610 - 1611] ( Chapter 3 added by Stats. 2002, Ch. 1118, Sec. 7. )

    Verify source ↗

    If a person files certain guardianship-related petitions that are frivolous or harassing, and has done the same before, the court may treat the person as a vexatious litigant.

    ## Probate Code - PROB ## DIVISION 4. GUARDIANSHIP, CONSERVATORSHIP, AND OTHER PROTECTIVE PROCEEDINGS [1400 - 3925] ( Division 4 enacted by Stats. 1990, Ch. 79. ) ## PART 2. GUARDIANSHIP [1500 - 1611] ( Part 2 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Permanent and Stable Home [1610 - 1611] ( Chapter 3 added by Stats. 2002, Ch. 1118, Sec. 7. ) ## 1611. If a person files a petition for visitation, termination of the guardianship, or instruction to the guardian that is unmeritorious, or intended to harass or annoy the guardian, and the person has previously filed pleadings in the guardianship proceedings that were unmeritorious, or intended to harass or annoy the guardian, this petition shall be grounds for the court to determine that the person is a vexatious litigant for the purposes of Title 3a (commencing with Section 391) of Part 2 of the Code of Civil Procedure. For these purposes, the term “new litigation” shall include petitions for visitation, termination of the guardianship, or instruction to the guardian. (Added by Stats. 2002, Ch. 1118, Sec. 7. Effective January 1, 2003.)
  64. 16110.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 6. Notice to the Attorney General of Disposal of Charitable Assets [16110- 16110.] ( Article 6 heading added by Stats. 2023, Ch. 478, Sec. 61. )

    Verify source ↗

    A trustee of charitable trust assets must give the Attorney General written notice at least 20 days before disposing of all or substantially all of those assets. The Attorney General must also establish rules and regulations to administer this section.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Duties of Trustees [16000 - 16110] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 6. Notice to the Attorney General of Disposal of Charitable Assets [16110- 16110.] ( Article 6 heading added by Stats. 2023, Ch. 478, Sec. 61. ) ## 16110. (a) On and after January 1, 2025, or upon the regulations provided for in subdivision (b) taking effect, whichever occurs first, a trustee holding assets subject to a charitable trust shall give written notice to the Attorney General at least 20 days before the trustee sells, leases, conveys, exchanges, transfers, or otherwise disposes of all or substantially all of the charitable assets. (b) On or after January 1, 2022, the Attorney General shall establish rules and regulations necessary to administer this section. (Added by renumbering Section 16106 by Stats. 2023, Ch. 478, Sec. 60. (AB 1756) Effective January 1, 2024.)
  65. 16200.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. General Provisions [16200 - 16203] ( Article 1 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may exercise specified powers without court authorization.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. General Provisions [16200 - 16203] ( Article 1 enacted by Stats. 1990, Ch. 79. ) ## 16200. A trustee has the following powers without the need to obtain court authorization: (a) The powers conferred by the trust instrument. (b) Except as limited in the trust instrument, the powers conferred by statute. (c) Except as limited in the trust instrument, the power to perform any act that a trustee would perform for the purposes of the trust under the standard of care provided in Section 16040 or 16047. (Amended by Stats. 1995, Ch. 63, Sec. 7. Effective January 1, 1996.)
  66. 16201.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. General Provisions [16200 - 16203] ( Article 1 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    This section says the chapter does not limit a court’s power to relieve a trustee from restrictions on exercising powers under the trust instrument.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. General Provisions [16200 - 16203] ( Article 1 enacted by Stats. 1990, Ch. 79. ) ## 16201. This chapter does not affect the power of a court to relieve a trustee from restrictions on the exercise of powers under the trust instrument. (Enacted by Stats. 1990, Ch. 79.)
  67. 16202.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. General Provisions [16200 - 16203] ( Article 1 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee’s granted power is not automatically required or permitted to be exercised, and any exercise must comply with the trustee’s fiduciary duties.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. General Provisions [16200 - 16203] ( Article 1 enacted by Stats. 1990, Ch. 79. ) ## 16202. The grant of a power to a trustee, whether by the trust instrument, by statute, or by the court, does not in itself require or permit the exercise of the power. The exercise of a power by a trustee is subject to the trustee’s fiduciary duties. (Enacted by Stats. 1990, Ch. 79.)
  68. 16203.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. General Provisions [16200 - 16203] ( Article 1 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    If an instrument refers to former Section 1120.2, it is treated as referring to Article 2; trustees also keep the former powers and do not need court approval where former law did not require it.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. General Provisions [16200 - 16203] ( Article 1 enacted by Stats. 1990, Ch. 79. ) ## 16203. An instrument that incorporates the powers provided in former Section 1120.2 (repealed by Chapter 820 of the Statutes of 1986) shall be deemed to refer to the powers provided in Article 2 (commencing with Section 16220). For this purpose, the trustee’s powers under former Section 1120.2 are not diminished and the trustee is not required to obtain court approval for exercise of a power for which court approval was not required by former law. (Enacted by Stats. 1990, Ch. 79.)
  69. 16220.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may collect, hold, and retain trust property received from a settlor or anyone else until the trustee decides it should be distributed or otherwise disposed of.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16220. The trustee has the power to collect, hold, and retain trust property received from a settlor or any other person until, in the judgment of the trustee, disposition of the property should be made. The property may be retained even though it includes property in which the trustee is personally interested. (Enacted by Stats. 1990, Ch. 79.)
  70. 16221.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

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    The trustee may accept additions to trust property from the settlor or any other person.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16221. The trustee has the power to accept additions to the property of the trust from a settlor or any other person. (Enacted by Stats. 1990, Ch. 79.)
  71. 16222.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may run a business or other enterprise that is part of trust property, and may change its organizational form, subject to the trust instrument, the court, and specific exceptions.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16222. (a) Subject to subdivision (b), the trustee has the power to continue or participate in the operation of any business or other enterprise that is part of the trust property and may effect incorporation, dissolution, or other change in the form of the organization of the business or enterprise. (b) Except as provided in subdivision (c), the trustee may continue the operation of a business or other enterprise only as authorized by the trust instrument or by the court. For the purpose of this subdivision, the lease of four or fewer residential units is not considered to be the operation of a business or other enterprise. (c) The trustee may continue the operation of a business or other enterprise for a reasonable time pending a court hearing on the matter or pending a sale of the business or other enterprise. (d) The limitation provided in subdivision (b) does not affect any power to continue or participate in the operation of a business or other enterprise that the trustee has under a trust created by an instrument executed before July 1, 1987. (Enacted by Stats. 1990, Ch. 79.)
  72. 16224.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may invest in U.S. government obligations directly, or through certain money market mutual funds or authorized investment vehicles, if the trust instrument allows that type of investment and does not say otherwise.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16224. (a) In the absence of an express provision to the contrary in a trust instrument, where the instrument directs or permits investment in obligations of the United States government, the trustee has the power to invest in those obligations directly or in the form of an interest in a money market mutual fund registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.) or an investment vehicle authorized for the collective investment of trust funds pursuant to Section 9.18 of Part 9 of Title 12 of the Code of Federal Regulations, the portfolios of which are limited to United States government obligations maturing not later than five years from the date of investment or reinvestment and to repurchase agreements fully collateralized by United States government obligations. (b) This section applies only to trusts created on or after January 1, 1985. (Enacted by Stats. 1990, Ch. 79.)
  73. 16225.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may place trust funds in certain insured or collateralized accounts, including accounts with the trustee’s own or affiliated financial institution, and a court may allow deposits above the insured or collateralized limit.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16225. (a) The trustee has the power to deposit trust funds at reasonable interest in any of the following accounts: (1) An insured account in a financial institution. (2) To the extent that the account is collateralized, an account in a bank, an account in an insured savings and loan association, or an account in an insured credit union. (b) A trustee may deposit trust funds pursuant to subdivision (a) in a financial institution operated by, or that is an affiliate of, the trustee. For the purpose of this subdivision, “affiliate” means a corporation that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with another domestic or foreign corporation. (c) This section does not limit the power of a trustee in a proper case to deposit trust funds in an account described in subdivision (a) that is subject to notice or other conditions respecting withdrawal prescribed by law or governmental regulation. (d) The court may authorize the deposit of trust funds in an account described in subdivision (a) in an amount greater than the maximum insured or collateralized amount. (e) Nothing in this section prevents the trustee from holding an amount of trust property reasonably necessary for the orderly administration of the trust in the form of cash or in a checking account without interest. (Enacted by Stats. 1990, Ch. 79.)
  74. 16226.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    The trustee may acquire or dispose of property, including by cash or credit, public or private sale, or exchange.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16226. The trustee has the power to acquire or dispose of property, for cash or on credit, at public or private sale, or by exchange. (Enacted by Stats. 1990, Ch. 79.)
  75. 16227.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    The trustee has power to manage and otherwise deal with trust property or any interest in it.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16227. The trustee has the power to manage, control, divide, develop, improve, exchange, partition, change the character of, or abandon trust property or any interest therein. (Enacted by Stats. 1990, Ch. 79.)
  76. 16228.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    The trustee may encumber, mortgage, or pledge trust property, even for a term that extends beyond the trust, if it is connected to exercising a power vested in the trustee.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16228. The trustee has the power to encumber, mortgage, or pledge trust property for a term within or extending beyond the term of the trust in connection with the exercise of any power vested in the trustee. (Enacted by Stats. 1990, Ch. 79.)
  77. 16229.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    The trustee may make certain repairs, alterations, improvements, demolitions, and building changes to trust property.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16229. The trustee has the power to do any of the following: (a) Make ordinary or extraordinary repairs, alterations, or improvements in buildings or other trust property. (b) Demolish any improvements. (c) Raze existing or erect new party walls or buildings. (Enacted by Stats. 1990, Ch. 79.)
  78. 16230.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee has power to subdivide or develop land, dedicate land or easements to public use, make or obtain vacation of plats, and adjust valuation differences in exchanges or partitions.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16230. The trustee has the power to do any of the following: (a) Subdivide or develop land. (b) Dedicate land to public use. (c) Make or obtain the vacation of plats and adjust boundaries. (d) Adjust differences in valuation on exchange or partition by giving or receiving consideration. (e) Dedicate easements to public use without consideration. (Enacted by Stats. 1990, Ch. 79.)
  79. 16231.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    The trustee may enter into leases as lessor or lessee, including leases with purchase or renewal options and leases that extend beyond the trust term.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16231. The trustee has the power to enter into a lease for any purpose as lessor or lessee with or without the option to purchase or renew and for a term within or extending beyond the term of the trust. (Enacted by Stats. 1990, Ch. 79.)
  80. 16232.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may lease or make arrangements to explore for and remove gas, oil, other minerals, or geothermal energy, and may enter community oil leases or pooling/unitization agreements.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16232. The trustee has the power to enter into a lease or arrangement for exploration and removal of gas, oil, or other minerals or geothermal energy, and to enter into a community oil lease or a pooling or unitization agreement, and for a term within or extending beyond the term of the trust. (Enacted by Stats. 1990, Ch. 79.)
  81. 16233.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may grant or take an option over trust property, including an option that lasts beyond the trust term.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16233. The trustee has the power to grant an option involving disposition of trust property or to take an option for the acquisition of any property, and an option may be granted or taken that is exercisable beyond the term of the trust. (Enacted by Stats. 1990, Ch. 79.)
  82. 16234.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may vote shares or memberships, waive notice of a meeting, and approve actions that shareholders, members, or property owners could take.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16234. With respect to any shares of stock of a domestic or foreign corporation, any membership in a nonprofit corporation, or any other property, a trustee has the power to do any of the following: (a) Vote in person, and give proxies to exercise, any voting rights with respect to the shares, memberships, or property. (b) Waive notice of a meeting or give consent to the holding of a meeting. (c) Authorize, ratify, approve, or confirm any action that could be taken by shareholders, members, or property owners. (Enacted by Stats. 1990, Ch. 79.)
  83. 16235.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may pay calls, assessments, and other sums charged against or accruing on securities.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16235. The trustee has the power to pay calls, assessments, and any other sums chargeable or accruing against or on account of securities. (Enacted by Stats. 1990, Ch. 79.)
  84. 16236.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    The trustee may sell or exercise stock subscription or conversion rights.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16236. The trustee has the power to sell or exercise stock subscription or conversion rights. (Enacted by Stats. 1990, Ch. 79.)
  85. 16237.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may consent to certain corporate reorganizations and related actions, and may use committees or agents to help carry them out.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16237. The trustee has the power to consent, directly or through a committee or other agent, to the reorganization, consolidation, merger, dissolution, or liquidation of a corporation or other business enterprise, and to participate in voting trusts, pooling arrangements, and foreclosures, and in connection therewith, to deposit securities with and transfer title and delegate discretion to any protective or other committee as the trustee may deem advisable. (Enacted by Stats. 1990, Ch. 79.)
  86. 16238.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    The trustee may hold a security in a nominee name or another form without disclosing the trust.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16238. The trustee has the power to hold a security in the name of a nominee or in other form without disclosure of the trust so that title to the security may pass by delivery. (Enacted by Stats. 1990, Ch. 79.)
  87. 16239.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may deposit securities in a securities depository if the depository is licensed or exempt under the cited Financial Code provisions.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16239. The trustee has the power to deposit securities in a securities depository, as defined in Section 30004 of the Financial Code, which is licensed under Section 30200 of the Financial Code or is exempt from licensing by Section 30005 or 30006 of the Financial Code. The securities may be held by the securities depository in the manner authorized by Section 775 of the Financial Code. (Enacted by Stats. 1990, Ch. 79.)
  88. 16240.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may insure trust property against damage or loss and may insure the trustee against liability to third persons.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16240. The trustee has the power to insure the property of the trust against damage or loss and to insure the trustee against liability with respect to third persons. (Enacted by Stats. 1990, Ch. 79.)
  89. 16241.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    The trustee may borrow money for any trust purpose, and the loan is to be repaid from trust property.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16241. The trustee has the power to borrow money for any trust purpose to be repaid from trust property. The lender may include, but is not limited to, a bank holding company, affiliate, or subsidiary of the trustee. (Enacted by Stats. 1990, Ch. 79.)
  90. 16242.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may pay or contest claims, settle claims involving the trust by compromise or arbitration, and release claims belonging to the trust.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16242. The trustee has the power to do any of the following: (a) Pay or contest any claim. (b) Settle a claim by or against the trust by compromise, arbitration, or otherwise. (c) Release, in whole or in part, any claim belonging to the trust. (Enacted by Stats. 1990, Ch. 79.)
  91. 16243.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    The trustee may pay trust taxes, assessments, compensation, and other trust administration expenses.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16243. The trustee has the power to pay taxes, assessments, reasonable compensation of the trustee and of employees and agents of the trust, and other expenses incurred in the collection, care, administration, and protection of the trust. (Enacted by Stats. 1990, Ch. 79.)
  92. 16244.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may make loans from trust property to a beneficiary if the trustee considers the terms fair and reasonable, and may also guarantee loans to the beneficiary using encumbrances on trust property.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16244. The trustee has the following powers: (a) To make loans out of trust property to the beneficiary on terms and conditions that the trustee determines are fair and reasonable under the circumstances. (b) To guarantee loans to the beneficiary by encumbrances on trust property. (Enacted by Stats. 1990, Ch. 79.)
  93. 16245.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may pay distributable principal or income to a beneficiary, even if the beneficiary has a legal disability, and may pay another person for the beneficiary’s use or benefit.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16245. The trustee has the power to pay any sum of principal or income distributable to a beneficiary, without regard to whether the beneficiary is under a legal disability, by paying the sum to the beneficiary or by paying the sum to another person for the use or benefit of the beneficiary. Any sum distributable under this section to a custodian under the California Uniform Transfers to Minors Act (Part 9 (commencing with Section 3900)) shall be subject to Section 3906. (Amended by Stats. 1996, Ch. 862, Sec. 39. Effective January 1, 1997.)
  94. 16246.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee may distribute property and money in divided or undivided interests and adjust valuation differences.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16246. The trustee has the power to effect distribution of property and money in divided or undivided interests and to adjust resulting differences in valuation. A distribution in kind may be made pro rata or non pro rata, and may be made pursuant to any written agreement providing for a non pro rata division of the aggregate value of the community property assets or quasi-community property assets, or both. (Amended by Stats. 1998, Ch. 682, Sec. 12. Effective January 1, 1999.)
  95. 16247.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    The trustee may hire professional or other agents to help with administrative duties, even if they are associated with the trustee.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16247. The trustee has the power to hire persons, including accountants, attorneys, auditors, investment advisers, appraisers (including probate referees appointed pursuant to Section 400), or other agents, even if they are associated or affiliated with the trustee, to advise or assist the trustee in the performance of administrative duties. (Amended by Stats. 1994, Ch. 806, Sec. 38. Effective January 1, 1995.)
  96. 16248.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    The trustee may execute and deliver any instruments needed to carry out the trustee’s powers.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16248. The trustee has the power to execute and deliver all instruments which are needed to accomplish or facilitate the exercise of the powers vested in the trustee. (Enacted by Stats. 1990, Ch. 79.)
  97. 16249.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. )

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    The trustee may sue or defend actions, claims, or proceedings to protect trust property and to protect the trustee while carrying out trustee duties.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Powers of Trustees [16200 - 16249] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Specific Powers of Trustees [16220 - 16249] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16249. The trustee has the power to prosecute or defend actions, claims, or proceedings for the protection of trust property and of the trustee in the performance of the trustee’s duties. (Amended by Stats. 2001, Ch. 49, Sec. 5. Effective January 1, 2002.)
  98. 16320.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 1. General Provisions and Definitions [16320 - 16323] ( Article 1 added by Stats. 2023, Ch. 28, Sec. 2. )

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    This section gives the section’s short title: the Uniform Fiduciary Income and Principal Act.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 1. General Provisions and Definitions [16320 - 16323] ( Article 1 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16320. This section shall be known, and may be cited, as the Uniform Fiduciary Income and Principal Act. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  99. 16321.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 1. General Provisions and Definitions [16320 - 16323] ( Article 1 added by Stats. 2023, Ch. 28, Sec. 2. )

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    This section defines key terms used in this chapter on trust administration.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 1. General Provisions and Definitions [16320 - 16323] ( Article 1 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16321. The following definitions apply for purposes of this chapter: (a) “Accounting period” means a calendar year, unless a fiduciary selects another period of 12 calendar months or approximately 12 calendar months. The term includes a part of a calendar year or another period of 12 calendar months or approximately 12 calendar months that begins when an income interest begins or ends when an income interest ends. (b) “Asset-backed security” means a security that is serviced primarily by the money flows of a discrete pool of fixed or revolving receivables or other financial assets that by their terms convert into money within a finite time. The term includes rights or other assets that ensure the servicing or timely distribution of proceeds to the holder of the asset-backed security. The term does not include an asset to which Section 16340, 16348, or 16353 applies. (c) “Beneficiary” includes the following: (1) For a trust: (A) A current beneficiary, including a current income beneficiary and a beneficiary that may receive only principal. (B) A remainder beneficiary. (C) Any other successor beneficiary. (2) For an estate, an heir, legatee, and devisee. (3) For a life estate or term interest, a person that holds a life estate, term interest, or remainder or other interest following a life estate or term interest. (d) “Court” means the court in this state having jurisdiction relating to a trust, estate, or life estate or other term interest described in subdivision (b) of Section 16322. (e) “Current income beneficiary” means a beneficiary to which a fiduciary may distribute net income, whether or not the fiduciary also may distribute principal to the beneficiary. (f) “Distribution” means a payment or transfer by a fiduciary to a beneficiary in the beneficiary’s capacity as a beneficiary, made under the terms of the trust, without consideration other than the beneficiary’s right to receive the payment or transfer under the terms of the trust. “Distribute,” “distributed,” and “distributee” have corresponding meanings. (g) “Estate” means a decedent’s estate, and includes the property of the decedent as the estate is originally constituted and the property of the estate as it exists at any time during administration. (h) “Fiduciary” includes a trustee, personal representative, life tenant, holder of a term interest, and person acting under a delegation from a fiduciary. “Fiduciary” includes a person that holds property for a successor beneficiary whose interest may be affected by an allocation of receipts and expenditures between income and principal. If there are two or more cofiduciaries, the term includes all cofiduciaries acting under the terms of the trust and applicable law. (i) “Income” means money or other property a fiduciary receives as current return from principal. The term includes a part of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in Article 4 (commencing with Section 16340). (j) “Income interest” means the right of a current income beneficiary to receive all or part of net income, whether the terms of the trust require the net income to be distributed or authorize the net income to be distributed in the fiduciary’s discretion. The term includes the right of a current beneficiary to use property held by a fiduciary. (k) “Independent person” means a person that is not: (1) For a trust, any of the following: (A) A beneficiary that is a distributee or permissible distributee of trust income or principal or would be a distributee or permissible distributee of trust income or principal if either the trust or the interests of the distributees or permissible distributees of trust income or principal were terminated, assuming no power of appointment is exercised. (B) A settlor of the trust. (C) An individual whose legal obligation to support a beneficiary may be satisfied by a distribution from the trust. (2) For an estate, a beneficiary. (3) A spouse, parent, brother, sister, or issue of an individual described in paragraph (1) or (2). (4) A corporation, partnership, limited liability company, or other entity in which persons described in paragraphs (1) to (3), inclusive, in the aggregate, have voting control. (5) An employee of a person described in paragraphs (1) to (4), inclusive. (l) “Mandatory income interest” means the right of a current income beneficiary to receive net income that the terms of the trust require the fiduciary to distribute. (m) “Net income” means the total allocations during an accounting period to income under the terms of a trust and this chapter minus the disbursements during the period, other than distributions, allocated to income under the terms of the trust and this chapter. To the extent the trust is a unitrust under Article 3 (commencing with Section 16330), the term means the unitrust amount determined under that article. The term includes an adjustment from principal to income under Section 16327. The term does not include an adjustment from income to principal under Section 16327. (n) “Person” means an individual, estate, trust, business or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity. (o) “Personal representative” means an executor, administrator, successor personal representative, special administrator, or person that performs substantially the same function with respect to an estate under the law governing the person’s status. (p) “Principal” means property held in trust for distribution to, production of income for, or use by a current or successor beneficiary. (q) “Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. (r) “Settlor” means a person, including a testator, that creates or contributes property to a trust. If more than one person creates or contributes property to a trust, the term includes each person, to the extent of the trust property attributable to that person’s contribution, except to the extent another person has the power to revoke or withdraw that portion. (s) “Special tax benefit” means any of the following: (1) Exclusion of a transfer to a trust from gifts described in Section 2503(b) of the Internal Revenue Code of 1986, as amended (26 U.S.C. Sec. 2503(b), as amended) because of the qualification of an income interest in the trust as a present interest in property. (2) Status as a qualified subchapter S-trust described in Section 1361(d)(3) of the Internal Revenue Code of 1986, as amended (26 U.S.C. Sec. 1361(d)(3), as amended), at a time the trust holds stock of an S-corporation described in Section 1361(a)(1) of the Internal Revenue Code of 1986, as amended (26 U.S.C. Sec. 1361(a)(1), as amended). (3) An estate or gift tax marital deduction for a transfer to a trust under Section 2056 or 2523 of the Internal Revenue Code of 1986, as amended (26 U.S.C. Sec. 2056 or 2523, as amended), which depends or depended, in whole or in part, on the right of the settlor’s spouse to receive the net income of the trust. (4) Exemption in whole or in part of a trust from the federal generation-skipping transfer tax imposed by Section 2601 of the Internal Revenue Code of 1986, as amended (26 U.S.C. Sec. 2601, as amended) because the trust was irrevocable on September 25, 1985, if there is a possibility of any of the following: (A) A taxable distribution, as defined in Section 2612(b) of the Internal Revenue Code of 1986, as amended (26 U.S.C. Sec. 2612(b), as amended), could be made from the trust. (B) A taxable termination, as defined in Section 2612(a) of the Internal Revenue Code of 1986, as amended, (26 U.S.C. Sec. 2612(a), as amended), could occur with respect to the trust. (C) An inclusion ratio, as defined in Section 2642(a) of the Internal Revenue Code of 1986, as amended (26 U.S.C. Sec. 2642(a), as amended), of the trust that is less than one, if there is any possibility of any of the following: (i) A taxable distribution, as defined in Section 2612(b) of the Internal Revenue Code of 1986, as amended (26 U.S.C. Sec. 2612(b), as amended), could be made from the trust. (ii) A taxable termination, as defined in Section 2612(a) of the Internal Revenue Code of 1986, as amended (26 U.S.C. Sec. 2612(a), as amended), could occur with respect to the trust. (t) “Successive interest” means the interest of a successor beneficiary. (u) “Successor beneficiary” means a person entitled to receive income or principal or to use property when an income interest or other current interest ends. (v) “Terms of a trust” means any of the following: (1) (A) For a trust, the written trust instrument of an irrevocable trust or those provisions of a written trust instrument in effect at the settlor’s death that describe or affect that portion of a trust that has become irrevocable at the death of the settlor. (B) “Terms of a trust” includes, but is not limited to, signatures, amendments, disclaimers, and any directions or instructions to the trustee that affect the disposition of the trust. (C) “Terms of a trust” does not include documents that were intended to affect disposition only while the trust was revocable. If a trust has been completely restated, “terms of a trust” does not include trust instruments or amendments that are superseded by the last restatement before the settlor’s death, but it does include amendments executed after the restatement. “Terms of a trust” also includes any document irrevocably exercising a power of appointment over the trust or over any portion of the trust that has become irrevocable. (2) For an estate, a will. (3) For a life estate or term interest, the corresponding manifestation of the rights of the beneficiaries. (w) (1) “Trust” includes both of the following: (A) An express trust, private or charitable, with additions to the trust, wherever and however created. (B) A trust created or determined by judgment or decree under which the trust is to be administered in the manner of an express trust. (2) “Trust” does not include any of the following: (A) A constructive trust. (B) A resulting trust, conservatorship, guardianship, multiparty account, custodial arrangement for a minor, business trust, voting trust, security arrangement, liquidation trust, or trust for the primary purpose of paying debts, dividends, interest, salaries, wages, profits, pensions, retirement benefits, or employee benefits of any kind. (C) An arrangement under which a person is a nominee, escrowee, or agent for another. (x) “Trustee” means a person, other than a personal representative, that owns or holds property for the benefit of a beneficiary. The term includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court. (y) “Will” means a testamentary instrument recognized by applicable law that makes a legally effective disposition of an individual’s property, effective at the individual’s death. “Will” includes a codicil or other amendment to a testamentary instrument. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  100. 16322.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 1. General Provisions and Definitions [16320 - 16323] ( Article 1 added by Stats. 2023, Ch. 28, Sec. 2. )

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    This chapter applies to trusts, estates, and certain future-interest arrangements unless a trust’s terms or this chapter provide otherwise.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 1. General Provisions and Definitions [16320 - 16323] ( Article 1 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16322. Except as otherwise provided in the terms of a trust or this chapter, this chapter applies to the following: (a) A trust or an estate. (b) A life estate or other term interest in which the interest of one or more persons will be succeeded by the interest of one or more other persons. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  101. 16323.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 1. General Provisions and Definitions [16320 - 16323] ( Article 1 added by Stats. 2023, Ch. 28, Sec. 2. )

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    This section says the chapter applies to certain trusts or estates when California is the principal place of administration, or when covered property is located in California.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 1. General Provisions and Definitions [16320 - 16323] ( Article 1 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16323. Except as otherwise provided in the terms of a trust or this chapter, this chapter applies when this state is the principal place of administration of a trust or estate or the situs of property that is not held in a trust or estate and is subject to a life estate or other term interest described in subdivision (b) of Section 16322. By accepting the trusteeship of a trust having its principal place of administration in this state or by moving the principal place of administration of a trust to this state, the trustee submits to the application of this chapter to any matter within the scope of this chapter involving the trust. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  102. 16325.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 2. Fiduciary Duties and Judicial Review [16325 - 16327] ( Article 2 added by Stats. 2023, Ch. 28, Sec. 2. )

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    A fiduciary must act fairly and in good faith, follow the trust or will, and apply this chapter when no different trust or will provision controls. The fiduciary may also use discretionary administration powers, including certain adjustment or unitrust conversion powers, if doing so helps administer the trust or estate impartially.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 2. Fiduciary Duties and Judicial Review [16325 - 16327] ( Article 2 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16325. (a) In making an allocation or determination or exercising discretion under this chapter, all of the following apply: (1) A fiduciary shall act in good faith, based on what is fair and reasonable to all beneficiaries. (2) A fiduciary shall administer a trust or decedent’s estate in accordance with the trust or the will, even if there is a different provision in this chapter. (3) A fiduciary may administer a trust or decedent’s estate by the exercise of a discretionary power of administration given to the fiduciary by the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by this chapter, and no inference that the fiduciary has improperly exercised the discretion arises from the fact that the fiduciary has made an allocation contrary to a provision of this chapter. (4) A fiduciary shall administer a trust or decedent’s estate in accordance with this chapter if the trust or the will does not contain a different provision or does not give the fiduciary a discretionary power of administration. (b) A fiduciary’s allocation, determination, or exercise of discretion under this chapter is presumed to be fair and reasonable to all beneficiaries. A fiduciary may exercise a discretionary power of administration given to the fiduciary by the terms of the trust, and an exercise of the power that produces a result different from a result required or permitted by this chapter does not create an inference that the fiduciary abused the fiduciary’s discretion. (c) A fiduciary shall do both of the following: (1) Add a receipt to principal, to the extent neither the terms of the trust nor this chapter allocates the receipt between income and principal. (2) Charge a disbursement to principal, to the extent neither the terms of the trust nor this chapter allocates the disbursement between income and principal. (d) A fiduciary may exercise the power to adjust under Section 16327, convert an income trust to a unitrust under paragraph (1) of subdivision (a) of Section 16332, change the percentage or method used to calculate a unitrust amount under paragraph (2) of subdivision (a) of Section 16332, or convert a unitrust to an income trust under paragraph (3) of subdivision (a) of Section 16332, if the fiduciary determines the exercise of the power will assist the fiduciary to administer the trust or estate impartially. (e) Factors the fiduciary shall consider in making the determination under subdivision (d) include all of the following: (1) The terms of the trust. (2) The nature, distribution standards, and expected duration of the trust. (3) The effect of the allocation rules, including specific adjustments between income and principal, under Article 4 (commencing with Section 16340) to Article 7 (commencing with Section 16375), inclusive. (4) The desirability of liquidity and regularity of income. (5) The desirability of the preservation and appreciation of principal. (6) The extent to which an asset is used or may be used by a beneficiary. (7) The increase or decrease in the value of principal assets, reasonably determined by the fiduciary. (8) Whether and to what extent the terms of the trust give the fiduciary power to accumulate income or invade principal or prohibit the fiduciary from accumulating income or invading principal. (9) The extent to which the fiduciary has accumulated income or invaded principal in preceding accounting periods. (10) The effect of current and reasonably expected economic conditions. (11) The reasonably expected tax consequences of the exercise of the power. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  103. 16326.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 2. Fiduciary Duties and Judicial Review [16325 - 16327] ( Article 2 added by Stats. 2023, Ch. 28, Sec. 2. )

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    This section defines “fiduciary decision” and limits court вмешательство unless the decision was an abuse of discretion.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 2. Fiduciary Duties and Judicial Review [16325 - 16327] ( Article 2 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16326. (a) For purposes of this section, “fiduciary decision” means any of the following: (1) A fiduciary’s allocation between income and principal or another determination regarding income and principal required or authorized by the terms of the trust or this chapter. (2) The fiduciary’s exercise or nonexercise of a discretionary power regarding income and principal granted by the terms of the trust or this chapter, including the power to adjust under Section 16327, convert an income trust to a unitrust under paragraph (1) of subdivision (a) of Section 16332, change the percentage or method used to calculate a unitrust amount under paragraph (2) of subdivision (a) of Section 16332, or convert a unitrust to an income trust under paragraph (3) of subdivision (a) of Section 16332. (3) The fiduciary’s implementation of a decision described in paragraph (1) or (2). (b) The court may not order a fiduciary to change a fiduciary decision unless the court determines that the fiduciary decision was an abuse of the fiduciary’s discretion. (c) If the court determines that a fiduciary decision was an abuse of the fiduciary’s discretion, the court may order a remedy authorized by law. To place the beneficiaries in the positions the beneficiaries would have occupied if there had not been an abuse of the fiduciary’s discretion, the court may order any of the following: (1) The fiduciary to exercise or refrain from exercising the power to adjust under Section 16327. (2) The fiduciary to exercise or refrain from exercising the power to convert an income trust to a unitrust under paragraph (1) of subdivision (a) of Section 16332, change the percentage or method used to calculate a unitrust amount under paragraph (2) of subdivision (a) of Section 16332, or convert a unitrust to an income trust under paragraph (3) of subdivision (a) of Section 16332. (3) The fiduciary to distribute an amount to a beneficiary. (4) A beneficiary to return some or all of a distribution. (5) The fiduciary to withhold an amount from one or more future distributions to a beneficiary. (6) Upon a petition by a fiduciary for instruction, the court may determine whether a proposed fiduciary decision will result in an abuse of the fiduciary’s discretion. If the petition describes the proposed decision, contains sufficient information to inform the beneficiary of the reasons for making the proposed decision and the facts on which the fiduciary relies, and explains how the beneficiary will be affected by the proposed decision, a beneficiary that opposes the proposed decision has the burden to establish that it will result in an abuse of the fiduciary’s discretion. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  104. 16327.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 2. Fiduciary Duties and Judicial Review [16325 - 16327] ( Article 2 added by Stats. 2023, Ch. 28, Sec. 2. )

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    A fiduciary may adjust between income and principal without court approval if it is recorded and helps administer the trust or estate impartially, but only within the section’s limits and exceptions.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 2. Fiduciary Duties and Judicial Review [16325 - 16327] ( Article 2 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16327. (a) Except as otherwise provided in the terms of a trust or this section, a fiduciary, in a record, without court approval, may adjust between income and principal if the fiduciary determines the exercise of the power to adjust will assist the fiduciary in administering the trust or estate impartially. (b) This section does not create a duty to exercise or consider the power to adjust under subdivision (a) or to inform a beneficiary about the applicability of this section. (c) A fiduciary that in good faith exercises or fails to exercise the power to adjust under subdivision (a) is not liable to a person affected by the exercise or failure to exercise. (d) In deciding whether and to what extent to exercise the power to adjust under subdivision (a), a fiduciary shall consider all factors the fiduciary considers relevant, including relevant factors in subdivision (e) of Section 16325 and the application of subdivision (i) of Section 16340 and Sections 16347 and 16352. (e) A fiduciary may not exercise the power under subdivision (a) to make an adjustment or under Section 16347 to make a determination that an allocation is insubstantial under any of the following circumstances: (1) The adjustment or determination would reduce the amount payable to a current income beneficiary from a trust that qualifies for a special tax benefit, except to the extent the adjustment is made to provide for a reasonable apportionment of the total return of the trust between the current income beneficiary and successor beneficiaries. (2) The adjustment or determination would change the amount payable to a beneficiary, as a fixed annuity or a fixed fraction of the value of the trust assets, under the terms of the trust. (3) The adjustment or determination would reduce an amount that is permanently set aside for a charitable purpose under the terms of the trust, unless both income and principal are set aside for the charitable purpose. (4) Possessing or exercising the power would cause a person to be treated as the owner of all or part of the trust for federal income tax purposes. (5) Possessing or exercising the power would cause all or part of the value of the trust assets to be included in the gross estate of an individual for federal estate tax purposes. (6) Possessing or exercising the power would cause an individual to be treated as making a gift for federal gift tax purposes. (7) The fiduciary is not an independent person. (8) The trust is irrevocable and provides for income to be paid to the settlor and possessing or exercising the power would cause the adjusted principal or income to be considered an available resource or available income under a public benefit program. (9) The trust is a unitrust under Article 3. (f) If paragraph (4), (5), (6), or (7) of subdivision (e) applies to a fiduciary: (1) A cofiduciary to which paragraph (4), (5), (6), or (7) of subdivision (e) does not apply may exercise the power to adjust, unless the exercise of the power by the remaining cofiduciary or cofiduciaries is not permitted by the terms of the trust or law other than this chapter. (2) If there is no cofiduciary to which paragraph (4), (5), (6), or (7) of subdivision (e) does not apply, the fiduciary may appoint a cofiduciary to which paragraph (4), (5), (6), or (7) of subdivision (e) does not apply, which may be a special fiduciary with limited powers, and the appointed cofiduciary may exercise the power to adjust under subdivision (a), unless the appointment of a cofiduciary or the exercise of the power by a cofiduciary is not permitted by the terms of the trust or law other than this chapter. (g) A fiduciary may release or delegate to a cofiduciary the power to adjust under subdivision (a) if the fiduciary determines that the fiduciary’s possession or exercise of the power will or may do either of the following: (1) Cause a result described in paragraphs (1) to (6), inclusive, or (8) of subdivision (e). (2) Deprive the trust of a tax benefit or impose a tax burden not described in paragraphs (1) to (6), inclusive, of subdivision (e). (h) A fiduciary’s release or delegation to a cofiduciary under subdivision (g) of the power to adjust pursuant to subdivision (a): (1) Shall be in a record. (2) Applies to the entire power, unless the release or delegation provides a limitation, which may be a limitation to the power to make any of the following adjustments: (A) From income to principal. (B) From principal to income. (C) For specified property. (D) In specified circumstances. (3) For a delegation, may be modified by a redelegation under this subdivision by the cofiduciary to which the delegation is made. (4) Subject to paragraph (3), is permanent, unless the release or delegation provides a specified period, including a period measured by the life of an individual or the lives of more than one individual. (i) Terms of a trust that deny or limit the power to adjust between income and principal do not affect the application of this section, unless the terms of the trust expressly deny or limit the power to adjust under subdivision (a). (j) The exercise of the power to adjust under subdivision (a) in any accounting period may apply to the current period, the immediately preceding period, and one or more subsequent periods. (k) A description of the exercise of the power to adjust under subdivision (a) shall be either of the following: (1) Included in a report, if any, sent to beneficiaries. (2) Communicated at least annually to all beneficiaries that receive or are entitled to receive income from the trust or would be entitled to receive a distribution of principal if the trust were terminated at the time the notice is sent, assuming no power of appointment is exercised. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  105. 16330.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    This section defines terms used in the unitrust article.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16330. The following definitions apply for purposes of this article: (a) “Applicable value” means the amount of the net fair market value of a trust taken into account under Section 16336. (b) “Express unitrust” means a trust for which, under the terms of the trust without regard to this article, income or net income shall or may be calculated as a unitrust amount. (c) “Income trust” means a trust that is not a unitrust. (d) “Net fair market value of a trust” means the fair market value of the assets of the trust, less the noncontingent liabilities of the trust. (e) “Unitrust” means a trust for which net income is a unitrust amount. The term includes an express unitrust. (f) “Unitrust amount” means an amount computed by multiplying a determined value of a trust by a determined percentage. For a unitrust administered under a unitrust plan, the term means the applicable value, multiplied by the unitrust rate. (g) “Unitrust plan” means a plan described in Sections 16334 to 16338, inclusive, and adopted pursuant to Section 16332. (h) “Unitrust rate” means the rate used to compute the unitrust amount under subdivision (f) for a unitrust administered under a unitrust plan. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  106. 16331.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    This section says when the article applies to income trusts, express unitrusts, and certain estates, and it lists exceptions.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16331. (a) Except as otherwise provided in subdivision (b), this article applies to both of the following: (1) An income trust, unless the terms of the trust expressly prohibit use of this article by a specific reference to this article or an explicit expression of intent that net income not be calculated as a unitrust amount. (2) An express unitrust, except to the extent the terms of the trust explicitly do any of the following: (A) Prohibit use of this article by a specific reference to this article. (B) Prohibit conversion to an income trust. (C) Limit changes to the method of calculating the unitrust amount. (b) This article does not apply to a trust described in Section 170(f)(2)(B), 642(c)(5), 664(d), 2702(a)(3)(A)(ii) or (iii), or 2702(b) of the Internal Revenue Code of 1986 (26 U.S.C. Secs. 170(f)(2)(B), 642(c)(5), 664(d), 2702(a)(3)(A)(ii) or (iii), or 2702(b)). (c) An income trust to which this article applies under paragraph (1) of subdivision (a) may be converted to a unitrust under this article regardless of the terms of the trust concerning distributions. Conversion to a unitrust under this article does not affect other terms of the trust concerning distributions of income or principal. (d) This article applies to an estate only to the extent a trust is a beneficiary of the estate. To the extent of the trust’s interest in the estate, the estate may be administered as a unitrust, the administration of the estate as a unitrust may be discontinued, or the percentage or method used to calculate the unitrust amount may be changed, in the same manner as for a trust under this article. (e) This article does not create a duty to take or consider action under this article or to inform a beneficiary about the applicability of this article. (f) A fiduciary that in good faith takes or fails to take an action under this article is not liable to a person affected by the action or inaction. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  107. 16332.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. )

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    A fiduciary may convert between an income trust and a unitrust, or change the unitrust percentage/method, if the statutory conditions are met and no court approval is used.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16332. (a) A fiduciary, without court approval, by complying with subdivisions (b) and (f), may do any of the following: (1) Convert an income trust to a unitrust if the fiduciary creates in a record a unitrust plan for the trust providing for both of the following: (A) That in administering the trust, the net income of the trust will be a unitrust amount rather than net income determined without regard to this article. (B) The percentage and method used to calculate the unitrust amount. (2) Change the percentage or method used to calculate a unitrust amount for a unitrust if the fiduciary implements in a record a unitrust plan or an amendment or replacement of a unitrust plan providing changes in the percentage or method used to calculate the unitrust amount. (3) Convert a unitrust to an income trust if the fiduciary implements in a record a determination that, in administering the trust, the net income of the trust will be net income determined without regard to this article rather than a unitrust amount. (b) A fiduciary may take an action under subdivision (a) if all of the following conditions are met: (1) The fiduciary determines that the action will assist the fiduciary to administer a trust impartially. (2) The fiduciary sends a notice in a record, in the manner required by Section 16333, describing and proposing to take the action. (3) No beneficiary objects to the proposed action in a writing delivered to the trustee within the period prescribed by subdivision (d) of Section 16502. (c) If a fiduciary receives, on or before the date stated in the notice under Section 16333, an objection in a record to a proposed action, the fiduciary or a beneficiary may request the court to have the proposed action taken as proposed, taken with modifications, or prevented. A person described in subdivision (a) of Section 16333 may oppose the proposed action in the proceeding under this subdivision, whether or not the person previously consented or objected. (d) If, after sending a notice under paragraph (2) of subdivision (b), a fiduciary decides not to take the action proposed in the notice, the fiduciary shall notify in a record each person described in subdivision (a) of Section 16333 of the decision not to take the action and the reasons for the decision. (e) If a beneficiary requests in a record that a fiduciary take an action described in subdivision (a) and the fiduciary declines to act or does not act within 90 days after receiving the request, the beneficiary may request the court to direct the fiduciary to take the action requested. (f) In deciding whether and how to take an action authorized by subdivision (a), or whether and how to respond to a request by a beneficiary under subdivision (e), a fiduciary shall consider all factors relevant to the trust and the beneficiaries, including relevant factors in subdivision (e) of Section 16325. (g) A fiduciary may release or delegate the power to convert an income trust to a unitrust under paragraph (1) of subdivision (a), change the percentage or method used to calculate a unitrust amount under paragraph (2) of subdivision (a), or convert a unitrust to an income trust under paragraph (3) of subdivision (a), for a reason described in subdivision (g) of Section 16327 and in the manner described in subdivision (h) of Section 16327. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  108. 16333.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A required notice must include specified information, including the proposed action, supporting plan documents in some cases, objection instructions, deadlines, dates, and contact details.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16333. A notice required by paragraph (2) of subdivision (b) of Section 16332 shall be sent as required by Chapter 5 (commencing with Section 16500), including notice to a beneficiary who is a minor and to the minor’s guardian, if any, and shall include all of the following: (a) The action proposed under paragraph (2) of subdivision (b) of Section 16332. (b) For a conversion of an income trust to a unitrust, a copy of the unitrust plan adopted under paragraph (1) of subdivision (a) of Section 16332. (c) For a change in the percentage or method used to calculate the unitrust amount, a copy of the unitrust plan or amendment or replacement of the unitrust plan adopted under paragraph (2) of subdivision (a) of Section 16332. (d) A statement that the person to which the notice is sent may object to the proposed action by stating in a record the basis for the objection and sending or delivering the record to the fiduciary. (e) The date by which an objection under subdivision (d) shall be received by the fiduciary, which shall be at least 30 days after the date the notice is sent. (f) The date on which the action is proposed to be taken and the date on which the action is proposed to take effect. (g) The name and contact information of the fiduciary. (h) The name and contact information of a person who may be contacted for additional information. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  109. 16334.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary administering a unitrust must follow the adopted or amended unitrust plan, and the plan must include the unitrust rate or rate-setting method, the method for determining applicable value, and the rules that apply to the unitrust’s administration.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16334. (a) In administering a unitrust under this article, a fiduciary shall follow a unitrust plan adopted under paragraph (1) or (2) of subdivision (a) of Section 16332, or amended or replaced under paragraph (2) of subdivision (a) of Section 16332. (b) A unitrust plan shall provide all of the following: (1) The unitrust rate or the method for determining the unitrust rate under Section 16335. (2) The method for determining the applicable value under Section 16336. (3) The rules described in Sections 16335 to 16338, inclusive, that apply in the administration of the unitrust, whether the rules are either of the following: (A) Mandatory, as provided in subdivision (a) of Section 16336 or subdivision (a) of Section 16337. (B) Optional, as provided in Section 16335, subdivision (b) of Section 16336, subdivision (b) of Section 16337, and subdivision (a) of Section 16338, to the extent the fiduciary elects to adopt those rules. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  110. 16335.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A unitrust rate must stay between 3% and 5% unless the unitrust plan has court approval; with court approval, any rate may be used.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16335. (a) A unitrust rate may not be less than 3 percent, or greater than 5 percent, unless the unitrust plan has been approved by court order. If the unitrust plan has been approved by court order, any unitrust rate may be used. Except as otherwise provided in this subdivision and in paragraph (1) of subdivision (b) of Section 16338, a unitrust rate may be either of the following: (1) A fixed unitrust interest rate. (2) A unitrust rate that is determined for each period, using either of the following: (A) A market index or other published data. (B) A mathematical blend of market indices or other published data over a stated number of preceding periods. (b) Except as otherwise provided in subdivision (a) of Section 16335 and paragraph (1) of subdivision (b) of Section 16338, a unitrust plan may provide any of the following: (1) A limit on how high the unitrust rate determined under paragraph (2) of subdivision (a) may rise. (2) A limit on how low the unitrust rate determined under paragraph (2) of subdivision (a) may fall. (3) A limit on how much the unitrust rate determined under paragraph (2) of subdivision (a) may increase over the unitrust rate for the preceding period or a mathematical blend of unitrust rates over a stated number of preceding periods. (4) A limit on how much the unitrust rate determined under paragraph (2) of subdivision (a) may decrease below the unitrust rate for the preceding period or a mathematical blend of unitrust rates over a stated number of preceding periods. (5) A mathematical blend of any of the unitrust rates determined under paragraph (2) of subdivision (a) and paragraphs (1) to (4), inclusive, of this subdivision. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  111. 16336.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A unitrust plan must state how to determine an asset’s fair market value for the unitrust amount, and it may also set additional valuation methods for trust value, subject to a cross-reference exception.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16336. (a) A unitrust plan shall provide the method for determining the fair market value of an asset for the purpose of determining the unitrust amount, including both of the following: (1) The frequency of valuing the asset, which need not require a valuation in every period. (2) The date for valuing the asset in each period in which the asset is valued. (b) Except as otherwise provided in paragraph (2) of subdivision (b) of Section 16338, a unitrust plan may provide methods for determining the amount of the net fair market value of the trust to take into account in determining the applicable value, including all of the following: (1) Obtaining an appraisal of an asset for which fair market value is not readily ascertainable. (2) Exclusion of specific assets or groups or types of assets. (3) Exceptions or modifications of the treatment of specific assets or groups or types of assets. (4) Identification and treatment of money or property held for distribution. (5) Use of either of the following: (A) An average of fair market values over a stated number of preceding periods. (B) Another mathematical blend of fair market values over a stated number of preceding periods. (6) A limit on how much the applicable value of all assets, groups of assets, or individual assets may increase over either of the following: (A) The corresponding applicable value for the preceding period. (B) A mathematical blend of applicable values over a stated number of preceding periods. (7) A limit on how much the applicable value of all assets, groups of assets, or individual assets may decrease below: (A) The corresponding applicable value for the preceding period. (B) A mathematical blend of applicable values over a stated number of preceding periods. (8) The treatment of accrued income and other features of an asset that affect value. (9) Determining the liabilities of the trust, including treatment of liabilities to conform to the treatment of assets under paragraphs (1) to (8), inclusive. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  112. 16337.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A unitrust plan must state the period used for certain trust calculations, and it may set standards for using fewer prior periods or for daily proration in specified situations.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16337. (a) A unitrust plan shall provide the period used under Sections 16335 and 16336. Except as otherwise provided in paragraph (3) of subdivision (b) of Section 16338, the period may be any of the following: (1) A calendar year. (2) A 12-month period other than a calendar year. (3) A calendar quarter. (4) A three-month period other than a calendar quarter. (5) Another period. (b) Except as otherwise provided in Section 16338, a unitrust plan may provide standards for any of the following: (1) Using fewer preceding periods under subparagraph (B) of paragraph (2) of subdivision (a) of, or paragraph (3) or (4) of subdivision (b) of, Section 16335 if any of the following circumstances exists: (A) The trust was not in existence in a preceding period. (B) Market indices or other published data are not available for a preceding period. (2) Using fewer preceding periods under subparagraph (A) or (B) of paragraph (5) of, subparagraph (B) of paragraph (6) of, or subparagraph (B) of paragraph (7) of subdivision (b) of, Section 16366, under either of the following circumstances: (A) The trust was not in existence in a preceding period. (B) Fair market values are not available for a preceding period. (3) Prorating the unitrust amount on a daily basis for a part of a period in which the trust or the administration of the trust as a unitrust or the interest of any beneficiary commences or terminates. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  113. 16338.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A unitrust plan may set distribution methods, source-order rules, and other beneficiary-serving standards; if a trust has a special tax benefit or the fiduciary is not independent, the unitrust rate must stay between 3% and 5%.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 3. Unitrust [16330 - 16338] ( Article 3 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16338. (a) A unitrust plan may include any of the following: (1) Provide methods and standards for all of the following: (A) Determining the timing of distributions. (B) Making distributions in money or in kind or partly in money and partly in kind. (C) Correcting an underpayment or overpayment to a beneficiary based on the unitrust amount if there is an error in calculating the unitrust amount. (2) Specify sources and the order of sources, including categories of income for federal income tax purposes, from which distributions of a unitrust amount are paid. (3) Provide other standards and rules the fiduciary determines serve the interests of the beneficiaries. (b) If a trust qualifies for a special tax benefit or a fiduciary is not an independent person: (1) The unitrust rate established under Section 16335 may not be less than 3 percent or more than 5 percent. (2) The only provisions of Section 16336 that apply are subdivision (a) and paragraphs (1), (4), and (9) of, and subparagraph (A) of paragraph (5) of, subdivision (b) of that section. (3) The only period that may be used under Section 16337 is a calendar year under paragraph (1) of subdivision (a) of Section 16337. (4) The only other provisions of Section 16337 that apply are subparagraph (A) of paragraph (2) of, and paragraph (3) of, subdivision (b) of that section. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  114. 16340.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

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    This section tells a fiduciary how to split entity-distribution receipts between income and principal.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16340. (a) The following definitions apply for purposes of this section: (1) “Capital distribution” means an entity distribution of money that is either of the following: (A) A return of capital. (B) A distribution in total or partial liquidation of the entity. (2) “Entity” means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization or arrangement in which a person owns or holds an interest, whether or not the entity is a taxpayer for federal income tax purposes. “Entity” does not include any of the following: (A) A trust or estate to which Section 16341 applies. (B) A business or other activity to which Section 16342 applies that is not conducted by an entity described in subparagraph (A). (C) An asset-backed security. (D) An instrument or arrangement to which Section 16355 applies. (3) “Entity distribution” means a payment or transfer by an entity made to a person in the person’s capacity as an owner or holder of an interest in the entity. (b) For purposes of this section, an attribute or action of an entity includes an attribute or action of any other entity in which the entity owns or holds an interest, including an interest owned or held indirectly through another entity. (c) Except as otherwise provided in paragraphs (2) to (4), inclusive, of subdivision (d), a fiduciary shall allocate money received in an entity distribution to income. (d) A fiduciary shall allocate to principal all of the following: (1) Property received in an entity distribution that is not money. (2) Money received in an entity distribution in an exchange for part or all of the fiduciary’s interest in the entity, to the extent the entity distribution reduces the fiduciary’s interest in the entity relative to the interests of other persons that own or hold interests in the entity. (3) Money received in an entity distribution that the fiduciary determines or estimates is a capital distribution. (4) Money received in an entity distribution from an entity that is a regulated investment company or real estate investment trust if the money received is a capital gain dividend for federal income tax purposes. (5) Money received in an entity distribution that is treated, for federal income purposes, comparably to the treatment described in paragraph (4). (e) A fiduciary may determine or estimate that money received in an entity distribution is a capital distribution in any of the following ways: (1) By relying without inquiry or investigation on a characterization of the entity distribution provided by or on behalf of the entity, except under either of the following circumstances: (A) The fiduciary determines, on the basis of information known to the fiduciary, that the characterization is or may be incorrect. (B) The fiduciary owns or holds more than 50 percent of the voting interest in the entity. (2) By determining or estimating, on the basis of information known to the fiduciary or provided to the fiduciary by or on behalf of the entity, that the total amount of money and property received by the fiduciary in the entity distribution or a series of related entity distributions is, or will be, greater than 20 percent of the fair market value of the fiduciary’s interest in the entity. (3) If neither paragraph (1) nor (2) applies, by considering the factors in subdivision (f) and the information known to the fiduciary or provided to the fiduciary by, or on behalf of, the entity. (f) In making a determination or estimate under paragraph (3) of subdivision (e), a fiduciary may consider the following: (1) A characterization of an entity distribution provided by or on behalf of the entity. (2) The amount of money or property received in either of the following: (A) The entity distribution. (B) What the fiduciary determines is, or will be, a series of related entity distributions. (3) The amount described in paragraph (2) compared to the amount the fiduciary determines or estimates is, during the current or preceding accounting periods, either of the following: (A) The entity’s operating income. (B) The proceeds of the entity’s sale or other disposition of any of the following: (i) All or part of the business or other activity conducted by the entity. (ii) One or more business assets that are not sold to customers in the ordinary course of the business or other activity conducted by the entity. (iii) One or more assets other than business assets, unless the entity’s primary activity is to invest in assets to realize gain on the disposition of all or some of the assets. (C) If the entity’s primary activity is to invest in assets to realize gain on the disposition of all or some of the assets, the gain realized on the disposition. (D) The entity’s regular, periodic entity distributions. (E) The amount of money the entity has accumulated. (F) The amount of money the entity has borrowed. (G) The amount of money the entity has received from the sources described in Sections 16346, 16349, 16350, and 16351. (H) The amount of money the entity has received from a source not otherwise described in this paragraph. (4) Any other factor the fiduciary determines is relevant. (g) If, after applying subdivisions (c) to (f), inclusive, a fiduciary determines that a part of an entity distribution is a capital distribution but is in doubt about the amount of the entity distribution that is a capital distribution, the fiduciary shall allocate to principal the amount of the entity distribution that is in doubt. (h) If a fiduciary receives additional information about the application of this section to an entity distribution before the fiduciary has paid part or all of the entity distribution to a beneficiary, the fiduciary may consider the additional information before making the payment to the beneficiary and may change a decision to make the payment to the beneficiary. (i) If a fiduciary receives additional information about the application of this section to an entity distribution after the fiduciary has paid part or all of the entity distribution to a beneficiary, the fiduciary has no duty to change or recover the payment to the beneficiary but may consider that information in determining whether to exercise the power to adjust under Section 16327. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  115. 16341.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary must allocate certain receipts to income or principal as specified in this section.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16341. A fiduciary shall allocate to income an amount received as a distribution of income, including a unitrust distribution under Article 3 (commencing with Section 16330), from a trust or estate in which the fiduciary has an interest, other than an interest the fiduciary purchased in a trust that is an investment entity, and shall allocate to principal an amount received as a distribution of principal from the trust or estate. If a fiduciary purchases, or receives from a settlor, an interest in a trust that is an investment entity, Section 16340, 16354, or 16355 applies to a receipt from the trust. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  116. 16342.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary may keep separate accounts for a business or other activity, and must treat certain net sale proceeds as principal when they are no longer needed for the business.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16342. (a) This section applies to a business or other activity conducted by a fiduciary if the fiduciary determines that it is in the interests of the beneficiaries to account separately for the business or other activity instead of doing either of the following: (1) Accounting for the business or other activity as part of the fiduciary’s general accounting records. (2) Conducting the business or other activity through an entity described in subparagraph (A) of paragraph (2) of subdivision (a) of Section 16340. (b) A fiduciary may account separately under this section for the transactions of a business or other activity, whether or not assets of the business or other activity are segregated from other assets held by the fiduciary. (c) A fiduciary that accounts separately under this section for a business or other activity: (1) May determine the extent to which the net money receipts of the business or other activity shall be retained for any of the following purposes: (A) Working capital. (B) The acquisition or replacement of fixed assets. (C) Other reasonably foreseeable needs of the business or other activity. (2) May determine the extent to which the remaining net money receipts are accounted for as principal or income in the fiduciary’s general accounting records for the trust. (3) May make a determination under paragraph (1) separately and differently from the fiduciary’s decisions concerning distributions of income or principal. (4) Shall account for the net amount received from the sale of an asset of the business or other activity, other than a sale in the ordinary course of the business or other activity, as principal in the fiduciary’s general accounting records for the trust, to the extent the fiduciary determines that the net amount received is no longer required in the conduct of the business or other activity. (d) Activities for which a fiduciary may account separately under this section include all of the following: (1) Retail, manufacturing, service, and other traditional business activities. (2) Farming. (3) Raising and selling livestock and other animals. (4) Managing rental properties. (5) Extracting minerals, water, and other natural resources. (6) Growing and cutting timber. (7) An activity to which Section 16353, 16354, or 16355 applies. (8) Any other business conducted by the fiduciary. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  117. 16343.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary must allocate certain receipts to principal.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16343. A fiduciary shall allocate to principal any of the following: (a) To the extent not allocated to income under this chapter, an asset received from any of the following: (1) An individual, during the individual’s lifetime. (2) An estate. (3) A trust, on termination of an income interest. (4) A payor under a contract naming the fiduciary as beneficiary. (b) Except as otherwise provided in this article, money or other property received from the sale, exchange, liquidation, or change in form of a principal asset. (c) An amount recovered from a third party to reimburse the fiduciary because of a disbursement described in subdivision (a) of Section 16361, or for another reason to the extent not based on loss of income. (d) Proceeds of property taken by eminent domain, except that proceeds awarded for loss of income in an accounting period are income if a current income beneficiary had a mandatory income interest during the period. (e) Net income received in an accounting period during which there is no beneficiary to which a fiduciary may or shall distribute income. (f) Other receipts as provided in Article 3 (commencing with Section 16330). (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  118. 16344.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary must allocate rent to income, but refundable deposits go to principal and are not available for beneficiary distribution until contractual obligations are satisfied.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16344. To the extent a fiduciary does not account for the management of rental property as a business under Section 16342, the fiduciary shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. Both of the following apply to an amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods: (1) The amount shall be added to principal and held subject to the terms of the lease, except as otherwise provided by law other than this chapter. (2) The amount is not allocated to income or available for distribution to a beneficiary until the fiduciary’s contractual obligations have been satisfied with respect to that amount. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  119. 16345.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary must allocate certain interest and related prepayment amounts to income, allocate proceeds from sale/redemption/disposition to principal, and allocate certain bond value increments to income.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16345. (a) This section does not apply to an obligation to which Section 16348, 16349, 16350, 16351, 16353, 16354, or 16355 applies. (b) A fiduciary shall allocate to income, without provision for amortization of premium, an amount received as interest on an obligation to pay money to the fiduciary, including an amount received as consideration for prepaying principal. (c) A fiduciary shall allocate to principal an amount received from the sale, redemption, or other disposition of an obligation to pay money to the fiduciary. A fiduciary shall allocate to income the increment in value of a bond or other obligation for the payment of money bearing no stated interest but payable or redeemable, at maturity or another future time, in an amount that exceeds the amount in consideration of which it was issued. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  120. 16346.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary must allocate certain insurance and contract proceeds between principal and income as specified here.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16346. (a) This section does not apply to a contract to which Section 16348 applies. (b) Except as otherwise provided in subdivision (c), a fiduciary shall allocate to principal the proceeds of a life insurance policy or other contract received by the fiduciary as beneficiary, including a contract that insures against damage to, destruction of, or loss of title to an asset. The fiduciary shall allocate dividends on an insurance policy to income to the extent premiums on the policy are paid from income and to principal to the extent premiums on the policy are paid from principal. (c) A fiduciary shall allocate to income proceeds of a contract that insures the fiduciary against loss of any of the following: (1) Occupancy or other use by a current income beneficiary. (2) Income. (3) Subject to Section 16342, profits from a business. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  121. 16347.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary may put an insubstantial income-and-principal allocation entirely to principal, unless a listed exception applies.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16347. (a) If a fiduciary determines that an allocation between income and principal required by Section 16348, 16349, 16350, 16351, or 16354 is insubstantial, the fiduciary may allocate the entire amount to principal, unless subdivision (e) of Section 16327 applies to the allocation. (b) A fiduciary may presume an allocation is insubstantial under subdivision (a) if both of the following conditions are met: (1) The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10 percent. (2) The asset producing the receipt to be allocated has a fair market value of less than 10 percent of the total fair market value of the assets owned or held by the fiduciary at the beginning of the accounting period. (c) The power to make a determination under subdivision (a) may be either of the following: (1) Exercised by a cofiduciary in the manner described in subdivision (f) of Section 16327. (2) Released or delegated for a reason described in subdivision (g) of Section 16327, and in the manner described in subdivision (h) of Section 16327. (d) This section does not impose a duty on the trustee to make an allocation under this section, and the trustee is not liable for failure to make an allocation under this section. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  122. 16348.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    This section defines several trust-related terms and tells fiduciaries how to determine and allocate income from a separate fund.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16348. (a) The following definitions apply for purposes of this section: (1) “Internal income of a separate fund” means the amount determined under subdivision (b). (2) “Marital trust” means a trust that meets all the following criteria: (A) The settlor’s surviving spouse is the only current income beneficiary and is entitled to a distribution of all the current net income of the trust. (B) The trust qualifies for a marital deduction with respect to the settlor’s estate under Section 2056 of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 2056) because of either of the following: (i) An election to qualify for a marital deduction under Section 2056(b)(7) of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 2056(b)(7)) has been made. (ii) The trust qualifies for a marital deduction under Section 2056(b)(5) of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 2056(b)(5)). (3) “Payment” means an amount a fiduciary may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payor in exchange for future amounts the fiduciary may receive. The term includes an amount received in money or property from the payor’s general assets or from a separate fund created by the payor. (4) “Separate fund” includes a private or commercial annuity, an individual retirement account, and a pension, profit-sharing, stock bonus, or stock ownership plan. (b) For each accounting period, the following rules apply to a separate fund: (1) The fiduciary shall determine the internal income of the separate fund as if the separate fund were a trust subject to this chapter. (2) If the fiduciary cannot determine the internal income of the separate fund under paragraph (1), the internal income of the separate fund is deemed to equal 4 percent of the value of the separate fund, according to the most recent statement of value preceding the beginning of the accounting period. (3) If the fiduciary cannot determine the value of the separate fund under paragraph (2), the value of the separate fund is deemed to equal the present value of the expected future payments, as determined under Section 7520 of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 7520) for the month preceding the beginning of the accounting period for which the computation is made. (c) A fiduciary shall allocate a payment received from a separate fund during an accounting period to income, to the extent of the internal income of the separate fund during the period, and the balance to principal. (d) The fiduciary of a marital trust shall do all of the following: (1) Withdraw from a separate fund the amount the current income beneficiary of the trust requests the fiduciary to withdraw, not greater than the amount by which the internal income of the separate fund during the accounting period exceeds the amount the fiduciary otherwise receives from the separate fund during the period. (2) Transfer from principal to income the amount the current income beneficiary requests the fiduciary to transfer, not greater than the amount by which the internal income of the separate fund during the period exceeds the amount the fiduciary receives from the separate fund during the period after the application of paragraph (1). (3) Distribute all of the following to the current income beneficiary as income: (A) The amount of the internal income of the separate fund received or withdrawn during the period. (B) The amount transferred from principal to income under paragraph (2). (e) For a trust, other than a marital trust, of which one or more current income beneficiaries are entitled to a distribution of all the current net income, the fiduciary shall transfer from principal to income the amount by which the internal income of a separate fund during the accounting period exceeds the amount the fiduciary receives from the separate fund during the period. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  123. 16349.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary must allocate receipts from a liquidating asset between income and principal using the section’s percentage rules.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16349. (a) For purposes of this section, “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a limited time. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. (b) This section does not apply to a receipt subject to Section 16340, 16348, 16350, 16351, 16353, 16354, 16355, or 16362. (c) A fiduciary shall make allocations in the following manner: (1) To income: (A) A receipt produced by a liquidating asset, to the extent the receipt does not exceed 4 percent of the value of the asset. (B) If the fiduciary cannot determine the value of the asset, 10 percent of the receipt. (2) To principal, the balance of the receipt. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  124. 16350.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary must allocate receipts from mineral, water, or other natural-resource interests according to specified income/principal rules, with limited pre-existing-interest flexibility.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16350. (a) To the extent a fiduciary does not account for a receipt from an interest in minerals, water, or other natural resources as a business under Section 16432, the fiduciary shall allocate the receipt in the following manner: (1) To income, to the extent received: (A) As delay rental or annual rent on a lease. (B) As a factor for interest or the equivalent of interest under an agreement creating a production payment. (C) On account of an interest in renewable water. (2) To principal, if received from a production payment, to the extent subparagraph (B) of paragraph (1) does not apply. (3) Between income and principal in a reasonable manner, to the extent received: (A) On account of an interest in nonrenewable water. (B) As a royalty, shut-in-well payment, take-or-pay payment, or bonus. (C) From a working interest or any other interest not provided for in subparagraph (A) or (B), or paragraph (1) or (2). (b) This section applies to an interest owned or held by a fiduciary whether or not a settlor was extracting minerals, water, or other natural resources before the fiduciary owned or held the interest. (c) An allocation of a receipt under paragraph (3) of subdivision (a) is presumed to be reasonable if the amount allocated to principal is equal to the amount allowed by the Internal Revenue Code of 1986, as amended (Title 26 of the United States Code, as amended), as a deduction for depletion of the interest. (d) If a fiduciary owns or holds an interest in minerals, water, or other natural resources before the effective date of this chapter, the fiduciary may allocate receipts from the interest as provided in this section or in the manner used by the fiduciary before the effective date of this chapter. If the fiduciary acquires an interest in minerals, water, or other natural resources on or after the effective date of this chapter, the fiduciary shall allocate receipts from the interest as provided in this section. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  125. 16351.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary must allocate timber-sale net receipts between income and principal under specified rules, and deduct a reasonable amount for depletion.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16351. (a) To the extent a fiduciary does not account for receipts from the sale of timber and related products as a business under Section 16342, the fiduciary shall allocate the net receipts: (1) To income, to the extent the amount of timber cut from the land does not exceed the rate of growth of the timber. (2) To principal, to the extent the amount of timber cut from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber. (3) Between income and principal, if the net receipts are from the lease of land used for growing and cutting timber or from a contract to cut timber from land, by determining the amount of timber cut from the land under the lease or contract and applying the rules in paragraphs (1) and (2). (4) To principal, to the extent advance payments, bonuses, and other payments are not allocated under paragraph (1), (2), or (3). (b) In determining net receipts to be allocated under subdivision (a), a fiduciary shall deduct and transfer to principal a reasonable amount for depletion. (c) This section applies to land owned or held by a fiduciary whether or not a settlor was cutting timber from the land before the fiduciary owned or held the property. (d) If a fiduciary owns or holds an interest in land used for growing and cutting timber before the effective date of this chapter, the fiduciary may allocate net receipts from the sale of timber and related products as provided in this section or in the manner used by the fiduciary before the effective date of this chapter. If the fiduciary acquires an interest in land used for growing and cutting timber on or after the effective date of this chapter, the fiduciary shall allocate net receipts from the sale of timber and related products as provided in this section. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  126. 16352.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    If a trust qualifies for a marital deduction and the settlor’s spouse has a mandatory income interest, the spouse may require the trustee to make trust property income-producing, convert it within a reasonable time, or use the power to adjust.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16352. (a) If a trust received property for which a gift or estate tax marital deduction was allowed and the settlor’s spouse holds a mandatory income interest in the trust, the spouse may require the trustee, to the extent the trust assets otherwise do not provide the spouse with sufficient income from or use of the trust assets to qualify for the deduction, to do any of the following: (1) Make property productive of income. (2) Convert property to property productive of income within a reasonable time. (3) Exercise the power to adjust under Section 16327. (b) The trustee may decide which action or combination of actions in subdivision (a) to take. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  127. 16353.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    This section defines “derivative” and requires a fiduciary, in certain cases, to allocate 10% of specified receipts and disbursements to income and the rest to principal.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16353. (a) For purposes of this section, “derivative” means a contract, instrument, other arrangement, or combination of contracts, instruments, or other arrangements, the value, rights, and obligations of which are, in whole or in part, dependent on or derived from an underlying tangible or intangible asset, group of tangible or intangible assets, index, or occurrence of an event. The term includes stocks, fixed-income securities, and financial instruments and arrangements based on indices, commodities, interest rates, weather-related events, and credit default events. (b) To the extent a fiduciary does not account for a transaction in derivatives as a business under Section 16342, the fiduciary shall allocate 10 percent of receipts from the transaction and 10 percent of disbursements made in connection with the transaction to income and the balance to principal. (c) Subdivision (d) applies under the following circumstances: (1) If a fiduciary does any of the following: (A) Grants an option to buy property from a trust, whether or not the trust owns the property when the option is granted. (B) Grants an option that permits another person to sell property to the trust. (C) Acquires an option to buy property for the trust or an option to sell an asset owned by the trust. (2) The fiduciary or other owner of the asset is required to deliver the asset if the option is exercised. (d) If this subdivision applies, the fiduciary shall allocate 10 percent to income and the balance to principal of the following amounts: (1) An amount received for granting the option. (2) An amount paid to acquire the option. (3) Gain or loss realized on the exercise, exchange, settlement, offset, closing, or expiration of the option. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  128. 16354.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary must allocate asset-backed security receipts between income and principal under specific rules.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16354. (a) Except as otherwise provided in subdivision (b), a fiduciary shall allocate to income a receipt from or related to an asset-backed security, to the extent the payor identifies the payment as being from interest or other current return, and to principal the balance of the receipt. (b) If a fiduciary receives one or more payments in exchange for part or all of the fiduciary’s interest in an asset-backed security, including a liquidation or redemption of the fiduciary’s interest in the security, the fiduciary shall allocate to income 10 percent of receipts from the transaction and 10 percent of disbursements made in connection with the transaction, and to principal the balance of the receipts and disbursements. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  129. 16355.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary must allocate receipts from financial instruments or arrangements that this chapter does not otherwise address.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 4. Allocation of Receipts [16340 - 16355] ( Article 4 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16355. A fiduciary shall allocate receipts from, or related to, a financial instrument or arrangement not otherwise addressed by this chapter. The allocation shall be consistent with the principles of Sections 16353 and 16354. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  130. 16360.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary must pay specified expenses from income, including certain compensation, certain proceeding expenses, other ordinary administration expenses, and insurance premiums, subject to stated conditions and exceptions.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16360. Subject to Section 16363, and except as otherwise provided in paragraph (2) or (3) of subdivision (c) of Section 16370, a fiduciary shall disburse from income all of the following: (a) One-half of both of the following: (1) The regular compensation of the fiduciary and any person providing investment advisory, custodial, or other services to the fiduciary, to the extent income is sufficient. (2) An expense for an accounting, judicial, or nonjudicial proceeding, or other matter that involves both income and successive interests, to the extent income is sufficient. (b) The balance of the disbursements described in paragraph (1) of subdivision (a), to the extent a fiduciary that is an independent person determines that making those disbursements from income would be in the interests of the beneficiaries. (c) Another ordinary expense incurred in connection with administration, management, or preservation of property and distribution of income, including interest, an ordinary repair, regularly recurring tax assessed against principal, and an expense of an accounting, judicial or nonjudicial proceeding, or other matter that involves primarily an income interest, to the extent income is sufficient. (d) A premium on insurance covering loss of a principal asset or income from or use of the asset. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  131. 16361.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary must pay specified trust expenses from principal, unless Section 16364 or Section 16370(c)(2) provides otherwise.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16361. (a) Subject to Section 16364, and except as otherwise provided in paragraph (2) of subdivision (c) of Section 16370, a fiduciary shall disburse from principal all of the following: (1) The balance of the disbursements described in paragraph (1) of subdivision (a) of, and subdivision (c) of, Section 16360, after application of subdivision (b) of Section 16360. (2) The fiduciary’s compensation calculated on principal as a fee for acceptance, distribution, or termination. (3) A payment of an expense to prepare for or execute a sale or other disposition of property. (4) A payment on the principal of a trust debt. (5) A payment of an expense of an accounting, judicial or nonjudicial proceeding, or other matter that involves primarily principal, including a proceeding to construe the terms of the trust or protect property. (6) A payment of a premium for insurance, including title insurance, not described in subdivision (d) of Section 16360, of which the fiduciary is the owner and beneficiary. (7) A payment of an estate or inheritance tax or other tax imposed because of the death of a decedent, including penalties, apportioned to the trust. (8) The following payments: (A) A payment related to environmental matters, including: (i) Reclamation. (ii) Assessment of environmental conditions. (iii) Remedying and removing environmental contamination. (iv) Monitoring remedial activities and the release of substances. (v) Preventing future releases of substances. (vi) Collecting amounts from persons liable or potentially liable for the costs of activities described in clauses (i) to (v), inclusive. (vii) Penalties imposed under environmental laws or regulations. (viii) Other actions to comply with environmental laws or regulations. (ix) Statutory or common law claims by third parties. (x) Defending claims based on environmental matters. (B) A payment for a premium for insurance for matters described in subparagraph (A). (9) Payments representing extraordinary repairs or expenses incurred in making a capital improvement to trust property, including special assessments. (b) If a principal asset is encumbered with an obligation that requires income from the asset to be paid directly to a creditor, the fiduciary shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  132. 16362.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary may transfer a reasonable amount of net money receipts from a depreciating principal asset to principal, but may not transfer any amount for depreciation in listed cases.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16362. (a) For purposes of this section, “depreciation” means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a tangible asset having a useful life of more than one year. (b) A fiduciary may transfer to principal a reasonable amount of the net money receipts from a principal asset that is subject to depreciation, but may not transfer any amount for depreciation: (1) Of the part of real property used or available for use by a beneficiary as a residence. (2) Of tangible personal property held or made available for the personal use or enjoyment of a beneficiary. (3) Under this section, to the extent the fiduciary accounts under either of the following: (A) Section 16349, for the asset. (B) Section 16342, for the business or other activity in which the asset is used. (c) An amount transferred to principal under this section need not be separately held. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  133. 16363.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary may move an appropriate amount from principal to income to reimburse income for certain income disbursements.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16363. (a) If a fiduciary makes or expects to make an income disbursement described in subdivision (b), the fiduciary may transfer an appropriate amount from principal to income in one or more accounting periods to reimburse income. (b) To the extent the fiduciary has not been, and does not expect to be, reimbursed by a third party, income disbursements to which subdivision (a) applies include all of the following: (1) An amount chargeable to principal, but paid from income because principal is illiquid. (2) A disbursement made to prepare property for sale, including improvements and commissions. (3) A disbursement described in Section 16360. (c) If an asset whose ownership gives rise to an income disbursement becomes subject to a successive interest after an income interest ends, the fiduciary may continue to make transfers under subdivision (a). (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  134. 16364.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary may move an appropriate amount from income to principal to reimburse principal or build a reserve for future principal disbursements, and may keep making those transfers in certain later-interest situations.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16364. (a) If a fiduciary makes or expects to make a principal disbursement described in subdivision (b), the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or provide a reserve for future principal disbursements. (b) To the extent a fiduciary has not been, and does not expect to be, reimbursed by a third party, principal disbursements to which subdivision (a) applies include all of the following: (1) An amount chargeable to income but paid from principal because income is not sufficient. (2) The cost of an improvement to principal, whether a change to an existing asset or the construction of a new asset, including a special assessment. (3) A disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and commissions. (4) A periodic payment on an obligation secured by a principal asset, to the extent the amount transferred from income to principal for depreciation is less than the periodic payment. (5) A disbursement described in subdivision (a) of Section 16361. (c) If an asset whose ownership gives rise to a principal disbursement becomes subject to a successive interest after an income interest ends, the fiduciary may continue to make transfers under subdivision (a). (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  135. 16365.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary must pay certain taxes from income or principal depending on what the tax is based on, and must adjust receipts when a beneficiary-related deduction reduces the tax.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16365. (a) A tax required to be paid by a fiduciary that is based on receipts allocated to income shall be paid from income. (b) A tax required to be paid by a fiduciary that is based on receipts allocated to principal shall be paid from principal, even if the tax is called an income tax by the taxing authority. (c) Subject to subdivision (d) and Sections 16363, 16364, and 16366, a tax required to be paid by a fiduciary on a share of an entity’s taxable income in an accounting period shall be paid from the following: (1) Income and principal, proportionately to the allocation between income and principal of receipts from the entity in the period. (2) Principal, to the extent the tax exceeds the receipts from the entity in the period. (d) After applying subdivisions (a) to (c), inclusive, a fiduciary shall adjust income or principal receipts, to the extent the taxes the fiduciary pays are reduced because of a deduction for a payment made to a beneficiary. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  136. 16366.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary may adjust income and principal for certain tax-related shifts, and must reimburse principal in a specific estate-tax deduction scenario.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16366. (a) A fiduciary may make an adjustment between income and principal to offset the shifting of economic interests or tax benefits between current income beneficiaries and successor beneficiaries that arises from any of the following: (1) An election or decision the fiduciary makes regarding a tax matter, other than a decision to claim an income tax deduction to which subdivision (b) applies. (2) An income tax or other tax imposed on the fiduciary or a beneficiary as a result of a transaction involving the fiduciary or a distribution by the fiduciary. (3) Ownership by the fiduciary of an interest in an entity, a part of whose taxable income, whether or not distributed, is includable in the taxable income of the fiduciary or a beneficiary. (b) If the amount of an estate tax marital or charitable deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes and, as a result, estate taxes paid from principal are increased and income taxes paid by the fiduciary or a beneficiary are decreased, the fiduciary shall charge each beneficiary that benefits from the decrease in income tax to reimburse the principal from which the increase in estate tax is paid. The total reimbursement shall equal the increase in the estate tax, to the extent the principal used to pay the increase would have qualified for a marital or charitable deduction but for the payment. The share of the reimbursement for each fiduciary or beneficiary whose income taxes are reduced shall be the same as its share of the total decrease in income tax. (c) A fiduciary that charges a beneficiary under subdivision (b) may offset the charge by obtaining payment from the beneficiary, withholding an amount from future distributions to the beneficiary, or adopting another method or combination of methods. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  137. 16367.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    By default, distributions to beneficiaries are treated as paid from trust income and gains before principal, unless the governing instrument, the trustee, or a court says otherwise.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 5. Allocation of Disbursements [16360 - 16367] ( Article 5 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16367. Unless otherwise provided by the governing instrument, determined by the trustee, or ordered by the court, distributions to beneficiaries shall be considered paid in the following order from the following sources: (a) From net taxable income other than capital gains. (b) From net realized short-term capital gains. (c) From net realized long-term capital gains. (d) From tax-exempt and other income. (e) From principal of the trust. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  138. 16370.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 6. Death of Individual or Termination of Income Interest [16370 - 16371] ( Article 6 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary must determine and distribute certain income and principal receipts when an estate or trust is created at death or when a trust income interest ends.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 6. Death of Individual or Termination of Income Interest [16370 - 16371] ( Article 6 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16370. (a) This section applies when either of the following occurs: (1) The death of an individual results in the creation of an estate or trust. (2) An income interest in a trust terminates, whether the trust continues or is distributed. (b) A fiduciary of an estate or trust with an income interest that terminates shall determine, under subdivision (g) and Article 4 (commencing with Section 16340), Article 5 (commencing with Section 16360), and Article 7 (commencing with Section 16375), the amount of net income and net principal receipts received from property specifically given to a beneficiary. The fiduciary shall distribute the net income and net principal receipts to the beneficiary that is to receive the specific property. (c) A fiduciary shall determine the income and net income of an estate or income interest in a trust that terminates, other than the amount of net income determined under subdivision (b), under Article 4 (commencing with Section 16340), Article 5 (commencing with Section 16360), and Article 7 (commencing with Section 16375), and by doing the following: (1) Including in net income all income from property used or sold to discharge liabilities. (2) Paying, from income or principal, in the fiduciary’s discretion, fees of attorneys, accountants, and fiduciaries, court costs and other expenses of administration, and interest on estate and inheritance taxes and other taxes imposed because of the decedent’s death, but the fiduciary may pay the expenses from income of property passing to a trust for which the fiduciary claims a federal estate tax marital or charitable deduction, only to the extent that either of the following conditions is met: (A) The payment of the expenses from income will not cause the reduction or loss of the deduction. (B) The fiduciary makes an adjustment under subdivision (b) of Section 16366. (3) Paying from principal other disbursements made or incurred in connection with the settlement of the estate or the winding up of an income interest that terminates, including both of the following: (A) To the extent authorized by the decedent’s will, the terms of the trust, or applicable law, debts, funeral expenses, disposition of remains, family allowances, estate and inheritance taxes, and other taxes imposed because of the decedent’s death. (B) Related penalties that are apportioned by the decedent’s will, the terms of the trust, or applicable law, to the estate or income interest that terminates. (d) A specific gift distributable under a trust shall carry with it the same benefits and burdens as a specific devise under a will, as set forth in Chapter 8 (commencing with Section 12000) of Part 10 of Division 7. (e) A general pecuniary gift, an annuity, or a gift of maintenance distributable under a trust carries with it income and bears interest in the same manner as a general pecuniary devise, an annuity, or a gift of maintenance under a will, as set forth in Chapter 8 (commencing with Section 12000) of Part 10 of Division 7. (f) A fiduciary shall distribute net income remaining after payments required by subdivisions (d) and (e) in the manner described in Section 16371 to all other beneficiaries, including a beneficiary that receives a pecuniary amount in trust, even if the beneficiary holds an unqualified power to withdraw assets from the trust or other presently exercisable general power of appointment over the trust. (g) A fiduciary may not reduce principal or income receipts from property described in subdivision (b) because of a payment described in Section 16360 or 16361 to the extent the decedent’s will, the terms of the trust, or applicable law requires the fiduciary to make the payment from assets other than the property or to the extent the fiduciary recovers or expects to recover the payment from a third party. The net income and principal receipts from the property shall be determined by including the amount the fiduciary receives or pays regarding the property, whether the amount accrued or became due before, on, or after the date of the decedent’s death or an income interest’s terminating event, and making a reasonable provision for an amount the estate or income interest may become obligated to pay after the property is distributed. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  139. 16371.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 6. Death of Individual or Termination of Income Interest [16370 - 16371] ( Article 6 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    Beneficiaries covered by this section are entitled to receive shares of net income based on their fractional interest in undistributed principal assets, and the fiduciary must keep records if it does not fully distribute the collected net income.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 6. Death of Individual or Termination of Income Interest [16370 - 16371] ( Article 6 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16371. (a) Except to the extent that Article 3 (commencing with Section 16330) applies for a beneficiary that is a trust, each beneficiary described in subdivision (f) of Section 16370 is entitled to receive a share of the net income equal to the beneficiary’s fractional interest in undistributed principal assets, using values as of the distribution date. If a fiduciary makes more than one distribution of assets to beneficiaries to which this section applies, each beneficiary, including a beneficiary that does not receive part of the distribution, is entitled, as of each distribution date, to a share of the net income the fiduciary received after the decedent’s death, an income interest’s other terminating event, or the preceding distribution by the fiduciary. (b) In determining a beneficiary’s share of net income under subdivision (a), the following rules apply: (1) The beneficiary is entitled to receive a share of the net income equal to the beneficiary’s fractional interest in the undistributed principal assets immediately before the distribution date. (2) The beneficiary’s fractional interest under paragraph (1) shall be calculated on the aggregate value of the assets as of the distribution date without reducing the value by any unpaid principal obligation, and without regard to either of the following: (A) Property specifically given to a beneficiary under the decedent’s will or the terms of the trust. (B) Property required to pay pecuniary amounts not in trust. (3) The distribution date under paragraph (1) may be the date as of which the fiduciary calculates the value of the assets, if that date is reasonably near the date on which the assets are distributed. (c) To the extent a fiduciary does not distribute under this section all the collected but undistributed net income to each beneficiary as of a distribution date, the fiduciary shall maintain records showing the interest of each beneficiary in the net income. (d) If this section applies to income from an asset, a fiduciary may apply the rules in this section to net gain or loss realized from the disposition of the asset after the decedent’s death, an income interest’s terminating event, or the preceding distribution by the fiduciary. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  140. 16375.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 7. Apportionment at Beginning and End of Income Interest [16375 - 16377] ( Article 7 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    An income beneficiary is entitled to net income under the trust terms starting when the income interest begins.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 7. Apportionment at Beginning and End of Income Interest [16375 - 16377] ( Article 7 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16375. (a) An income beneficiary is entitled to net income in accordance with the terms of the trust from the date an income interest begins. The income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to either of the following: (1) The trust for the current income beneficiary. (2) A successive interest for a successor beneficiary. (b) An asset becomes subject to a trust under paragraph (1) of subdivision (a) as follows: (1) For an asset that is transferred to the trust during the settlor’s life, on the date the asset is transferred. (2) For an asset that becomes subject to the trust because of a decedent’s death, on the date of the decedent’s death, even if there is an intervening period of administration of the decedent’s estate. (3) For an asset that is transferred to a fiduciary by a third party because of a decedent’s death, on the date of the decedent’s death. (c) An asset becomes subject to a successive interest under paragraph (2) of subdivision (a) on the day after the preceding income interest ends, as determined under subdivision (d), even if there is an intervening period of administration to wind up the preceding income interest. (d) An income interest ends on the day before an income beneficiary dies or another terminating event occurs or on the last day of a period during which there is no beneficiary to which a fiduciary may, or is required to, distribute income. (Repealed and added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  141. 16376.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 7. Apportionment at Beginning and End of Income Interest [16375 - 16377] ( Article 7 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    A fiduciary must allocate certain receipts and disbursements between principal and income based on due date and whether the item is periodic.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 7. Apportionment at Beginning and End of Income Interest [16375 - 16377] ( Article 7 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16376. (a) A fiduciary shall allocate an income receipt or disbursement, other than a receipt to which subdivision (b) of Section 16370 applies, to principal if its due date occurs before the date on which either of the following occurs: (1) For an estate, the decedent died. (2) For a trust or successive interest, an income interest begins. (b) If the due date of a periodic income receipt or disbursement occurs on or after the date on which a decedent died or an income interest begins, a fiduciary shall allocate the receipt or disbursement to income. (c) If an income receipt or disbursement is not periodic or has no due date, a fiduciary shall treat the receipt or disbursement under this section as accruing from day to day. The fiduciary shall allocate to principal the portion of the receipt or disbursement accruing before the date on which a decedent died or an income interest begins, and to income the balance. (d) A receipt or disbursement is periodic under subdivisions (b) and (c) under either of the following circumstances: (1) The receipt or disbursement shall be paid at regular intervals under an obligation to make payments. (2) The payor customarily makes payments at regular intervals. (e) An item of income or obligation is due under this section on the date the payor is required to make a payment. If a payment date is not stated, there is no due date. (f) Distributions to shareholders or other owners from an entity to which Section 16340 applies are due at one of the following times: (1) On the date fixed by or on behalf of the entity for determining the persons entitled to receive the distribution. (2) If a date is not fixed, on the date of the decision by or on behalf of the entity to make the distribution. (3) If a date is not fixed and the fiduciary does not know the date of the decision by or on behalf of the entity to make the distribution, on the date the fiduciary learns of the decision. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  142. 16377.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 7. Apportionment at Beginning and End of Income Interest [16375 - 16377] ( Article 7 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    This section defines “undistributed income” and tells a fiduciary how to distribute or allocate it when an income interest ends.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 7. Apportionment at Beginning and End of Income Interest [16375 - 16377] ( Article 7 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16377. (a) For purposes of this section, “undistributed income” means net income received on or before the date on which an income interest ends. “Undistributed income” does not include an item of income or expense that is due or accrued, or net income that has been added or is required to be added to principal under the terms of the trust. (b) Except as otherwise provided in subdivision (c), when a mandatory income interest of a beneficiary ends, the fiduciary shall pay the beneficiary’s share of the undistributed income that is not disposed of under the terms of the trust to the beneficiary or, if the beneficiary does not survive the date the interest ends, to the beneficiary’s estate. (c) If a beneficiary has an unqualified power to withdraw more than 5 percent of the value of a trust immediately before an income interest ends, both of the following shall apply: (1) The fiduciary shall allocate to principal the undistributed income from the portion of the trust that may be withdrawn. (2) Subdivision (b) applies only to the balance of the undistributed income. (d) When a fiduciary’s obligation to pay a fixed annuity or a fixed fraction of the value of assets ends, the fiduciary shall prorate the final payment as required to preserve an income tax, gift tax, estate tax, or other tax benefit. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  143. 16380.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 8. Miscellaneous Provisions [16380 - 16383] ( Article 8 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    This section says that when applying and interpreting this uniform act, attention should be given to promoting uniformity with other states that enact it.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 8. Miscellaneous Provisions [16380 - 16383] ( Article 8 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16380. In applying and construing this uniform act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  144. 16381.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 8. Miscellaneous Provisions [16380 - 16383] ( Article 8 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    This chapter changes how the federal Electronic Signatures in Global and National Commerce Act applies, but it does not change Section 101(c) of that act or authorize electronic delivery of certain notices under Section 103(b).

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 8. Miscellaneous Provisions [16380 - 16383] ( Article 8 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16381. This chapter modifies, limits, and supersedes the Electronic Signatures in Global and National Commerce Act (15 U.S.C. Sec. 7001 et seq.), but does not modify, limit, or supersede Section 101(c) of that act (15 U.S.C. Sec. 7001(c)), or authorize electronic delivery of any of the notices described in Section 103(b) of that act (15 U.S.C. Sec. 7003(b)). (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  145. 16382.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 8. Miscellaneous Provisions [16380 - 16383] ( Article 8 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    This chapter applies to trusts or estates existing or created on or after the chapter’s effective date, unless the trust terms or the chapter expressly provide otherwise.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 8. Miscellaneous Provisions [16380 - 16383] ( Article 8 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16382. This chapter applies to a trust or estate existing or created on or after the effective date of this chapter, except as otherwise expressly provided in the terms of the trust or this chapter. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  146. 16383.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 8. Miscellaneous Provisions [16380 - 16383] ( Article 8 added by Stats. 2023, Ch. 28, Sec. 2. )

    Verify source ↗

    If part of this chapter is invalid, the rest still remains in effect if it can work without the invalid part.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320 - 16383] ( Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2. ) ## ARTICLE 8. Miscellaneous Provisions [16380 - 16383] ( Article 8 added by Stats. 2023, Ch. 28, Sec. 2. ) ## 16383. If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. (Added by Stats. 2023, Ch. 28, Sec. 2. (SB 522) Effective January 1, 2024.)
  147. 16400.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. Liability for Breach of Trust [16400 - 16403] ( Article 1 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    If a trustee violates any duty owed to a beneficiary, that is a breach of trust.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. Liability for Breach of Trust [16400 - 16403] ( Article 1 enacted by Stats. 1990, Ch. 79. ) ## 16400. A violation by the trustee of any duty that the trustee owes the beneficiary is a breach of trust. (Enacted by Stats. 1990, Ch. 79.)
  148. 16401.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. Liability for Breach of Trust [16400 - 16403] ( Article 1 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee is generally not liable to a beneficiary for an agent’s acts or omissions, except in listed situations.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. Liability for Breach of Trust [16400 - 16403] ( Article 1 enacted by Stats. 1990, Ch. 79. ) ## 16401. (a) Except as provided in subdivision (b), the trustee is not liable to the beneficiary for the acts or omissions of an agent. (b) Under any of the circumstances described in this subdivision, the trustee is liable to the beneficiary for an act or omission of an agent employed by the trustee in the administration of the trust that would be a breach of the trust if committed by the trustee: (1) Where the trustee directs the act of the agent. (2) Where the trustee delegates to the agent the authority to perform an act that the trustee is under a duty not to delegate. (3) Where the trustee does not use reasonable prudence in the selection of the agent or the retention of the agent selected by the trustee. (4) Where the trustee does not periodically review the agent’s overall performance and compliance with the terms of the delegation. (5) Where the trustee conceals the act of the agent. (6) Where the trustee neglects to take reasonable steps to compel the agent to redress the wrong in a case where the trustee knows of the agent’s acts or omissions. (c) The liability of a trustee for acts or omissions of agents that occurred before July 1, 1987, is governed by prior law and not by this section. (Amended by Stats. 1995, Ch. 63, Sec. 9. Effective January 1, 1996.)
  149. 16402.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. Liability for Breach of Trust [16400 - 16403] ( Article 1 enacted by Stats. 1990, Ch. 79. )

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    A trustee is generally not liable to a beneficiary for a breach of trust committed by a cotrustee, unless one of the listed exceptions applies.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. Liability for Breach of Trust [16400 - 16403] ( Article 1 enacted by Stats. 1990, Ch. 79. ) ## 16402. (a) Except as provided in subdivision (b), a trustee is not liable to the beneficiary for a breach of trust committed by a cotrustee. (b) A trustee is liable to the beneficiary for a breach committed by a cotrustee under any of the following circumstances: (1) Where the trustee participates in a breach of trust committed by the cotrustee. (2) Where the trustee improperly delegates the administration of the trust to the cotrustee. (3) Where the trustee approves, knowingly acquiesces in, or conceals a breach of trust committed by the cotrustee. (4) Where the trustee negligently enables the cotrustee to commit a breach of trust. (5) Where the trustee neglects to take reasonable steps to compel the cotrustee to redress a breach of trust in a case where the trustee knows or has information from which the trustee reasonably should have known of the breach. (c) The liability of a trustee for acts or omissions of a cotrustee that occurred before July 1, 1987, is governed by prior law and not by this section. (Enacted by Stats. 1990, Ch. 79.)
  150. 16403.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. Liability for Breach of Trust [16400 - 16403] ( Article 1 enacted by Stats. 1990, Ch. 79. )

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    A successor trustee is generally not liable for a predecessor trustee’s breach of trust, but liability can arise in specified situations.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 1. Liability for Breach of Trust [16400 - 16403] ( Article 1 enacted by Stats. 1990, Ch. 79. ) ## 16403. (a) Except as provided in subdivision (b), a successor trustee is not liable to the beneficiary for a breach of trust committed by a predecessor trustee. (b) A successor trustee is liable to the beneficiary for breach of trust involving acts or omissions of a predecessor trustee in any of the following circumstances: (1) Where the successor trustee knows or has information from which the successor trustee reasonably should have known of a situation constituting a breach of trust committed by the predecessor trustee and the successor trustee improperly permits it to continue. (2) Where the successor trustee neglects to take reasonable steps to compel the predecessor trustee to deliver the trust property to the successor trustee. (3) Where the successor trustee neglects to take reasonable steps to redress a breach of trust committed by the predecessor trustee in a case where the successor trustee knows or has information from which the successor trustee reasonably should have known of the predecessor trustee’s breach. (c) The liability of a trustee for acts or omissions of a predecessor trustee that occurred before July 1, 1987, is governed by prior law and not by this section. (Enacted by Stats. 1990, Ch. 79.)
  151. 16420.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Remedies for Breach of Trust [16420 - 16421] ( Article 2 enacted by Stats. 1990, Ch. 79. )

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    A beneficiary or cotrustee may start a proceeding if a trustee commits or threatens a breach of trust.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Remedies for Breach of Trust [16420 - 16421] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16420. (a) If a trustee commits a breach of trust, or threatens to commit a breach of trust, a beneficiary or cotrustee of the trust may commence a proceeding for any of the following purposes that is appropriate: (1) To compel the trustee to perform the trustee’s duties. (2) To enjoin the trustee from committing a breach of trust. (3) To compel the trustee to redress a breach of trust by payment of money or otherwise. (4) To appoint a receiver or temporary trustee to take possession of the trust property and administer the trust. (5) To remove the trustee. (6) Subject to Section 18100, to set aside acts of the trustee. (7) To reduce or deny compensation of the trustee. (8) Subject to Section 18100, to impose an equitable lien or a constructive trust on trust property. (9) Subject to Section 18100, to trace trust property that has been wrongfully disposed of and recover the property or its proceeds. (b) The provision of remedies for breach of trust in subdivision (a) does not prevent resort to any other appropriate remedy provided by statute or the common law. (Enacted by Stats. 1990, Ch. 79.)
  152. 16421.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Remedies for Breach of Trust [16420 - 16421] ( Article 2 enacted by Stats. 1990, Ch. 79. )

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    A beneficiary’s remedies against a trustee are only available in equity.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 2. Remedies for Breach of Trust [16420 - 16421] ( Article 2 enacted by Stats. 1990, Ch. 79. ) ## 16421. The remedies of a beneficiary against the trustee are exclusively in equity. (Enacted by Stats. 1990, Ch. 79.)
  153. 16440.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Measure of Liability for Breach of Trust [16440 - 16442] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    A trustee who breaches trust is chargeable for the resulting loss, profit, or lost profit, with interest. A court may excuse the trustee in whole or part if the trustee acted reasonably and in good faith and equity supports relief.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Measure of Liability for Breach of Trust [16440 - 16442] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16440. (a) If the trustee commits a breach of trust, the trustee is chargeable with any of the following that is appropriate under the circumstances: (1) Any loss or depreciation in value of the trust estate resulting from the breach of trust, with interest. (2) Any profit made by the trustee through the breach of trust, with interest. (3) Any profit that would have accrued to the trust estate if the loss of profit is the result of the breach of trust. (b) If the trustee has acted reasonably and in good faith under the circumstances as known to the trustee, the court, in its discretion, may excuse the trustee in whole or in part from liability under subdivision (a) if it would be equitable to do so. (Enacted by Stats. 1990, Ch. 79.)
  154. 16441.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Measure of Liability for Breach of Trust [16440 - 16442] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    If a trustee is liable for interest under Section 16440, the trustee must pay the greater of interest at the legal judgment rate or the interest actually received. A court may excuse some or all of that liability if the trustee acted reasonably and in good faith and equity supports relief.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Measure of Liability for Breach of Trust [16440 - 16442] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16441. (a) If the trustee is liable for interest pursuant to Section 16440, the trustee is liable for the greater of the following amounts: (1) The amount of interest that accrues at the legal rate on judgments in effect during the period when the interest accrued. (2) The amount of interest actually received. (b) If the trustee has acted reasonably and in good faith under the circumstances as known to the trustee, the court, in its discretion, may excuse the trustee in whole or in part from liability under subdivision (a) if it would be equitable to do so. (Amended by Stats. 1998, Ch. 77, Sec. 5. Effective January 1, 1999.)
  155. 16442.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Measure of Liability for Breach of Trust [16440 - 16442] ( Article 3 enacted by Stats. 1990, Ch. 79. )

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    The article’s liability rules for breach of trust do not block use of any other remedy available under statutory or common law.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 3. Measure of Liability for Breach of Trust [16440 - 16442] ( Article 3 enacted by Stats. 1990, Ch. 79. ) ## 16442. The provisions in this article for liability of a trustee for breach of trust do not prevent resort to any other remedy available under the statutory or common law. (Enacted by Stats. 1990, Ch. 79.)
  156. 16460.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Limitations and Exculpation [16460 - 16465] ( Article 4 enacted by Stats. 1990, Ch. 79. )

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    A beneficiary must bring a breach-of-trust claim within three years, either after receiving a written account/report that adequately discloses the claim or after discovering, or reasonably should have discovered, the claim.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Limitations and Exculpation [16460 - 16465] ( Article 4 enacted by Stats. 1990, Ch. 79. ) ## 16460. (a) Unless a claim is previously barred by adjudication, consent, limitation, or otherwise: (1) If a beneficiary has received an interim or final account in writing, or other written report, that adequately discloses the existence of a claim against the trustee for breach of trust, the claim is barred as to that beneficiary unless a proceeding to assert the claim is commenced within three years after receipt of the account or report. An account or report adequately discloses existence of a claim if it provides sufficient information so that the beneficiary knows of the claim or reasonably should have inquired into the existence of the claim. (2) If an interim or final account in writing or other written report does not adequately disclose the existence of a claim against the trustee for breach of trust or if a beneficiary does not receive any written account or report, the claim is barred as to that beneficiary unless a proceeding to assert the claim is commenced within three years after the beneficiary discovered, or reasonably should have discovered, the subject of the claim. (b) For the purpose of subdivision (a), a beneficiary is deemed to have received an account or report, as follows: (1) In the case of an adult who is reasonably capable of understanding the account or report, if it is received by the adult personally. (2) In the case of an adult who is not reasonably capable of understanding the account or report, if it is received by the person’s legal representative, including a guardian ad litem or other person appointed for this purpose. (3) In the case of a minor, if it is received by the minor’s guardian or, if the minor does not have a guardian, if it is received by the minor’s parent so long as the parent does not have a conflict of interest. (c) A written account or report under this section may, but need not, satisfy the requirements of Section 16061 or 16063 or any other provision. (Amended by Stats. 1996, Ch. 862, Sec. 40. Effective January 1, 1997.)
  157. 16461.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Limitations and Exculpation [16460 - 16465] ( Article 4 enacted by Stats. 1990, Ch. 79. )

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    This section limits when a trust instrument can relieve a trustee of liability and sets rules for beneficiary objections to account or report items.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Limitations and Exculpation [16460 - 16465] ( Article 4 enacted by Stats. 1990, Ch. 79. ) ## 16461. (a) Except as provided in subdivision (b), (c), or (d), the trustee can be relieved of liability for breach of trust by provisions in the trust instrument. (b) A provision in the trust instrument is not effective to relieve the trustee of liability (1) for breach of trust committed intentionally, with gross negligence, in bad faith, or with reckless indifference to the interest of the beneficiary, or (2) for any profit that the trustee derives from a breach of trust. (c) Subject to subdivision (b), a provision in a trust instrument that releases the trustee from liability if a beneficiary fails to object to an item in an interim or final account or other written report within a specified time period is effective only if all of the following conditions are met: (1) The account or report sets forth the item. (2) The period specified in the trust instrument for the beneficiary to object is not less than 180 days, or the trustee elects to follow the procedure provided in subdivision (d). (3) Written notice in 12-point boldface type is provided to a beneficiary with the account or report in the following form: ## NOTICE TO BENEFICIARIES YOU HAVE [insert “180 days” or the period specified in the trust instrument, whichever is longer] FROM YOUR RECEIPT OF THIS ACCOUNT OR REPORT TO MAKE AN OBJECTION TO ANY ITEM SET FORTH IN THIS ACCOUNT OR REPORT. ANY OBJECTION YOU MAKE MUST BE IN WRITING; IT MUST BE DELIVERED TO THE TRUSTEE WITHIN THE PERIOD STATED ABOVE; AND IT MUST STATE YOUR OBJECTION. YOUR FAILURE TO DELIVER A WRITTEN OBJECTION TO THE TRUSTEE WITHIN THE PERIOD STATED ABOVE WILL PERMANENTLY PREVENT YOU FROM LATER ASSERTING THIS OBJECTION AGAINST THE TRUSTEE. IF YOU DO MAKE AN OBJECTION TO THE TRUSTEE, THE THREE-YEAR PERIOD PROVIDED IN SECTION 16460 OF THE PROBATE CODE FOR COMMENCEMENT OF LITIGATION WILL APPLY TO CLAIMS BASED ON YOUR OBJECTION AND WILL BEGIN TO RUN ON THE DATE THAT YOU RECEIVE THIS ACCOUNT OR REPORT. (d) A provision in a trust instrument that provides for a period less than 180 days to object to an item in an account or report shall be ineffective to release the trustee from liability. A trustee of a trust created by an instrument with an ineffective period may elect to be governed by the provisions of subdivision (c) by complying with the requirements of subdivision (c), except that “180 days” shall be substituted in the notice form for the ineffective period. (e) Subject to subdivision (b), a beneficiary who fails to object in writing to an account or report that complies with the requirements of subdivision (c) within the specified, valid period shall be barred from asserting any claim against the trustee regarding an item that is adequately disclosed in the account or report. An item is adequately disclosed if the disclosure regarding the item meets the requirements of paragraph (1) of subdivision (a) of Section 16460. (f) Except as provided in subdivision (a) of Section 16460, the trustee may not be released from liability as to any claim based on a written objection made by a beneficiary if the objection is delivered to the trustee within the specified, effective period. If a beneficiary has filed a written objection to an account or report that complies with the requirements of subdivision (c) within the specified, valid period that concerns an item that affects any other beneficiary of the trust, any affected beneficiary may join in the objection anytime within the specified, valid period or while the resolution of the objection is pending, whichever is later. This section is not intended to establish a class of beneficiaries for actions on an account and report or provide that the action of one beneficiary is for the benefit of all beneficiaries. This section does not create a duty for any trustee to notify beneficiaries of objections or resolution of objections. (g) Provided that a beneficiary has filed a written objection to an account or report that complies with the requirements of subdivision (c) within the specified, valid period, a supplemental written objection may be delivered in the same manner as the objection not later than 180 days after the receipt of the account or report or no later than the period specified in the trust instrument, whichever is longer. (h) Compliance with subdivision (c) excuses compliance with paragraph (6) of subdivision (a) of Section 16063 for the account or report to which that notice relates. (i) Subject to subdivision (b), if proper notice has been given and a beneficiary has not made a timely objection, the trustee is not liable for any other claims adequately disclosed by any item in the account or report. (j) Subdivisions (c) to (i), inclusive, apply to all accounts and reports submitted after the effective date of the act adding these subdivisions. (Amended by Stats. 2004, Ch. 538, Sec. 1. Effective January 1, 2005.)
  158. 16462.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Limitations and Exculpation [16460 - 16465] ( Article 4 enacted by Stats. 1990, Ch. 79. )

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    A trustee of a revocable trust is not liable to a beneficiary for acts or omissions taken under written directions from the person who can revoke the trust, including a delegated director.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Limitations and Exculpation [16460 - 16465] ( Article 4 enacted by Stats. 1990, Ch. 79. ) ## 16462. (a) Notwithstanding Section 16461, a trustee of a revocable trust is not liable to a beneficiary for any act performed or omitted pursuant to written directions from the person holding the power to revoke, including a person to whom the power to direct the trustee is delegated. (b) Subdivision (a) applies to a trust that is revocable in part with respect to the interest of the beneficiary in that part of the trust property. (Enacted by Stats. 1990, Ch. 79.)
  159. 16463.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Limitations and Exculpation [16460 - 16465] ( Article 4 enacted by Stats. 1990, Ch. 79. )

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    A beneficiary generally cannot hold a trustee liable for a breach of trust if the beneficiary consented, but several exceptions apply.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Limitations and Exculpation [16460 - 16465] ( Article 4 enacted by Stats. 1990, Ch. 79. ) ## 16463. (a) Except as provided in subdivisions (b) and (c), a beneficiary may not hold the trustee liable for an act or omission of the trustee as a breach of trust if the beneficiary consented to the act or omission before or at the time of the act or omission. (b) The consent of the beneficiary does not preclude the beneficiary from holding the trustee liable for a breach of trust in any of the following circumstances: (1) Where the beneficiary was under an incapacity at the time of the consent or of the act or omission. (2) Where the beneficiary at the time consent was given did not know of his or her rights and of the material facts (A) that the trustee knew or should have known and (B) that the trustee did not reasonably believe that the beneficiary knew. (3) Where the consent of the beneficiary was induced by improper conduct of the trustee. (c) Where the trustee has an interest in the transaction adverse to the interest of the beneficiary, the consent of the beneficiary does not preclude the beneficiary from holding the trustee liable for a breach of trust under any of the circumstances described in subdivision (b) or where the transaction to which the beneficiary consented was not fair and reasonable to the beneficiary. (Enacted by Stats. 1990, Ch. 79.)
  160. 16464.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Limitations and Exculpation [16460 - 16465] ( Article 4 enacted by Stats. 1990, Ch. 79. )

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    A beneficiary may be prevented from holding a trustee liable for a breach of trust if the beneficiary signs a release or contract that discharges the trustee’s liability, but not in several listed situations.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Limitations and Exculpation [16460 - 16465] ( Article 4 enacted by Stats. 1990, Ch. 79. ) ## 16464. (a) Except as provided in subdivision (b), a beneficiary may be precluded from holding the trustee liable for a breach of trust by the beneficiary’s release or contract effective to discharge the trustee’s liability to the beneficiary for that breach. (b) A release or contract is not effective to discharge the trustee’s liability for a breach of trust in any of the following circumstances: (1) Where the beneficiary was under an incapacity at the time of making the release or contract. (2) Where the beneficiary did not know of his or her rights and of the material facts (A) that the trustee knew or reasonably should have known and (B) that the trustee did not reasonably believe that the beneficiary knew. (3) Where the release or contract of the beneficiary was induced by improper conduct of the trustee. (4) Where the transaction involved a bargain with the trustee that was not fair and reasonable. (Enacted by Stats. 1990, Ch. 79.)
  161. 16465.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Limitations and Exculpation [16460 - 16465] ( Article 4 enacted by Stats. 1990, Ch. 79. )

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    If a trustee in breach of trust enters a transaction, the beneficiary may choose to reject or affirm it. If the beneficiary affirms, they generally cannot later reject the transaction or hold the trustee liable for losses after the transaction, unless subdivision (b) applies.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 4. Liability of Trustees to Beneficiaries [16400 - 16465] ( Chapter 4 enacted by Stats. 1990, Ch. 79. ) ## ARTICLE 4. Limitations and Exculpation [16460 - 16465] ( Article 4 enacted by Stats. 1990, Ch. 79. ) ## 16465. (a) Except as provided in subdivision (b), if the trustee, in breach of trust, enters into a transaction that the beneficiary may at his or her option reject or affirm, and the beneficiary affirms the transaction, the beneficiary shall not thereafter reject it and hold the trustee liable for any loss occurring after the trustee entered into the transaction. (b) The affirmance of a transaction by the beneficiary does not preclude the beneficiary from holding a trustee liable for a breach of trust if, at the time of the affirmance, any of the following circumstances existed: (1) The beneficiary was under an incapacity. (2) The beneficiary did not know of his or her rights and of the material facts (A) that the trustee knew or reasonably should have known and (B) that the trustee did not reasonably believe that the beneficiary knew. (3) The affirmance was induced by improper conduct of the trustee. (4) The transaction involved a bargain with the trustee that was not fair and reasonable. (Enacted by Stats. 1990, Ch. 79.)
  162. 16500.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 5. Notice of Proposed Action by Trustee [16500 - 16504] ( Chapter 5 added by Stats. 2004, Ch. 54, Sec. 2. )

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    A trustee may give notice of a proposed action for matters covered by the listed trust-law chapters, subject to Section 16501(d).

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 5. Notice of Proposed Action by Trustee [16500 - 16504] ( Chapter 5 added by Stats. 2004, Ch. 54, Sec. 2. ) ## 16500. Subject to subdivision (d) of Section 16501, a trustee may give a notice of proposed action regarding a matter governed by Chapter 2 (commencing with Section 16200) or Chapter 3 (commencing with Section 16320) as provided in this chapter. For the purpose of this chapter, a proposed action includes a course of action or a decision not to take action. This chapter does not preclude an application or assertion of any other rights or remedies available to an interested party as otherwise provided in this part regarding an action to be taken or not to be taken by the trustee. (Added by Stats. 2004, Ch. 54, Sec. 2. Effective January 1, 2005.)
  163. 16501.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 5. Notice of Proposed Action by Trustee [16500 - 16504] ( Chapter 5 added by Stats. 2004, Ch. 54, Sec. 2. )

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    A trustee who gives notice under this chapter must deliver the proposed-action notice to specified beneficiaries, but notice is not required for written consenters or beneficiaries the trustee cannot locate after reasonable diligence or does not know.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 5. Notice of Proposed Action by Trustee [16500 - 16504] ( Chapter 5 added by Stats. 2004, Ch. 54, Sec. 2. ) ## 16501. (a) The trustee who elects to provide notice pursuant to this chapter shall deliver notice pursuant to Section 1215 of the proposed action to each of the following: (1) A beneficiary who is receiving, or is entitled to receive, income under the trust, including a beneficiary who is entitled to receive income at the discretion of the trustee. (2) A beneficiary who would receive a distribution of principal if the trust were terminated at the time the notice is given. (b) Notice of proposed action is not required to be given to a person who consents in writing to the proposed action. The consent may be executed at any time before or after the proposed action is taken. (c) A trustee is not required to provide a copy of the notice of proposed action to a beneficiary who is known to the trustee but who cannot be located by the trustee after reasonable diligence or who is unknown to the trustee. (d) Notwithstanding any other provision of this chapter, the trustee may not use a notice of proposed action in any of the following actions: (1) Allowance of the trustee’s compensation. (2) Allowance of compensation of the attorney for the trustee. (3) Settlement of accounts. (4) Discharge of the trustee. (5) Sale of property of the trust to the trustee or to the attorney for the trustee. (6) Exchange of property of the trust for property of the trustee or for property of the attorney for the trustee. (7) Grant of an option to purchase property of the trust to the trustee or to the attorney for the trustee. (8) Allowance, payment, or compromise of a claim of the trustee, or the attorney for the trustee, against the trust. (9) Compromise or settlement of a claim, action, or proceeding by the trust against the trustee or against the attorney for the trust. (10) Extension, renewal, or modification of the terms of a debt or other obligation of the trustee, or the attorney for the trustee, owing to or in favor of the trust. (Amended by Stats. 2017, Ch. 319, Sec. 91. (AB 976) Effective January 1, 2018.)
  164. 16502.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 5. Notice of Proposed Action by Trustee [16500 - 16504] ( Chapter 5 added by Stats. 2004, Ch. 54, Sec. 2. )

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    A trustee’s notice of proposed action must include specified contact, action, and timing information.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 5. Notice of Proposed Action by Trustee [16500 - 16504] ( Chapter 5 added by Stats. 2004, Ch. 54, Sec. 2. ) ## 16502. The notice of proposed action shall state that it is given pursuant to this section and shall include all of the following: (a) The name, mailing address, and electronic address of the trustee. (b) The name, telephone number, and electronic address of a person who may be contacted for additional information. (c) A description of the action proposed to be taken and an explanation of the reasons for the action. (d) The time within which objections to the proposed action can be made, which shall be at least 45 days from the delivery or receipt of the notice of proposed action. (e) The date on or after which the proposed action may be taken or is effective. (Amended by Stats. 2017, Ch. 319, Sec. 92. (AB 976) Effective January 1, 2018.)
  165. 16503.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 5. Notice of Proposed Action by Trustee [16500 - 16504] ( Chapter 5 added by Stats. 2004, Ch. 54, Sec. 2. )

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    A beneficiary may object to a trustee’s proposed action by giving a written objection on time; if there is an objection, the trustee or a beneficiary may ask the court to decide the action, and the objecting beneficiary must prove the action should not be taken.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 5. Notice of Proposed Action by Trustee [16500 - 16504] ( Chapter 5 added by Stats. 2004, Ch. 54, Sec. 2. ) ## 16503. (a) A beneficiary may object to the proposed action by delivering a written objection pursuant to Section 1215 to the trustee at the address stated in the notice of proposed action within the time period specified in the notice of proposed action. (b) A trustee is not liable to a beneficiary for an action regarding a matter governed by this part if the trustee does not receive a written objection to the proposed action from a beneficiary within the applicable period and the other requirements of this section are satisfied. If no beneficiary entitled to notice objects under this section, the trustee is not liable to any current or future beneficiary with respect to the proposed action. This subdivision does not apply to a person who is a minor or an incompetent adult at the time of receiving the notice of proposed action unless the notice is served on a guardian or conservator of the estate of the person. (c) If the trustee receives a written objection within the applicable period, either the trustee or a beneficiary may petition the court to have the proposed action taken as proposed, taken with modifications, or denied. In the proceeding, a beneficiary objecting to the proposed action has the burden of proving that the trustee’s proposed action should not be taken. A beneficiary who has not objected is not estopped from opposing the proposed action in the proceeding. (d) If the trustee decides not to implement the proposed action, the trustee shall notify the beneficiaries of the decision not to take the action and the reasons for the decision, and the trustee’s decision not to implement the proposed action does not itself give rise to liability to any current or future beneficiary. A beneficiary may petition the court to have the action taken, and has the burden of proving that it should be taken. (Amended by Stats. 2017, Ch. 319, Sec. 93. (AB 976) Effective January 1, 2018.)
  166. 16504.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 5. Notice of Proposed Action by Trustee [16500 - 16504] ( Chapter 5 added by Stats. 2004, Ch. 54, Sec. 2. )

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    A trustee is not required to use these procedures before taking any action.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 5. Notice of Proposed Action by Trustee [16500 - 16504] ( Chapter 5 added by Stats. 2004, Ch. 54, Sec. 2. ) ## 16504. This chapter does not require a trustee to use these procedures prior to taking any action. (Added by Stats. 2004, Ch. 54, Sec. 2. Effective January 1, 2005.)
  167. 16600.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

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    This section names the California Uniform Directed Trust Act and says a directed trustee must take reasonable action to comply with a trust director’s exercise or nonexercise of a power of direction.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16600. (a) This chapter shall be known, and may be cited, as the California Uniform Directed Trust Act. (b) The Legislature finds and declares all of the following: (1) This chapter governs an arrangement commonly known as a directed trust. (2) In a directed trust, the terms of the trust grant a person other than a trustee a power over some aspect of the trust’s administration. (3) Under this chapter, this power is called a power of direction, the person that holds the power is called a trust director, a trustee that is subject to the power is called a directed trustee, and the trust is a directed trust. (4) A directed trustee is required to take reasonable action to comply with a trust director’s exercise or nonexercise of a power of direction. (5) Except for willful misconduct, a directed trustee is liable only for its own breach of trust in executing a direction and not for the trust director’s breach of trust in exercising or not exercising the power of direction. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  168. 16602.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

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    This section defines key trust-law terms used in the chapter, including “breach of trust,” “directed trust,” “directed trustee,” “power of direction,” “settlor,” “terms of a trust,” and “trust director.”

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16602. For purposes of this chapter, the following definitions shall apply: (a) “Breach of trust” includes a violation by a trust director or trustee of a duty imposed on that director or trustee by the terms of the trust, this chapter, or law of this state other than this chapter pertaining to trusts. (b) “Directed trust” means a trust for which the terms of the trust grant a power of direction. (c) “Directed trustee” means a trustee that is subject to a trust director’s power of direction. (d) “Power of direction” means a power over a trust granted to a person by the terms of the trust to the extent the power is exercisable while the person is not serving as a trustee. Power of direction includes a power over the investment, management, or distribution of trust property or other matters of trust administration. The term excludes the powers described in subdivision (a) of Section 16606. (e) “Settlor” means a person, including a testator, who creates, or contributes property to, a trust. If more than one person creates or contributes property to a trust, each person is a settlor of the portion of the trust property attributable to that person’s contribution except to the extent another person has the power to revoke or withdraw that portion. (f) “Terms of a trust” means either of the following: (1) The manifestation of the settlor’s intent regarding a trust’s provisions as expressed in the trust instrument or established by other evidence that has been admitted in a judicial proceeding. (2) The trust’s provisions as established, determined, or amended by a trustee or trust director in accordance with applicable law, the exercise of a power of appointment in accordance with applicable law, a court order, or other binding modification, including, but not limited to, under Section 15404. (g) “Trust director” means a person that is granted a power of direction by the terms of a trust, to the extent the power is exercisable while the person is not serving as a trustee. The person is a trust director whether or not the terms of the trust refer to the person as a trust director and whether or not the person is a beneficiary or settlor of the trust. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  169. 16604.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

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    This section says when the chapter applies to a trust and when the timing rules start to apply.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16604. (a) This chapter applies to a trust, whenever created, that has its principal place of administration in this state, subject to all of the following rules: (1) If the trust was created before January 1, 2024, this chapter applies only to a decision or action occurring on or after that date. (2) If the principal place of administration of the trust is changed to this state on or after January 1, 2024, this chapter applies only to a decision or action occurring on or after the date of the change. (b) Without precluding other means to establish a sufficient connection with the designated jurisdiction in a directed trust, terms of the trust that designate the principal place of administration of the trust are valid and controlling if all of the following are met: (1) A trustee’s principal place of business is located in, or a trustee is a resident of, the designated jurisdiction. (2) A trust director’s principal place of business is located in, or a trust director is a resident of, the designated jurisdiction. (3) All or part of the administration occurs in the designated jurisdiction. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  170. 16605.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

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    The public administrator, public guardian, or public conservator must consent before being appointed as a trust director or directed trustee.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16605. Notwithstanding any other law, the consent of the public administrator, public guardian, or public conservator is required before they may be appointed to act as a trust director or directed trustee. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  171. 16606.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

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    This section excludes several powers from the chapter and says a qualifying power to designate a recipient of trust property is treated as a power of appointment, not a power of direction, unless the trust says otherwise.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16606. (a) This chapter does not apply to any of the following: (1) A power of appointment. (2) The power to appoint or remove a trustee or trust director. (3) The power of a settlor over a trust, to the extent the settlor has a power to revoke the trust. (4) The power of a beneficiary over a trust, to the extent the exercise or nonexercise of the power affects the beneficial interest of the beneficiary. (5) The power over a trust if both of the following apply: (A) The terms of the trust provide that the power is held in a nonfiduciary capacity. (B) The power is required to be held in a nonfiduciary capacity to achieve the settlor’s tax objectives under the United States Internal Revenue Code of 1986 and regulations issued thereunder. (b) Unless the terms of a trust provide otherwise, a power granted to a person to designate a recipient of an ownership interest in, or power of appointment over, trust property that is exercisable while the person is not serving as a trustee is a power of appointment and not a power of direction. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  172. 16608.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

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    A trust may give a trust director a power of direction, subject to Section 16610. Unless the trust says otherwise, the director may use additional appropriate powers, and trust directors with joint powers must act by majority decision.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16608. (a) Subject to Section 16610, the terms of a trust may grant a power of direction to a trust director. (b) Unless the terms of a trust provide otherwise, a trust director may exercise any further power appropriate to the exercise or nonexercise of a power of direction granted to the trust director pursuant to subdivision (a). (c) Unless the terms of a trust provide otherwise, trust directors with joint powers shall act by majority decision. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  173. 16610.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

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    A trust director must follow the same rules as a trustee in similar circumstances when exercising or not exercising a power of direction or related power under Section 16608(b).

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16610. A trust director is subject to the same rules as a trustee in a like position and under similar circumstances in the exercise or nonexercise of a power of direction or further power under subdivision (b) of Section 16608 regarding either of the following: (a) A payback provision in the terms of a trust necessary to comply with the reimbursement requirements of Medicaid law in Section 1917 of the Social Security Act (42 U.S.C. Section 1396p(d)(4)(A)) and regulations issued thereunder. (b) A charitable interest in the trust, including notice regarding the interest to the Attorney General. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  174. 16612.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

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    A trust director must have the same fiduciary duty and liability as a trustee or cotrustee in similar circumstances, unless the trust terms or a separate health-care authorization rule changes that result.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16612. (a) Subject to subdivision (b), with respect to a power of direction or further power under subdivision (b) of Section 16608, both of the following apply: (1) A trust director has the same fiduciary duty and liability in the exercise or nonexercise of the power, if the power is held individually, as a sole trustee in a like position and under similar circumstances or, if the power is held jointly with a trustee or another trust director, as a cotrustee in a like position and under similar circumstances. (2) The terms of the trust may vary the trust director’s duty or liability to the same extent the terms of the trust could vary the duty or liability of a trustee in a like position and under similar circumstances. (b) Unless the terms of a trust provide otherwise, if a trust director is licensed, certified, or otherwise authorized or permitted by law other than this chapter to provide health care in the ordinary course of the trust director’s business or practice of a profession, to the extent the trust director acts in that capacity, the trust director has no duty or liability under this chapter. (c) The terms of a trust may impose a duty or liability on a trust director in addition to the duties and liabilities under this section. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  175. 16614.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

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    A directed trustee must take reasonable action to follow a trust director’s direction, except where doing so would amount to willful misconduct; the trustee is not liable for that action.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16614. (a) Subject to subdivision (b), a directed trustee shall take reasonable action to comply with a trust director’s exercise or nonexercise of a power of direction or further power under subdivision (b) of Section 16608, and the trustee is not liable for the action. (b) A directed trustee shall not comply with a trust director’s exercise or nonexercise of a power of direction or further power under subdivision (b) of Section 16608 to the extent that, by complying, the trustee would engage in willful misconduct. (c) An exercise of a power of direction under which a trust director may release a trustee or another trust director from liability for breach of trust is not effective if any of the following is true: (1) The breach involved the trustee’s or other trust director’s willful misconduct. (2) The release was induced by improper conduct of the trustee or other trust director in procuring the release. (3) At the time of the release, the trust director did not know the material facts relating to the breach. (d) A directed trustee that has reasonable doubt about their duty under this section may petition the court for instructions. (e) The terms of a trust may impose a duty or liability on a directed trustee in addition to the duties and liabilities under this section. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  176. 16616.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

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    Trustees and trust directors must exchange information when it is reasonably related to both parties’ powers or duties, subject to Section 16618.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16616. (a) Subject to Section 16618, a trustee shall provide information to a trust director to the extent the information is reasonably related both to the powers or duties of the trustee and the powers or duties of the trust director. (b) Subject to Section 16618, a trust director shall provide information to a trustee or another trust director to the extent the information is reasonably related both to the powers or duties of the trust director and the powers or duties of the trustee or other trust director. (c) A trustee that acts in reliance on information provided by a trust director is not liable for a breach of trust to the extent the breach resulted from the reliance, unless by so acting the trustee engages in willful misconduct. (d) A trust director that acts in reliance on information provided by a trustee or another trust director is not liable for a breach of trust to the extent the breach resulted from the reliance, unless by so acting the trust director engages in willful misconduct. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  177. 16618.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

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    A trustee and a trust director generally have no duty to monitor each other or to inform or advise certain related persons about how they might have acted differently, unless the trust says otherwise.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16618. (a) (1) Unless the terms of a trust provide otherwise, a trustee does not have a duty to do either of the following: (A) Monitor a trust director. (B) Inform or give advice to a settlor, beneficiary, trustee, or trust director concerning an instance in which the trustee might have acted differently than the trust director. (2) By taking an action described in paragraph (1), a trustee does not assume the duty excluded by paragraph (1). (b) (1) Unless the terms of a trust provide otherwise, a trust director does not have a duty to do either of the following: (A) Monitor a trustee or another trust director. (B) Inform or give advice to a settlor, beneficiary, trustee, or another trust director concerning an instance in which the trust director might have acted differently than a trustee or another trust director. (2) By taking an action described in paragraph (1), a trust director does not assume the duty excluded by paragraph (1). (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  178. 16620.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

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    A trust’s terms may excuse a cotrustee from duty and liability for another cotrustee’s use or nonuse of a power, to the same extent as in a directed trust.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16620. The terms of a trust may relieve a cotrustee from duty and liability with respect to another cotrustee’s exercise or nonexercise of a power of the other cotrustee to the same extent that, in a directed trust, a directed trustee is relieved from duty and liability with respect to a trust director’s power of direction under Sections 16614, 16616, and 16618. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  179. 16622.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

    Verify source ↗

    Claims against a trust director for breach of trust must be brought within the same limitation period used for trustee breach-of-trust claims under Section 16460.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16622. (a) An action against a trust director for breach of trust shall be commenced within the same limitation period as in Section 16460 for an action for breach of trust against a trustee in a like position and under similar circumstances. (b) A report or accounting has the same effect on the limitation period for an action against a trust director for breach of trust that the report or accounting would have under Section 16460 in an action for breach of trust against a trustee in a like position and under similar circumstances. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  180. 16624.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

    Verify source ↗

    A trust director sued for breach of trust may assert the same defenses that a similarly situated trustee could assert.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16624. In an action against a trust director for breach of trust, the director may assert the same defenses a trustee in a like position and under similar circumstances could assert in an action for breach of trust against the trustee. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  181. 16626.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

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    A trust director who accepts appointment for a trust subject to this chapter submits to personal jurisdiction in California courts for matters related to the director’s powers or duties.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16626. (a) By accepting appointment as a trust director of a trust subject to this chapter, the trust director submits to personal jurisdiction of the courts of this state regarding any matter related to a power or duty of the trust director. (b) This section does not preclude other methods of obtaining jurisdiction over a trust director. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  182. 16628.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

    Verify source ↗

    A trust director is generally subject to the same trustee rules for acceptance, bond, compensation, resignation or removal, and vacancy/successor appointment unless the trust says otherwise.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16628. Unless the terms of a trust provide otherwise, the rules applicable to a trustee apply to a trust director regarding all of the following matters: (a) Acceptance under Sections 15600 and 15601. (b) Giving of a bond to secure performance under Section 15602. (c) Reasonable compensation under Section 15681. (d) Resignation or removal under Article 3 (commencing with Section 15640) of Chapter 1. (e) Vacancy and appointment of a successor under Section 15660. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  183. 16630.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

    Verify source ↗

    When applying and interpreting this chapter, consideration must be given to promoting uniformity of the law among states that enact it.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16630. In applying and construing this chapter, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  184. 16632.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. )

    Verify source ↗

    This chapter overrides the federal E-SIGN Act in general, but not Section 101(c), and it does not authorize electronic delivery of the notices listed in Section 103(b).

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 4. TRUST ADMINISTRATION [16000 - 16632] ( Part 4 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 6. California Uniform Directed Trust Act [16600 - 16632] ( Chapter 6 added by Stats. 2023, Ch. 721, Sec. 3. ) ## 16632. This chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. Section 7001(c), or authorize electronic delivery of any of the notices described in Section 103(b) of that act, 15 U.S.C. Section 7003(b). (Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.)
  185. 17000.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Jurisdiction and Venue [17000 - 17006] ( Chapter 1 enacted by Stats. 1990, Ch. 79. )

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    This section gives the superior court exclusive jurisdiction over proceedings about the internal affairs of trusts, and concurrent jurisdiction over certain other trust-related disputes.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Jurisdiction and Venue [17000 - 17006] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## 17000. (a) The superior court having jurisdiction over the trust pursuant to this part has exclusive jurisdiction of proceedings concerning the internal affairs of trusts. (b) The superior court having jurisdiction over the trust pursuant to this part has concurrent jurisdiction of the following: (1) Actions and proceedings to determine the existence of trusts. (2) Actions and proceedings by or against creditors or debtors of trusts. (3) Other actions and proceedings involving trustees and third persons. (Enacted by Stats. 1990, Ch. 79.)
  186. 17001.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Jurisdiction and Venue [17000 - 17006] ( Chapter 1 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    In trust proceedings brought under this division, the court has the same powers as the superior court and is treated as a court of general jurisdiction.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Jurisdiction and Venue [17000 - 17006] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## 17001. In proceedings commenced pursuant to this division, the court is a court of general jurisdiction and has all the powers of the superior court. (Amended by Stats. 1990, Ch. 710, Sec. 44. Operative July 1, 1991, by Sec. 48 of Ch. 710.)
  187. 17002.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Jurisdiction and Venue [17000 - 17006] ( Chapter 1 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    This section defines the trust’s principal place of administration and gives fallback rules if it cannot be determined from the trust’s day-to-day activity location.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Jurisdiction and Venue [17000 - 17006] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## 17002. (a) The principal place of administration of the trust is the usual place where the day-to-day activity of the trust is carried on by the trustee or its representative who is primarily responsible for the administration of the trust. (b) If the principal place of administration of the trust cannot be determined under subdivision (a), it shall be determined as follows: (1) If the trust has a single trustee, the principal place of administration of the trust is the trustee’s residence or usual place of business. (2) If the trust has more than one trustee, the principal place of administration of the trust is the residence or usual place of business of any of the cotrustees as agreed upon by them or, if not, the residence or usual place of business of any of the cotrustees. (Enacted by Stats. 1990, Ch. 79.)
  188. 17003.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Jurisdiction and Venue [17000 - 17006] ( Chapter 1 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee who accepts a trust with its principal place of administration in this state submits personally to the court’s jurisdiction under this division, subject to Section 17004. Beneficiaries of such a trust are also subject to that jurisdiction to the extent of their interests.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Jurisdiction and Venue [17000 - 17006] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## 17003. Subject to Section 17004: (a) By accepting the trusteeship of a trust having its principal place of administration in this state the trustee submits personally to the jurisdiction of the court under this division. (b) To the extent of their interests in the trust, all beneficiaries of a trust having its principal place of administration in this state are subject to the jurisdiction of the court under this division. (Enacted by Stats. 1990, Ch. 79.)
  189. 17004.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Jurisdiction and Venue [17000 - 17006] ( Chapter 1 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    The court may exercise jurisdiction in trust proceedings on any basis allowed by Section 410.10 of the Code of Civil Procedure.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Jurisdiction and Venue [17000 - 17006] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## 17004. The court may exercise jurisdiction in proceedings under this division on any basis permitted by Section 410.10 of the Code of Civil Procedure. (Enacted by Stats. 1990, Ch. 79.)
  190. 17005.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Jurisdiction and Venue [17000 - 17006] ( Chapter 1 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    This section sets the proper county for starting certain trust-related proceedings.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Jurisdiction and Venue [17000 - 17006] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## 17005. (a) The proper county for commencement of a proceeding pursuant to this division is either of the following: (1) In the case of a living trust, the county where the principal place of administration of the trust is located. (2) In the case of a testamentary trust, either the county where the decedent’s estate is administered or where the principal place of administration of the trust is located. (b) If a living trust has no trustee, the proper county for commencement of a proceeding for appointing a trustee is the county where the trust property, or some portion of the trust property, is located. (c) Except as otherwise provided in subdivisions (a) and (b), the proper county for commencement of a proceeding pursuant to this division is determined by the rules applicable to civil actions generally. (Enacted by Stats. 1990, Ch. 79.)
  191. 17006.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Jurisdiction and Venue [17000 - 17006] ( Chapter 1 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    In proceedings under this division about the internal affairs of trusts, there is no right to a jury trial.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 1. Jurisdiction and Venue [17000 - 17006] ( Chapter 1 enacted by Stats. 1990, Ch. 79. ) ## 17006. There is no right to a jury trial in proceedings under this division concerning the internal affairs of trusts. (Enacted by Stats. 1990, Ch. 79.)
  192. 17100.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Notice [17100 - 17105] ( Chapter 2 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    Notice in trust proceedings is governed by Part 2 of Division 3, unless this division provides otherwise.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Notice [17100 - 17105] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## 17100. Except as otherwise provided in this division, notice in proceedings commenced pursuant to this division, or notice otherwise required by this division, is governed by Part 2 (commencing with Section 1200) of Division 3. (Added by Stats. 1990, Ch. 79, Sec. 14.)
  193. 17105.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Notice [17100 - 17105] ( Chapter 2 enacted by Stats. 1990, Ch. 79. )

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    A petitioner or other person required to give notice may give notice to interested persons in the trust without first getting a court order.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 2. Notice [17100 - 17105] ( Chapter 2 enacted by Stats. 1990, Ch. 79. ) ## 17105. A petitioner or other person required to give notice may cause notice to be given to any person interested in the trust without the need for a court order. (Added by Stats. 1990, Ch. 79, Sec. 14.)
  194. 17200.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Proceedings Concerning Trusts [17200 - 17211] ( Chapter 3 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A trustee or beneficiary may ask the court about a trust’s internal affairs or existence, except as provided in Section 15800.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Proceedings Concerning Trusts [17200 - 17211] ( Chapter 3 enacted by Stats. 1990, Ch. 79. ) ## 17200. (a) Except as provided in Section 15800, a trustee or beneficiary of a trust may petition the court under this chapter concerning the internal affairs of the trust or to determine the existence of the trust. (b) Proceedings concerning the internal affairs of a trust include, but are not limited to, proceedings for any of the following purposes: (1) Determining questions of construction of a trust instrument. (2) Determining the existence or nonexistence of any immunity, power, privilege, duty, or right. (3) Determining the validity of a trust provision. (4) Ascertaining beneficiaries and determining to whom property shall pass or be delivered upon final or partial termination of the trust, to the extent the determination is not made by the trust instrument. (5) Settling the accounts and passing upon the acts of the trustee, including the exercise of discretionary powers. (6) Instructing the trustee. (7) Compelling the trustee to do any of the following: (A) Provide a copy of the terms of the trust. (B) Provide information about the trust under Section 16061 if the trustee has failed to provide the requested information within 60 days after the beneficiary’s reasonable written request, and the beneficiary has not received the requested information from the trustee within the six months preceding the request. (C) Account to the beneficiary, subject to the provisions of Section 16064, if the trustee has failed to submit a requested account within 60 days after written request of the beneficiary and no account has been made within six months preceding the request. (8) Granting powers to the trustee. (9) Fixing or allowing payment of the trustee’s compensation or reviewing the reasonableness of the trustee’s compensation. (10) Appointing or removing a trustee. (11) Accepting the resignation of a trustee. (12) Compelling redress of a breach of the trust by any available remedy. (13) Approving or directing the modification or termination of the trust. (14) Approving or directing the combination or division of trusts. (15) Amending or conforming the trust instrument in the manner required to qualify a decedent’s estate for the charitable estate tax deduction under federal law, including the addition of mandatory governing instrument requirements for a charitable remainder trust as required by final regulations and rulings of the United States Internal Revenue Service. (16) Authorizing or directing transfer of a trust or trust property to or from another jurisdiction. (17) Directing transfer of a testamentary trust subject to continuing court jurisdiction from one county to another. (18) Approving removal of a testamentary trust from continuing court jurisdiction. (19) Reforming or excusing compliance with the governing instrument of an organization pursuant to Section 16105. (20) Determining the liability of the trust for any debts of a deceased settlor. However, nothing in this paragraph shall provide standing to bring an action concerning the internal affairs of the trust to a person whose only claim to the assets of the decedent is as a creditor. (21) Determining petitions filed pursuant to Section 15687 and reviewing the reasonableness of compensation for legal services authorized under that section. In determining the reasonableness of compensation under this paragraph, the court may consider, together with all other relevant circumstances, whether prior approval was obtained pursuant to Section 15687. (22) If a member of the State Bar of California has transferred the economic interest of his or her practice to a trustee and if the member is a deceased member under Section 9764, a petition may be brought to appoint a practice administrator. The procedures, including, but not limited to, notice requirements, that apply to the appointment of a practice administrator for a deceased member shall apply to the petition brought under this section. (23) If a member of the State Bar of California has transferred the economic interest of his or her practice to a trustee and if the member is a disabled member under Section 2468, a petition may be brought to appoint a practice administrator. The procedures, including, but not limited to, notice requirements, that apply to the appointment of a practice administrator for a disabled member shall apply to the petition brought under this section. (c) The court may, on its own motion, set and give notice of an order to show cause why a trustee who is a professional fiduciary, and who is required to be licensed under Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code, should not be removed for failing to hold a valid, unexpired, unsuspended license. (Amended by Stats. 2010, Ch. 621, Sec. 11. (SB 202) Effective January 1, 2011.)
  195. 17200.1.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Proceedings Concerning Trusts [17200 - 17211] ( Chapter 3 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    Trust proceedings about transferring trust property must follow Part 19 of Division 2, starting with Section 850.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Proceedings Concerning Trusts [17200 - 17211] ( Chapter 3 enacted by Stats. 1990, Ch. 79. ) ## 17200.1. All proceedings concerning the transfer of property of the trust shall be conducted pursuant to the provisions of Part 19 (commencing with Section 850) of Division 2. (Repealed and added by Stats. 2001, Ch. 49, Sec. 7. Effective January 1, 2002.)
  196. 17201.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Proceedings Concerning Trusts [17200 - 17211] ( Chapter 3 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A proceeding under this chapter starts when a petition is filed that states facts showing the petition is authorized under the chapter.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Proceedings Concerning Trusts [17200 - 17211] ( Chapter 3 enacted by Stats. 1990, Ch. 79. ) ## 17201. A proceeding under this chapter is commenced by filing a petition stating facts showing that the petition is authorized under this chapter. The petition shall also state the grounds of the petition and the names and addresses of each person entitled to notice of the petition. (Amended by Stats. 1996, Ch. 862, Sec. 44. Effective January 1, 1997.)
  197. 17201.1.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Proceedings Concerning Trusts [17200 - 17211] ( Chapter 3 enacted by Stats. 1990, Ch. 79. )

    Verify source ↗

    A petitioner in a Section 17200 trust proceeding may start discovery against a trustee, using the Civil Discovery Act time periods, but those periods start when the petition and hearing notice are served on the trustee or when the trustee appears, whichever happens first.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Proceedings Concerning Trusts [17200 - 17211] ( Chapter 3 enacted by Stats. 1990, Ch. 79. ) ## 17201.1. A petitioner in a proceeding under Section 17200 may commence discovery upon a trustee in accordance with the same time periods set forth in the Civil Discovery Act (Title 4 (commencing with Section 2016.010) of Part 4 of the Code of Civil Procedure) except that the time periods shall commence to run upon service of the petition and notice of hearing upon the trustee or the trustee’s appearance in the proceeding, whichever first occurs. Nothing in this section shall alter when a respondent in such a proceeding may commence discovery. (Added by Stats. 2017, Ch. 32, Sec. 4. (AB 308) Effective January 1, 2018.)
  198. 17202.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Proceedings Concerning Trusts [17200 - 17211] ( Chapter 3 enacted by Stats. 1990, Ch. 79. )

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    The court may dismiss a petition if the proceeding is not reasonably necessary to protect the interests of the trustee or beneficiary.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Proceedings Concerning Trusts [17200 - 17211] ( Chapter 3 enacted by Stats. 1990, Ch. 79. ) ## 17202. The court may dismiss a petition if it appears that the proceeding is not reasonably necessary for the protection of the interests of the trustee or beneficiary. (Enacted by Stats. 1990, Ch. 79.)
  199. 17203.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Proceedings Concerning Trusts [17200 - 17211] ( Chapter 3 enacted by Stats. 1990, Ch. 79. )

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    The petitioner must give notice of a trust petition hearing at least 30 days before the hearing to required persons, and the court cannot shorten that notice period.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Proceedings Concerning Trusts [17200 - 17211] ( Chapter 3 enacted by Stats. 1990, Ch. 79. ) ## 17203. (a) At least 30 days before the time set for the hearing on the petition, the petitioner shall cause notice of hearing to be delivered pursuant to Section 1215 to all of the following persons: (1) All trustees. (2) All beneficiaries, subject to Chapter 2 (commencing with Section 15800) of Part 3. (3) The Attorney General, if the petition relates to a charitable trust subject to the jurisdiction of the Attorney General. (b) At least 30 days before the time set for hearing on the petition, the petitioner shall cause notice of the hearing and a copy of the petition to be served in the manner provided in Chapter 4 (commencing with Section 413.10) of Title 5 of Part 2 of the Code of Civil Procedure on any person, other than a trustee or beneficiary, whose right, title, or interest would be affected by the petition and who does not receive notice pursuant to subdivision (a). The court may not shorten the time for giving notice under this subdivision. (c) If a person to whom notice otherwise would be given has been deceased for at least 40 days, and no personal representative has been appointed for the estate of that person, and the deceased person’s right, title, or interest has not passed to any other person pursuant to Division 8 (commencing with Section 13000) or otherwise, notice may instead be given to the following persons: (1) Each heir and devisee of the decedent, and all persons named as executors of the will of the decedent, so far as known to the petitioner. (2) Each person serving as guardian or conservator of the decedent at the time of the decedent’s death, so far as known to the petitioner. (Amended by Stats. 2017, Ch. 319, Sec. 94. (AB 976) Effective January 1, 2018.)
  200. 17204.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Proceedings Concerning Trusts [17200 - 17211] ( Chapter 3 enacted by Stats. 1990, Ch. 79. )

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    A trust beneficiary may ask the court clerk for special notice of trust proceedings, and an interested person may do so in limited cases.

    ## Probate Code - PROB ## DIVISION 9. TRUST LAW [15000 - 19530] ( Division 9 enacted by Stats. 1990, Ch. 79. ) ## PART 5. JUDICIAL PROCEEDINGS CONCERNING TRUSTS [17000 - 17457] ( Part 5 enacted by Stats. 1990, Ch. 79. ) ## CHAPTER 3. Proceedings Concerning Trusts [17200 - 17211] ( Chapter 3 enacted by Stats. 1990, Ch. 79. ) ## 17204. (a) If proceedings involving a trust are pending, a beneficiary of the trust may, in person or by attorney, file with the court clerk where the proceedings are pending a written request stating that the beneficiary desires special notice of the filing of petitions in the proceeding relating to any or all of the purposes described in Section 17200 and giving an address for receiving notice by mail. A copy of the request shall be delivered pursuant to Section 1215 to the trustee or the trustee’s attorney. If personally delivered, the request shall be effective when it is delivered. If mailed or electronically delivered, the request shall be effective when it is received. When the original of the request is filed with the court clerk, it shall be accompanied by a written admission or proof of service. A request for special notice may be modified or withdrawn in the same manner as provided for the making of the initial request. (b) (1) An interested person may request special notice in the same manner as a beneficiary under subdivision (a), for the purpose set forth in paragraph (9) of subdivision (b) of Section 17200. The request for special notice shall be accompanied by a verified statement of the person’s interest. (2) For purposes set forth in paragraphs (2), (4) to (6), inclusive, (8), (12), (16), (20), and (21) of subdivision (b) of Section 17200, an interested person may petition the court for an order for special notice of proceedings involving a trust. The petition shall include a verified statement of the creditor’s interest and may be served on the trustee or the trustee’s attorney in a manner described in Section 1215. The petition may be made by ex parte application. (3) For purposes of this subdivision, an “interested person” means only a creditor of a trust or, if the trust has become irrevocable upon the death of a trustor, a creditor of the trustor. (4) This section does not confer standing on an interested person if standing does not otherwise exist. (c) Except as provided in subdivision (d), after serving and filing a request and proof of service pursuant to subdivision (a) or paragraph (1) of subdivision (b), the beneficiary or the interested person is entitled to notice pursuant to Section 17203. If the petition of an interested person filed pursuant to paragraph (2) of subdivision (b) is granted by the court, the interested person is entitled to notice pursuant to Section 17203. (d) A request for special notice made by a beneficiary whose right to notice is restricted by Section 15802 is not effective. (Amended by Stats. 2017, Ch. 319, Sec. 95. (AB 976) Effective January 1, 2018.)

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