Cal. PROB § 2469 — California Code / Code prob / Division 4 / Part 4 / Chapter 6 / Article 4 / Section 2469
Section 2469
Status: in_force

(a) Commencing January 1, 2024, when a professional fiduciary becomes incapacitated and a vacancy exists, the incapacitated fiduciary’s conservator, agent under a power of attorney for asset management, trustee, or interested person may petition for the appointment of one or more individuals qualified to act as a professional fiduciary under the Professional Fiduciaries Act (Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code) as a professional fiduciary practice administrator to take control of the incapacitated professional fiduciary’s files and to be appointed as temporary successor as to those matters for which a vacancy exists as a result of the professional fiduciary’s incapacity.

(b) The petition shall request an order appointing a professional fiduciary practice administrator as temporary successor, with all of the powers and duties held by the incapacitated fiduciary, in each matter in which the incapacitated fiduciary was acting in a representative capacity, including guardianships of the estate, conservatorships of the person and the estate, decedent’s estates, court-supervised trusts, and non-court-supervised trusts.

(c) The court shall require the professional fiduciary practice administrator to file a surety bond in each matter in which the professional fiduciary practice administrator is appointed temporary successor, in the amount currently required of the incapacitated fiduciary or in another amount as the court deems appropriate.

(d) The court may appoint as the professional fiduciary practice administrator the professional fiduciary nominated by the incapacitated fiduciary in a writing, including, but not limited to, the incapacitated fiduciary’s will or trust, or in the absence thereof, the person nominated by the person having legal standing to act on behalf of the incapacitated professional fiduciary. The court shall not make the appointment if the court concludes that the appointment of the nominated person would be contrary to the best interests of, or would create a conflict of interest with, any interested party in a matter in which the incapacitated fiduciary was acting in a fiduciary capacity.

(e) The appointment of the professional fiduciary practice administrator as temporary successor shall terminate, in each of the matters in which the professional fiduciary practice administrator was appointed as temporary successor, 45 days after the entry of the order appointing the professional fiduciary practice administrator, or earlier if another person is appointed.

(f) Notice of the hearing on the petition for appointment of a professional fiduciary practice administrator as temporary successor shall be given to all persons entitled to notice in each of the matters which are the subject of the petition. The court may dispense with notice if the petition alleges that the immediate appointment of a professional fiduciary practice administrator is required to safeguard the interests of an individual or an asset in a matter in which the incapacitated fiduciary was acting in a representative capacity.

(g) The professional fiduciary practice administrator shall be compensated for services provided and reimbursement of costs incurred in each matter solely from the assets of that matter subject to the provisions of the applicable document or as determined by the court, and in no event more than the incapacitated fiduciary would have been paid.

(h) The professional fiduciary practice administrator appointed in a given matter shall do all of the following:

(1) File a copy of the order appointing the professional fiduciary practice administrator as temporary successor in each of the matters in which the court appoints the professional fiduciary practice administrator as temporary successor.

(2) Take control and review all files and writings maintained by the incapacitated fiduciary for matters in which the incapacitated fiduciary was acting in a representative capacity.

(3) Within 15 days after the entry of the order appointing the professional fiduciary practice administrator as temporary successor, provide written notice to all interested parties as to each matter in which the incapacitated fiduciary was acting in a representative capacity who can be reasonably ascertained and located to inform those parties of the appointment of the professional fiduciary practice administrator as temporary successor. The notice shall advise the interested parties of the necessity and process for the appointment of a permanent successor, which shall include the following:

(A) The right of the parties to petition the court for the appointment of a permanent successor.

(B) The right of any interested party to nominate an individual to act as permanent successor, and then the obligation of the professional fiduciary practice administrator to petition for the appointment of the individual nominated, provided an interested party provides the professional fiduciary practice administrator with the name of their nominee within 15 days after the date notice was given.

(C) The ability of the professional fiduciary practice administrator, in the event none of the interested parties act within the time prescribed, under subparagraph (A) or (B), to petition the court for appointment of a permanent successor.

(4) Upon the court’s appointment of a permanent successor, the professional fiduciary practice administrator shall file an account and report on behalf of the incapacitated fiduciary for any period of time the incapacitated fiduciary would have been required to account, as well as for the period of time the professional fiduciary practice administrator served as temporary successor. As part of that account and report, the professional fiduciary practice administrator may request compensation both on behalf of the incapacitated fiduciary, for services rendered prior to their incapacity, and on their own behalf for services rendered after the incapacitated fiduciary’s incapacity, as temporary successor, subject to any limitation on fees and costs that existed for the incapacitated fiduciary, and may request discharge and exoneration of bond. The account filed for the period during which the matter was administered by the now incapacitated fiduciary may be verified on information and belief.

(5) Comply with any other obligations imposed by the court.

(i) Each of the time periods prescribed in this section may be extended by the court if the court determines that good cause exists, and if the court determines that the extension is in the best interest of the minor, the conservatee, the decedent’s estate, or the current income beneficiaries under a trust, as applicable.

(j) For purposes of this section, the following definitions apply:

(1) “Incapacitated” means that the person is unable to fulfill their duties as a professional fiduciary because of either temporary or permanent disability, incapacity, or absence.

(2) “Professional fiduciary practice administrator” means the person or persons appointed pursuant to this section to take over the responsibilities from the incapacitated fiduciary.

(3) “Vacancy” means that the instrument under which the incapacitated fiduciary was acting does not name a successor to fill the vacancy, the instrument under which the incapacitated fiduciary was acting does not provide a nonjudicial method to fill the vacancy, or a cofiduciary, authorized to act solely, was not acting with the incapacitated fiduciary.

(k) This section does not limit the authority granted to the court under subdivision (j) of Section 2250, Section 8523, and subdivision (e) of Section 15642.

(l) The Judicial Council shall create or revise any forms or rules necessary to implement this section no later than January 1, 2024.