reglab/statecodes huggingface dataset:
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 3 - Trustee s Duty to Report Information and Account to Beneficiaries › Section 16061.8.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 3 - Trustee s Duty to Report Information and Account to Beneficiaries › Section 16061.9.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 3 - Trustee s Duty to Report Information and Account to Beneficiaries › Section 16062.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 3 - Trustee s Duty to Report Information and Account to Beneficiaries › Section 16063.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 3 - Trustee s Duty to Report Information and Account to Beneficiaries › Section 16064.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 3 - Trustee s Duty to Report Information and Account to Beneficiaries › Section 16068.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 3 - Trustee s Duty to Report Information and Account to Beneficiaries › Section 16069.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 4 - Duties With Regard to Discretionary Powers › Section 16080.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 4 - Duties With Regard to Discretionary Powers › Section 16082.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 5 - Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts › Section 16100.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 5 - Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts › Section 16101.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 5 - Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts › Section 16102.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 5 - Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts › Section 16103.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 5 - Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts › Section 16104.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 5 - Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts › Section 16105.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 1 - Duties of Trustees › ARTICLE 6 - Notice to the Attorney General of Disposal of Charitable Assets › Section 16110.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 1 - General Provisions › Section 16200.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 1 - General Provisions › Section 16201.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 1 - General Provisions › Section 16202.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 1 - General Provisions › Section 16203.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16220.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16221.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16222.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16224.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16225.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16226.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16227.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16228.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16229.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16230.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16231.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16232.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16233.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16234.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16235.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16236.

16236. The trustee has the power to sell or exercise stock subscription or conversion rights.
(Enacted by Stats. 1990, Ch. 79.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16237.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16238.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16239.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16240.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16241.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16242.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16243.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16244.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16245.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16246.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16247.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16248.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 2 - Powers of Trustees › ARTICLE 2 - Specific Powers of Trustees › Section 16249.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 3 - Uniform Fiduciary Income and Principal Act › ARTICLE 1 - General Provisions and Definitions › Section 16320.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 3 - Uniform Fiduciary Income and Principal Act › ARTICLE 1 - General Provisions and Definitions › Section 16322.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 3 - Uniform Fiduciary Income and Principal Act › ARTICLE 1 - General Provisions and Definitions › Section 16323.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 3 - Uniform Fiduciary Income and Principal Act › ARTICLE 2 - Fiduciary Duties and Judicial Review › Section 16326.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 3 - Uniform Fiduciary Income and Principal Act › ARTICLE 3 - Unitrust › Section 16330.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 3 - Uniform Fiduciary Income and Principal Act › ARTICLE 3 - Unitrust › Section 16331.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 3 - Uniform Fiduciary Income and Principal Act › ARTICLE 3 - Unitrust › Section 16333.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 3 - Uniform Fiduciary Income and Principal Act › ARTICLE 3 - Unitrust › Section 16334.

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.)
2023 California Code › Probate Code - PROB › DIVISION 9 - TRUST LAW › PART 4 - TRUST ADMINISTRATION › CHAPTER 3 - Uniform Fiduciary Income and Principal Act › ARTICLE 3 - Unitrust › Section 16335.

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.)