BILL NUMBER: AB 1883	CHAPTERED  06/28/04

	CHAPTER  75
	FILED WITH SECRETARY OF STATE  JUNE 28, 2004
	APPROVED BY GOVERNOR  JUNE 25, 2004
	PASSED THE ASSEMBLY  JUNE 17, 2004
	PASSED THE SENATE  JUNE 14, 2004
	AMENDED IN SENATE  JUNE 7, 2004
	AMENDED IN ASSEMBLY  APRIL 1, 2004

INTRODUCED BY   Assembly Member Harman

                        FEBRUARY 5, 2004

   An act to amend Section 15602 of the Probate Code, relating to
trusts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1883, Harman.  Trustees:  bonds.
   Existing law regulates trusts and provides that a trustee is not
required to give a performance bond unless a bond is required by the
trust, a bond is found to be necessary by the court to protect the
interests of the beneficiaries, or a person who is not named as a
trustee in the trust instrument is appointed as a trustee by the
court.  Existing law permits a court, notwithstanding the requirement
of a bond in the trust, to excuse the requirement of a bond, to
change its amount, release a surety, or permit the substitution of
another bond with the same or different sureties.
   This bill would permit a court to require a bond when it is
necessary to protect the interests of persons having an interest in
the trust estate.  The bill would also permit a court to excuse the
requirement of a bond notwithstanding specified provisions that would
otherwise require a bond.  The bill would prohibit the court from
excusing certain individuals from that bond requirement, except under
compelling circumstances, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 15602 of the Probate Code is amended to read:
   15602.  (a) A trustee is not required to give a bond to secure
performance of the trustee's duties, unless any of the following
circumstances occurs:
   (1) A bond is required by the trust instrument.
   (2) Notwithstanding a waiver of a bond in the trust instrument, a
bond is found by the court to be necessary to protect the interests
of beneficiaries or other persons having an interest in the trust.
   (3) An individual who is not named as a trustee in the trust
instrument is appointed as a trustee by the court.
   (b) Notwithstanding paragraphs (1) and (3) of subdivision (a), the
court may excuse a requirement of a bond, reduce or increase the
amount of a bond, release a surety, or permit the substitution of
another bond with the same or different sureties.   The court may
not, however, excuse the requirement of a bond for an individual
described in paragraph (3) of subdivision (a), except under
compelling circumstances.  For the purposes of this section, a
request by all the adult beneficiaries of a trust that bond be waived
for an individual described in paragraph (3) of subdivision (a) for
their trust is deemed to constitute a compelling circumstance.
   (c) If a bond is required, it shall be filed or served and shall
be in the amount and with sureties and liabilities ordered by the
court.
   (d) Except as otherwise provided in the trust instrument or
ordered by the court, the cost of the bond shall be charged against
the trust.
   (e) A trust company may not be required to give a bond,
notwithstanding a contrary provision in the trust instrument.