BILL NUMBER: AB 2014 CHAPTERED
BILL TEXT
CHAPTER 52
FILED WITH SECRETARY OF STATE JULY 1, 2008
APPROVED BY GOVERNOR JULY 1, 2008
PASSED THE SENATE JUNE 19, 2008
PASSED THE ASSEMBLY MAY 1, 2008
AMENDED IN ASSEMBLY APRIL 16, 2008
INTRODUCED BY Assembly Member Tran
FEBRUARY 15, 2008
An act to amend Sections 1063, 2400, and 2600 of, and to add
Section 2401.1 to, the Probate Code, relating to guardians and
conservators.
LEGISLATIVE COUNSEL'S DIGEST
AB 2014, Tran. Conservators and guardians: property in foreign
jurisdictions.
Existing law requires that a guardian or conservator, or limited
conservator to the extent specifically and expressly provided in a
court's order, use ordinary care and diligence in the management and
control of the estate of the ward or conservatee. Existing law
specifies the powers and duties of a guardian or conservator in this
regard. Existing law requires that a guardian or conservator at the
expiration of one year from the time of appointment and thereafter
not less frequently than biennially, unless otherwise ordered,
present an accounting of the assets of the estate of the ward or
conservatee. Existing law limits the authority of a guardian or
conservator to the jurisdiction of the government under which that
person was invested with authority, except as specified.
This bill, in reference to the powers and duties of a guardian or
conservator of the estate and in reference to the inventory and
accounts of the guardianship or conservatorship estate, would define
estate to mean all of the ward's or conservatee's personal property,
wherever located, and real property located in this state. The bill
would also require a guardian or conservator to use ordinary care and
diligence to determine whether the ward or conservatee owns property
in a foreign jurisdiction and to preserve and protect that property.
The bill would require a guardian or conservator who has knowledge
of any real property of a conservatee or ward in a foreign
jurisdiction to include in an accounting a schedule that identifies
the real property, provides a good faith estimate of the fair market
value of the real property, and states what action, if any, will or
has been taken to preserve and protect the real property, including a
recommendation whether an ancillary proceeding is necessary to
preserve and protect the real property.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1063 of the Probate Code is amended to read:
1063. (a) In all accounts, there shall be an additional schedule
showing the estimated market value of the assets on hand as of the
end of the accounting period, and a schedule of the estimated market
value of the assets on hand as of the beginning of the accounting
period for all accounts subsequent to the initial account. The
requirement of an estimated value of real estate, a closely held
business, or other assets without a ready market, may be satisfied by
a good faith estimate by the fiduciary.
(b) If there were purchases or other changes in the form of assets
occurring during the period of the account, there shall be a
schedule showing these transactions. However, no reporting is
required for transfers between cash or accounts in a financial
institution or money market mutual funds as defined in subdivision
(d) of Section 8901.
(c) If an estate of a decedent or a trust will be distributed to
an income beneficiary, there shall be a schedule showing an
allocation of receipts and disbursements between principal and
income.
(d) If there is specifically devised property, there shall be an
additional schedule accounting for income, disbursements, and
proceeds of sale pursuant to Section 12002 and subdivision (a) of
Section 16340.
(e) If any interest has been paid or is to be paid under Section
12003, 12004, or 12005, or subdivision (b) of Section 16340, there
shall be a schedule showing the calculation of the interest.
(f) If the accounting contemplates a proposed distribution, there
shall be a schedule setting forth the proposed distribution,
including the allocation of income required under Section 12006. If
the distribution requires an allocation between trusts, the
allocation shall be set forth on the schedule, unless the allocation
is to be made by a trustee after receipt of the assets. If the
distribution requires valuation of assets as of the date of
distribution, the schedule shall set forth the fair market value of
those assets.
(g) If, at the end of the accounting period, there are liabilities
of the estate or trust, except current or future periodic payments,
including rent, salaries, utilities, or other recurring expenses,
there shall be a schedule showing all of the following:
(1) All liabilities which are a lien on estate or trust assets.
(2) Taxes due but unpaid as shown on filed returns or assessments
received subsequent to filing of returns.
(3) All notes payable.
(4) Any judgments for which the estate or trust is liable.
(5) Any other material liability.
(h) If the guardian or conservator has knowledge of any real
property of the conservatee or ward located in a foreign
jurisdiction, the guardian or conservator shall include an additional
schedule that identifies the real property, provides a good faith
estimate of the fair market value of the real property, and states
what action, if any, will or has been taken to preserve and protect
the real property, including a recommendation whether an ancillary
proceeding is necessary to preserve and protect the real property.
SEC. 2. Section 2400 of the Probate Code is amended to read:
2400. As used in this chapter:
(a) "Conservator" means the conservator of the estate, or the
limited conservator of the estate to the extent that the powers and
duties of the limited conservator are specifically and expressly
provided by the order appointing the limited conservator.
(b) "Estate" means all of the conservatee's or ward's personal
property, wherever located, and real property located in this state.
(c) "Guardian" means the guardian of the estate.
SEC. 3. Section 2401.1 is added to the Probate Code, to read:
2401.1. The guardian or conservator shall use ordinary care and
diligence to determine whether the ward or conservatee owns real
property in a foreign jurisdiction and to preserve and protect that
property. What constitutes use of ordinary care and diligence shall
be determined by all the facts and circumstances known, or that
become known, to the guardian or conservator, the value of the real
property located in the foreign jurisdiction, and the needs of the
ward or conservatee. The guardian or conservator, except as provided
in subdivision (a) of Section 1061 and in Section 1062, is not
charged with, and shall have no duty to inventory or account for the
real property located in a foreign jurisdiction, but the guardian or
conservator shall, when presenting the inventory and appraisal and
accounting to the court, include the schedule set forth in
subdivision (h) of Section 1063.
SEC. 4. Section 2600 of the Probate Code is amended to read:
2600. As used in this chapter, unless the context otherwise
requires:
(a) "Conservator" means (1) the conservator of the estate or (2)
the limited conservator of the estate to the extent that the powers
and duties of the limited conservator are specifically and expressly
provided by the order appointing the limited conservator.
(b) "Estate" means all of the conservatee's or ward's personal
property, wherever located, and real property located in this state.
(c) "Guardian" means the guardian of the estate.