BILL NUMBER: SB 685	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 23, 2008
	AMENDED IN SENATE  JANUARY 9, 2008
	AMENDED IN SENATE  JANUARY 7, 2008
	AMENDED IN SENATE  APRIL 10, 2007

INTRODUCED BY   Senator Yee
   (Coauthor: Senator Padilla)

                        FEBRUARY 23, 2007

   An act to repeal and add Section 15212 of the Probate Code,
relating to pet trusts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 685, as amended, Yee. Pet trusts.
   Existing law provides that a trust for the care of a designated
domestic or pet animal may be performed by the trustee for the life
of the animal, whether or not there is a beneficiary who can seek
enforcement or termination of the trust and whether or not the terms
of the trust contemplate a longer duration.
   This bill would repeal the provisions regarding domestic or pet
animal trusts and would provide instead that a trust for the care of
a designated domestic or pet animal is  valid  
for a lawful noncharitable purpose  and terminates when no
living animal  on the date of the trustor's death  is
covered by the trust,  unless otherwise provided in the trust and
 subject to certain requirements. The bill would require a
court to liberally construe a pet trust to bring it within the bill's
provisions, to presume against an interpretation that would render
the disposition a mere request or an attempt to honor the pet, and to
carry out the general intent of the  transfer  
trust  . The bill would provide an order of disposition of
trust property upon termination of the trust and would provide
authority for the court to name a trustee and to transfer trust
property, as specified.  This bill would permit a person
interested in the welfare of the pet animal or any nonprofit
charitable organization whose principal activity is the care of 
 animals to apply to the court for appointment as trustee or for
removal of a trustee. The bill would provide a process for an
accounting of the trust, to be waived if the value of the pet trust
assets do not exceed $5,000. The bill would require termination of a
trust for the care of a covered domestic or pet animal that has a
life span of 21 years of age or greater when that animal dies. 

   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 15212 of the Probate Code is repealed.
  SEC. 2.  Section 15212 is added to the Probate Code, to read:
   15212.  (a)  Subject to the requirements of this section, a trust
for the care of a designated domestic or pet animal is 
valid. The trust terminates when no living animal   a
trust for a lawful noncharitable purpose. Unless expressly provided
in the trust, and subject to Section 15211, the trust terminates when
no animal living on the date of the trustor's death  is covered
by the trust. The governing instrument of the animal trust shall be
liberally construed to bring the  transfer  
trust  within this section, to presume against the merely
precatory or honorary nature of the disposition, and to carry out the
general intent of the  transferor   trustor
 . Extrinsic evidence is admissible in determining the 
transferor's   trustor's  intent.
   (b) A trust for the care of a designated domestic or pet animal is
subject to the following requirements:
   (1) Except as expressly provided otherwise in the trust
instrument, the principal or income shall not be converted to the use
of the trustee or to any use other than for the trust's purposes or
for the benefit of a covered animal.
   (2) Upon termination of the trust, the trustee shall 
transfer   distribute  the unexpended trust
property in the following order:
   (A) As directed in the trust instrument.
   (B) If the trust was created in a nonresiduary clause in the
 transferor's   trustor's  will or in a
codicil to the  transferor's   trustor's 
will, under the residuary clause in the  transferor's
  trustor's  will.
   (C) If the application of subparagraph (A) or (B) does not result
in  transfer   distribution  of unexpended
trust property, to the  transferor's   trustor's
 heirs under Section 21114.
   (3) For the purposes of Section 21110, the residuary clause
described in subparagraph (B) of paragraph (2) shall be treated as
creating a future interest under the terms of a trust. 
   (4) 
    (c)  The intended use of the principal or income may be
enforced by a person designated for that purpose in the trust
instrument or, if none is designated, by a person appointed by a
court  upon application to the court by that person 
.  Any person interested in the welfare of the pet animal or any
nonprofit charitable organization whose principal activity is the
care of animals may apply to the court for appointment   as
trustee to enforce the trust or for removal of a trustee for a
violation of this section.  
   (5) Except as ordered by the court or required by the trust
instrument, no filing, report, registration, periodic accounting,
separate maintenance of funds, appointment, or fee is required by
reason of the existence of the fiduciary relationship of the trustee.
 
   (6) 
    (d)   (1)    If a trustee is not
designated or no designated trustee is willing or able to serve, a
court shall name a trustee. A court may order the transfer of the
trust property to a trustee, if it is required to assure that the
intended use is carried out and if a successor trustee is not
designated in the trust instrument or if no designated successor
trustee agrees to serve or is able to serve. A court may also make
all other orders and determinations as it shall deem advisable to
carry out the intent of the transferor and the purpose of this
section. 
   (2) (A) If the value of the assets in the pet trust does not
exceed five thousand dollars ($5,000), no filing, report,
registration, periodic accounting, separate maintenance of funds,
appointment, or fee is required by reason of the existence of the
fiduciary relationship of the trustee, unless ordered by the court or
required by the trust instrument.  
   (B) If the value of the trust assets exceed five thousand dollars
($5,000), the trustee shall submit to the court an accounting of the
assets in the trust within 60 days of the trustee's appointment.
Thereafter, the trustee shall submit to the court an accounting of
the trust assets biennially. No hearing on the accounting shall be
required. The court may, for good cause and after reviewing the
accounting submitted by the trustee, order a hearing on the
accounting, with notice given to residuary beneficiaries of the
trustor's will, to other named beneficiaries in the trust, and to the
trustor's heirs under Section 21114. The court may, after the
hearing, issue orders necessary to ensure that the purpose of the
trust is carried out.  
   (e) Notwithstanding Section 15211, a trust for the care of a
covered domestic or pet animal that has a life span of 21 years of
age or greater shall terminate when that designated animal dies.