California Legislature—2013–14 Regular Session

Assembly Bill No. 838

Introduced by Assembly Member Morrell

February 21, 2013

An act to amend Sections 8482 and 10453 of the Probate Code, relating to personal representatives.

LEGISLATIVE COUNSEL’S DIGEST

AB 838, as introduced, Morrell. Personal representatives: bonds.

Existing law requires a person appointed as a personal representative of an estate to post a bond approved by the court before letters are issued, except as specified. Existing law authorizes the court to fix the amount of the bond, not to exceed the sum of specified items, including the estimated value of the personal property and the probable annual gross income of the estate.

This bill would, commencing July 1, 2014, require the reasonable amount for the cost of recovery to collect on the bond, including attorney’s fees and costs, to be included in the above-described sum. The bill would require the Judicial Council to revise a specified form to implement the changes made by this bill.

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

The people of the State of California do enact as follows:

SECTION 1.  

Section 8482 of the Probate Code is amended to
read:

8482.  

(a) The court in its discretion may fix the amount of the
bond, but the amount of the bond shall be not more than the sum
of:

(1) The estimated value of the personal property.

(2) The probable annual gross income of the estate.

(3) If independent administration is granted as to real property,
the estimated value of the decedent’s interest in the real property.

begin insert

(4) Commencing July 1, 2014, a reasonable amount for the cost
of recovery to collect on the bond, including attorney’s fees and
costs.

end insert

(b) Notwithstanding subdivision (a), if the bond is given by an
admitted surety insurer, the court may establish a fixed minimum
amount for the bond, based on the minimum premium required by
the admitted surety insurer.

(c) If the bond is given by personal sureties, the amount of the
bond shall be twice the amount fixed by the court under subdivision
(a).

(d) Before confirming a sale of real property the court shall
require such additional bond as may be proper, not exceeding the
maximum requirements of this section, treating the expected
proceeds of the sale as personal property.

begin insert

(e) Commencing July 1, 2014, the attorney’s fees and costs
incurred in a successful action for surcharge against a personal
representative for breach of his or her duty under this code shall
be a surcharge against the personal representative and, if unpaid,
shall be recovered against the surety on the bond.

end insert begin insert

(f) The Judicial Council shall revise Rule 7.207 of the California
Rules of Court to implement the changes made to this section
during the 2013-14 Regular Session of the Legislature.

end insert

SEC. 2.  

Section 10453 of the Probate Code is amended to read:

10453.  

(a)  begin insert (1) end insert begin insert   end insert If the personal representative is otherwise
required to file a bond and has full authority, the court, in its
discretion, shall fix the amount of the bond at not more than the
begin delete estimated end delete begin insert sum of all of the following: end insert

begin insert (A) end insert begin insert   end insert begin insert The estimated end insert value of the personal begin delete property, the end delete begin insert property. end insert

begin insert (B) end insert begin insert   end insert begin insert The end insert estimated value of the decedent’s interest in the real
property authorized to be sold under this begin delete part, and the end delete begin insert part. end insert

begin insert (C) end insert begin insert   end insert begin insert The end insert probable annual gross income of the estate begin delete , or, if the
bond is to be given by personal sureties, at not less than twice that
amount end delete .

begin insert

(D) Commencing July 1, 2014, the reasonable amount for the
cost of recovery to collect on the bond, including attorney’s fees
and costs.

end insert begin insert

(2) Notwithstanding paragraph (1), if the bond is to be given
by personal sureties, the amount of the bond shall be fixed at not
less than twice the amount fixed by the court under paragraph (1).

end insert

(b)  begin insert (1) end insert begin insert   end insert If the personal representative is otherwise required to
file a bond and has limited authority, the court, in its discretion,
shall fix the amount of the bond at not more than the begin delete estimated end delete
begin insert sum of both of the following: end insert

begin insert (A) end insert begin insert   end insert begin insert The estimated end insert value of the personal property and the
probable annual gross income of the begin delete estate, or, if end delete begin insert estate. end insert

begin insert

(B) Commencing July 1, 2014, the reasonable amount for the
cost of recovery to collect on the bond, including attorney’s fees
and costs.

end insert

begin insert (2) end insert begin insert   end insert begin insert Notwithstanding paragraph (1), if end insert the bond is to be given
by personal sureties, begin insert the amount of the bond shall be fixed end insert at not
less than twice begin delete that end delete begin insert the end insert amount begin insert fixed by the court under paragraph
(1) end insert .