AB 838, as amended, 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.begin delete The bill would require the Judicial Council to revise a specified form to implement the changes made by this bill.end delete
Vote: majority.
Appropriation: no.
Fiscal committee: begin deleteyes end deletebegin insertnoend insert.
State-mandated local program: no.
The people of the State of California do enact as follows:
Section 8482 of the Probate Code is amended to
2read:
(a) The court in its discretion may fix the amount of the
2bond, but the amount of the bond shall be not more than the sum
3of:
4(1) The estimated value of the personal property.
5(2) The probable annual gross income of the estate.
6(3) If independent administration is granted as to real property,
7the estimated value of the decedent’s interest in the real property.
8(4) Commencing July 1, 2014, a reasonable amount for the cost
9of recovery to collect on the bond, including attorney’s
fees and
10costs.
11(b) Notwithstanding subdivision (a), if the bond is given by an
12admitted surety insurer, the court may establish a fixed minimum
13amount for the bond, based on the minimum premium required by
14the admitted surety insurer.
15(c) If the bond is given by personal sureties, the amount of the
16bond shall be twice the amount fixed by the court under subdivision
17(a).
18(d) Before confirming a sale of real property the court shall
19require such additional bond as may be proper, not exceeding the
20maximum requirements of this section, treating the expected
21proceeds of the sale as personal property.
22(e) Commencing July 1, 2014, the attorney’s fees and
costs
23incurred in a successful action for surcharge against a personal
24representative for breach of his or her duty under this code shall
25be a surcharge against the personal representative and, if unpaid,
26shall be recovered against the surety on the bond.
27(f) The Judicial Council shall revise Rule 7.207 of the California
28Rules of Court to implement the changes made to this section
29during the 2013-14 Regular Session of the Legislature.
Section 10453 of the Probate Code is amended to read:
(a) (1) If the personal representative is otherwise
32required to file a bond and has full authority, the court, in its
33discretion, shall fix the amount of the bond at not more than the
34sum of all of the following:
35(A) The estimated value of the personal property.
36(B) The estimated value of the decedent’s interest in the real
37property authorized to be sold under this part.
38(C) The probable annual gross income of the estate.
P3 1(D) Commencing
July 1, 2014, the reasonable amount for the
2cost of recovery to collect on the bond, including attorney’s fees
3and costs.
4(2) Notwithstanding paragraph (1), if the bond is to be given
5by personal sureties, the amount of the bond shall be fixed at not
6less than twice the amount fixed by the court under paragraph (1).
7(b) (1) If the personal representative is otherwise required to
8file a bond and has limited authority, the court, in its discretion,
9shall fix the amount of the bond at not more than the
sum of both
10of the following:
11(A) The estimated value of the personal property and the
12probable annual gross income of the estate.
13(B) Commencing July 1, 2014, the reasonable amount for the
14cost of recovery to collect on the bond, including attorney’s fees
15and costs.
16(2) Notwithstanding paragraph (1), if the bond is to be given
17by personal sureties, the amount of the bond shall be fixed at not
18less than twice the amount fixed by the court under paragraph (1).
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