Amended in Assembly March 14, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1700


Introduced by Assembly Member Maienschein

January 25, 2016


An act to amendbegin delete Sectionsend deletebegin insert Sectionend insert 16501begin delete and 16502end delete of the Probate Code, relating to trusts.

LEGISLATIVE COUNSEL’S DIGEST

AB 1700, as amended, Maienschein. Trusts: Notice of proposed action by trustee.

Existing law provides for the creation, modification, and termination of trusts, and regulates the acts of trustees in administering a trust. Existing law establishes provisions by which a trustee may give a notice of proposed action regarding certain matters, while prohibiting the use of these notices for other specified actions, including preliminary and final distributions and discharge.begin delete Existing law requires that a notice of proposed action include a time within which objections to a proposed action can be made, which shall be at least 45 days from the mailing of the notice.end delete

This bill would instead authorize a trustee to provide a notice of proposed action for preliminary and finalbegin delete discharges and would reduce the minimum amount of time within which objections to a proposed action can be made to 30 days from the date of mailing of the notice.end deletebegin insert distributions. The bill would make other technical, nonsubstantive changes in that regard.end insert

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

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

P2    1

SECTION 1.  

Section 16501 of the Probate Code is amended
2to read:

3

16501.  

(a) The trustee who elects to provide notice pursuant
4to this chapter shall mail notice of the proposed action to each of
5the following:

6(1) A beneficiary who is receiving, or is entitled to receive,
7income under the trust, including a beneficiary who is entitled to
8receive income at the discretion of the trustee.

9(2) A beneficiary who would receive a distribution of principal
10if the trust were terminated at the time the notice is given.

11(b) Notice of proposed action is not required to be given to a
12person who consents in writing to the proposed action. The consent
13may be executed at any time before or after the proposed action
14is taken.

15(c) A trustee is not required to provide a copy of the notice of
16proposed action to a beneficiary who is known to the trustee but
17who cannot be located by the trustee after reasonable diligence or
18who is unknown to the trustee.

19(d) Notwithstanding any other provision of this chapter, the
20trustee may not use a notice of proposed action in any of the
21following actions:

22(1) Allowance of the trustee’s compensation.

23(2) Allowance of compensation of the attorney for the trustee.

24(3) Settlement of accounts.

begin insert

25(4) Discharge of the trustee.

end insert
begin delete

26(4)

end delete

27begin insert(5)end insert Sale of property of the trust to the trustee or to the attorney
28for the trustee.

begin delete

29(5)

end delete

30begin insert(6)end insert Exchange of property of the trust for property of the trustee
31or for property of the attorney for the trustee.

begin delete

32(6)

end delete

33begin insert(7)end insert Grant of an option to purchase property of the trust to the
34trustee or to the attorney for the trustee.

begin delete

35(7)

end delete

36begin insert(8)end insert Allowance, payment, or compromise of a claim of the
37 trustee, or the attorney for the trustee, against the trust.

begin delete

38(8)

end delete

P3    1begin insert(9)end insert Compromise or settlement of a claim, action, or proceeding
2by the trust against the trustee or against the attorney for the trust.

begin delete

3(9)

end delete

4begin insert(10)end insert Extension, renewal, or modification of the terms of a debt
5or other obligation of the trustee, or the attorney for the trustee,
6owing to or in favor of the trust.

begin delete
7

SEC. 2.  

Section 16502 of the Probate Code is amended to read:

8

16502.  

The notice of proposed action shall state that it is given
9pursuant to this section and shall include all of the following:

10(a) The name and mailing address of the trustee.

11(b) The name and telephone number of a person who may be
12contacted for additional information.

13(c) A description of the action proposed to be taken and an
14explanation of the reasons for the action.

15(d) The time within which objections to the proposed action can
16be made, which shall be at least 30 days from the date of mailing
17of the notice of proposed action.

18(e) The date on or after which the proposed action may be taken
19or is effective.

end delete


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