BILL NUMBER: SB 696 CHAPTERED
BILL TEXT
CHAPTER 93
FILED WITH SECRETARY OF STATE JULY 21, 1997
APPROVED BY GOVERNOR JULY 21, 1997
PASSED THE SENATE JULY 3, 1997
PASSED THE ASSEMBLY JUNE 26, 1997
AMENDED IN ASSEMBLY JUNE 16, 1997
AMENDED IN SENATE MAY 13, 1997
AMENDED IN SENATE MAY 1, 1997
INTRODUCED BY Senator Rainey
FEBRUARY 25, 1997
An act to amend Section 7660 of, and to add Sections 7600.6,
15688, and 16042 to the Probate Code, relating to estates and trusts.
LEGISLATIVE COUNSEL'S DIGEST
SB 696, Rainey. Estates and trusts: public administrator and
guardian.
(1) Existing law requires, if a person in a hospital, convalescent
hospital, or board and care facility dies without known next of kin,
the person in charge of the hospital or facility to provide
immediate notice to the public administrator of the county of this
fact.
This bill would require a funeral director or cemetery authority
in control of the decedent's remains to notify the public
administrator if specified persons do not exist, cannot be found
after reasonable inquiry, or cannot be contacted by reasonable means.
(2) Existing law provides that, if a public administrator takes
possession or control of a decedent's estate, the public
administrator may summarily dispose of the estate, as specified, if
either the total value of the estate does not exceed $100,000 and
there is a court order or the total value of the estate does not
exceed $10,000.
This bill would revise the latter amount to $20,000.
(3) Existing law prohibits appointment of a public guardian as a
trustee of a trust unless a court finds, as specified, that no other
qualified person is willing to act as trustee. Existing law
generally regulates the compensation of the trustee and provides
that, upon proper showing, the court may fix or allow greater
compensation than could be allowed under the terms of the trust in
certain instances.
This bill would provide that, notwithstanding these provisions and
the terms of the trust, a public guardian who is appointed as a
trustee shall be paid from the trust property for specified expenses.
(4) Existing law requires a trustee to administer the trust with
reasonable care, skill, and caution under the circumstances then
prevailing that a prudent person acting in a like capacity would use
in the conduct of an enterprise of like character and with like aims
to accomplish the purposes of the trust as determined by the trust
instrument. Existing law also provides that a trustee who invests
and manages trust assets owes a duty to the beneficiaries of the
trust to comply with the prudent investor rule, as specified.
This bill would provide that, notwithstanding these provisions and
the terms of the trust, all trust funds that come within the custody
of the public guardian who is appointed as trustee of the trust may
be deposited or invested in the same manner, and would be subject to
the same terms and conditions, as a deposit or investment by the
public administrator of funds in the estate of a decedent, as
specified.
(5) This bill would incorporate changes made to Section 7660 of
the Probate Code proposed by AB 1165, to be operative only if AB 1165
and this bill are both chaptered and become effective January 1,
1998, and this bill is chaptered last.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7600.6 is added to the Probate Code, to read:
7600.6. A funeral director or cemetery authority in control of
the decedent's remains pursuant to subdivision (b) of Section 7100 of
the Health and Safety Code shall notify the public administrator if
none of the persons described in paragraphs (1) to (4), inclusive, of
subdivision (a) of Section 7100 of the Health and Safety Code exist,
can be found after reasonable inquiry, or can be contacted by
reasonable means.
SEC. 2. Section 7660 of the Probate Code is amended to read:
7660. (a) If a public administrator takes possession or control
of, or is appointed personal representative of, an estate pursuant to
this chapter, the public administrator may summarily dispose of the
estate in the manner provided in this article in either of the
following circumstances:
(1) The total value of the property in the decedent's estate does
not exceed the amount prescribed in Section 13100. The authority
provided by this paragraph may be exercised only upon order of the
court. The order may be made upon ex parte application. The fee to
be allowed to the clerk for the filing of the application shall be
set by the court.
(2) The total value of the property in the decedent's estate does
not exceed twenty thousand dollars ($20,000). The authority provided
by this paragraph may be exercised without court authorization.
(b) Summary disposition may be made notwithstanding the existence
of the decedent's will, if the will does not name an executor or if
the named executor refuses to act.
(c) Nothing in this article precludes the public administrator
from filing a petition with the court under any other provision of
this code concerning the administration of the decedent's estate.
SEC. 2.5. Section 7660 of the Probate Code is amended to read:
7660. (a) If a public administrator takes possession or control
of, or is appointed personal representative of, an estate pursuant to
this chapter, the public administrator may summarily dispose of the
estate in the manner provided in this article in either of the
following circumstances:
(1) The total value of the property in the decedent's estate does
not exceed the amount prescribed in Section 13100. The authority
provided by this paragraph may be exercised only upon order of the
court. The order may be made upon ex parte application. The fee to
be allowed to the clerk for the filing of the application shall be
set by the court.
(2) The total value of the property in the decedent's estate does
not exceed twenty thousand dollars ($20,000). The authority
provided by this paragraph may be exercised without court
authorization.
(b) Summary disposition may be made notwithstanding the existence
of the decedent's will, if the will does not name an executor or if
the named executor refuses to act.
(c) Nothing in this article precludes the public administrator
from filing a petition with the court under any other provision of
this code concerning the administration of the decedent's estate.
(d) Petitions filed pursuant to this article shall contain the
information required by Section 8002.
SEC. 3. Section 15688 is added to the Probate Code, to read:
15688. Notwithstanding any other provision of this article and
the terms of the trust, a public guardian who is appointed as a
trustee of a trust pursuant to Section 15660.5 shall be paid from the
trust property for all of the following:
(a) Reasonable expenses incurred in the administration of the
trust.
(b) Compensation for services of the public guardian and the
attorney of the public guardian, and for the filing and processing
services of the county clerk in the amount the court determines is
just and reasonable.
(c) An annual bond fee in the amount of twenty-five dollars ($25)
plus one-fourth of 1 percent of the amount of the trust assets
greater than ten thousand dollars ($10,000). The amount charged
shall be deposited in the county treasury.
SEC. 4. Section 16042 is added to the Probate Code, to read:
16042. (a) Notwithstanding the requirements of this article,
Article 2.5 (commencing with Section 16045), and the terms of the
trust, all trust funds that come within the custody of the public
guardian who is appointed as trustee of the trust pursuant to Section
15660.5 may be deposited or invested in the same manner, and would
be subject to the same terms and conditions, as a deposit or
investment by the public administrator of funds in the estate of a
decedent pursuant to Article 3 (commencing with Section 7640) of
Chapter 4 of Part 1 of Division 7.
(b) Upon the deposit or investment of trust property pursuant to
subdivision (a), the public guardian shall be deemed to have met the
standard of care specified in this article and Article 2.5
(commencing with Section 16045) with respect to this trust property.
SEC. 5. Section 2.5 of this bill incorporates amendments to
Section 7660 of the Probate Code proposed by both this bill and AB
1165. It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 1998, (2) each bill
amends Section 7660 of the Probate Code, and (3) this bill is enacted
after AB 1165, in which case Section 2 of this bill shall not become
operative.