BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2166
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          Date of Hearing:   April 8, 2014

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
                 AB 2166 (Bonta) - As Introduced:  February 20, 2014

                                  PROPOSED CONSENT
           
          SUBJECT  :  DECEDENTS' ESTATES: ADMINISTRATION: CUSTODIAN OF WILLS

           KEY ISSUE  :  IN ORDER TO ENSURE THAT CUSTODIANS OF ORIGINAL WILLS  
          ARE NOT RELUCTANT TO SAFEGUARD AND LODGE WILLS WITH THE COURT AS  
          INTENDED BY THE DECEDENT, SHOULD RESPONSIBILITY FOR PAYING THE  
          COURT FEE FOR LODGING THE WILL BE SHIFTED IN MOST CASES TO THE  
          EXECUTOR OR BENEFICIARY OF THE WILL, RATHER THAN THE ORIGINAL  
          CUSTODIAN?

                                      SYNOPSIS
          
          Under existing law, the custodian of a will-a person chosen by  
          the testator to safeguard the will until his or her death--is  
          required to deliver the will to the court (also known as  
          "lodging the will") upon learning of the testator's death.   
          Existing law, enacted last year, authorizes the court to collect  
          a fee (currently $50) for lodging the will, although the fee is  
          reimbursable if an estate is commenced for the decedent.  This  
          bill, sponsored by the Trusts and Estates Section of the State  
          Bar, seeks to shift responsibility for paying the lodging fee,  
          in most cases, from the original custodian to the executor or  
          beneficiary of the will.  Proponents contend this change is  
          necessary because existing law requiring custodians to pay the  
          lodging fee will have a chilling effect by making custodians  
          more reluctant to maintain and safeguard original will  
          documents.  Under the revised procedure proposed by this bill,  
          the custodian would be permitted to deliver the will to the  
          named executor or beneficiary of the will, who in turn would  
          assume responsibility for lodging the will and paying the  
          associated court fee, among other things.  Although the bill  
          alters procedural obligations of custodians and other persons  
          between the death of the decedent and lodging of the will, it  
          does not create any scenario where the will may be lodged  
          without payment of the fee nor does it otherwise excuse payment  
          of the lodging fee, both of which might deprive the court of  
          this source of funding under existing law.  The bill has no  
          known opposition.








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           SUMMARY  :  Revises the delivery procedures that an original or  
          successor custodian of a will must follow upon death of the  
          testator, and clarifies that the fee charged to a custodian for  
          delivering a will to the court clerk is reimbursable from the  
          estate as an administrative cost.  Specifically,  this bill  :   

          1)Requires the original custodian of a will, within 30 days  
            after having knowledge of the testator's death unless a  
            petition for probate of the will is earlier filed, to do  
            either of the following:

             a)   Deliver the will to the person named in the will as  
               executor if this person's whereabouts is known to the  
               original custodian or, if not known, to the person named in  
               the will as a beneficiary, if this person's whereabouts is  
               known to the original custodian.  This delivery shall be  
               made either by personal service or by mail, and include a  
               specified notice providing further directions to the  
               executor of the will.

             b)   Deliver the will to the clerk of the superior court of  
               the county in which the estate of the decedent may be  
               administered, and mail a copy of the will to the person  
               named in the will as executor, if the person's whereabouts  
               is known to the custodian, or if not, to a person named in  
               the will as a beneficiary, if the person's whereabouts is  
               known to the custodian.

          2)Requires the successor custodian of a will who is named in the  
            will as an executor or beneficiary and who receives the will  
            with the notification described above, within 30 days of  
            receipt of the will from the original custodian, deliver the  
            will to the clerk of the superior court of the county in which  
            the estate of the decedent may be administered and, if the  
            successor custodian is a beneficiary, mail a copy of the will  
            to the person named in the will as executor, if the person's  
            whereabouts is known to this custodian.

          3)Clarifies that any fee incurred for lodging the will with the  
            court clerk is reimbursable as an administrative expense to  
            the party that incurred the fee, including an original  
            custodian of the will and a successor custodian named in the  
            will as an executor or beneficiary.









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          4)Clarifies that existing liability for any custodian of the  
            will who fails to comply with these requirements also extends  
            to an executor or beneficiary who receives a will with the  
            notice specified by this bill.

           EXISTING LAW  :  

          1)Requires the custodian of a will, within 30 days after having  
            knowledge of the testator's death unless a petition for  
            probate of the will is earlier filed, to do both of the  
            following:

             a)   Deliver the will to the clerk of the superior court of  
               the county in which the estate of the decedent may be  
               administered.

             b)   Mail a copy of the will to the person named in the will  
               as executor, if the person's whereabouts is known to the  
               custodian, or if not, to a person named in the will as a  
               beneficiary, if the person's whereabouts is known to the  
               custodian.  (Probate Code Section 8200(a).  All further  
               references are to this code unless otherwise stated.)

          1)Provides that a custodian of a will who fails to comply with  
            the requirements of this section shall be liable for all  
            damages sustained by any person injured by the failure.   
            (Section 8200(b).)

          2)Requires a court clerk to release a copy of a will, delivered  
            by the custodian, for attachment to a petition for probate of  
            the will, or otherwise on receipt of payment of the required  
            fee and either a court order for production of the will or a  
            certified copy of a death certificate of the decedent.   
            (Section 8200(c).)

          3)Provides that the fee for any will required to be delivered by  
            the custodian to the court clerk under these provisions shall  
            be in the amount specified by Section 70626 of the Government  
            Code (currently $50).  Further provides that if an estate is  
            commenced for the decedent named in the will, the fee shall be  
            reimbursable from the estate as an expense of administration.   
            (Section 8200(d).)

           FISCAL EFFECT  :  As currently in print this bill is keyed  
          non-fiscal.








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           COMMENTS  :  This bill, sponsored by the Trusts and Estates  
          Section of the State Bar, seeks a modest revision to the  
          procedure to be observed by custodians of wills upon the death  
          of the testator.  Under this bill, instead of being required to  
          lodge the will with the court, the custodian would instead be  
          permitted to deliver the will to the named executor or  
          beneficiary of the will, who in turn would assume responsibility  
          for lodging the will and paying the associated court fee.

           Need for the bill.   According to the author, existing law  
          requiring custodians to pay a fee to the court to lodge the will  
          may have unintended chilling consequences, even though  
          reimbursement of the fee from the decedent's estate is  
          permitted.  The author explains:  "Requiring custodians to incur  
          a fee to lodge a will have a chilling effect on their  
          willingness to hold such original documents, and is likely to  
          culminate in reluctance by such custodians to maintain and  
          safeguard wills.  The result of this may be fewer wills being  
          delivered to executors, less wills being lodged with the court,  
          and fewer creditors having knowledge of a decedent's will."

           Background on custodians and lodging of wills  .  According to  
          TEXCOM, the Trusts and Estates Section of the State Bar, the  
          custodian of a will may be a confidante, attorney, or other  
          trusted advisor of the decedent.  The decedent's principal  
          motivation for entrusting the care of his or her will with a  
          custodian to ensure its safekeeping until the time of his or her  
          death.  Custodians ensure that executors are informed of the  
          will and their nomination as executor upon the decedent's death,  
          and they generally have no beneficial interest of their own in  
          the decedent's estate.  As required by existing law, lodging of  
          the will with the clerk makes the will a public document and  
          allows other members of the public, such as creditors, to check  
          with the county clerk to ascertain the existence of a will.

          SB 1021, budget trailer legislation from 2012 (Chapter 41),  
          authorized a $50 court fee to be charged for lodging a will.   
          Prior to enactment of SB 1021, existing law prohibited a fee  
          from being charged for lodging a will.

           This bill revises procedure to allow custodians to deliver the  
          will to an executor or beneficiary, who, in most cases, will  
          assume responsibility for lodging the will with the court and  
          paying the corresponding fee.   Under the procedural scheme  








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          outlined by existing law, the custodian of a will is required in  
          every case to pay the court clerk a fee (currently set by  
          statute at $50) for delivery of the will (also known as "lodging  
          the will"), even though the fee is reimbursable if an estate is  
          commenced for the decedent named in the will.  Under the revised  
          procedure proposed by this bill, however, the person in  
          possession of the decedent's will (also referred to as the  
          "original custodian") would be permitted to satisfy his or her  
          statutory duty by delivering the will to the executor or a  
          beneficiary for lodging with the court, provided that the  
          delivery is made by personal service with proof of service or by  
          mail with return receipt, and that attached to the will is a  
          specified notice containing further instructions for the  
          executor or beneficiary acting as the successor custodian of the  
          will.  If the will is delivered to the successor custodian with  
          the specified attached notice, then the bill requires that  
          person to lodge the will with the court clerk and, if the person  
          acting is a beneficiary, to additionally mail a copy of the will  
          to the person named therein as the executor.  In that case, of  
          course, the successor custodian is responsible for paying the  
          reimbursable fee, not the original custodian.

           This bill does not eliminate any fee that is a source of funding  
          for the courts.   The bill further provides that if, for any  
          reason, the original custodian did not complete delivery of the  
          will to the named executor or beneficiary, then he or she shall  
          instead assume responsibility for lodging the will with the  
          court (and paying the fee) and for mailing a copy of the will to  
          the person named as executor.  In either set of circumstances,  
          the bill ensures the executor is notified of the will, the will  
          is lodged with the court, and a single lodging fee is paid to  
          the court clerk by the party lodging the will.  The bill  
          clarifies that even under the revised procedure, the fee is to  
          be considered an administrative expense that is reimbursable  
          from the decedent's estate.

          In short, although the bill alters procedural steps between the  
          death of the decedent and lodging of the will with the court, it  
          does not create any scenario where the will may be lodged  
          without payment of the fee nor does it otherwise excuse payment  
          of the lodging fee.  According to proponents, the bill may  
          ultimately result in more wills being lodged with the court, by  
          removing any disincentive that original custodians of wills may  
          have under existing procedure that requires them to lodge the  
          will, pay the lodging fee, and possibly seek reimbursement from  








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          the decedent's estate.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Trusts and Estates Section of the State Bar (TEXCOM)

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Anthony Lew / JUD. / (916) 319-2334