California Code
DIVISION 9 - TRUST LAW
PART 4 - TRUST ADMINISTRATION

CHAPTER 1 - Duties of Trustees

ARTICLE 1 - Trustee s Duties in General

Section 16000. - 16000. On acceptance of the trust, the trustee has a...

Section 16001. - 16001. (a) Except as provided in subdivision (b), the trustee...

Section 16002. - 16002. (a) The trustee has a duty to administer the...

Section 16003. - 16003. If a trust has two or more beneficiaries, the...

Section 16004. - 16004. (a) The trustee has a duty not to use...

Section 16004.5. - 16004.5. (a) A trustee may not require a beneficiary to...

Section 16005. - 16005. The trustee of one trust has a duty not...

Section 16006. - 16006. The trustee has a duty to take reasonable steps...

Section 16007. - 16007. The trustee has a duty to make the trust...

Section 16009. - 16009. The trustee has a duty to do the following:...

Section 16010. - 16010. The trustee has a duty to take reasonable steps...

Section 16011. - 16011. The trustee has a duty to take reasonable steps...

Section 16012. - 16012. (a) The trustee has a duty not to delegate...

Section 16013. - 16013. If a trust has more than one trustee, each...

Section 16014. - 16014. (a) The trustee has a duty to apply the...

Section 16015. - 16015. The provision of services for compensation by a regulated...

ARTICLE 2 - Trustee s Standard of Care

Section 16040. - 16040. (a) The trustee shall administer the trust with reasonable...

Section 16041. - 16041. A trustee’s standard of care and performance in administering...

Section 16042. - 16042. (a) Notwithstanding the requirements of this article, Article 2.5...

ARTICLE 2.5 - Uniform Prudent Investor Act

Section 16045. - 16045. This article, together with subdivision (a) of Section 16002...

Section 16046. - 16046. (a) Except as provided in subdivision (b), a trustee...

Section 16047. - 16047. (a) A trustee shall invest and manage trust assets...

Section 16048. - 16048. In making and implementing investment decisions, the trustee has...

Section 16049. - 16049. Within a reasonable time after accepting a trusteeship or...

Section 16050. - 16050. In investing and managing trust assets, a trustee may...

Section 16051. - 16051. Compliance with the prudent investor rule is determined in...

Section 16052. - 16052. (a) A trustee may delegate investment and management functions...

Section 16053. - 16053. The following terms or comparable language in the provisions...

Section 16054. - 16054. This article applies to trusts existing on and created...

ARTICLE 3 - Trustee s Duty to Report Information and Account to Beneficiaries

Section 16060. - 16060. The trustee has a duty to keep the beneficiaries...

Section 16060.5. - 16060.5. As used in this article, “terms of the trust”...

Section 16060.7. - 16060.7. On the request of a beneficiary, the trustee shall...

Section 16061. - 16061. Except as provided in Section 16069, on reasonable request...

Section 16061.5. - 16061.5. (a) A trustee shall provide a true and complete...

Section 16061.7. - 16061.7. (a) A trustee shall serve a notification by the...

Section 16061.8. - 16061.8. A person upon whom the notification by the trustee...

Section 16061.9. - 16061.9. (a) A trustee who fails to serve the notification...

Section 16062. - 16062. (a) Except as otherwise provided in this section and...

Section 16063. - 16063. (a) An account furnished pursuant to Section 16062 shall...

Section 16064. - 16064. The trustee is not required to account to a...

Section 16068. - 16068. Any waiver by a settlor of the obligation of...

Section 16069. - 16069. (a) The trustee is not required to account to...

ARTICLE 4 - Duties With Regard to Discretionary Powers

Section 16080. - 16080. Except as provided in Section 16081, a discretionary power...

Section 16081. - 16081. (a) Subject to the additional requirements of subdivisions (b),...

Section 16082. - 16082. Except as otherwise specifically provided in the trust instrument,...

ARTICLE 5 - Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts

Section 16100. - 16100. As used in this article, the following definitions shall...

Section 16101. - 16101. During any period when a trust is deemed to...

Section 16102. - 16102. During any period when a trust is deemed to...

Section 16103. - 16103. With respect to split-interest trusts: (a) Subdivisions (b) and...

Section 16104. - 16104. The provisions of Sections 16101, 16102, and 16103 shall...

Section 16105. - 16105. (a) A proceeding contemplated by Section 101(l)(3) of the...

Section 16106. - 16106. (a) On and after July 1, 2022, a trustee...

CHAPTER 2 - Powers of Trustees

ARTICLE 1 - General Provisions

Section 16200. - 16200. A trustee has the following powers without the need...

Section 16201. - 16201. This chapter does not affect the power of a...

Section 16202. - 16202. The grant of a power to a trustee, whether...

Section 16203. - 16203. An instrument that incorporates the powers provided in former...

ARTICLE 2 - Specific Powers of Trustees

Section 16220. - 16220. The trustee has the power to collect, hold, and...

Section 16221. - 16221. The trustee has the power to accept additions to...

Section 16222. - 16222. (a) Subject to subdivision (b), the trustee has the...

Section 16224. - 16224. (a) In the absence of an express provision to...

Section 16225. - 16225. (a) The trustee has the power to deposit trust...

Section 16226. - 16226. The trustee has the power to acquire or dispose...

Section 16227. - 16227. The trustee has the power to manage, control, divide,...

Section 16228. - 16228. The trustee has the power to encumber, mortgage, or...

Section 16229. - 16229. The trustee has the power to do any of...

Section 16230. - 16230. The trustee has the power to do any of...

Section 16231. - 16231. The trustee has the power to enter into a...

Section 16232. - 16232. The trustee has the power to enter into a...

Section 16233. - 16233. The trustee has the power to grant an option...

Section 16234. - 16234. With respect to any shares of stock of a...

Section 16235. - 16235. The trustee has the power to pay calls, assessments,...

Section 16236. - 16236. The trustee has the power to sell or exercise...

Section 16237. - 16237. The trustee has the power to consent, directly or...

Section 16238. - 16238. The trustee has the power to hold a security...

Section 16239. - 16239. The trustee has the power to deposit securities in...

Section 16240. - 16240. The trustee has the power to insure the property...

Section 16241. - 16241. The trustee has the power to borrow money for...

Section 16242. - 16242. The trustee has the power to do any of...

Section 16243. - 16243. The trustee has the power to pay taxes, assessments,...

Section 16244. - 16244. The trustee has the following powers: (a) To make...

Section 16245. - 16245. The trustee has the power to pay any sum...

Section 16246. - 16246. The trustee has the power to effect distribution of...

Section 16247. - 16247. The trustee has the power to hire persons, including...

Section 16248. - 16248. The trustee has the power to execute and deliver...

Section 16249. - 16249. The trustee has the power to prosecute or defend...

CHAPTER 3 - Uniform Principal and Income Act

ARTICLE 1 - Short Title and Definitions

Section 16320. - 16320. This chapter may be cited as the Uniform Principal...

Section 16321. - 16321. The definitions in this article govern the construction of...

Section 16322. - 16322. “Accounting period” means a calendar year unless another 12-month...

Section 16323. - 16323. “Fiduciary” means a personal representative or a trustee. (Added...

Section 16324. - 16324. “Income” means money or property that a fiduciary receives...

Section 16325. - 16325. “Income beneficiary” means a person to whom net income...

Section 16326. - 16326. “Income interest” means the right of an income beneficiary...

Section 16327. - 16327. “Mandatory income interest” means the right of an income...

Section 16328. - 16328. “Net income” means the total receipts allocated to income...

ARTICLE 2 - General Provisions and Fiduciary Duties

Section 16335. - 16335. (a) In allocating receipts and disbursements to or between...

Section 16336. - 16336. (a) Subject to subdivision (b), a trustee may make...

Section 16336.4. - 16336.4. (a) Unless expressly prohibited by the governing instrument, a...

Section 16336.5. - 16336.5. (a) The trustee may convert a trust into a...

Section 16336.6. - 16336.6. Unless expressly prohibited by the governing instrument, a trustee...

Section 16336.7. - 16336.7. (a) Sections 16336.4 to 16336.6, inclusive, shall not impose...

Section 16337. - 16337. A trustee may give a notice of proposed action...

Section 16338. - 16338. In a proceeding with respect to a trustee’s exercise...

Section 16339. - 16339. This chapter applies to every trust or decedent’s estate...

ARTICLE 3 - Decedent s Estate or Terminating Income Interest

Section 16340. - 16340. After the decedent’s death, in the case of a...

Section 16341. - 16341. (a) Each beneficiary described in subdivision (d) of Section...

ARTICLE 4 - Apportionment at Beginning and End of Income Interest

Section 16345. - 16345. (a) An income beneficiary is entitled to net income...

Section 16346. - 16346. (a) A trustee shall allocate an income receipt or...

Section 16347. - 16347. (a) For the purposes of this section, “undistributed income”...

ARTICLE 5.1 - Allocation of Receipts During Administration of Trust: Receipts From Entities

Section 16350. - 16350. (a) As used in this section, “entity” shall mean...

Section 16351. - 16351. A trustee shall allocate to income an amount received...

Section 16352. - 16352. (a) If a trustee who conducts a business or...

ARTICLE 5.2 - Allocation of Receipts During Administration of Trust: Receipts Not Normally Apportioned

Section 16355. - 16355. A trustee shall allocate to principal: (a) To the...

Section 16356. - 16356. Unless the trustee accounts for receipts from rental property...

Section 16357. - 16357. (a) An amount received as interest, whether determined at...

Section 16358. - 16358. (a) Except as otherwise provided in subdivision (b), a...

ARTICLE 5.3 - Allocation of Receipts During Administration of Trust: Receipts Normally Apportioned

Section 16360. - 16360. (a) If a trustee determines that an allocation between...

Section 16361. - 16361. (a) For purposes of this section, the following terms...

Section 16361.1. - 16361.1. Section 16361, as amended by the act adding this...

Section 16362. - 16362. (a) In this section, “liquidating asset” means an asset...

Section 16363. - 16363. (a) To the extent that a trustee accounts for...

Section 16364. - 16364. (a) To the extent that a trustee accounts for...

Section 16365. - 16365. (a) If a marital deduction is allowed for all...

Section 16366. - 16366. (a) In this section, “derivative” means a contract or...

Section 16367. - 16367. (a) In this section, “asset-backed security” means an asset...

ARTICLE 6 - Allocation of Disbursements During Administration of Trust

Section 16370. - 16370. A trustee shall make the following disbursements from income...

Section 16371. - 16371. (a) A trustee shall make the following disbursements from...

Section 16372. - 16372. (a) For purposes of this section, “depreciation” means a...

Section 16373. - 16373. (a) If a trustee makes or expects to make...

Section 16374. - 16374. (a) A tax required to be paid by a...

Section 16374.5. - 16374.5. Unless otherwise provided by the governing instrument, determined by...

Section 16375. - 16375. (a) A fiduciary may make adjustments between principal and...

CHAPTER 4 - Liability of Trustees to Beneficiaries

ARTICLE 1 - Liability for Breach of Trust

Section 16400. - 16400. A violation by the trustee of any duty that...

Section 16401. - 16401. (a) Except as provided in subdivision (b), the trustee...

Section 16402. - 16402. (a) Except as provided in subdivision (b), a trustee...

Section 16403. - 16403. (a) Except as provided in subdivision (b), a successor...

ARTICLE 2 - Remedies for Breach of Trust

Section 16420. - 16420. (a) If a trustee commits a breach of trust,...

Section 16421. - 16421. The remedies of a beneficiary against the trustee are...

ARTICLE 3 - Measure of Liability for Breach of Trust

Section 16440. - 16440. (a) If the trustee commits a breach of trust,...

Section 16441. - 16441. (a) If the trustee is liable for interest pursuant...

Section 16442. - 16442. The provisions in this article for liability of a...

ARTICLE 4 - Limitations and Exculpation

Section 16460. - 16460. (a) Unless a claim is previously barred by adjudication,...

Section 16461. - 16461. (a) Except as provided in subdivision (b), (c), or...

Section 16462. - 16462. (a) Notwithstanding Section 16461, a trustee of a revocable...

Section 16463. - 16463. (a) Except as provided in subdivisions (b) and (c),...

Section 16464. - 16464. (a) Except as provided in subdivision (b), a beneficiary...

Section 16465. - 16465. (a) Except as provided in subdivision (b), if the...

CHAPTER 5 - Notice of Proposed Action by Trustee

Section 16500. - 16500. Subject to subdivision (d) of Section 16501, a trustee...

Section 16501. - 16501. (a) The trustee who elects to provide notice pursuant...

Section 16502. - 16502. The notice of proposed action shall state that it...

Section 16503. - 16503. (a) A beneficiary may object to the proposed action...

Section 16504. - 16504. This chapter does not require a trustee to use...