CHAPTER 1. Duties of Trustees [16000. - 16110.]
Chapter 1 enacted by Stats. 1990, Ch. 79.
§§ 16000–16110 · 52 sections
ARTICLE 1. Trustee’s Duties in General §§ 16000–16015 · 16 sections
- § 16000 On acceptance of the trust, the trustee has a duty to administer the trust according to the trust instrument and, except to the extent the trust instrument…
- § 16001 (a) Except as provided in subdivision (b), the trustee of a revocable trust shall follow any written direction acceptable to the trustee given from time to…
- § 16002 (a) The trustee has a duty to administer the trust solely in the interest of the beneficiaries. (b) It is not a violation of the duty provided in subdivision…
- § 16003 If a trust has two or more beneficiaries, the trustee has a duty to deal impartially with them and shall act impartially in investing and managing the trust…
- § 16004 (a) The trustee has a duty not to use or deal with trust property for the trustee’s own profit or for any other purpose unconnected with the trust, nor to take…
- § 16004.5 (a) A trustee may not require a beneficiary to relieve the trustee of liability as a condition for making a distribution or payment to, or for the benefit of,…
- § 16005 The trustee of one trust has a duty not to knowingly become a trustee of another trust adverse in its nature to the interest of the beneficiary of the first…
- § 16006 The trustee has a duty to take reasonable steps under the circumstances to take and keep control of and to preserve the trust property.
- § 16007 The trustee has a duty to make the trust property productive under the circumstances and in furtherance of the purposes of the trust.
- § 16009 The trustee has a duty to do the following: (a) To keep the trust property separate from other property not subject to the trust. (b) To see that the trust…
- § 16010 The trustee has a duty to take reasonable steps to enforce claims that are part of the trust property.
- § 16011 The trustee has a duty to take reasonable steps to defend actions that may result in a loss to the trust.
- § 16012 (a) The trustee has a duty not to delegate to others the performance of acts that the trustee can reasonably be required personally to perform and may not…
- § 16013 If a trust has more than one trustee, each trustee has a duty to do the following: (a) To participate in the administration of the trust. (b) To take…
- § 16014 (a) The trustee has a duty to apply the full extent of the trustee’s skills. (b) If the settlor, in selecting the trustee, has relied on the trustee’s…
- § 16015 The provision of services for compensation by a regulated financial institution or its affiliates in the ordinary course of business either to a trust of which…
ARTICLE 2. Trustee’s Standard of Care §§ 16040–16042 · 3 sections
- § 16040 (a) The trustee shall administer the trust with reasonable care, skill, and caution under the circumstances then prevailing that a prudent person acting in a…
- § 16041 A trustee’s standard of care and performance in administering the trust is not affected by whether or not the trustee receives any compensation.
- § 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…
ARTICLE 2.5. Uniform Prudent Investor Act §§ 16045–16054 · 10 sections
- § 16045 This article, together with subdivision (a) of Section 16002 and Section 16003, constitutes the prudent investor rule and may be cited as the Uniform Prudent…
- § 16046 (a) Except as provided in subdivision (b), a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the…
- § 16047 (a) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other…
- § 16048 In making and implementing investment decisions, the trustee has a duty to diversify the investments of the trust unless, under the circumstances, it is…
- § 16049 Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions…
- § 16050 In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation to the assets, overall investment…
- § 16051 Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee’s decision or action and not…
- § 16052 (a) A trustee may delegate investment and management functions as prudent under the circumstances. The trustee shall exercise prudence in the following: (1)…
- § 16053 The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted…
- § 16054 This article applies to trusts existing on and created after its effective date. As applied to trusts existing on its effective date, this article governs only…
ARTICLE 3. Trustee’s Duty to Report Information and Account to Beneficiaries §§ 16060–16069 · 13 sections
- § 16060 The trustee has a duty to keep the beneficiaries of the trust reasonably informed of the trust and its administration.
- § 16060.5 As used in this article, “terms of the trust” means the written trust instrument of an irrevocable trust or those provisions of a written trust instrument in…
- § 16060.7 On the request of a beneficiary, the trustee shall provide the terms of the trust to the beneficiary unless the trustee is not required to provide the terms of…
- § 16061 Except as provided in Section 16069, on reasonable request by a beneficiary, the trustee shall report to the beneficiary by providing requested information to…
- § 16061.5 (a) A trustee shall provide a true and complete copy of the terms of the irrevocable trust, or irrevocable portion of the trust, to each of the following: (1)…
- § 16061.7 (a) A trustee shall serve a notification by the trustee as described in this section in the following events: (1) When a revocable trust or any portion thereof…
- § 16061.8 A person upon whom the notification by the trustee is served pursuant to paragraph (1) of subdivision (a) of Section 16061.7, whether the notice is served on…
- § 16061.9 (a) A trustee who fails to serve the notification by trustee as required by Section 16061.7 on a beneficiary shall be responsible for all damages, attorney’s…
- § 16062 (a) Except as otherwise provided in this section and in Section 16064, the trustee shall account at least annually, at the termination of the trust, and upon a…
- § 16063 (a) An account furnished pursuant to Section 16062 shall contain the following information: (1) A statement of receipts and disbursements of principal and…
- § 16064 The trustee is not required to account to a beneficiary as described in subdivision (a) of Section 16062, in any of the following circumstances: (a) To the…
- § 16068 Any waiver by a settlor of the obligation of the trustee of either of the following is against public policy and shall be void: (a) To provide the terms of the…
- § 16069 (a) The trustee is not required to account to the beneficiary, provide the terms of the trust to a beneficiary, or provide requested information to the…
ARTICLE 4. Duties With Regard to Discretionary Powers §§ 16080–16082 · 3 sections
- § 16080 Except as provided in Section 16081, a discretionary power conferred upon a trustee is not left to the trustee’s arbitrary discretion, but shall be exercised…
- § 16081 (a) Subject to the additional requirements of subdivisions (b), (c), and (d), if a trust instrument confers “absolute,” “sole,” or “uncontrolled” discretion on…
- § 16082 Except as otherwise specifically provided in the trust instrument, a person who holds a power to appoint or distribute income or principal to or for the…
ARTICLE 5. Duties of Trustees of Private Foundations, Charitable Trusts, and Split-Interest Trusts §§ 16100–16105 · 6 sections
- § 16100 As used in this article, the following definitions shall control: (a) “Charitable trust” means a charitable trust as described in Section 4947(a)(1) of the…
- § 16101 During any period when a trust is deemed to be a charitable trust or a private foundation, the trustee shall distribute its income for each taxable year (and…
- § 16102 During any period when a trust is deemed to be a charitable trust, a private foundation, or a split-interest trust, the trustee shall not do any of the…
- § 16103 With respect to split-interest trusts: (a) Subdivisions (b) and (c) of Section 16102 do not apply to any trust described in Section 4947(b)(3) of the Internal…
- § 16104 The provisions of Sections 16101, 16102, and 16103 shall be deemed to be contained in the instrument creating every trust to which this article applies. Any…
- § 16105 (a) A proceeding contemplated by Section 101(l)(3) of the federal Tax Reform Act of 1969 (Public Law 91-172) may be commenced pursuant to Section 17200 by the…
ARTICLE 6. Notice to the Attorney General of Disposal of Charitable Assets § 16110 · 1 section
- § 16110 (a) On and after January 1, 2025, or upon the regulations provided for in subdivision (b) taking effect, whichever occurs first, a trustee holding assets…