Representation of trust beneficiaries.

Plain English Breakdown

The official source material does not provide details on penalties for trustees who do not follow the new notice requirements.

Representation of Trust Beneficiaries

This law changes how notices about trust actions are given to beneficiaries by requiring direct notice to authorized representatives.

What This Bill Does

• Removes the current rule that allows trustees to give indirect notices to certain people or groups who can represent a beneficiary.
• Requires trustees to give direct notice to any person who is officially allowed to act on behalf of and legally bind another person, such as an attorney-in-fact under a power of attorney.
• States that if someone agrees in writing for another person to speak and act for them regarding their trust interests, this agreement must be followed unless the original person objects before it takes effect.

Who It Names or Affects

• Trust beneficiaries
• Trustees managing the trusts
• Authorized representatives like attorneys-in-fact

Terms To Know

Attorney-in-Fact

A person who is given legal authority by another to act on their behalf, often through a power of attorney document.

Power of Attorney

A legal document that gives someone the right to make decisions or take actions for another person.

Limits and Unknowns

• The bill does not specify what happens if there is no authorized representative available.
• It's unclear how this law will affect existing trusts without a designated representative.

Official Summary Text

AB 565, Dixon.
Representation of trust beneficiaries.
Existing law establishes procedures for the creation, modification, and termination of a trust, and regulates the administration of trusts by trustees on behalf of beneficiaries. Existing law requires a trust beneficiary to be provided notice of specified actions regarding the trust. Existing law sets forth requirements under which notice given to a specified person or class of persons is sufficient to comply with a requirement that notice be given to a trust beneficiary or a person interested in the trust.
This bill would delete that indirect notice provision and would instead provide that notice given to a person authorized to represent and bind another person is sufficient to comply with notice requirements for actions regarding a trust.
If a person consents for a person to represent and bind them, the bill would require that consent to be in writing and would make consent binding on the represented person unless they object to the representation before consent would have become effective. The bill would prohibit certain persons from representing and binding another person for these purposes, and would authorize specified representative relationships and representation of successive interests.

Current Bill Text

Download Bill PDF