Bill Text: CA AB1683 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Revocable trusts.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2012-07-09 - Chaptered by Secretary of State - Chapter 55, Statutes of 2012. [AB1683 Detail]

Download: California-2011-AB1683-Introduced.html

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BILL NUMBER: AB 1683	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Hagman

                        FEBRUARY 14, 2012

   An act to amend Sections 15401 and 15410 of the Probate Code,
relating to trusts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1683, as introduced, Hagman. Revocable trusts.
   Under existing law, a trust that is revocable by the settlor may
be revoked in whole or in part by either compliance with any method
of revocation provided in the trust instrument or by a writing, other
than a will, signed by the settlor and delivered to the trustee
during the settlor's lifetime, as specified.
   This bill would also allow revocation of a trust to be made by a
writing signed by any other person holding the power of revocation
and delivered to the trustee during the lifetime of the settlor or
the person holding the power of revocation.
   Under existing law, if a trust is created by more than one
settlor, each settlor may revoke the trust as to the portion of the
trust contributed by that settlor, unless the trust instrument
provides otherwise and except with respect to certain community
property interests.
   This bill would specify that these provisions do not prevent a
settlor from granting to another person, including his or her spouse,
a power to revoke all or part of that portion of the trust
contributed by that settlor, regardless of whether that portion was
separate property or community property of that settlor, and
regardless of whether that power to revoke is exercisable during the
lifetime of that settlor or continues after the death of that
settlor, or both.
   Existing law establishes procedures governing the disposal of
property when a trust is terminated. Under existing law, if a trust
is revoked by the settlor, then the trust property is disposed of
according to the directions of the settlor.
   This bill would instead specify that if a trust is revoked by the
settlor, the trust property would be disposed of first as directed by
the settlor, secondly, as provided in the trust, and to the extent
there is no direction by the settlor or in the trust, to the settlor,
or his or her estate, as specified. The bill would also specify that
if a trust is revoked by any person holding a power of revocation
other than the settlor, the trust property would first be disposed of
as provided in the trust, secondly as directed by the person
exercising the power of revocation, and to the extent there is no
direction in the trust or by the person exercising the power of
revocation, to the person exercising the power of revocation, or his
or her estate. The bill would also make related conforming and
nonsubstantive changes.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 15401 of the Probate Code is amended to read:
   15401.  (a) A trust that is revocable by the settlor  or any
other person  may be revoked in whole or in part by any of the
following methods:
   (1) By compliance with any method of revocation provided in the
trust instrument.
   (2) By a  writing (other than a will)  
writing, other than a will,  signed by the settlor  or any
other person holding the power of revocation  and delivered to
the trustee during the lifetime of the settlor  or t  
he person holding the power of revocation  . If the trust
instrument explicitly makes the method of revocation provided in the
trust instrument the exclusive method of revocation, the trust may
not be revoked pursuant to this paragraph.
   (b)  (1)    Unless otherwise provided in the
instrument, if a trust is created by more than one settlor, each
settlor may revoke the trust as to the portion of the trust
contributed by that settlor, except as provided in Section 761 of the
Family Code. 
   (2) Paragraph (1), including the reference to Section 761 of the
Family Code, shall not prevent a settlor from granting to another
person, including, but not limited to, his or her spouse, a power to
revoke all or part of that portion of the trust contributed by that
settlor, regardless of whether that portion was separate property or
community property of that settlor, and regardless of whether that
power to revoke is exercisable during the lifetime of that settlor or
continues after the death of that settlor, or both. 
   (c) A trust may not be modified or revoked by an attorney in fact
under a power of attorney unless it is expressly permitted by the
trust instrument.
   (d)  Nothing in this   This   
section  limits   shall not limit  the
authority to modify or terminate a trust pursuant to Section 15403 or
15404 in an appropriate case.
   (e) The manner of revocation of a trust revocable by the settlor
 or any other person  that was created by an instrument
executed before July 1, 1987, is governed by prior law and not by
this section.
  SEC. 2.  Section 15410 of the Probate Code is amended to read:
   15410.  At the termination of a trust, the trust property shall be
disposed of as follows:
   (a) In the case of a trust that is revoked by the settlor,
 as directed by the settlor.   the trust
property shall be disposed of in the following order of priority:
 
   (1) As directed by the settlor.  
   (2) As provided in the trust.  
   (3) To the extent that there is no direction by the settlor or in
the trust, to the settlor, or his or her estate, as the case may be.
 
   (b) In the case of a trust that is revoked by any person holding a
power of revocation other than the settlor, the trust property shall
be disposed of in the following order of priority:  
   (1) As provided in the trust.  
   (2) As directed by the person exercising the power of revocation.
 
   (3) To the extent that there is no direction in the trust or by
the person exercising the power of revocation, to the person
exercising the power of revocation, or his or her estate, as the case
may be.  
   (b) 
    (c) In the case of a trust that is terminated by the
consent of the settlor and all beneficiaries, as agreed by the
settlor and all beneficiaries. 
   (c) 
    (d)  In any other case, as provided in the trust
instrument or in a manner directed by the court that conforms as
nearly as possible to the intention of the settlor as expressed in
the trust instrument. 
   (d) 
    (e)  If a trust is terminated by the trustee pursuant to
subdivision (b) of Section 15408, the trust property may be
distributed as determined by the trustee pursuant to the standard
provided in subdivision  (c)   (d)  without
the need for a court order.  Where   If 
the trust instrument does not provide a manner of distribution at
termination and the settlor's intent is not adequately expressed in
the trust instrument, the trustee may distribute the trust property
to the living beneficiaries on an actuarial basis.