Bill Text: CA AB565 | 2025-2026 | Regular Session | Chaptered

California Assembly Bill 565

Bill Title: Representation of trust beneficiaries.

Sponsorship: Partisan Bill (Republican 1)

Status: (Passed) 2025-07-14 - Chaptered by Secretary of State - Chapter 39, Statutes of 2025. [AB565 Detail]

Download: California-2025-AB565-Chaptered.html

Assembly Bill No. 565

CHAPTER 39

An act to repeal and add Section 15804 of the Probate Code, relating to trusts.

[ Approved by Governor July 14, 2025. Filed with Secretary of State July 14, 2025. ]

LEGISLATIVE COUNSEL'S DIGEST

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.

Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 15804 of the Probate Code is repealed.

SEC. 2.

Section 15804 is added to the Probate Code, to read:

15804.

(a) Notice to a person who may represent and bind another person pursuant to this section is sufficient to comply with a requirement in this division that notice be given to the represented person, and has the same effect as if notice were given directly to that represented person.

(b) A person may serve as a representative as provided in this section and bind another person, except as follows:

(1) The representative and the represented person shall not have a conflict of interest during the representation with respect to the particular matter that is the subject of the representation.

(2) A settlor shall not represent and bind a beneficiary regarding the termination or modification of an irrevocable trust.

(2) The consent of a person who may represent and bind another person pursuant to this section is binding on the represented person unless the represented person objects to the representation before the consent would have become effective.

(3) A fiduciary who acts in reliance upon a representation made pursuant to this section shall not be liable for any resulting loss, unless the fiduciary committed a breach of trust intentionally, with gross negligence, in bad faith, or with reckless indifference to the interests of a beneficiary.

(d) An action taken by the court under this division is conclusive and binding upon a person represented pursuant to this section.

(e) The following representation is permissible:

(1) A parent may represent and bind the parent’s minor children and children subsequently born if a guardian or guardian ad litem for the child or children has not been appointed.

(2) A conservator of the estate may represent and bind the conservatee.

(3) A guardian of the estate may represent and bind the minor ward.

(4) A guardian ad litem with authority to act with respect to the matter may represent and bind the ward.

(5) An agent with authority to act with respect to the matter may represent and bind the principal.

(6) A trustee may represent and bind the beneficiaries of the trust.

(7) A personal representative may represent and bind persons interested in the estate.

(f) Unless otherwise represented, a minor, an incapacitated person, a person subsequently born, or a person whose identity or location is unknown and not reasonably ascertainable may be represented by and bound by another person having a substantially identical interest with respect to the particular question or dispute.

(g) The following representation of successive interests is permissible:

(1) If an interest has been given to persons who comprise a certain class upon the happening of a future event, the living persons who would constitute the class as of the date the representation is to be determined may represent and bind all other members of the class as of that date.

(2) If an interest has been given to a living person or to a class of persons, and a substantially identical interest is to pass to another person or class of persons, or both, upon the happening of a future event, the living person or the living members of the class of persons who hold the interest may represent and bind all of the persons and classes of persons who might take on the happening of all future events.

(3) If an interest will be given to a living person or to a class of persons upon the happening of a future event and a substantially identical interest would pass to another person or class of persons, or both, upon the happening of one or more future events, the living person or the living members of the class of persons who will hold the interest on the happening of an earlier event may represent and bind all of the persons and classes of persons who might take on the happening of all future events.

(h) The holder of a lifetime or testamentary power of appointment may represent and bind persons who are permissible appointees or takers in default of that exercise.

(i) This section does not affect any of the following:

(1) Requirements for notice in a court proceeding to any of the following:

(A) A person who has requested special notice.

(B) A person who has filed notice of appearance.

(2) Availability of a guardian ad litem pursuant to Section 1003.

(3) A representative’s previously existing duties.

(j) For purposes of this section, “notice” includes other papers.