Bill Text: CA AB838 | 2013-2014 | Regular Session | Amended

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Bill Title: Personal representatives: bonds.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB838 Detail]

Download: California-2013-AB838-Amended.html

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BILL NUMBER: AB 838	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 1, 2013

INTRODUCED BY   Assembly Member Morrell

                        FEBRUARY 21, 2013

   An act to amend Sections 8482 and 10453 of the Probate Code,
relating to personal representatives.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 838, as amended, Morrell. Personal representatives: bonds.
   Existing law requires a person appointed as a personal
representative of an estate to post a bond approved by the court
before letters are issued, except as specified. Existing law
authorizes the court to fix the amount of the bond, not to exceed the
sum of specified items, including the estimated value of the
personal property and the probable annual gross income of the estate.

   This bill would, commencing July 1, 2014, require the reasonable
amount for the cost of recovery to collect on the bond, including
attorney's fees and costs, to be included in the above-described sum.
 The bill would require the Judicial Council to revise a
specified form to implement the changes made by this bill. 

   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program: no.


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

  SECTION 1.  Section 8482 of the Probate Code is amended to read:
   8482.  (a) The court in its discretion may fix the amount of the
bond, but the amount of the bond shall be not more than the sum of:
   (1) The estimated value of the personal property.
   (2) The probable annual gross income of the estate.
   (3) If independent administration is granted as to real property,
the estimated value of the decedent's interest in the real property.
   (4) Commencing July 1, 2014, a reasonable amount for the cost of
recovery to collect on the bond, including attorney's fees and costs.

   (b) Notwithstanding subdivision (a), if the bond is given by an
admitted surety insurer, the court may establish a fixed minimum
amount for the bond, based on the minimum premium required by the
admitted surety insurer.
   (c) If the bond is given by personal sureties, the amount of the
bond shall be twice the amount fixed by the court under subdivision
(a).
   (d) Before confirming a sale of real property the court shall
require such additional bond as may be proper, not exceeding the
maximum requirements of this section, treating the expected proceeds
of the sale as personal property. 
   (e) Commencing July 1, 2014, the attorney's fees and costs
incurred in a successful action for surcharge against a personal
representative for breach of his or her duty under this code shall be
a surcharge against the personal representative and, if unpaid,
shall be recovered against the surety on the bond.  

   (f) The Judicial Council shall revise Rule 7.207 of the California
Rules of Court to implement the changes made to this section during
the 2013-14 Regular Session of the Legislature. 
  SEC. 2.  Section 10453 of the Probate Code is amended to read:
   10453.  (a) (1) If the personal representative is otherwise
required to file a bond and has full authority, the court, in its
discretion, shall fix the amount of the bond at not more than the sum
of all of the following:
   (A) The estimated value of the personal property.
   (B) The estimated value of the decedent's interest in the real
property authorized to be sold under this part.
   (C) The probable annual gross income of the estate.
   (D) Commencing July 1, 2014, the reasonable amount for the cost of
recovery to collect on the bond, including attorney's fees and
costs.
   (2) Notwithstanding paragraph (1), if the bond is to be given by
personal sureties, the amount of the bond shall be fixed at not less
than twice the amount fixed by the court under paragraph (1).
   (b) (1) If the personal representative is otherwise required to
file a bond and has limited authority, the court, in its discretion,
shall fix the amount of the bond at not more than the sum of both of
the following:
   (A) The estimated value of the personal property and the probable
annual gross income of the estate.
   (B) Commencing July 1, 2014, the reasonable amount for the cost of
recovery to collect on the bond, including attorney's fees and
costs.
   (2) Notwithstanding paragraph (1), if the bond is to be given by
personal sureties, the amount of the bond shall be fixed at not less
than twice the amount fixed by the court under paragraph (1).