Bill Text: CA SB1024 | 2021-2022 | Regular Session | Chaptered
Bill Title: Replacement of an incapacitated or deceased professional fiduciary.
Sponsorship: Partisan Bill (Republican 1)
Status: (Passed) 2022-09-27 - Chaptered by Secretary of State. Chapter 612, Statutes of 2022. [SB1024 Detail]
Download: California-2021-SB1024-Chaptered.html
Senate Bill
No. 1024
CHAPTER 612
An act to amend Sections 6501, 6534, and 6561 of the Business and Professions Code, and to add Sections 2469 and 9765 to the Probate Code, relating to professional fiduciaries.
[
Approved by
Governor
September 27, 2022.
Filed with
Secretary of State
September 27, 2022.
]
LEGISLATIVE COUNSEL'S DIGEST
SB 1024, Jones.
Replacement of an incapacitated or deceased professional fiduciary.
(1) The Guardianship-Conservatorship Law generally establishes the standards and procedures for the appointment and termination of an appointment for a guardian or conservator of a person, an estate, or both. Existing law provides for the appointment of a professional fiduciary to manage an estate or trust or administer a guardianship or conservatorship.
Existing law authorizes the conservator of the estate of a disabled attorney to petition for the appointment of an active member of the State Bar of California to take control of the files and assets of the practice of the disabled member. Existing law also authorizes the personal representative of the estate of a deceased attorney who was engaged in a practice of law at the time of the attorney’s death or other person interested in the estate to petition for appointment
of an active member of the State Bar of California to take control of the files and assets of the practice of the deceased member.
This bill similarly would authorize specified parties, commencing January 1, 2024, to petition for the appointment of a professional fiduciary practice administrator, as defined, to act as a temporary professional fiduciary when a professional fiduciary either becomes incapacitated or dies and a vacancy exists, as defined. The bill would require notice of the hearing on the petition for appointment of a professional fiduciary practice administrator as temporary successor to be given to all persons entitled to notice in each of the matters that are the subject of the petition, as specified. The bill would authorize the court to appoint the professional fiduciary practice administrator, as prescribed, and to require the professional fiduciary practice administrator to file a surety bond in each matter in which they are appointed temporary
successor. The bill would require the appointment of the professional fiduciary practice administrator to terminate, in each of the matters on which the professional fiduciary practice administrator was appointed as a temporary successor, 45 days after the entry of the order appointing the professional fiduciary practice administrator, except as specified. The bill would set forth compensation requirements for the professional fiduciary practice administrator. The bill would also require the professional fiduciary practice administrator to provide written notice to all interested parties to advise those parties of the necessity and process for the appointment of a permanent successor, as specified. The bill would authorize the court to extend any of the time periods prescribed in the bill if the court determines that good cause exists, and that the extension is in the best interest of the minor, the conservatee, the decedent’s estate, or the current income beneficiaries under a trust, as applicable. The bill
would specify that the bill does not limit the authority granted to a court to remove or replace a guardian or conservator, personal representative, or trustee in accordance with specified provisions. The bill would require the Judicial Council to create or revise any forms or rules necessary to implement its provisions, no later than January 1, 2024.
(2) Existing law, until January 1, 2024, establishes the Professional Fiduciaries Bureau within the Department of Consumer Affairs, and requires the bureau to license and regulate professional fiduciaries, as defined. Existing law requires the bureau to maintain specified information in a licensed professional fiduciary’s file and requires a licensee to annually file a statement with the bureau, under penalty of perjury, that contains specified information, including whether the licensee has been removed for cause as a conservator, guardian, trustee, personal representative, agent under durable
power of attorney for health care, or agent under a durable power of attorney for finances.
This bill would expand the definition of “professional fiduciary” to make these provisions applicable to professional fiduciary practice administrators, including the requirement to annually report under penalty of perjury. The bill would require a licensee to disclose, and the bureau to maintain in the licensee’s record, whether the licensee has ever been removed for cause from a position arising from an appointment as a professional fiduciary practice administrator. By expanding the crime of perjury, this bill would impose a state-mandated local program.
This bill would incorporate additional changes to Sections 6534 and 6561 of the Business and Professions Code proposed by SB 1495 to be operative only if this bill and SB 1495 are
enacted and this bill is enacted last.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 6501 of the Business and Professions Code is amended to read:6501.
As used in this chapter, the following terms have the following meanings:(a) “Act” means this chapter.
(b) “Bureau” means the Professional Fiduciaries Bureau within the Department of Consumer Affairs, established pursuant to Section 6510.
(c) “Client” means an individual who is served by a professional fiduciary.
(d) “Department” means the Department of Consumer Affairs.
(e) “Licensee” means a person who is licensed under this chapter as a professional
fiduciary.
(f) (1) “Professional fiduciary” means either of the following:
(A) A person who acts as a guardian or conservator of the person, the estate, or the person and estate, for two or more individuals at the same time who are not related to the professional fiduciary or to each other.
(B) A personal representative of a decedent’s estate, as defined in Section 58 of the Probate Code, for two or more individuals at the same time who are not related to the professional fiduciary or to each other.
(2) “Professional fiduciary” also means a person who acts as a trustee, agent under a durable power of attorney for health care, or agent
under a durable power of attorney for finances, for more than three individuals, at the same time.
In counting individuals under this paragraph to determine whether a person is a professional fiduciary:
(A) Individuals who are related to the fiduciary shall not be counted.
(B) All individuals who are related to each other shall be counted as one individual.
(C) All trustors who are related to each other shall be counted as one individual, and neither the number of trusts nor the number of beneficiaries of those trusts shall be counted.
(D) “Professional fiduciary” also includes a person acting as a professional
fiduciary practice administrator, appointed pursuant to Section 2469 or 9765 of the Probate Code.
(3) For purposes of this subdivision, “related” means related by blood, adoption, marriage, or registered domestic partnership.
(4) “Professional fiduciary” does not include any of the following:
(A) A trust company, as defined in Section 83 of the Probate Code.
(B) An FDIC-insured institution, or its holding companies, subsidiaries, or affiliates. For the purposes of this subparagraph, “affiliate” means an entity that shares an ownership interest with, or that is under the common control of, the FDIC-insured institution.
(C) A public agency, including the public guardian, public conservator, or other agency of the State of California or of a county of California or a regional center for persons with developmental disabilities, as defined in Section 4620 of the Welfare and Institutions Code.
(D) A nonprofit corporation or charitable trust that is described in Section 501(c)(3) of the Internal Revenue Code and that satisfies all of the following requirements:
(i) Is an organization described in Section 509(a)(1), Section 509(a)(2), or Section 509(a)(3) of the Internal Revenue Code.
(ii) Has been in existence for at least five years.
(iii) Has total institutional funds as described in subdivision (e) of Section 18502 of the Probate Code according to its most recent
audited financial statement with a value of at least two million dollars ($2,000,000) net of encumbrances.
(iv) Is acting as a trustee, incidental to the purposes for which it was organized, of a trust that meets at least one of the following conditions:
(I) It is a trust from which annual distributions are limited to income, a sum certain, or a fixed percentage of the net fair market value of the trust assets as described in Section 664(d) of the Internal Revenue Code governing charitable remainder trusts.
(II) It is a trust from which annual distributions are limited to a guaranteed annuity or a fixed percentage of the fair market value of the property as described in Section 2055(e)(2)(B) or Section 2522(c)(2)(B)
of the Internal Revenue Code.
(III) It is a trust from which annual distributions are limited to income, including a pooled income fund from which annual distributions are limited to income as described in Section 642(c)(5) of the Internal Revenue Code governing pooled income funds.
(IV) It is a trust as to which the value of the charitable interest was presently ascertainable upon creation of the trust and deductible for federal gift, estate, or income tax purposes under the Internal Revenue Code as in effect prior to enactment of the federal Tax Reform Act of 1969 (Public Law 91-172).
(E) A person employed by, or acting as an agent on behalf
of, an entity or agency described in subparagraph (A), (B), (C), or (D) who is acting within the course and scope of that employment or agency, and a public officer of an agency described in subparagraph (C) acting in the course and scope of official duties.
(F) A person whose sole activity as a professional fiduciary is as a broker-dealer, broker-dealer agent, investment adviser, or investment adviser representative registered and regulated under the Corporate Securities Law of 1968 (Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code), the Investment Advisers Act of 1940 (15 U.S.C. Sec. 80b-1 et seq.), or the Securities Exchange Act of 1934 (15 U.S.C. Sec. 78a et seq.), or involves serving as a trustee to a company regulated by the Securities and Exchange Commission under the Investment Company
Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.).
(g) “Committee” means the Professional Fiduciaries Advisory Committee, as established pursuant to Section 6511.
SEC. 2.
Section 6534 of the Business and Professions Code is amended to read:6534.
(a) The bureau shall maintain the following information in each licensee’s file, shall make this information available to a court for any purpose, including the determination of the appropriateness of appointing, continuing the appointment of, or removing, the licensee as a conservator, guardian, trustee, personal representative, agent under a durable power of attorney for health care, agent under a durable power of attorney for finances, or a position arising from an appointment as a professional fiduciary practice administrator, and shall otherwise keep this information confidential, except as provided in subdivisions (b) and (c) of this section:(1) The names of the licensee’s
current conservatees, wards, principals under a durable power of attorney for health care, or principals under a durable power of attorney for finances, and the names of the trusts or estates currently administered by the licensee.
(2) The aggregate dollar value of all assets currently under the licensee’s supervision as a professional fiduciary.
(3) The licensee’s current addresses and telephone numbers for the place of business and place of residence.
(4) Whether the licensee has ever been removed for cause as a conservator, guardian, trustee, personal representative, agent under a durable power of attorney for health care, or agent under a durable power of attorney for finances, or has ever resigned as a conservator,
guardian, trustee, personal representative, agent under a durable power of attorney for health care, or agent under a durable power of attorney for finances, or a position arising from an appointment as a professional fiduciary practice administrator, in a specific case, the circumstances causing that removal or resignation, and the case names, court locations, and case numbers associated with the removal or resignation.
(5) The case names, court locations, and case numbers of all conservatorship, guardianship, trust, or other estate administration cases that are closed for which the licensee served as the conservator, guardian, trustee, personal representative, or professional fiduciary practice administrator.
(6) Information regarding any discipline imposed upon the licensee
by the bureau.
(7) Whether the licensee has filed for bankruptcy or held a controlling financial interest in a business that filed for bankruptcy in the last 10 years.
(b) The bureau shall make the information in paragraphs (2), (4), (6), and (7) of subdivision (a) available to the public.
(c) The bureau shall also publish information regarding licensees on the Internet as specified in Section 27. The information shall include, but shall not be limited to, information regarding license status and the information specified under subdivision (b).
SEC. 2.5.
Section 6534 of the Business and Professions Code is amended to read:6534.
(a) The bureau shall maintain the following information in each licensee’s file, shall make this information available to a court for any purpose, including the determination of the appropriateness of appointing, continuing the appointment of, or removing, the licensee as a conservator, guardian, trustee, personal representative of decedent’s estate, agent under a durable power of attorney for health care, agent under a durable power of attorney for finances, or a position arising from an appointment as a professional fiduciary practice administrator, and shall otherwise keep this information confidential, except as provided in subdivisions (b) and (c) of this section:(1) The names of the licensee’s current conservatees, wards, principals under a durable power of attorney for health care, or principals under a durable power of attorney for finances, and the names of the trusts or estates currently administered by the licensee, whether the case is court supervised or non-court supervised.
(2) The aggregate dollar value of all assets currently under the licensee’s supervision as a professional fiduciary.
(3) The licensee’s current addresses and telephone numbers for their place of business and place of residence.
(4) Whether the licensee has ever been removed for cause as a conservator, guardian, trustee, personal representative of a decedent’s estate, agent under a durable power of attorney for health
care, or agent under a durable power of attorney for finances, or has ever resigned or settled a matter in which a complaint against the licensee has been filed with the court as a conservator, guardian, trustee, personal representative of a decedent’s estate, agent under a durable power of attorney for health care, or agent under a durable power of attorney for finances, or a position arising from an appointment as a professional fiduciary practice administrator, in a specific case, the circumstances causing that removal or resignation, and the case names, court locations, and case numbers
associated with the removal or resignation.
(5) The case names, court locations, and case numbers of all conservatorship, guardianship,
trust, or other estate administration cases that are closed for which the licensee served as the conservator, guardian, trustee, agent under a durable power of attorney for finance or health care, personal representative of a decedent’s estate, or professional fiduciary practice administrator, whether the case is court supervised or non-court supervised.
(6) Information regarding any discipline imposed upon the licensee by the bureau.
(7) Whether the licensee has filed for bankruptcy or held a controlling financial interest in a business that filed for bankruptcy in the last 10 years.
(b) The bureau shall make the information in paragraphs (2), (4), (6), and (7) of subdivision (a) available to the public.
(c) The bureau shall also publish information regarding licensees on the Internet as specified in Section 27. The information shall include, but shall not be limited to, information regarding license status and the information specified under subdivision (b).
SEC. 3.
Section 6561 of the Business and Professions Code is amended to read:6561.
(a) A licensee shall initially, and annually thereafter, file with the bureau a statement under penalty of perjury containing the following:(1) The business address, telephone number, and facsimile number.
(2) Whether or not the licensee has been removed for cause as a conservator, guardian, trustee, personal representative, agent under a durable power of attorney for health care, agent under a durable power of attorney for finances, or a position arising from appointment as a professional fiduciary practice administrator. The licensee may file an additional statement of the issues and facts pertaining to the
case.
(3) The case names, court locations, and case numbers for all matters where the licensee has been appointed by the court.
(4) Whether the licensee has been found by a court to have breached a fiduciary duty.
(5) Whether the licensee has resigned or settled a matter in which a complaint has been filed, along with the case number and a statement of the issues and facts pertaining to the allegations.
(6) Any licenses or professional certificates held by the licensee.
(7) Any ownership or beneficial interests in businesses or other enterprises held by the licensee or by a family member that receives
or has received payments from a client of the licensee.
(8) Whether the licensee has filed for bankruptcy or held a controlling financial interest in a business that filed for bankruptcy in the last ten years.
(9) The name of any persons or entities that have an interest in the licensee’s professional fiduciary business.
(10) Whether the licensee has been convicted of a crime.
(b) The statement by the licensee required by this section may be filed electronically with the bureau, in a form approved by the bureau. However, any additional statement filed under paragraph (2) of subdivision (a) shall be filed in writing.
SEC. 3.5.
Section 6561 of the Business and Professions Code is amended to read:6561.
(a) A licensee shall initially, and annually thereafter, file with the bureau a statement under penalty of perjury containing the following:(1) The licensee’s business address, telephone number, and facsimile number.
(2) Whether or not the licensee has been removed for cause as a conservator,
guardian, trustee, personal
representative of a decedent’s estate, agent under a durable power of attorney for health care, agent under a durable power of attorney for finances, or a position arising from appointment as a professional fiduciary practice administrator. The licensee may file an additional statement of the issues and facts pertaining to the case.
(3) The names of the licensee’s current conservatees, wards, principals under a durable power of attorney for health care, or principals under a durable power of attorney for finances, and the names of trusts
and decedent’s estates currently administered by the licensee, whether the cases are court supervised or non-court supervised, and including court names, court locations, and case numbers where applicable.
(4) The case names, court locations, and case numbers of all conservatorship, guardianship, trust and other estate administration cases that are closed for which the licensee served as the conservator, guardian, trustee, agent under a durable power of attorney for finance or health care, and personal representative of a decedent’s estate, whether the case is court supervised or non-court supervised.
(5) Whether
the licensee has been found by a court to have breached a fiduciary duty.
(6) Whether the licensee has resigned or settled a matter in which a complaint against the licensee has been
filed with the court,
along with the case number and a statement of the issues and facts pertaining to the allegations.
(7) Any licenses or professional certificates held by the licensee.
(8) Any ownership or beneficial interests in businesses or
other enterprises held by the licensee or by a family member that receives or has received payments from a client of the licensee.
(9) Whether the licensee has filed for bankruptcy or held a controlling financial interest in a business that filed for bankruptcy in the last ten years.
(10) The name of any persons or entities that have
an interest in the licensee’s professional fiduciary business.
(11) Whether the licensee has been convicted of a crime.
(b) The statement by the licensee required by this section may be filed electronically with the bureau, in a form approved by the bureau. However, any additional statement filed under paragraph (2) of subdivision (a) shall be filed in writing.
SEC. 4.
Section 2469 is added to the Probate Code, to read:2469.
(a) Commencing January 1, 2024, when a professional fiduciary becomes incapacitated and a vacancy exists, the incapacitated fiduciary’s conservator, agent under a power of attorney for asset management, trustee, or interested person may petition for the appointment of one or more individuals qualified to act as a professional fiduciary under the Professional Fiduciaries Act (Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code) as a professional fiduciary practice administrator to take control of the incapacitated professional fiduciary’s files and to be appointed as temporary successor as to those matters for which a vacancy exists as a result of the professional fiduciary’s incapacity.(b) The petition shall request an order appointing a professional fiduciary practice administrator as temporary successor, with all of the powers and duties held by the incapacitated fiduciary, in each matter in which the incapacitated fiduciary was acting in a representative capacity, including guardianships of the estate, conservatorships of the person and the estate, decedent’s estates, court-supervised trusts, and non-court-supervised trusts.
(c) The court shall require the professional fiduciary practice administrator to file a surety bond in each matter in which the professional fiduciary practice administrator is appointed temporary successor, in the amount currently required of the incapacitated fiduciary or in another amount as the court deems appropriate.
(d) The court may appoint as the professional fiduciary practice administrator the professional fiduciary nominated by the incapacitated fiduciary in a writing, including, but not limited to, the incapacitated fiduciary’s will or trust, or in the absence thereof, the person nominated by the person having legal standing to act on behalf of the incapacitated professional fiduciary. The court shall not make the appointment if the court concludes that the appointment of the nominated person would be contrary to the best interests of, or would create a conflict of interest with, any interested party in a matter in which the incapacitated fiduciary was acting in a fiduciary capacity.
(e) The appointment of the professional fiduciary practice administrator as temporary successor shall
terminate, in each of the matters in which the professional fiduciary practice administrator was appointed as temporary successor, 45 days after the entry of the order appointing the professional fiduciary practice administrator, or earlier if another person is appointed.
(f) Notice of the hearing on the petition for appointment of a professional fiduciary practice administrator as temporary successor shall be given to all persons entitled to notice in each of the matters which are the subject of the petition. The court may dispense with notice if the petition alleges that the immediate appointment of a professional fiduciary practice administrator is required to safeguard the interests of an individual or an asset in a matter in which the incapacitated fiduciary was acting in a representative capacity.
(g) The professional fiduciary practice administrator shall be compensated for services provided and reimbursement of costs incurred in each matter solely from the assets of that matter subject to the provisions of the applicable document or as determined by the court, and in no event more than the incapacitated fiduciary would have been paid.
(h) The professional fiduciary practice administrator appointed in a given matter shall do all of the following:
(1) File a copy of the order appointing the professional fiduciary practice administrator as temporary successor in each of the matters in which the court appoints the professional fiduciary practice administrator as temporary successor.
(2) Take control and review all files and writings maintained by the incapacitated fiduciary for matters in which the incapacitated fiduciary was acting in a representative capacity.
(3) Within 15 days after the entry of the order appointing the professional fiduciary practice administrator as temporary successor, provide written notice to all interested parties as to each matter in which the incapacitated fiduciary was acting in a representative capacity who can be reasonably ascertained and located to inform those parties of the appointment of the professional fiduciary practice administrator as temporary successor. The notice shall advise the interested parties of the
necessity and process for the appointment of a permanent successor, which shall include the following:
(A) The right of the parties to petition the court for the appointment of a permanent successor.
(B) The right of any interested party to nominate an individual to act as permanent successor, and then the obligation of the professional fiduciary practice administrator to petition for the appointment of the individual nominated, provided an interested party provides the professional fiduciary practice administrator with the name of their nominee within 15 days after the date notice was given.
(C) The ability of the professional fiduciary practice administrator, in the event none of the interested parties
act within the time prescribed, under subparagraph (A) or (B), to petition the court for appointment of a permanent successor.
(4) Upon the court’s appointment of a permanent successor, the professional fiduciary practice administrator shall file an account and report on behalf of the incapacitated fiduciary for any period of time the incapacitated fiduciary would have been required to account, as well as for the period of time the professional fiduciary practice administrator served as temporary successor. As part of that account and report, the professional fiduciary practice administrator may request compensation both on behalf of the incapacitated fiduciary, for services rendered prior to their incapacity, and on their own behalf for services rendered after the incapacitated fiduciary’s incapacity, as temporary successor, subject
to any limitation on fees and costs that existed for the incapacitated fiduciary, and may request discharge and exoneration of bond. The account filed for the period during which the matter was administered by the now incapacitated fiduciary may be verified on information and belief.
(5) Comply with any other obligations imposed by the court.
(i) Each of the time periods prescribed in this section may be extended by the court if the court determines that good cause exists, and if the court determines that the extension is in the best interest of the minor, the conservatee, the decedent’s estate, or the current income beneficiaries under a trust, as applicable.
(j) For purposes of this section, the following definitions apply:
(1) “Incapacitated” means that the person is unable to fulfill their duties as a professional fiduciary because of either temporary or permanent disability, incapacity, or absence.
(2) “Professional fiduciary practice administrator” means the person or persons appointed pursuant to this section to take over the responsibilities from the incapacitated fiduciary.
(3) “Vacancy” means that the instrument under which the incapacitated fiduciary was acting does not name a successor to fill the vacancy, the instrument under which the incapacitated fiduciary was acting does not provide a nonjudicial method to fill the vacancy, and a cofiduciary, authorized to act solely, was not acting with the incapacitated fiduciary.
(k) This section does not limit the authority granted to the court under subdivision (j) of Section 2250, Section 8523, and subdivision (e) of Section 15642.
(l) The Judicial Council shall create or revise any forms or rules necessary to implement this section no later than January 1, 2024.
SEC. 5.
Section 9765 is added to the Probate Code, to read:9765.
(a) Commencing January 1, 2024, a professional fiduciary is deceased and a vacancy exists, the deceased fiduciary’s conservator, agent under power of attorney for asset management, trustee, or interested person may petition for the appointment of one or more individuals, qualified to act as a professional fiduciary under the Professional Fiduciaries Act (Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code), as a professional fiduciary practice administrator, to take control of the deceased professional fiduciary’s files and to be appointed as temporary successor as to those matters for which a vacancy exists as a result of the professional fiduciary’s death.(b) The petition shall request an order appointing a professional fiduciary practice administrator as temporary successor, with all of the powers and duties held by the deceased fiduciary, in each matter in which the deceased fiduciary was acting in a representative capacity, including guardianships of the estate, conservatorships of the person and estate, decedent’s estates, court-supervised trusts, and non-court-supervised trusts.
(c) The court shall require the professional fiduciary practice administrator to file a surety bond in each matter in which the professional fiduciary practice administrator is appointed temporary successor, in the amount currently required of the deceased fiduciary or in another amount as the court deems appropriate.
(d) The court may appoint as the professional fiduciary practice administrator the professional fiduciary nominated by the deceased professional fiduciary in a writing, including, but not limited to, the decedent’s will or trust, or in the absence thereof, the person nominated by the person having legal standing to act on behalf of the deceased professional fiduciary. The court shall not make the appointment if the court concludes that the appointment of the nominated person would be contrary to the best interests of, or would create a conflict of interest with, any interested party in a matter in which the deceased fiduciary was acting in a fiduciary capacity.
(e) The appointment of the professional fiduciary practice administrator as temporary successor shall terminate, in each of the matters in which the professional fiduciary
practice administrator was appointed as temporary successor, 45 days after the entry of the order appointing the professional fiduciary practice administrator, or earlier if another person is appointed.
(f) Notice of the hearing on the petition for appointment of a professional fiduciary practice administrator as temporary successor shall be given to all persons entitled to notice in each of the matters that are the subject of the petition. The court may dispense with notice if the court determines that the immediate appointment of a professional fiduciary practice administrator is required to safeguard the interests of an individual or an asset in a matter in which the deceased fiduciary was acting in a representative capacity.
(g) The professional fiduciary practice
administrator shall be compensated for services provided and reimbursement of costs incurred in each matter solely from the assets of that matter subject to the provisions of the applicable document or as determined by the court, and in no event more than the incapacitated fiduciary would have been paid.
(h) The professional fiduciary practice administrator shall do all of the following:
(1) File a copy of the order appointing the professional fiduciary practice administrator as temporary successor in each of the matters in which the court appoints the professional fiduciary practice administrator as temporary successor.
(2) Take control and review all files and writings maintained by the deceased fiduciary for
matters in which the deceased fiduciary was acting in a representative capacity.
(3) Within 15 days after the entry of the order appointing the professional fiduciary practice administrator as temporary successor, provide written notice to all interested parties as to each matter in which the deceased fiduciary was acting in a representative capacity who can be reasonably ascertained and located to inform those parties of the appointment of the professional fiduciary practice administrator as temporary successor. The notice shall advise the parties of the need for the appointment for a permanent successor, which shall include the following:
(A) The right of the parties to petition the court for the appointment of a permanent successor.
(B) The right of any interested party to nominate an individual to act as permanent successor, and then the obligation of the professional fiduciary practice administrator to petition for the appointment of the individual nominated, provided an interested party provides the professional fiduciary practice administrator with the name of their nominee within 15 days after the date notice was given.
(C) The ability of the professional fiduciary practice administrator, in the event that none of the interested parties act within the time prescribed above, under subparagraph (A) or (B), to petition the court for appointment of a permanent successor.
(4) Upon the court’s appointment of a permanent successor, the professional fiduciary practice administrator shall file an account and
report on behalf of the deceased fiduciary for any period of time the deceased fiduciary would have been required to account, as well as for the period of time the professional fiduciary practice administrator served as temporary successor. As part of that account and report, the professional fiduciary practice administrator may request compensation both on behalf of the deceased fiduciary, for services rendered prior to their death, and on their own behalf for services rendered after the deceased fiduciary’s death as temporary successor, subject to any limitation on fees and costs that existed for the deceased fiduciary, and may request discharge and exoneration of bond. The account filed for the period during which the matter was administered by the now deceased fiduciary may be verified on information and belief.
(5) Comply with any other
obligations imposed by the court.
(i) Each of the time periods prescribed in this section may be extended by the court if the court determines that good cause exists, and if the court determines that the extension is in the best interest of the minor, the conservatee, the decedent’s estate, or the current income beneficiaries under a trust, as applicable.
(j) For purposes of this section, the following definitions apply:
(1) “Professional fiduciary practice administrator” means the person appointed pursuant to this section to take over the responsibilities from the deceased fiduciary.
(2) “Vacancy” means that the instrument under which the deceased fiduciary was
acting does not name a successor to fill the vacancy, the instrument under which the deceased fiduciary was acting does not provide a nonjudicial method to fill the vacancy, and a cofiduciary, authorized to act solely, was not acting with the deceased fiduciary.
(k) This section does not limit the authority granted to the court under subdivision (j) of Section 2250, Section 8523, and subdivision (e) of Section 15642.
(l) The Judicial Council shall create or revise any forms or rules necessary to implement this section no later than January 1, 2024.
SEC. 6.
(a) Section 2.5 of this bill incorporates amendments to Section 6534 of the Business and Professions Code proposed by both this bill and Senate Bill 1495. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2023, (2) each bill amends Section 6534 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 1495, in which case Section 2 of this bill shall not become operative.(b) Section 3.5 of this bill incorporates amendments to Section 6561 of the Business and Professions Code proposed by both this bill and Senate Bill 1495. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2023, (2) each bill amends Section 6561 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 1495, in which case Section 3 of this bill shall not become operative.
