Section § 15200

Explanation

This section explains the different ways a trust can be established under certain conditions. A trust can be set up by the property owner declaring they hold the property as trustee, transferring property during their lifetime or upon their death to someone else as trustee, by using a power that appoints another person as trustee, or by making a binding promise to create a trust.

Subject to other provisions of this chapter, a trust may be created by any of the following methods:
(a)CA Probate Code § 15200(a) A declaration by the owner of property that the owner holds the property as trustee.
(b)CA Probate Code § 15200(b) A transfer of property by the owner during the owner’s lifetime to another person as trustee.
(c)CA Probate Code § 15200(c) A transfer of property by the owner, by will or by other instrument taking effect upon the death of the owner, to another person as trustee.
(d)CA Probate Code § 15200(d) An exercise of a power of appointment to another person as trustee.
(e)CA Probate Code § 15200(e) An enforceable promise to create a trust.

Section § 15201

Explanation

This law states that for a trust to be officially established, the person creating it, known as the settlor, must clearly express their intention to do so.

A trust is created only if the settlor properly manifests an intention to create a trust.

Section § 15202

Explanation

A trust can only be established if there is property or assets available to be placed into it.

A trust is created only if there is trust property.

Section § 15203

Explanation

You can create a trust for any goal as long as it's lawful and aligns with public interests.

A trust may be created for any purpose that is not illegal or against public policy.

Section § 15204

Explanation

This law says that a trust won't be considered invalid just because it was created for a broad or unclear purpose, as long as you can reasonably understand how the trust's assets will be used to fulfill that purpose.

A trust created for an indefinite or general purpose is not invalid for that reason if it can be determined with reasonable certainty that a particular use of the trust property comes within that purpose.

Section § 15205

Explanation

For a non-charitable trust to be valid, it must have a beneficiary. The trust document must clearly identify who the beneficiary is, or at least give enough details so that the beneficiary can be recognized. Alternatively, the document can give the trustee or someone else the authority to choose the beneficiary using a specified criteria or at their discretion.

(a)CA Probate Code § 15205(a) A trust, other than a charitable trust, is created only if there is a beneficiary.
(b)CA Probate Code § 15205(b) The requirement of subdivision (a) is satisfied if the trust instrument provides for either of the following:
(1)CA Probate Code § 15205(b)(1) A beneficiary or class of beneficiaries that is ascertainable with reasonable certainty or that is sufficiently described so it can be determined that some person meets the description or is within the class.
(2)CA Probate Code § 15205(b)(2) A grant of a power to the trustee or some other person to select the beneficiaries based on a standard or in the discretion of the trustee or other person.

Section § 15206

Explanation

This law section states that a trust involving real estate must be documented in specific ways to be valid. It needs to be in writing and signed either by the trustee or their authorized agent, the person who is creating the trust (settlor) or their authorized agent, or it must be validated by legal processes that happen automatically.

A trust in relation to real property is not valid unless evidenced by one of the following methods:
(a)CA Probate Code § 15206(a) By a written instrument signed by the trustee, or by the trustee’s agent if authorized in writing to do so.
(b)CA Probate Code § 15206(b) By a written instrument conveying the trust property signed by the settlor, or by the settlor’s agent if authorized in writing to do so.
(c)CA Probate Code § 15206(c) By operation of law.

Section § 15207

Explanation

This section explains that if you want to prove an oral trust involving personal property, you need strong evidence that's clear and convincing. Just having the person who created the trust (the settlor) say it happened isn't enough by itself. Any mention of a trust document actually refers to the proof that was needed to establish the trust in the first place.

(a)CA Probate Code § 15207(a) The existence and terms of an oral trust of personal property may be established only by clear and convincing evidence.
(b)CA Probate Code § 15207(b) The oral declaration of the settlor, standing alone, is not sufficient evidence of the creation of a trust of personal property.
(c)CA Probate Code § 15207(c) In the case of an oral trust, a reference in this division or elsewhere to a trust instrument or declaration means the terms of the trust as established pursuant to subdivision (a).

Section § 15208

Explanation

You don't need to give something in return to set up a trust, but if you promise to set up a trust in the future, that promise only counts if it's part of a valid contract.

Consideration is not required to create a trust, but a promise to create a trust in the future is enforceable only if the requirements for an enforceable contract are satisfied.

Section § 15209

Explanation

This law states that a trust isn't considered invalid or ended when certain conditions exist after the person who created the trust (settlor) dies. It applies in two cases: first, if there is one person who set up the trust, acts as the trustee, and is the only beneficiary while they're alive. Second, if there are multiple people who set up the trust, with one or more acting as trustees, and the trust benefits one or more of these people while they're alive.

If a trust provides for one or more successor beneficiaries after the death of the settlor, the trust is not invalid, merged, or terminated in either of the following circumstances:
(a)CA Probate Code § 15209(a) Where there is one settlor who is the sole trustee and the sole beneficiary during the settlor’s lifetime.
(b)CA Probate Code § 15209(b) Where there are two or more settlors, one or more of whom are trustees, and the beneficial interest in the trust is in one or more of the settlors during the lifetime of the settlors.

Section § 15210

Explanation

This law states that if you create a trust involving real estate, you can officially record it at the county recorder's office where the property is located.

A trust created pursuant to this chapter which relates to real property may be recorded in the office of the county recorder in the county where all or a portion of the real property is located.

Section § 15211

Explanation

This section states that a trust set up for a noncharitable corporation, unincorporated society, or any legal noncharitable purpose can only be legally carried out by the trustee for a maximum of 21 years. This rule applies even if the trust doesn't have a specific beneficiary who can enforce or end it, and even if the trust was intended to last longer.

A trust for a noncharitable corporation or unincorporated society or for a lawful noncharitable purpose may be performed by the trustee for only 21 years, whether or not there is a beneficiary who can seek enforcement or termination of the trust and whether or not the terms of the trust contemplate a longer duration.

Section § 15212

Explanation

This section allows people to create a trust to care for their pets after they die. The trust ends when the last pet that was alive at the person's death dies, unless the trust says otherwise. The money in the trust must be used only for the pet's benefit, not for the trustee's personal use. When the trust ends, any leftover money is distributed as specified in the trust, or it goes to the person's heirs. If no trustee is named, or if no one can serve as trustee, a court will appoint one. Anyone concerned about the pet's welfare can ask the court to make sure the trust is managed correctly. Financial reports must be provided to beneficiaries unless the trust is small (under $40,000), in which case court filing may not be required. Any person specified in the trust, or any animal charity, may check on the pet, its living conditions, or the trust's financial records. The trust cannot be ended early and is not affected by certain other sections of the law. 'Animal' here means pets or domestic animals the trust is meant to help.

(a)CA Probate Code § 15212(a)  Subject to the requirements of this section, a trust for the care of an animal is a trust for a lawful noncharitable purpose. Unless expressly provided in the trust, the trust terminates when no animal living on the date of the settlor’s death remains alive. The governing instrument of the animal trust shall be liberally construed to bring the trust within this section, to presume against the merely precatory or honorary nature of the disposition, and to carry out the general intent of the settlor. Extrinsic evidence is admissible in determining the settlor’s intent.
(b)CA Probate Code § 15212(b) A trust for the care of an animal is subject to the following requirements:
(1)CA Probate Code § 15212(b)(1) Except as expressly provided otherwise in the trust instrument, the principal or income shall not be converted to the use of the trustee or to any use other than for the benefit of the animal.
(2)CA Probate Code § 15212(b)(2) Upon termination of the trust, the trustee shall distribute the unexpended trust property in the following order:
(A)CA Probate Code § 15212(b)(2)(A) As directed in the trust instrument.
(B)CA Probate Code § 15212(b)(2)(B) If the trust was created in a nonresiduary clause in the settlor’s will or in a codicil to the settlor’s will, under the residuary clause in the settlor’s will.
(C)CA Probate Code § 15212(b)(2)(C) If the application of subparagraph (A) or (B) does not result in distribution of unexpended trust property, to the settlor’s heirs under Section 21114.
(3)CA Probate Code § 15212(b)(3) For the purposes of Section 21110, the residuary clause described in subparagraph (B) of paragraph (2) shall be treated as creating a future interest under the terms of a trust.
(c)CA Probate Code § 15212(c) The intended use of the principal or income may be enforced by a person designated for that purpose in the trust instrument or, if none is designated, by a person appointed by a court. In addition to a person identified in subdivision (a) of Section 17200, any person interested in the welfare of the animal or any nonprofit charitable organization that has as its principal activity the care of animals may petition the court regarding the trust as provided in Chapter 3 (commencing with Section 17200) of Part 5.
(d)CA Probate Code § 15212(d) If a trustee is not designated or no designated or successor trustee is willing or able to serve, a court shall name a trustee. A court may order the transfer of the trust property to a court-appointed trustee, if it is required to ensure that the intended use is carried out and if a successor trustee is not designated in the trust instrument or if no designated successor trustee agrees to serve or is able to serve. A court may also make all other orders and determinations as it shall deem advisable to carry out the intent of the settlor and the purpose of this section.
(e)CA Probate Code § 15212(e) The accountings required by Section 16062 shall be provided to the beneficiaries who would be entitled to distribution if the animal were then deceased and to any nonprofit charitable corporation that has as its principal activity the care of animals and that has requested these accountings in writing. However, if the value of the assets in the trust does not exceed forty thousand dollars ($40,000), no filing, report, registration, periodic accounting, separate maintenance of funds, appointment, or fee is required by reason of the existence of the fiduciary relationship of the trustee, unless ordered by the court or required by the trust instrument.
(f)CA Probate Code § 15212(f) Any beneficiary, any person designated by the trust instrument or the court to enforce the trust, or any nonprofit charitable corporation that has as its principal activity the care of animals may, upon reasonable request, inspect the animal, the premises where the animal is maintained, or the books and records of the trust.
(g)CA Probate Code § 15212(g) A trust governed by this section is not subject to termination pursuant to subdivision (b) of Section 15408.
(h)CA Probate Code § 15212(h) Section 15211 does not apply to a trust governed by this section.
(i)CA Probate Code § 15212(i) For purposes of this section, “animal” means a domestic or pet animal for the benefit of which a trust has been established.