Judicial Proceedings Concerning TrustsProceedings Concerning Trusts

Section § 17200

Explanation

This law allows trustees or beneficiaries of a trust to ask the court for help with matters about the trust's internal affairs or for confirming if a trust exists. They can seek the court's guidance on various issues, such as understanding trust terms, checking the validity of trust provisions, determining beneficiaries, or settling a trustee's actions. It covers situations from giving trustees instructions to modifying, terminating, or even transferring trusts. It also includes provisions for appointing or removing trustees, addressing trustee compensation, and handling breaches of trust. Furthermore, it provides procedures for appointing a practice administrator in certain cases involving lawyers.

(a)CA Probate Code § 17200(a) Except as provided in Section 15800, a trustee or beneficiary of a trust may petition the court under this chapter concerning the internal affairs of the trust or to determine the existence of the trust.
(b)CA Probate Code § 17200(b) Proceedings concerning the internal affairs of a trust include, but are not limited to, proceedings for any of the following purposes:
(1)CA Probate Code § 17200(b)(1) Determining questions of construction of a trust instrument.
(2)CA Probate Code § 17200(b)(2) Determining the existence or nonexistence of any immunity, power, privilege, duty, or right.
(3)CA Probate Code § 17200(b)(3) Determining the validity of a trust provision.
(4)CA Probate Code § 17200(b)(4) Ascertaining beneficiaries and determining to whom property shall pass or be delivered upon final or partial termination of the trust, to the extent the determination is not made by the trust instrument.
(5)CA Probate Code § 17200(b)(5) Settling the accounts and passing upon the acts of the trustee, including the exercise of discretionary powers.
(6)CA Probate Code § 17200(b)(6) Instructing the trustee.
(7)CA Probate Code § 17200(b)(7) Compelling the trustee to do any of the following:
(A)CA Probate Code § 17200(b)(7)(A) Provide a copy of the terms of the trust.
(B)CA Probate Code § 17200(b)(7)(B) Provide information about the trust under Section 16061 if the trustee has failed to provide the requested information within 60 days after the beneficiary’s reasonable written request, and the beneficiary has not received the requested information from the trustee within the six months preceding the request.
(C)CA Probate Code § 17200(b)(7)(C) Account to the beneficiary, subject to the provisions of Section 16064, if the trustee has failed to submit a requested account within 60 days after written request of the beneficiary and no account has been made within six months preceding the request.
(8)CA Probate Code § 17200(b)(8) Granting powers to the trustee.
(9)CA Probate Code § 17200(b)(9) Fixing or allowing payment of the trustee’s compensation or reviewing the reasonableness of the trustee’s compensation.
(10)CA Probate Code § 17200(b)(10) Appointing or removing a trustee.
(11)CA Probate Code § 17200(b)(11) Accepting the resignation of a trustee.
(12)CA Probate Code § 17200(b)(12) Compelling redress of a breach of the trust by any available remedy.
(13)CA Probate Code § 17200(b)(13) Approving or directing the modification or termination of the trust.
(14)CA Probate Code § 17200(b)(14) Approving or directing the combination or division of trusts.
(15)CA Probate Code § 17200(b)(15) Amending or conforming the trust instrument in the manner required to qualify a decedent’s estate for the charitable estate tax deduction under federal law, including the addition of mandatory governing instrument requirements for a charitable remainder trust as required by final regulations and rulings of the United States Internal Revenue Service.
(16)CA Probate Code § 17200(b)(16) Authorizing or directing transfer of a trust or trust property to or from another jurisdiction.
(17)CA Probate Code § 17200(b)(17) Directing transfer of a testamentary trust subject to continuing court jurisdiction from one county to another.
(18)CA Probate Code § 17200(b)(18) Approving removal of a testamentary trust from continuing court jurisdiction.
(19)CA Probate Code § 17200(b)(19) Reforming or excusing compliance with the governing instrument of an organization pursuant to Section 16105.
(20)CA Probate Code § 17200(b)(20) Determining the liability of the trust for any debts of a deceased settlor. However, nothing in this paragraph shall provide standing to bring an action concerning the internal affairs of the trust to a person whose only claim to the assets of the decedent is as a creditor.
(21)CA Probate Code § 17200(b)(21) Determining petitions filed pursuant to Section 15687 and reviewing the reasonableness of compensation for legal services authorized under that section. In determining the reasonableness of compensation under this paragraph, the court may consider, together with all other relevant circumstances, whether prior approval was obtained pursuant to Section 15687.
(22)CA Probate Code § 17200(b)(22) If a member of the State Bar of California has transferred the economic interest of his or her practice to a trustee and if the member is a deceased member under Section 9764, a petition may be brought to appoint a practice administrator. The procedures, including, but not limited to, notice requirements, that apply to the appointment of a practice administrator for a deceased member shall apply to the petition brought under this section.
(23)CA Probate Code § 17200(b)(23) If a member of the State Bar of California has transferred the economic interest of his or her practice to a trustee and if the member is a disabled member under Section 2468, a petition may be brought to appoint a practice administrator. The procedures, including, but not limited to, notice requirements, that apply to the appointment of a practice administrator for a disabled member shall apply to the petition brought under this section.
(c)CA Probate Code § 17200(c) The court may, on its own motion, set and give notice of an order to show cause why a trustee who is a professional fiduciary, and who is required to be licensed under Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code, should not be removed for failing to hold a valid, unexpired, unsuspended license.
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Section § 17200.1

Explanation

This law states that any legal actions related to transferring trust property must follow the rules outlined in another part of the probate code, starting with Section 850.

All proceedings concerning the transfer of property of the trust shall be conducted pursuant to the provisions of Part 19 (commencing with Section 850) of Division 2.
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Section § 17201

Explanation

To start a legal process related to this chapter, you must file a petition that explains why you're allowed to do so and outlines the reasons for your petition. Additionally, you need to include the names and addresses of everyone who should be notified about your petition.

A proceeding under this chapter is commenced by filing a petition stating facts showing that the petition is authorized under this chapter. The petition shall also state the grounds of the petition and the names and addresses of each person entitled to notice of the petition.
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Section § 17201.1

Explanation

If someone files a legal petition involving a trustee, they can start the process of gathering evidence, called discovery, right after giving the trustee a copy of the petition and notice of the hearing or if the trustee shows up first. This rule doesn't change when the other side, the respondent, can begin their discovery.

A petitioner in a proceeding under Section 17200 may commence discovery upon a trustee in accordance with the same time periods set forth in the Civil Discovery Act (Title 4 (commencing with Section 2016.010) of Part 4 of the Code of Civil Procedure) except that the time periods shall commence to run upon service of the petition and notice of hearing upon the trustee or the trustee’s appearance in the proceeding, whichever first occurs. Nothing in this section shall alter when a respondent in such a proceeding may commence discovery.
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Section § 17202

Explanation

This law allows a court to reject a request if it seems that the legal process isn't really needed to look after the interests of the person managing the trust (trustee) or those benefiting from it (beneficiary).

The court may dismiss a petition if it appears that the proceeding is not reasonably necessary for the protection of the interests of the trustee or beneficiary.
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Section § 17203

Explanation

Before a court hearing about a trust petition, the person filing the petition must notify certain people at least 30 days in advance. These people include all trustees, beneficiaries, and the Attorney General if it involves a charitable trust. If someone else's rights are affected and they are not a trustee or beneficiary, they also need to be notified following specific legal procedures. The court cannot reduce the notice period for these individuals.

If someone who would have received notice has been dead for at least 40 days and no one has been appointed to manage their estate, notice can be given to the deceased’s heirs, anyone named to handle their will, or anyone who was their guardian or conservator.

(a)CA Probate Code § 17203(a) At least 30 days before the time set for the hearing on the petition, the petitioner shall cause notice of hearing to be delivered pursuant to Section 1215 to all of the following persons:
(1)CA Probate Code § 17203(a)(1) All trustees.
(2)CA Probate Code § 17203(a)(2) All beneficiaries, subject to Chapter 2 (commencing with Section 15800) of Part 3.
(3)CA Probate Code § 17203(a)(3) The Attorney General, if the petition relates to a charitable trust subject to the jurisdiction of the Attorney General.
(b)CA Probate Code § 17203(b) At least 30 days before the time set for hearing on the petition, the petitioner shall cause notice of the hearing and a copy of the petition to be served in the manner provided in Chapter 4 (commencing with Section 413.10) of Title 5 of Part 2 of the Code of Civil Procedure on any person, other than a trustee or beneficiary, whose right, title, or interest would be affected by the petition and who does not receive notice pursuant to subdivision (a). The court may not shorten the time for giving notice under this subdivision.
(c)CA Probate Code § 17203(c) If a person to whom notice otherwise would be given has been deceased for at least 40 days, and no personal representative has been appointed for the estate of that person, and the deceased person’s right, title, or interest has not passed to any other person pursuant to Division 8 (commencing with Section 13000) or otherwise, notice may instead be given to the following persons:
(1)CA Probate Code § 17203(c)(1) Each heir and devisee of the decedent, and all persons named as executors of the will of the decedent, so far as known to the petitioner.
(2)CA Probate Code § 17203(c)(2) Each person serving as guardian or conservator of the decedent at the time of the decedent’s death, so far as known to the petitioner.
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Section § 17204

Explanation

This law section explains how beneficiaries or creditors can request special notice of trust proceedings. Beneficiaries who want to be notified about petitions related to a trust must file a written request with the court, providing an address for mailing notifications. The request becomes effective once delivered or received and must follow specific procedures for service. Interested persons, such as creditors, can also request special notice but must include a verified statement of their interest. They may need to petition the court for notice regarding certain trust matters. However, this doesn't give them additional legal standing if not already present. Exceptions exist for beneficiaries with restricted rights to notice.

(a)CA Probate Code § 17204(a) If proceedings involving a trust are pending, a beneficiary of the trust may, in person or by attorney, file with the court clerk where the proceedings are pending a written request stating that the beneficiary desires special notice of the filing of petitions in the proceeding relating to any or all of the purposes described in Section 17200 and giving an address for receiving notice by mail. A copy of the request shall be delivered pursuant to Section 1215 to the trustee or the trustee’s attorney. If personally delivered, the request shall be effective when it is delivered. If mailed or electronically delivered, the request shall be effective when it is received. When the original of the request is filed with the court clerk, it shall be accompanied by a written admission or proof of service. A request for special notice may be modified or withdrawn in the same manner as provided for the making of the initial request.
(b)Copy CA Probate Code § 17204(b)
(1)Copy CA Probate Code § 17204(b)(1) An interested person may request special notice in the same manner as a beneficiary under subdivision (a), for the purpose set forth in paragraph (9) of subdivision (b) of Section 17200. The request for special notice shall be accompanied by a verified statement of the person’s interest.
(2)CA Probate Code § 17204(b)(2) For purposes set forth in paragraphs (2), (4) to (6), inclusive, (8), (12), (16), (20), and (21) of subdivision (b) of Section 17200, an interested person may petition the court for an order for special notice of proceedings involving a trust. The petition shall include a verified statement of the creditor’s interest and may be served on the trustee or the trustee’s attorney in a manner described in Section 1215. The petition may be made by ex parte application.
(3)CA Probate Code § 17204(b)(3) For purposes of this subdivision, an “interested person” means only a creditor of a trust or, if the trust has become irrevocable upon the death of a trustor, a creditor of the trustor.
(4)CA Probate Code § 17204(b)(4) This section does not confer standing on an interested person if standing does not otherwise exist.
(c)CA Probate Code § 17204(c) Except as provided in subdivision (d), after serving and filing a request and proof of service pursuant to subdivision (a) or paragraph (1) of subdivision (b), the beneficiary or the interested person is entitled to notice pursuant to Section 17203. If the petition of an interested person filed pursuant to paragraph (2) of subdivision (b) is granted by the court, the interested person is entitled to notice pursuant to Section 17203.
(d)CA Probate Code § 17204(d) A request for special notice made by a beneficiary whose right to notice is restricted by Section 15802 is not effective.
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Section § 17205

Explanation

If a trustee or beneficiary is involved in a legal proceeding and has officially told the petitioner (the person who started the case) that they want to see the petition by providing a notice of appearance or a written request, the petitioner must send them a copy of the petition. This needs to happen within five days of receiving that request and must be sent to the address specified by the trustee or beneficiary.

If a trustee or beneficiary has served and filed either a notice of appearance, in person or by counsel, directed to the petitioner or the petitioner’s counsel in connection with a particular petition and proceeding or a written request for a copy of the petition, and has given an address to which notice or a copy of the petition may be delivered pursuant to Section 1215, the petitioner shall cause a copy of the petition to be delivered to that person within five days after service of the notice of appearance or receipt of the request.
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Section § 17206

Explanation

This law allows a court to take necessary actions to address issues raised in a legal petition about a trust. For example, the court can appoint a temporary trustee to manage the trust if needed.

The court in its discretion may make any orders and take any other action necessary or proper to dispose of the matters presented by the petition, including appointment of a temporary trustee to administer the trust in whole or in part.
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Section § 17209

Explanation
The goal of managing trusts is to do it quickly and without needing the court's involvement, although the court is available if needed.
The administration of trusts is intended to proceed expeditiously and free of judicial intervention, subject to the jurisdiction of the court.
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Section § 17210

Explanation

This law says that if there is a charitable trust involved and it's under the Attorney General's authority, the Attorney General can file a petition regarding it.

In a case involving a charitable trust subject to the jurisdiction of the Attorney General, the Attorney General may petition under this chapter.
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Section § 17211

Explanation

If a beneficiary challenges a trustee's financial report without a good reason and in bad faith, the court can make the beneficiary pay for the trustee's legal costs and other related expenses. These costs will be deducted from the beneficiary's share of the trust, and they are personally responsible for any remaining balance.

Conversely, if a trustee defends their report against a beneficiary's challenge in bad faith and without cause, the court can make the trustee pay the beneficiary's legal costs. The trustee's compensation from the trust will cover these costs, and they are personally responsible for any unpaid amounts.

(a)CA Probate Code § 17211(a) If a beneficiary contests the trustee’s account and the court determines that the contest was without reasonable cause and in bad faith, the court may award against the contestant the compensation and costs of the trustee and other expenses and costs of litigation, including attorney’s fees, incurred to defend the account. The amount awarded shall be a charge against any interest of the beneficiary in the trust. The contestant shall be personally liable for any amount that remains unsatisfied.
(b)CA Probate Code § 17211(b) If a beneficiary contests the trustee’s account and the court determines that the trustee’s opposition to the contest was without reasonable cause and in bad faith, the court may award the contestant the costs of the contestant and other expenses and costs of litigation, including attorney’s fees, incurred to contest the account. The amount awarded shall be a charge against the compensation or other interest of the trustee in the trust. The trustee shall be personally liable and on the bond, if any, for any amount that remains unsatisfied.
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