TrusteesAppointment of Trustees

Section § 15660

Explanation

This law outlines what happens if a trust doesn't have a trustee or there's a vacancy for a co-trustee. First, if the trust document already has a method for appointing a trustee or names someone for the role, that's how the vacancy should be filled. If not, a trust company can step in with agreement from all adult beneficiaries who are currently receiving or would receive benefits if the trust ended right now. Conservators and attorneys in fact can agree on behalf of certain beneficiaries. If neither of those methods work, anyone interested, or named in the trust, can ask the court to appoint a trustee. The court will also consider nominations from beneficiaries aged 14 and older.

(a)CA Probate Code § 15660(a) If the trust has no trustee or if the trust instrument requires a vacancy in the office of a cotrustee to be filled, the vacancy shall be filled as provided in this section.
(b)CA Probate Code § 15660(b) If the trust instrument provides a practical method of appointing a trustee or names the person to fill the vacancy, the vacancy shall be filled as provided in the trust instrument.
(c)CA Probate Code § 15660(c) If the vacancy in the office of trustee is not filled as provided in subdivision (b), the vacancy may be filled by a trust company that has agreed to accept the trust on agreement of all adult beneficiaries who are receiving or are entitled to receive income under the trust or to receive a distribution of principal if the trust were terminated at the time the agreement is made. If a beneficiary has a conservator, the conservator may agree to the successor trustee on behalf of the conservatee without obtaining court approval. Without limiting the power of the beneficiary to agree to the successor trustee, if the beneficiary has designated an attorney in fact who has the power under the power of attorney to agree to the successor trustee, the attorney in fact may agree to the successor trustee.
(d)CA Probate Code § 15660(d) If the vacancy in the office of trustee is not filled as provided in subdivision (b) or (c), on petition of any interested person or any person named as trustee in the trust instrument, the court may, in its discretion, appoint a trustee to fill the vacancy. If the trust provides for more than one trustee, the court may, in its discretion, appoint the original number or any lesser number of trustees. In selecting a trustee, the court shall give consideration to any nomination by the beneficiaries who are 14 years of age or older.
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Section § 15660.5

Explanation

This law outlines the conditions under which a court may appoint a county's public guardian or public administrator as the trustee of a trust. The public guardian or administrator can only be appointed if no other qualified person is willing, or they consent to the role. If appointed, they must consent, especially for cases involving ongoing trust distributions. A hearing and notice are required for their appointment as a general or temporary trustee, without which the appointment can be contested if the public administrator can't meet trustee obligations. An annual bond fee is also part of the appointment.

(a)CA Probate Code § 15660.5(a) The court may appoint as trustee of a trust the public guardian or public administrator of the county in which the matter is pending subject to the following requirements:
(1)CA Probate Code § 15660.5(a)(1) Neither the public guardian nor the public administrator shall be appointed as trustee unless the court finds, after reasonable inquiry, that no other qualified person is willing to act as trustee or the public guardian, public administrator, or his or her representative consents.
(2)CA Probate Code § 15660.5(a)(2) The public administrator shall not be appointed as trustee unless either of the following is true:
(A)CA Probate Code § 15660.5(a)(2)(A) At the time of the appointment and pursuant to the terms of the trust, the entire trust is then to be distributed outright. For purposes of this paragraph, a trust that is “then to be distributed outright” does not include a trust pursuant to which payments to, or on behalf of, a beneficiary or beneficiaries are to be made from the trust on an ongoing basis for more than six months after the date of distribution.
(B)CA Probate Code § 15660.5(a)(2)(B) The public administrator consents.
(3)CA Probate Code § 15660.5(a)(3) Neither the public guardian nor the public administrator shall be appointed as a cotrustee unless the public guardian, public administrator, or his or her representative consents.
(4)CA Probate Code § 15660.5(a)(4) Neither the public guardian nor the public administrator shall be appointed as general trustee without a hearing and notice to the public guardian or public administrator, or his or her representative, and other interested persons as provided in Section 17203.
(5)CA Probate Code § 15660.5(a)(5) Neither the public guardian nor the public administrator shall be appointed as temporary trustee without receiving notice of hearing as provided in Section 1220. The court shall not waive this notice of hearing, but may shorten the time for notice upon a finding of good cause.
(b)Copy CA Probate Code § 15660.5(b)
(1)Copy CA Probate Code § 15660.5(b)(1) If the public guardian or the public administrator consents to the appointment as trustee under this section, he or she shall submit a written certification of the consent to the court no later than two court days after the noticed hearing date described in paragraph (4) or (5) of subdivision (a). The public administrator shall not be appointed as trustee under subparagraph (A) of paragraph (2) of subdivision (a) if, after receiving notice as required by this section, the public administrator files a written certification with the court that the public administrator is unable to provide the level of services needed to properly fulfill the obligations of a trustee of the trust.
(2)CA Probate Code § 15660.5(b)(2) If the public administrator has been appointed as trustee without notice as required in paragraph (4) or (5) of subdivision (a), and the public administrator files a written certification with the court that he or she is unable to provide the level of services needed to properly fulfill the obligations of a trustee of the trust, this shall be good cause for the public administrator to be relieved as trustee.
(c)CA Probate Code § 15660.5(c) The order of appointment shall provide for an annual bond fee as described in Section 15688.
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