CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 1127Introduced by Senator NielloFebruary 13, 2024 An act to amend Section 15408 of the Probate Code, relating to trusts. LEGISLATIVE COUNSEL'S DIGESTSB 1127, as introduced, Niello. Trust termination. Existing law establishes procedures for the creation, modification, and termination of a trust, and regulates the administration of trusts by trustees on behalf of beneficiaries. Existing law authorizes a trustee to terminate a trust if the principal of a trust does not exceed $50,000 in value.This bill would instead grant a trustee the power to terminate a trust if the principal does not exceed $100,000 in value, as adjusted periodically based on the Consumer Price Index for All Urban Consumers, as specified.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 15408 of the Probate Code is amended to read:15408. (a) On petition by a trustee or beneficiary, if the court determines that the fair market value of the principal of a trust has become so low in relation to the cost of administration that continuation of the trust under its existing terms will defeat or substantially impair the accomplishment of its purposes, the court may, in its discretion and in a manner that conforms as nearly as possible to the intention of the settlor, order any of the following:(1) Termination of the trust.(2) Modification of the trust.(3) Appointment of a new trustee.(b) Notwithstanding subdivision (a), if the trust principal does not exceed fifty one hundred thousand dollars ($50,000) ($100,000) in value, as adjusted periodically pursuant to Section 890, the trustee has the power to terminate the trust.(c) The existence of a trust provision restraining transfer of the beneficiarys interest does not prevent application of this section.
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 1127Introduced by Senator NielloFebruary 13, 2024 An act to amend Section 15408 of the Probate Code, relating to trusts. LEGISLATIVE COUNSEL'S DIGESTSB 1127, as introduced, Niello. Trust termination. Existing law establishes procedures for the creation, modification, and termination of a trust, and regulates the administration of trusts by trustees on behalf of beneficiaries. Existing law authorizes a trustee to terminate a trust if the principal of a trust does not exceed $50,000 in value.This bill would instead grant a trustee the power to terminate a trust if the principal does not exceed $100,000 in value, as adjusted periodically based on the Consumer Price Index for All Urban Consumers, as specified.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Senate Bill
No. 1127
Introduced by Senator NielloFebruary 13, 2024
Introduced by Senator Niello
February 13, 2024
An act to amend Section 15408 of the Probate Code, relating to trusts.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 1127, as introduced, Niello. Trust termination.
Existing law establishes procedures for the creation, modification, and termination of a trust, and regulates the administration of trusts by trustees on behalf of beneficiaries. Existing law authorizes a trustee to terminate a trust if the principal of a trust does not exceed $50,000 in value.This bill would instead grant a trustee the power to terminate a trust if the principal does not exceed $100,000 in value, as adjusted periodically based on the Consumer Price Index for All Urban Consumers, as specified.
Existing law establishes procedures for the creation, modification, and termination of a trust, and regulates the administration of trusts by trustees on behalf of beneficiaries. Existing law authorizes a trustee to terminate a trust if the principal of a trust does not exceed $50,000 in value.
This bill would instead grant a trustee the power to terminate a trust if the principal does not exceed $100,000 in value, as adjusted periodically based on the Consumer Price Index for All Urban Consumers, as specified.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 15408 of the Probate Code is amended to read:15408. (a) On petition by a trustee or beneficiary, if the court determines that the fair market value of the principal of a trust has become so low in relation to the cost of administration that continuation of the trust under its existing terms will defeat or substantially impair the accomplishment of its purposes, the court may, in its discretion and in a manner that conforms as nearly as possible to the intention of the settlor, order any of the following:(1) Termination of the trust.(2) Modification of the trust.(3) Appointment of a new trustee.(b) Notwithstanding subdivision (a), if the trust principal does not exceed fifty one hundred thousand dollars ($50,000) ($100,000) in value, as adjusted periodically pursuant to Section 890, the trustee has the power to terminate the trust.(c) The existence of a trust provision restraining transfer of the beneficiarys interest does not prevent application of this section.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 15408 of the Probate Code is amended to read:15408. (a) On petition by a trustee or beneficiary, if the court determines that the fair market value of the principal of a trust has become so low in relation to the cost of administration that continuation of the trust under its existing terms will defeat or substantially impair the accomplishment of its purposes, the court may, in its discretion and in a manner that conforms as nearly as possible to the intention of the settlor, order any of the following:(1) Termination of the trust.(2) Modification of the trust.(3) Appointment of a new trustee.(b) Notwithstanding subdivision (a), if the trust principal does not exceed fifty one hundred thousand dollars ($50,000) ($100,000) in value, as adjusted periodically pursuant to Section 890, the trustee has the power to terminate the trust.(c) The existence of a trust provision restraining transfer of the beneficiarys interest does not prevent application of this section.
SECTION 1. Section 15408 of the Probate Code is amended to read:
### SECTION 1.
15408. (a) On petition by a trustee or beneficiary, if the court determines that the fair market value of the principal of a trust has become so low in relation to the cost of administration that continuation of the trust under its existing terms will defeat or substantially impair the accomplishment of its purposes, the court may, in its discretion and in a manner that conforms as nearly as possible to the intention of the settlor, order any of the following:(1) Termination of the trust.(2) Modification of the trust.(3) Appointment of a new trustee.(b) Notwithstanding subdivision (a), if the trust principal does not exceed fifty one hundred thousand dollars ($50,000) ($100,000) in value, as adjusted periodically pursuant to Section 890, the trustee has the power to terminate the trust.(c) The existence of a trust provision restraining transfer of the beneficiarys interest does not prevent application of this section.
15408. (a) On petition by a trustee or beneficiary, if the court determines that the fair market value of the principal of a trust has become so low in relation to the cost of administration that continuation of the trust under its existing terms will defeat or substantially impair the accomplishment of its purposes, the court may, in its discretion and in a manner that conforms as nearly as possible to the intention of the settlor, order any of the following:(1) Termination of the trust.(2) Modification of the trust.(3) Appointment of a new trustee.(b) Notwithstanding subdivision (a), if the trust principal does not exceed fifty one hundred thousand dollars ($50,000) ($100,000) in value, as adjusted periodically pursuant to Section 890, the trustee has the power to terminate the trust.(c) The existence of a trust provision restraining transfer of the beneficiarys interest does not prevent application of this section.
15408. (a) On petition by a trustee or beneficiary, if the court determines that the fair market value of the principal of a trust has become so low in relation to the cost of administration that continuation of the trust under its existing terms will defeat or substantially impair the accomplishment of its purposes, the court may, in its discretion and in a manner that conforms as nearly as possible to the intention of the settlor, order any of the following:(1) Termination of the trust.(2) Modification of the trust.(3) Appointment of a new trustee.(b) Notwithstanding subdivision (a), if the trust principal does not exceed fifty one hundred thousand dollars ($50,000) ($100,000) in value, as adjusted periodically pursuant to Section 890, the trustee has the power to terminate the trust.(c) The existence of a trust provision restraining transfer of the beneficiarys interest does not prevent application of this section.
15408. (a) On petition by a trustee or beneficiary, if the court determines that the fair market value of the principal of a trust has become so low in relation to the cost of administration that continuation of the trust under its existing terms will defeat or substantially impair the accomplishment of its purposes, the court may, in its discretion and in a manner that conforms as nearly as possible to the intention of the settlor, order any of the following:
(1) Termination of the trust.
(2) Modification of the trust.
(3) Appointment of a new trustee.
(b) Notwithstanding subdivision (a), if the trust principal does not exceed fifty one hundred thousand dollars ($50,000) ($100,000) in value, as adjusted periodically pursuant to Section 890, the trustee has the power to terminate the trust.
(c) The existence of a trust provision restraining transfer of the beneficiarys interest does not prevent application of this section.