California 2023-2024 Regular Session

California Senate Bill SB1127 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Senate Bill No. ~~1127 CHAPTER 76~~ An act to amend Section 15408 of the Probate Code, relating to trusts. ~~[ Approved by Governor July 02, 2024. Filed with Secretary of State July 02, 2024. ]~~ LEGISLATIVE COUNSEL'S DIGESTSB 1127, 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 fair market value of its principal does not exceed $100,000 in value.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 fair market value of the principal of a trust does not exceed one hundred thousand dollars ($100,000) in value, 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.
	1	+	Enrolled June 21, 2024 Passed IN Senate June 20, 2024 Passed IN Assembly June 10, 2024 Amended IN Assembly May 28, 2024 Amended IN Senate March 18, 2024 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, 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 fair market value of its principal does not exceed $100,000 in value.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 fair market value of the principal of a trust does not exceed one hundred thousand dollars ($100,000) in value, 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.
2	2
3		-	Senate Bill No. ~~1127 CHAPTER 76~~ An act to amend Section 15408 of the Probate Code, relating to trusts. ~~[ Approved by Governor July 02, 2024. Filed with Secretary of State July 02, 2024. ]~~ LEGISLATIVE COUNSEL'S DIGESTSB 1127, 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 fair market value of its principal does not exceed $100,000 in value.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
	3	+	Enrolled June 21, 2024 Passed IN Senate June 20, 2024 Passed IN Assembly June 10, 2024 Amended IN Assembly May 28, 2024 Amended IN Senate March 18, 2024 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, 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 fair market value of its principal does not exceed $100,000 in value.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
4	4
5		-	Senate ~~Bill No.~~ ~~1127 CHAPTER 76~~
	5	+	Enrolled June 21, 2024 Passed IN Senate June 20, 2024 Passed IN Assembly June 10, 2024 Amended IN Assembly May 28, 2024 Amended IN Senate March 18, 2024
6	6
7		-	Senate Bill No. 1127
	7	+	Enrolled June 21, 2024
	8	+	Passed IN Senate June 20, 2024
	9	+	Passed IN Assembly June 10, 2024
	10	+	Amended IN Assembly May 28, 2024
	11	+	Amended IN Senate March 18, 2024
8	12
9		-	CHAPTER 76
	13	+	CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
	14	+
	15	+	Senate Bill
	16	+
	17	+	No. 1127
	18	+
	19	+	Introduced by Senator NielloFebruary 13, 2024
	20	+
	21	+	Introduced by Senator Niello
	22	+	February 13, 2024
10	23
11	24		An act to amend Section 15408 of the Probate Code, relating to trusts.
12		-
13		-	[ Approved by Governor July 02, 2024. Filed with Secretary of State July 02, 2024. ]
14	25
15	26		LEGISLATIVE COUNSEL'S DIGEST
16	27
17	28		## LEGISLATIVE COUNSEL'S DIGEST
18	29
19	30		SB 1127, Niello. Trust termination.
20	31
21	32		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 fair market value of its principal does not exceed $100,000 in value.
22	33
23	34		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.
24	35
25	36		This bill would instead grant a trustee the power to terminate a trust if the fair market value of its principal does not exceed $100,000 in value.
26	37
27	38		## Digest Key
28	39
29	40		## Bill Text
30	41
31	42		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 fair market value of the principal of a trust does not exceed one hundred thousand dollars ($100,000) in value, 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.
32	43
33	44		The people of the State of California do enact as follows:
34	45
35	46		## The people of the State of California do enact as follows:
36	47
37	48		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 fair market value of the principal of a trust does not exceed one hundred thousand dollars ($100,000) in value, 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.
38	49
39	50		SECTION 1. Section 15408 of the Probate Code is amended to read:
40	51
41	52		### SECTION 1.
42	53
43	54		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 fair market value of the principal of a trust does not exceed one hundred thousand dollars ($100,000) in value, 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.
44	55
45	56		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 fair market value of the principal of a trust does not exceed one hundred thousand dollars ($100,000) in value, 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.
46	57
47	58		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 fair market value of the principal of a trust does not exceed one hundred thousand dollars ($100,000) in value, 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.
48	59
49	60
50	61
51	62		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:
52	63
53	64		(1) Termination of the trust.
54	65
55	66		(2) Modification of the trust.
56	67
57	68		(3) Appointment of a new trustee.
58	69
59	70		(b) Notwithstanding subdivision (a), if the fair market value of the principal of a trust does not exceed one hundred thousand dollars ($100,000) in value, the trustee has the power to terminate the trust.
60	71
61	72		(c) The existence of a trust provision restraining transfer of the beneficiarys interest does not prevent application of this section.