Changes to California Probate Code §15800 have introduced important new requirements for trustees when a settlor becomes incapacitated. As your trusted estate planning advisors, we want to ensure you are aware of these changes and how they may impact your trust administration.

Key Changes to Probate Code §15800(b)

California Probate Code §15800(b) now requires trustees to provide certain notifications to beneficiaries when the settlor of a revocable trust becomes incapacitated. These new requirements include:

1. Notice: Providing a copy of the trust instrument and any amendments to beneficiaries within 60 days of the trustee obtaining documentation of the settlor's incapacity.
2. Accounting: Furnishing annual accountings and other requested information to beneficiaries.

Impact on Existing Trusts

For many of our clients, these new notification requirements may not align with their wishes. Some settlors prefer to maintain privacy regarding their trust provisions and financial affairs, even in the event of incapacity.

Need to Amend Your Trust

Fortunately, the law allows for flexibility in addressing these new requirements. The terms of your trust can specify that the §15800 notice is not required to be sent and that accountings are not necessary during incapacity. Therefore, many of our clients may wish to amend their trust documents to better reflect their preferences.

Considerations for Amending Your Trust

When deciding whether to amend your trust to opt out of these new notification requirements, consider the following:

1. Privacy concerns: If maintaining confidentiality about your trust provisions during your incapacity is important to you, opting out may be beneficial.
2. Family dynamics: Consider how providing information might affect relationships among beneficiaries while you are still living but incapacitated.
3. Complexity of your estate: For larger or more complex estates, while providing accountings during incapacity might help prevent misunderstandings or disputes from later arising, they also increase the administrative burden upon your trustee and lead to increased legal and accounting fees.
4. Trustee responsibilities: Opting out of these requirements may simplify the trustee's duties during your incapacity.

Next Steps

If you're concerned about how these new requirements might affect your estate plan, we recommend scheduling a review of your trust documents. Our experienced attorneys can help you determine whether amendments are necessary to align your trust with your wishes and the new legal landscape.

Conclusion

The changes to California Probate Code §15800(b) represent a significant shift in trust administration during a settlor's incapacity. By staying informed and proactively addressing these changes, you can ensure that your estate plan continues to reflect your intentions and protect your interests.

Contact our office today to schedule a consultation and discuss how these changes may impact your specific situation. We're here to help you navigate these new requirements and make any necessary adjustments to your estate plan.

Please note: This blog post is for informational purposes only and does not constitute legal advice or create an attorney-client relationship. Consult with a qualified attorney at Pederson Law Offices for advice on your specific circumstances.