2007 California Probate Code Chapter 8. Nonprobate Transfer To Trustee Named In Decedent\'s Will

CA Codes (prob:6320-6330)

6320.  As used in this chapter, unless the context otherwise
requires:
   (a)  "Designation" means a designation made pursuant to Section
6321.
   (b) "Instrument" includes all of the following:
   (1)  An insurance, annuity, or endowment contract (including any
agreement issued or entered into by the insurer in connection
therewith, supplemental thereto, or in settlement thereof).
   (2)  A pension, retirement benefit, death benefit, stock bonus,
profit-sharing or employees' saving plan, employee benefit plan, or
contract created or entered into by an employer for the benefit of
some or all of his or her employees.
   (3)  A self-employed retirement plan, or an individual retirement
annuity or account, established or held pursuant to the Internal
Revenue Code.
   (4) A multiple-party account, as defined in Section 5132.
   (5) Any other written instrument of a type described in Section
5000.


6321.  An instrument may designate as a primary or contingent
beneficiary, payee, or owner a trustee named or to be named in the
will of the person entitled to designate the beneficiary, payee, or
owner.  The designation shall be made in accordance with the
provisions of the contract or plan or, in the absence of such
provisions, in a manner approved by the insurer if an insurance,
annuity, or endowment contract is involved, and by the trustee,
custodian, or person or entity administering the contract or plan, if
any.  The designation may be made before or after the execution of
the designator's will and is not required to comply with the
formalities for execution of a will.



6322.  The designation is ineffective unless the designator's will
contains provisions creating the trust or makes a disposition valid
under Section 6300.


6323.  Subject to the provisions of Section 6325, the benefits or
rights resulting from the designation are payable or transferable
directly to the trustee, without becoming subject to administration,
upon or at any time after admission of the designator's will to
probate.  A designation pursuant to this chapter does not have the
effect of naming a trustee of a separate inter vivos trust but the
rights and benefits or the proceeds thereof when paid to the trustee
are, or become a part of, the testamentary trust or trusts
established pursuant to the designator's will or shall be added to an
inter vivos trust or trusts if the disposition is governed by
Section 6300.



6324.  Except as otherwise provided in the designator's will, the
rights and benefits and their proceeds paid or transferred to the
trustee are not subject to the debts of the designator to any greater
extent than if they were paid or transferred to a named beneficiary,
payee, or owner other than the estate of the designator.




6325.  (a) The court in which the proceedings are pending for
administration of the estate of the decedent has jurisdiction, before
or after payment or transfer of benefits and rights or their
proceeds to the trustee, to:
   (1) Determine the validity of the trust.
   (2) Determine the terms of the trust.
   (3) Fill vacancies in the office of trustee.
   (4) Require a bond of a trustee in its discretion and in such
amount as the court may determine for the faithful performance of
duties as trustee, subject to the provisions of Article 3 (commencing
with Section 1540) of Chapter 12 of Division 1 of the Financial Code
and Section 15602 of this code.
   (5) Grant additional powers to the trustee, as provided in Section
16201.
   (6) Instruct the trustee.
   (7) Fix or allow payment of compensation of a trustee as provided
in Sections 15680 to 15683, inclusive.
   (8) Hear and determine adverse claims to the trust property by the
personal representative, surviving spouse, or other third person.
   (9) Determine the identity of the trustee and the trustee's
acceptance or rejection of the office and, upon request, furnish
evidence of trusteeship to a trustee.
   (10) Order postponement of the payment or transfer of the benefits
and rights or their proceeds.
   (11) Authorize or direct removal of the trust or trust property to
another jurisdiction pursuant to the procedure provided in Chapter 5
(commencing with Section 17400) of Part 5 of Division 9.
   (12) Make any order incident to the foregoing or to the
accomplishment of the purposes of this chapter.
   (b) The personal representative of the designator's estate, any
trustee named in the will or designation or successor to such
trustee, or any person interested in the estate or trust may petition
the court for an order under this section.  Notice of hearing of the
petition shall be given in the manner provided in Section 17203,
except as the court may otherwise order.



6326.  As to matters not specifically provided in Section 6325, the
provisions of Division 9 (commencing with Section 15000) apply to the
trust.


6327.  An appeal may be taken from any of the following:
   (a) Any order described in Part 3 (commencing with Section 1300)
of Division 3 made pursuant to this chapter.
   (b) An order making or refusing to make a determination specified
in paragraph (1), (2), or (8) of subdivision (a) of Section 6325.
   (c) As provided in Section 1304 for an order made pursuant to
Section 6326.


6328.  If no qualified trustee makes claim to the benefits or rights
or proceeds within one year after the death of the designator, or if
satisfactory evidence is furnished within such one-year period
showing that no trustee can qualify to receive them, payment or
transfer may be made, unless the designator has otherwise provided,
by the obligor to the personal representative of the designator or to
those thereafter entitled, and the obligor is discharged from
liability.


6329.  Enactment of this chapter does not invalidate trusts,
otherwise valid, not made pursuant to the provisions of this chapter.



6330.  This chapter, insofar as it is substantially the same as
former Chapter 10 (commencing with Section 175) of former Division 1,
repealed by Section 18 of Chapter 842 of the Statutes of 1983, shall
be construed as a restatement and continuation thereof and not as a
new enactment.  After December 31, 1984, a reference in a written
instrument to the previously existing provisions relating to the
subject matter of this chapter shall be deemed to be a reference to
the corresponding provisions of this chapter.