I have provided below a snapshot of the first part of California Senate Bill No. 801, which has been signed into law. The bill is just over 5 pages long, so it will take some reading, study and evaluation. However, the bill enacts “the California Uniform Directed Trust Act to provide a method for regulating trusts where a person who is not a trustee [i.e., the “trust director”] has been given a role in directing the trust.” Thus, for California the bill creates a possible new means for directing how a trust is administered and adds the new roles and terms “directed trustee” and “trust director.”

The California Uniform Directed Trust Act is contained at new Probate Code Sections 16600-16632. Probate Code Section 16608(a) states: “Subject to Section 16610, the terms of a trust may grant a power of direction to a trust director.” The California Uniform Directed Trust Act primarily addresses the authority, limitation on authority, liability, and limitation on liability of the directed trustee and of the trust director, and the interactions and relationships between the directed trustee and the trust director. In no small part the terms and provisions that are stated in the trust will be determinative or instructive, assuming that those terms and provisions in fact pertain to the issues and situation at hand.

This is sure to create a lot of legal and estate planning discussion, and opportunities. Indeed, I will be covering the new legislation in greater detail. Directed trusts often are thought of as being just for the very wealthy; however, there may in fact be many different family relationships and dynamics, businesses and family businesses, and wealth, financial and estate planning situations in which the option of a directed trust might be considered with a directed trustee who can in some situations be subject to the power of direction by the trust director.

Below is the snapshot from the first part of California Senate Bill No. 801:

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Thank you for viewing this discussion. Please do pass this blog and blog post and information to other people who would be interested as it is only through collaboration and sharing that great things and success are more quickly achieved. If you are interested in discussing anything that I have said in the discussion above or in either of my two blogs (see blog addresses below), or if you simply want to reach out or are seeking assistance, it is best to reach me by email at dave@tateattorney.com.

David Tate, Esq. (and inactive CPA)

• Business litigation and disputes – business, breach of contract/commercial, co-owners, shareholders, investors, founders, workplace and employment, environmental, D&O, governance, boards and committees.
• Trust, estate and probate court litigation and disputes – trust, estate, probate, elder and dependent abuse, conservatorship, POA, real property, mental health and care, mental capacity, undue influence, conflicts of interest, and contentious administrations.
• Governance, boards, audit and governance committees, investigations, auditing, ESG, etc.
• Mediator and facilitating dispute resolution (evaluative and facilitative):
  • Trust, estate, probate, conservatorship, elder and dependent abuse, etc.
  • Business, breach of contract/commercial, owner, shareholder, investor, etc.
  • D&O, board, audit and governance committee, accountant and CPA related.
  • Other: workplace and employment, environmental, trade secret.

Remember, every case and situation is different. It is important to obtain and evaluate all of the evidence that is available, and to apply that evidence to the applicable standards and laws. You do need to consult with an attorney and other professionals about your particular situation. This post is not a solicitation for legal or other services inside of or outside of California, and, of course, this post only is a summary of information that changes from time to time, and does not apply to any particular situation or to your specific situation. So . . . you cannot rely on this post for your situation or as legal or other professional advice or representation, or as or for my opinions and views on the subject matter.

Also note – sometimes I include links to or comments about materials from other organizations or people – if I do so, it is because I believe that the materials are worthwhile reading or viewing; however, that does not mean that I do not or that I might not have a different view about some or even all of the subject matter or materials, or that I necessarily agree with, or agree with everything about or relating to, that organization or person, or those materials or the subject matter.

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My two blogs are:

http://tateattorney.com – business, D&O, audit committee, governance, compliance, etc. – previously at http://auditcommitteeupdate.com

Trust, estate, conservatorship, elder and elder abuse, etc. litigation and contentious administrations http://californiaestatetrust.com

David Tate, Esq. (and inactive California CPA) – practicing only as an attorney in California.