A change to California law that took effect with estates being administered in 2026 can make things a bit easier for trustees and beneficiaries – and bring California probate procedures regarding trusts more in line with the rest of the country.
The amended law states that if a trust beneficiary is being “virtually represented” by another beneficiary in relatively simple trust proceedings, the person being represented doesn’t have to receive notice of proceedings as long as their representative does. This was not the case in the past.
How the scope of representation has expanded
The law states, “Unless otherwise represented, a minor, an incapacitated person, a person subsequently born, or a person whose identity or location is unknown and not reasonably ascertainable may be represented by and bound by another person having a substantially identical interest with respect to the particular question or dispute.”
This expands the scope of who can represent others. In the past, the relationship was limited to those already legally established, like parent-child and conservator-conservatee. The change helps streamline and simplify the process for providing notice of proceedings for relatively limited or uncomplicated matters. It also prevents the need to seek legal codification, like a guardian ad litem for minor children and others being represented.
There are restrictions on who can represent another beneficiary. For example, the representative can’t have a conflict of interest with the person they’re representing.
Full notification may still be the safest way to proceed
Trustees and others helping to administer a trust can still provide full notification to all beneficiaries, regardless of their ability to participate in proceedings. This can help avoid unintended consequences, like someone having an undisclosed conflict of interest.
Some wealth managers say that the change in the law was made in part to make California a more appealing state in which to set up a trust. States like Nevada, Delaware and even Tennessee currently offer a number of advantages that draw out-of-state wealth.
As with any change in probate law, it’s worthwhile for personal representatives and other administrators to have sound legal guidance to help ensure that they understand how this modification affects them and the best course of action as they carry out their fiduciary duties.
