|
|
Reconversion From Unitrust
16336.6
Unless expressly prohibited by the governing instrument, a
trustee may reconvert the trust from a unitrust or change the payout
percentage of a unitrust.
(a)
The trustee may make the reconversion or change in payout
percentage without a court order if all of the following conditions
are satisfied:
(1)
At least three years have elapsed since the most recent
conversion to a unitrust.
(2)
The trustee determines that reconversion or change in payout
percentage would enable the trustee to better comply with the
provisions of subdivision (b) of Section 16335.
(3)
One of the following notice requirements is satisfied:
(A)
In the case of a proposed reconversion, the trustee gives
written notice of the trustee's intention to convert that complies
with the requirements of Chapter 5 (commencing with Section 16500)
and no beneficiary objects to the proposed action in a writing
delivered to the trustee within the period prescribed by subdivision
(d) of Section 16502. The trustee's notice shall include the
information described in subdivision (3) and (4) of subdivision (c)
of Section 16336.4.
(B)
In the case of a proposed change in payout percentage, the
trustee gives written notice stating the new payout percentage that
the trustee proposes to adopt, which notice shall comply with the
requirements of Chapter 5 (commencing with Section 16500), and no
beneficiary objects to the proposed action in a writing delivered to
the trustee within the period prescribed by subdivision (d) of
Section 16502.
(b)
The trustee may make the reconversion or change in payout
percentage at any time pursuant to court order provided that: (1) the
court determines that reconversion or change in payout percentage
will enable the trustee to better comply with the provisions of
subdivision (b) of Section 16335, and (2) in the case of a change in
payout percentage, the new payout percentage is at least 3 percent
and no greater than 5 percent. The court may enter an order pursuant
to this subdivision upon the petition of the trustee or any
beneficiary.
No Duty To Convert Or Reconvert
16336.7
(a)
Sections 16336.4 to 16336.6, inclusive, shall not
impose any duty on the trustee to convert or reconvert a trust or to
consider a conversion or reconversion.
(b)
Subdivision (b) of Section 16503 applies to all actions
pursuant to Sections 16336.4 to 16336.6, inclusive, for which notice
of proposed action is given in compliance with Chapter 5 (commencing
with Section 16500), including notice to a beneficiary who is a minor
and to the minor's guardian, if any.
Misc Provisions Regarding Adjustments
16337
A trustee may give a notice of proposed action regarding a
matter governed by this chapter as provided in Chapter 5 (commencing
with Section 16500). For the purpose of this section, a proposed
action includes a course of action and a decision not to take action.
16338
In a proceeding with respect to a trustee's exercise or
nonexercise of the power to make an adjustment under Section 16336,
the sole remedy is to direct, deny, or revise an adjustment between
principal and income. In a proceeding with respect to a trustee's
exercise or nonexercise of a power conferred by Sections 16336.4 to
16336.6, inclusive, the sole remedy is to obtain an order directing
the trustee to convert the trust to a unitrust, to reconvert from a
unitrust, to change the distribution percentage, or to order any
administrative procedures the court determines to be necessary or
helpful for the proper functioning of the trust.
16339
This chapter applies to every trust or decedent's estate
existing on or after January 1, 2000, except as otherwise expressly
provided in the trust or will or in this chapter.
|