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Section 16336.6 Of Article 2. General Provisions And Fiduciary Duties From California Probate Code >> Division 9. >> Part 4. >> Chapter 3. >> Article 2.
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.
(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.
