SECTIONS 11600-11605 - California Statutes

PROBATE CODE

SECTION 11600-11605

11600. The personal representative or an interested person may
petition the court under this chapter for an order for preliminary or
final distribution of the decedent's estate to the persons entitled
thereto.

11601. Notice of the hearing on the petition shall be given as
provided in Section 1220 to all of the following persons:
(a) Each person listed in Section 1220.
(b) Each known heir whose interest in the estate would be affected
by the petition.
(c) Each known devisee whose interest in the estate would be
affected by the petition.
(d) The Attorney General, at the office of the Attorney General in
Sacramento, if any portion of the estate is to escheat to the state
and its interest in the estate would be affected by the petition.
(e) The Controller, if property is to be distributed to the state
because there is no known beneficiary or if property is to be
distributed to a beneficiary whose whereabouts is unknown. A copy of
the latest account filed with the court shall be served on the
Controller with the notice.

11602. The personal representative or any interested person may
oppose the petition.

11603. (a) If the court determines that the requirements for
distribution are satisfied, the court shall order distribution of the
decedent's estate, or such portion as the court directs, to the
persons entitled thereto.
(b) The order shall:
(1) Name the distributees and the share to which each is entitled.
(2) Provide that property distributed subject to a limitation or
condition, including, but not limited to, an option granted under
Chapter 16 (commencing with Section 9960) of Part 5, is distributed
to the distributees subject to the terms of the limitation or
condition.
(c) If the whereabouts of a distributee named in the order is
unknown, the order shall provide for alternate distributees and the
share to which each is entitled. The alternate distributees shall be
the persons, to the extent known or reasonably ascertainable, who
would be entitled under the decedent's will or under the laws of
intestate succession if the distributee named in the order had
predeceased the decedent, or in the case of a devise for a charitable
purpose, under the doctrine of cy pres. If the distributee named in
the order does not claim the share to which the distributee is
entitled within five years after the date of the order, the
distributee is deemed to have predeceased the decedent for the
purpose of this section and the alternate distributees are entitled
to the share as provided in the order.

11604. (a) This section applies where distribution is to be made to
any of the following persons:
(1) The transferee of a beneficiary.
(2) Any person other than a beneficiary under an agreement,
request, or instructions of a beneficiary or the attorney in fact of
a beneficiary.
(b) The court on its own motion, or on motion of the personal
representative or other interested person or of the public
administrator, may inquire into the circumstances surrounding the
execution of, and the consideration for, the transfer, agreement,
request, or instructions, and the amount of any fees, charges, or
consideration paid or agreed to be paid by the beneficiary.
(c) The court may refuse to order distribution, or may order
distribution on any terms that the court deems just and equitable, if
the court finds either of the following:
(1) The fees, charges, or consideration paid or agreed to be paid
by a beneficiary are grossly unreasonable.
(2) The transfer, agreement, request, or instructions were
obtained by duress, fraud, or undue influence.
(d) Notice of the hearing on the motion shall be served on the
beneficiary and on the persons described in subdivision (a) at least
15 days before the hearing in the manner provided in Section 415.10
or 415.30 of the Code of Civil Procedure.

11604.5. (a) This section applies when distribution from a decedent'
s estate is made to a transferee for value who acquires any interest
of a beneficiary in exchange for cash or other consideration.
(b) For purposes of this section, a transferee for value is a
person who satisfies both of the following criteria:
(1) He or she purchases the interest from a beneficiary for
consideration pursuant to a written agreement.
(2) He or she, directly or indirectly, regularly engages in the
purchase of beneficial interests in estates for consideration.
(c) This section does not apply to any of the following:
(1) A transferee who is a beneficiary of the estate or a person
who has a claim to distribution from the estate under another
instrument or by intestate succession.
(2) A transferee who is either the registered domestic partner of
the beneficiary, or is related by blood, marriage, or adoption to the
beneficiary or the decedent.
(3) A transaction made in conformity with the California Finance
Lenders Law (Division 9 (commencing with Section 22000) of the
Financial Code) and subject to regulation by the Department of
Corporations.
(4) A transferee who is engaged in the business of locating
missing or unknown heirs and who acquires an interest from a
beneficiary solely in exchange for providing information or services
associated with locating the heir or beneficiary.
(d) A written agreement is effective only if all of the following
conditions are met:
(1) The executed written agreement is filed with the court not
later than 30 days following the date of its execution or, if
administration of the decedent's estate has not commenced, then
within 30 days of issuance of the letters of administration or
letters testamentary, but in no event later than 15 days prior to the
hearing on the petition for final distribution. Prior to filing or
serving that written agreement, the transferee for value shall redact
any personally identifying information about the beneficiary, other
than the name and address of the beneficiary, and any financial
information provided by the beneficiary to the transferee for value
on the application for cash or other consideration, from the
agreement.
(2) If the negotiation or discussion between the beneficiary and
the transferee for value leading to the execution of the written
agreement by the beneficiary was conducted in a language other than
English, the beneficiary shall receive the written agreement in
English, together with a copy of the agreement translated into the
language in which it was negotiated or discussed. The written
agreement and the translated copy, if any, shall be provided to the
beneficiary.
(3) The documents signed by, or provided to, the beneficiary are
printed in at least 10-point type.
(4) The transferee for value executes a declaration or affidavit
attesting that the requirements of this section have been satisfied,
and the declaration or affidavit is filed with the court within 30
days of execution of the written agreement or, if administration of
the decedent's estate has not commenced, then within 30 days of
issuance of the letters of administration or letters testamentary,
but in no event later than 15 days prior to the hearing on the
petition for final distribution.
(5) Notice of the assignment is served on the personal
representative or the attorney of record for the personal
representative within 30 days of execution of the written agreement
or, if general or special letters of administration or letters
testamentary have not been issued, then within 30 days of issuance of
the letters of administration or letters testamentary, but in no
event later than 15 days prior to the hearing on the petition for
final distribution.
(e) The written agreement shall include the following terms, in
addition to any other terms:
(1) The amount of consideration paid to the beneficiary.
(2) A description of the transferred interest.
(3) If the written agreement so provides, the amount by which the
transferee for value would have its distribution reduced if the
beneficial interest assigned is distributed prior to a specified
date.
(4) A statement of the total of all costs or fees charged to the
beneficiary resulting from the transfer for value, including, but not
limited to, transaction or processing fees, credit report costs,
title search costs, due diligence fees, filing fees, bank or
electronic transfer costs, or any other fees or costs. If all the
costs and fees are paid by the transferee for value and are included
in the amount of the transferred interest, then the statement of
costs need not itemize any costs or fees. This subdivision shall not
apply to costs, fees, or damages arising out of a material breach of
the agreement or fraud by or on the part of the beneficiary.
(f) A written agreement shall not contain any of the following
provisions and, if any such provision is included, that provision
shall be null and void:
(1) A provision holding harmless the transferee for value, other
than for liability arising out of fraud by the beneficiary.
(2) A provision granting to the transferee for value agency powers
to represent the beneficiary's interest in the decedent's estate
beyond the interest transferred.
(3) A provision requiring payment by the beneficiary to the
transferee for value for services not related to the written
agreement or services other than the transfer of interest under the
written agreement.
(4) A provision permitting the transferee for value to have
recourse against the beneficiary if the distribution from the estate
in satisfaction of the beneficial interest is less than the
beneficial interest assigned to the transferee for value, other than
recourse for any expense or damage arising out of the material breach
of the agreement or fraud by the beneficiary.
(g) The court on its own motion, or on the motion of the personal
representative or other interested person, may inquire into the
circumstances surrounding the execution of, and the consideration
for, the written agreement to determine that the requirements of this
section have been satisfied.
(h) The court may refuse to order distribution under the written
agreement, or may order distribution on any terms that the court
considers equitable, if the court finds that the transferee for value
did not substantially comply with the requirements of this section,
or if the court finds that any of the following conditions existed at
the time of transfer:
(1) The fees, charges, or consideration paid or agreed to be paid
by the beneficiary were grossly unreasonable.
(2) The transfer of the beneficial interest was obtained by
duress, fraud, or undue influence.
(i) In addition to any remedy specified in this section, for any
willful violation of the requirements of this section found to be
committed in bad faith, the court may require the transferee for
value to pay to the beneficiary up to twice the value paid for the
assignment.
(j) Notice of the hearing on any motion brought under this section
shall be served on the beneficiary and on the transferee for value
at least 15 days before the hearing in the manner provided in Section
415.10 or 415.30 of the Code of Civil Procedure.
(k) If the decedent's estate is not subject to a pending court
proceeding under the Probate Code in California, but is the subject
of a probate proceeding in another state, the transferee for value
shall not be required to submit to the court a copy of the written
agreement as required under paragraph (1) of subdivision (d). If the
written agreement is entered into in California or if the beneficiary
is domiciled in California, that written agreement shall otherwise
conform to the provisions of subdivisions (d), (e), and (f) in order
to be effective.

11605. When a court order made under this chapter becomes final,
the order binds and is conclusive as to the rights of all interested
persons.