SECTIONS 16040-16042 - California Statutes

PROBATE CODE

SECTION 16040-16042

16040. (a) The trustee shall administer the trust with reasonable
care, skill, and caution under the circumstances then prevailing that
a prudent person acting in a like capacity would use in the conduct
of an enterprise of like character and with like aims to accomplish
the purposes of the trust as determined from the trust instrument.
(b) The settlor may expand or restrict the standard provided in
subdivision (a) by express provisions in the trust instrument. A
trustee is not liable to a beneficiary for the trustee's good faith
reliance on these express provisions.
(c) This section does not apply to investment and management
functions governed by the Uniform Prudent Investor Act, Article 2.5
(commencing with Section 16045).

16041. A trustee's standard of care and performance in
administering the trust is not affected by whether or not the trustee
receives any compensation.

16042. (a) Notwithstanding the requirements of this article,
Article 2.5 (commencing with Section 16045), and the terms of the
trust, all trust funds that come within the custody of the public
guardian who is appointed as trustee of the trust pursuant to Section
15660.5 may be deposited or invested in the same manner, and would
be subject to the same terms and conditions, as a deposit or
investment by the public administrator of funds in the estate of a
decedent pursuant to Article 3 (commencing with Section 7640) of
Chapter 4 of Part 1 of Division 7.
(b) Upon the deposit or investment of trust property pursuant to
subdivision (a), the public guardian shall be deemed to have met the
standard of care specified in this article and Article 2.5
(commencing with Section 16045) with respect to this trust property.