SECTIONS 16400-16403 - California Statutes

PROBATE CODE

SECTION 16400-16403

16400. A violation by the trustee of any duty that the trustee owes
the beneficiary is a breach of trust.

16401. (a) Except as provided in subdivision (b), the trustee is
not liable to the beneficiary for the acts or omissions of an agent.
(b) Under any of the circumstances described in this subdivision,
the trustee is liable to the beneficiary for an act or omission of an
agent employed by the trustee in the administration of the trust
that would be a breach of the trust if committed by the trustee:
(1) Where the trustee directs the act of the agent.
(2) Where the trustee delegates to the agent the authority to
perform an act that the trustee is under a duty not to delegate.
(3) Where the trustee does not use reasonable prudence in the
selection of the agent or the retention of the agent selected by the
trustee.
(4) Where the trustee does not periodically review the agent's
overall performance and compliance with the terms of the delegation.
(5) Where the trustee conceals the act of the agent.
(6) Where the trustee neglects to take reasonable steps to compel
the agent to redress the wrong in a case where the trustee knows of
the agent's acts or omissions.
(c) The liability of a trustee for acts or omissions of agents
that occurred before July 1, 1987, is governed by prior law and not
by this section.

16402. (a) Except as provided in subdivision (b), a trustee is not
liable to the beneficiary for a breach of trust committed by a
cotrustee.
(b) A trustee is liable to the beneficiary for a breach committed
by a cotrustee under any of the following circumstances:
(1) Where the trustee participates in a breach of trust committed
by the cotrustee.
(2) Where the trustee improperly delegates the administration of
the trust to the cotrustee.
(3) Where the trustee approves, knowingly acquiesces in, or
conceals a breach of trust committed by the cotrustee.
(4) Where the trustee negligently enables the cotrustee to commit
a breach of trust.
(5) Where the trustee neglects to take reasonable steps to compel
the cotrustee to redress a breach of trust in a case where the
trustee knows or has information from which the trustee reasonably
should have known of the breach.
(c) The liability of a trustee for acts or omissions of a
cotrustee that occurred before July 1, 1987, is governed by prior law
and not by this section.

16403. (a) Except as provided in subdivision (b), a successor
trustee is not liable to the beneficiary for a breach of trust
committed by a predecessor trustee.
(b) A successor trustee is liable to the beneficiary for breach of
trust involving acts or omissions of a predecessor trustee in any of
the following circumstances:
(1) Where the successor trustee knows or has information from
which the successor trustee reasonably should have known of a
situation constituting a breach of trust committed by the predecessor
trustee and the successor trustee improperly permits it to continue.
(2) Where the successor trustee neglects to take reasonable steps
to compel the predecessor trustee to deliver the trust property to
the successor trustee.
(3) Where the successor trustee neglects to take reasonable steps
to redress a breach of trust committed by the predecessor trustee in
a case where the successor trustee knows or has information from
which the successor trustee reasonably should have known of the
predecessor trustee's breach.
(c) The liability of a trustee for acts or omissions of a
predecessor trustee that occurred before July 1, 1987, is governed by
prior law and not by this section.