California Probate Code 16465 – (a) Except as provided in subdivision (b), if the trustee, in …
(a) Except as provided in subdivision (b), if the trustee, in breach of trust, enters into a transaction that the beneficiary may at his or her option reject or affirm, and the beneficiary affirms the transaction, the beneficiary shall not thereafter reject it and hold the trustee liable for any loss occurring after the trustee entered into the transaction.
(b) The affirmance of a transaction by the beneficiary does not preclude the beneficiary from holding a trustee liable for a breach of trust if, at the time of the affirmance, any of the following circumstances existed:
Terms Used In California Probate Code 16465
- Beneficiary: means a person to whom a donative transfer of property is made or that person's successor in interest, and:
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- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Trust: includes the following:
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- Trustee: includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court. See California Probate Code 84
- Trustee: A person or institution holding and administering property in trust.
(1) The beneficiary was under an incapacity.
(2) The beneficiary did not know of his or her rights and of the material facts (A) that the trustee knew or reasonably should have known and (B) that the trustee did not reasonably believe that the beneficiary knew.
(3) The affirmance was induced by improper conduct of the trustee.
(4) The transaction involved a bargain with the trustee that was not fair and reasonable.
(Enacted by Stats. 1990, Ch. 79.)