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AB 1939

Professional fiduciaries: corporate practice.

2025-2026 Regular Session Introduced by Heath Flora

AB 1939 permits California corporations to operate as licensed professional fiduciaries, expanding current restrictions limiting practice to individual fiduciaries managing estates and guardianships.

From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 13. Noes 0.) (June 30). Re-referred to Com. on APPR.
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Bill Summary · AB 1939

Legislative bill overview

AB 1939 would modify California's regulations governing professional fiduciaries—individuals or entities legally authorized to manage financial or personal affairs for others—to permit corporate entities to engage in professional fiduciary practice. Currently, California law restricts fiduciary services primarily to individual licensed fiduciaries. This bill would expand the legal framework to allow corporations to operate as professional fiduciaries under specified conditions.

Why is this important

Professional fiduciaries manage estates, trusts, and guardianships for vulnerable populations including elderly individuals, minors, and people with incapacity. Expanding corporate participation could increase access to fiduciary services and potentially reduce costs through economies of scale, but it also raises consumer protection questions about accountability and oversight of larger entities managing significant assets and personal decisions.

Potential points of contention

  • Accountability and liability structures: Determining how corporate entities would be held responsible for fiduciary breaches, particularly when individual officers or employees commit misconduct, versus current individual liability frameworks
  • Consumer protection standards: Whether existing licensing, bonding, and regulatory requirements designed for individual fiduciaries adequately protect clients when applied to corporate entities with multiple employees and organizational complexity
  • Market concentration concerns: Risk that corporate fiduciaries could consolidate the market, potentially reducing competition and raising fees for vulnerable populations who depend on these services

Compiled from official sources — confirm details with the bill’s official record.

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