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AB 565

Representation of trust beneficiaries.

2025-2026 Regular Session Introduced by Diane Dixon

Allows fiduciaries to rely on written representations to bind and notify a represented beneficiary, streamlining notices while requiring consent, lack of conflicts, and protections

Chaptered by Secretary of State - Chapter 39, Statutes of 2025.
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Bill Summary · AB 565

AB 565 (Dixon) — Representation of trust beneficiaries (Chapter 39, Statutes of 2025)

Summary / Purpose

AB 565 revises Probate Code rules about how notice to trust beneficiaries and other persons interested in trusts may be given indirectly. It repeals former Section 15804 and replaces it with a new Section 15804 that makes notice to a person who is authorized to "represent and bind" another person legally sufficient as if given directly to the represented person. The bill is intended to streamline trust and estate administration by clarifying who may represent absent, minor, incapacitated, unborn, or otherwise unlocatable persons for purposes of notice and binding decisions.

Key provisions

  • Repeals prior Section 15804 and adds a new Section 15804 to the Probate Code.
  • Notice given to a person who may represent and bind another under this section is treated as notice to the represented person (substantive equivalence).
  • Written consent requirement: any consent to be represented and bound must be in writing.
  • Binding effect: written consent is binding on the represented person unless that person objects before the consent would have become effective.
  • Limitations on representation:
    • The representative and represented person must not have a conflict of interest as to the matter.
    • A settlor may not represent and bind a beneficiary on the termination or modification of an irrevocable trust.
  • Fiduciary reliance safe harbor: a fiduciary who relies on such a representation will not be liable for resulting loss unless the fiduciary acted intentionally, with gross negligence, in bad faith, or with reckless indifference.
  • Court actions under the Probate division are conclusive and binding on represented persons.
  • Enumerated permissible representatives (examples):
    • Parent for minor children (if no guardian/guardian ad litem appointed)
    • Conservator of the estate for the conservatee
    • Guardian of the estate for the ward
    • Guardian ad litem with appropriate authority
    • Agent with authority for the principal
    • Trustee for trust beneficiaries
    • Personal representative for persons interested in an estate
  • Successive interests: rules allowing living members of a class holding a present or substantially identical interest to represent and bind persons with future contingent interests (three specified scenarios).
  • Power of appointment: holders may represent permissible appointees or takers in default.
  • Preservation of existing protections: does not alter court notice requirements for persons who requested special notice, filed appearances, are specifically required by statute to receive notice, availability of guardian ad litem (Section 1003), or preexisting representative duties.
  • Clarification that “notice” includes other papers.

Who is affected

  • Trustees, personal representatives, conservators, guardians, agents under powers of attorney, and other fiduciaries (may rely on representations).
  • Beneficiaries and persons interested in trusts, including minors, incapacitated persons, unborn persons, and persons whose identity/location is unknown.
  • Settlors (limited restriction when irrevocable trust modifications/termination are involved).

Procedural / timeline highlights

  • Introduced: February 12, 2025 (Assembly).
  • Assembly passage: April 3, 2025 (Ayes 74, Noes 0).
  • Senate passage: June 23, 2025 (Ayes 37, Noes 0).
  • Enrolled and presented to Governor: July 2, 2025.
  • Approved by Governor and chaptered: July 14, 2025 (Chapter 39, Statutes of 2025).
  • Effective date: The bill was chaptered on July 14, 2025. Unless the statute specifies otherwise, California laws without an urgency clause generally take effect January 1 following enactment (likely January 1, 2026); check the enacted statute text for any specific effective-date language.

Potential impacts / considerations

  • Administrative efficiency: reduces the need to locate and serve every individual beneficiary for certain trust-related notices and court actions.
  • Risk/oversight: places importance on the integrity of representatives and written consents; requires attention to conflicts of interest and protections for irrevocable trust beneficiaries.
  • Fiduciary protection: gives fiduciaries a safe harbor when relying on permitted representations, subject to misconduct exceptions.
  • Practitioners and fiduciaries should update notice procedures, consent forms, and conflict checks to align with the new statutory framework.

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

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