New Legislative Proposals

The Trusts & Estates Section of the State Bar of California has introduced new legislative proposals. Some have a potentially far-reaching impact.

• Disposition of Remains - would add conservators of the person and estate to the list of persons who may control the disposition of remains.
• Directed Trusts - Would add a chapter to the Probate Code specifically authorizing the use of directed trusts, and make other conforming changes.
• Repeal of Rule Against Perpetuities - Just like it sounds.
• Elective Administration of Decedent's Estates - Would permit certain beneficiaries to choose between "elective" administration and formal administration of a decedent's estate.
• Clarification of Principal and Income Act - pertains to the characterization of amounts received from business entities.

More details on these proposals are posted on the State Bar's Sections website. I will be posting more analysis of the repeal of the rule against perpetuities and elective administration of estates. These are proposals are at this time only being submitted to the State Bar Board of Governors for possible introduction in the California legislature in 2011.

Thanks to Kaysi Holman of the Alameda County Bar Association for bringing these proposals to my attention.