Prob. Code, § 15408 · Chapter 3. Modification and Termination of Trusts
Prob. Code, § 15408
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) On petition by a trustee or beneficiary, if the court determines that the fair market value of the principal of a trust has become so low in relation to the cost of administration that continuation of the trust under its existing terms will defeat or substantially impair the accomplishment of its purposes, the court may, in its discretion and in a manner that conforms as nearly as possible to the intention of the settlor, order any of the following:
(1) Termination of the trust.
(2) Modification of the trust.
(3) Appointment of a new trustee.
(b) Notwithstanding subdivision (a), if the fair market value of the principal of a trust does not exceed one hundred thousand dollars ($100,000) in value, the trustee has the power to terminate the trust.
(c) The existence of a trust provision restraining transfer of the beneficiary’s interest does not prevent application of this section.
Notes and commentary — not statutory text
History
Amended by Stats. 2024, Ch. 76, Sec. 1. (SB 1127) Effective January 1, 2025.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PROB§ionNum=15408.
- Text hash
- sha256 c974e08a30aab759208d3dcd40319d0693fe6045b6fff8e88bcc7ae18f3beae5
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
Cited by 2 provisions
Provisions in this library whose text cites Prob. Code, § 15408. Each shows the citation as that text prints it.
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.