Prob. Code, § 16401 · Article 1. Liability for Breach of Trust
Prob. Code, § 16401
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) Except as provided in subdivision (b), the trustee is not liable to the beneficiary for the acts or omissions of an agent.
(b) Under any of the circumstances described in this subdivision, the trustee is liable to the beneficiary for an act or omission of an agent employed by the trustee in the administration of the trust that would be a breach of the trust if committed by the trustee:
(1) Where the trustee directs the act of the agent.
(2) Where the trustee delegates to the agent the authority to perform an act that the trustee is under a duty not to delegate.
(3) Where the trustee does not use reasonable prudence in the selection of the agent or the retention of the agent selected by the trustee.
(4) Where the trustee does not periodically review the agent’s overall performance and compliance with the terms of the delegation.
(5) Where the trustee conceals the act of the agent.
(6) Where the trustee neglects to take reasonable steps to compel the agent to redress the wrong in a case where the trustee knows of the agent’s acts or omissions.
(c) The liability of a trustee for acts or omissions of agents that occurred before July 1, 1987, is governed by prior law and not by this section.
Notes and commentary — not statutory text
History
Amended by Stats. 1995, Ch. 63, Sec. 9. Effective January 1, 1996.
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=16401.
- Text hash
- sha256 bea2835420be03d96654dd9a42aeee2e1a32b9f34c16ebc20b94feda9ee67a66
- 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, § 16401. 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.