Bill > A6304

Introduced Session

This bill authorizes the trustee of a trust, under certain circumstances, to terminate service without filing a formal accounting with the court or obtaining release agreements from beneficiaries. Currently, in order to terminate service, the trustee must file a request with the Superior Court and submit an accounting of the trust assets. In the alternative, the trustee may terminate service by obtaining a release from all trust beneficiaries, as long as the beneficiaries have reached the age of majority and are not incapacitated. In the view of the sponsor, these procedures may be time consuming, costly, and delay distribution of the trust assets. This bill would provide another alternative. It applies when a trust terminates in whole or in part; a trustee ceases to serve for any reason; or a trustee seeks discharge for an interim accounting period when the trustee will continue to serve as trustee. Under the bill, a trustee is required to provide notice to the trust beneficiaries and any other fiduciary. The notice sets out the proposed distribution of the trust assets; the disbursements to be made prior to distribution, including any legal fees and trustee fees; trust account statements showing liabilities, receipts and disbursements; a statement that the trustee seeks settlement of its account of the trust, and that clearly states that claims against a trustee will be forever barred if no objections are received within 60 days after the notice is sent; and names and contact information for the trustee and another person who may be contacted for additional information. The bill provides that a person may object to the settlement of a trustee's account by notifying the trustee in writing within 60 days after the notice was sent. If the person provided notice makes timely objections to the settlement of the trustee's account, the trustee or the person making the objections may submit the written objection to the court and commence a proceeding for its resolution or resolve the objections by nonjudicial settlement agreement pursuant to statute. Under the bill, if no timely objections are raised or if objections are raised and subsequently resolved, the settlement of the trustee's account will be deemed approved. If the trust is terminating or the trustee is ceasing to serve as trustee, any assets held in trust will, within a reasonable time, be distributed subject to payment of expenses. If the notice relates to an interim accounting period, the assets will continue to be administered in trust subject to payment of expenses. The bill provides that when settlement of a trustee's final account or interim account is deemed approved for a terminated trust or with respect to the duties of a trustee who ceased to serve, each person who was sent notice is barred from bringing a claim against the trustee or challenging the distribution of assets of the trust to the same extent and with the same preclusive effect as if the court had entered a final judgment in the matter allowing the trustee's final account.

AI Summary

Committee Categories

Ellen Park (D)*, 

Introduced, Referred to Assembly Judiciary Committee (on 01/02/2026)

Official Document