Chapter 3. Modification and Termination of Trusts - California Probate Code Section 15408
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California Laws > Probate Code > Chapter 3. Modification and Termination of Trusts - California Probate Code Section 15408
15408. (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 trust principal does
not exceed forty thousand dollars ($40,000) 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.
Last modified: February 16, 2015