Gov. Newsom Signs Bill to Allow Greater Virtual Representation of Individuals in Trusts

As part of his first major block of bill signings this year, Governor Gavin Newsom signed a bill into law to permit virtual representation of trust beneficiaries who are Minors, Incapacitated, Unborn, or Unknown (MIUUs) to better facilitate their needs.

Assembly Bill 565, authored by Assemblywoman Diane Dixon (R-Newport Beach), would specifically provide that notice given to a person authorized to represent and bind another person is sufficient to comply with notice requirements for actions regarding a trust. If a person consents for a person to represent and bind them, the bill will require that consent to be in writing and would make consent binding on the represented person unless they object to the representation before consent would have become effective.

In layman’s terms, AB 565 would enact a comprehensive statutory scheme governing virtual representation, which allows a competent adult to represent and bind trust beneficiaries or other individuals who lack the legal capacity to represent themselves, provided specified conditions are met, in line with what all states except for California, Louisiana and Oklahoma have enacted.

Assemblywoman Dixon authored the bill this year as the current Probate Code identifies which beneficiaries of a trust must be given notice, or give their consent, when certain actions are taken on a trust. Under this law, any beneficiary who is an MIUU cannot legally consent to these trust modifications. In order to approve the modification, a petition must be brought to court or a guardian ad litem’s (GALs) presence is required. The work-arounds of this law are time consuming and costly. As AB 565 provides clarity in this legal process and avoids placing an unnecessary burden on precious court resources, the Assemblywoman aimed to align California with the virtual representation laws of 47 other states.

“Importantly, the virtual representation statue established by AB 565 would create an alternative, without limiting the appointment of a GAL or otherwise seek court guidance as an option to represent the interests of MIUUs if desired by the parties,” noted Dixon’s office in a fact sheet. “In permitting virtual representation and aligning California with 47 other states, AB 565 authorizes a proven and well-established mechanism which provides clarity and a crucial update to the otherwise functional existing rules regarding the delivery of notice, and the modification or termination of a trust.”

The bill was swiftly favored by both parties after being introduced earlier this year, passing unanimously in both houses. This included a 74-0 vote in the Assembly in April, as well as a 37-0 vote last month. As the bill brought forth no major issues and didn’t incur any additional costs on the state, Governor Newsom signed off on the bill on Monday.

“It is long overdue that California joins the 47 other states in enacting a bill governing virtual representation,” said Assemblywoman Dixon. “This bill is a continuation of my goal to implement constructive and pragmatic policy improvements. I am grateful that AB 565 received unanimous, bipartisan support in both the Assembly and Senate, and has now been signed into law by the Governor.”

AB 565 was one of 30 bills signed by the Governor on Monday, kicking off the first of several mass bill signing days that are expected to stretch into early autumn.