Essential guidance for California residents managing trusts, serving as trustees, or planning their estates under the new 2026 laws
Source: Mondaq – How California Is Fine-Tuning Trust And Estate Administration
If you’re a California resident wondering “How do the new 2026 trust laws affect my family?” or “What should I do differently when managing my parents’ trust?”, you’re not alone. Two groundbreaking California laws—AB-565 and AB-1521—took effect in 2025-2026, fundamentally changing how trustees notify beneficiaries and how executors handle child support obligations.
For Sacramento families managing trusts or planning estates, these changes offer significant cost savings and clearer legal processes. Understanding them now protects your family’s financial future and ensures compliance with California’s updated requirements.
Who Should Read This Guide?
This article is essential for:
What Changed and Why It Matters to Your Family
The Problem California Families Faced Before 2026:
California has historically competed with states like Nevada, Wyoming, and Delaware for trust business. These states offered less burdensome administrative rules, lower taxes, and streamlined procedures.Many affluent California families moved assets out of state specifically to avoid California’s complexity.
AB-565 and AB-1521 represent California’s response—reducing administrative friction and making California trusts more competitive while protecting families.
AB-565: How “Virtual Representation” Can Save Your Family Thousands in Trust Administration Costs
What is virtual representation and how does it help California families?
Effective July 14, 2025, AB-565 introduced “virtual representation” into California trust law through Probate Code Section 15804.This allows one beneficiary to represent another similarly-situated beneficiary for legal notice purposes.
Real-World Cost Savings for Sacramento Families:
Before AB-565, trustees had to provide individual written notice to every single beneficiary for trust actions like modifications, accountings, or trustee changes.
Example: The Johnson Family Trust
A grandfather’s trust grew to 45 beneficiaries by the third generation, including 15 adults, 18 minor great-grandchildren, 8 unborn descendants, and 4 beneficiaries whose locations were unknown.
Cost before AB-565: $15,000-$25,000 just for notice procedures on a routine trustee accounting
Cost after AB-565: 60-70% reduction in notice expenses
For California families, this means more of your trust assets go to beneficiaries instead of administrative costs.
Who Can Represent Whom Under the New California Law?
California Probate Code Section 15804 now permits these representation relationships:
1. Parent-Child Representation
2. Conservator-Conservatee Representation
3. Guardian-Ward Representation
4. Power of Attorney Representation
5. Substantially Identical Interest Representation
Practical Application for Your Family:
Five siblings inherit equally from parents’ trust. When trustees need to modify trust terms, notice to one sibling can represent the other four if their interests are identical—reducing the notice requirement from 5 people to 1.
Special Benefit for Estate Planning: Powers of Appointment
AB-565 includes a provision allowing holders of powers of appointment to virtually represent potential appointees.
What this means for Sacramento families:
Powers of appointment allow trusted family members to decide who receives trust assets from a specified group. Before AB-565, trustees needed to notify every potential recipient—sometimes 30+ people.
After AB-565, notice to the power holder represents all potential appointees, making flexible estate planning tools more practical for California trusts.
When Should You Still Provide Full Notice? Understanding the Risks
Despite cost savings, experienced California trust attorneys proceed carefully in certain situations:
Full notice remains safest for:
Virtual representation works best for:
AB-1521: New Child Support Requirements Every California Executor Must Know
What does AB-1521 require from California executors?
Effective January 1, 2026, AB-1521 creates new obligations for personal representatives administering California estates.
The 90-Day Rule:
Within 90 days of receiving Letters Testamentary or Letters of Administration, executors must notify the California Director of Child Support Services if they know (or have reason to believe) the deceased had a child support obligation at death.
The child support agency then has four months to assert a claim against the estate.
Why California Created This Child Support Protection
Problems this law solves for California families:
Before AB-1521:
After AB-1521:
6-Step Compliance Guide for California Executors
Step 1: Investigate Immediately (within 30 days)
Review the deceased’s records for:
Step 2: Interview Family Members
Ask informed questions:
Step 3: Check Court Records
Search family law records for:
Step 4: Notify If Required (within 90 days)
Send written notice to:
California Department of Child Support Services
P.O. Box 419064
Rancho Cordova, CA 95741-9064