New California Laws 2026
AB 565: Comprehensive virtual representation for trust matters
By James A. Bush and Michael S. Quintiliani O n Jan. 1, 2026, Assembly Bill 565 goes into ef- fect, amending Probate Code section 15804. The bill enacts a comprehensive statutory framework for virtual representation—a mechanism used in nearly every state except Louisiana and Okla- homa. Virtual representation will reshape how notice and consent requirements are met in trust matters. Under numerous Probate Code sections, notice must be provided to “all beneficiaries,” “each bene- ficiary” or “each heir” of a deceased settlor. These categories often include minors or incapacitated, unborn or unknown individuals (MIUUs). Histori- cally, California law provided no reliable method for giving effective notice to MIUUs other than through appointment of a guardian ad litem (GAL) under Probate Code section 15405. And obtaining the ap- pointment of GALs and joining them into a matter has often been costly and burdensome. AB 565 addresses this by allowing competent adults to represent and bind certain beneficiaries when all of three conditions are met: (1) The rep- resentative either owes a fiduciary duty to the rep- resented person or holds a substantially identical interest in the matter; (2) no conflict of interest ex- ists; and (3) the representative is not the settlor of an irrevocable trust who is seeking to bind a benefi- ciary regarding termination or modification of that trust. When these requirements are satisfied, notice to the representative is legally equivalent to notice to the beneficiary, and the representative’s consent binds the represented person. The statute also per- mits a person to authorize another person to repre- sent them, provided the consent is written and not revoked before becoming effective and conditions (2) and (3) above are met. The statute identifies permissible representatives, including parents for their minor children, conserva- tors and guardians of the estate, agents under a pow- er of attorney, trustees for beneficiaries of a trust and personal representatives for persons interested in a probate estate. AB 565 also permits persons holding substantially identical interests—often beneficiaries in the same class—to represent MIUUs. Additional- ly, the amended statute allows the holder of a lifetime or testamentary power of appointment to represent
and bind permissible appointees and takers in de- fault. AB 565 does not eliminate the court’s authority to appoint a GAL. Instead, it offers a flexible alternative to solve knotty notice issues. Fiduciaries who act in reliance on virtual representation are protected from liability absent intentional misconduct, gross negli- gence, bad faith or reckless indifference, and a court action taken regarding a person represented pursu- ant to this statute is conclusive. AB 565’s impact will likely be significant. Trust litigation often stalls because of notice obstacles. Virtual representation provides a statutory pathway to satisfy notice requirements without unnecessary hearings, reducing litigation costs and conserving judicial resources. Although no doubt there will be litigation over the application of the amended statute, including as to whether interests are “substantially identical” or whether conflicts of interest exist, the amended statute represents a modernization of California trust law and may streamline proceedings that once required additional court involvement. James A. Bush is a partner, and Michael S. Quintiliani is an associate at Keystone Law Group, P.C.
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