Section 16326 - Judicial review of discretionary power(a) For purposes of this section, "fiduciary decision" means any of the following: (1) A fiduciary's allocation between income and principal or another determination regarding income and principal required or authorized by the terms of the trust or this chapter.(2) The fiduciary's exercise or nonexercise of a discretionary power regarding income and principal granted by the terms of the trust or this chapter, including the power to adjust under Section 16327, convert an income trust to a unitrust under paragraph (1) of subdivision (a) of Section 16332, change the percentage or method used to calculate a unitrust amount under paragraph (2) of subdivision (a) of Section 16332, or convert a unitrust to an income trust under paragraph (3) of subdivision (a) of Section 16332.(3) The fiduciary's implementation of a decision described in paragraph (1) or (2).(b) The court may not order a fiduciary to change a fiduciary decision unless the court determines that the fiduciary decision was an abuse of the fiduciary's discretion.(c) If the court determines that a fiduciary decision was an abuse of the fiduciary's discretion, the court may order a remedy authorized by law. To place the beneficiaries in the positions the beneficiaries would have occupied if there had not been an abuse of the fiduciary's discretion, the court may order any of the following:(1) The fiduciary to exercise or refrain from exercising the power to adjust under Section 16327.(2) The fiduciary to exercise or refrain from exercising the power to convert an income trust to a unitrust under paragraph (1) of subdivision (a) of Section 16332, change the percentage or method used to calculate a unitrust amount under paragraph (2) of subdivision (a) of Section 16332, or convert a unitrust to an income trust under paragraph (3) of subdivision (a) of Section 16332.(3) The fiduciary to distribute an amount to a beneficiary.(4) A beneficiary to return some or all of a distribution.(5) The fiduciary to withhold an amount from one or more future distributions to a beneficiary.(6) Upon a petition by a fiduciary for instruction, the court may determine whether a proposed fiduciary decision will result in an abuse of the fiduciary's discretion. If the petition describes the proposed decision, contains sufficient information to inform the beneficiary of the reasons for making the proposed decision and the facts on which the fiduciary relies, and explains how the beneficiary will be affected by the proposed decision, a beneficiary that opposes the proposed decision has the burden to establish that it will result in an abuse of the fiduciary's discretion.Added by Stats 2023 ch 28 (SB 522),s 2, eff. 1/1/2024.