Section 16332 - Authority of fiduciary(a) A fiduciary, without court approval, by complying with subdivisions (b) and (f), may do any of the following: (1) Convert an income trust to a unitrust if the fiduciary creates in a record a unitrust plan for the trust providing for both of the following:(A) That in administering the trust, the net income of the trust will be a unitrust amount rather than net income determined without regard to this article.(B) The percentage and method used to calculate the unitrust amount.(2) Change the percentage or method used to calculate a unitrust amount for a unitrust if the fiduciary implements in a record a unitrust plan or an amendment or replacement of a unitrust plan providing changes in the percentage or method used to calculate the unitrust amount.(3) Convert a unitrust to an income trust if the fiduciary implements in a record a determination that, in administering the trust, the net income of the trust will be net income determined without regard to this article rather than a unitrust amount.(b) A fiduciary may take an action under subdivision (a) if all of the following conditions are met:(1) The fiduciary determines that the action will assist the fiduciary to administer a trust impartially.(2) The fiduciary sends a notice in a record, in the manner required by Section 16333, describing and proposing to take the action.(3) No beneficiary objects to the proposed action in a writing delivered to the trustee within the period prescribed by subdivision (d) of Section 16502.(c) If a fiduciary receives, on or before the date stated in the notice under Section 16333, an objection in a record to a proposed action, the fiduciary or a beneficiary may request the court to have the proposed action taken as proposed, taken with modifications, or prevented. A person described in subdivision (a) of Section 16333 may oppose the proposed action in the proceeding under this subdivision, whether or not the person previously consented or objected.(d) If, after sending a notice under paragraph (2) of subdivision (b), a fiduciary decides not to take the action proposed in the notice, the fiduciary shall notify in a record each person described in subdivision (a) of Section 16333 of the decision not to take the action and the reasons for the decision.(e) If a beneficiary requests in a record that a fiduciary take an action described in subdivision (a) and the fiduciary declines to act or does not act within 90 days after receiving the request, the beneficiary may request the court to direct the fiduciary to take the action requested.(f) In deciding whether and how to take an action authorized by subdivision (a), or whether and how to respond to a request by a beneficiary under subdivision (e), a fiduciary shall consider all factors relevant to the trust and the beneficiaries, including relevant factors in subdivision (e) of Section 16325.(g) A fiduciary may release or delegate the power to convert an income trust to a unitrust under paragraph (1) of subdivision (a), change the percentage or method used to calculate a unitrust amount under paragraph (2) of subdivision (a), or convert a unitrust to an income trust under paragraph (3) of subdivision (a), for a reason described in subdivision (g) of Section 16327 and in the manner described in subdivision (h) of Section 16327.Added by Stats 2023 ch 28 (SB 522),s 2, eff. 1/1/2024.