CALIFORNIA PROBATE CODE
SECTION 18100-18104
18100. With respect to a third person dealing with a trustee or
assisting a trustee in the conduct of a transaction, if the third
person acts in good faith and for a valuable consideration and
without actual knowledge that the trustee is exceeding the trustee's
powers or improperly exercising them:
(a) The third person is not bound to inquire whether the trustee
has power to act or is properly exercising a power and may assume
without inquiry the existence of a trust power and its proper
exercise.
(b) The third person is fully protected in dealing with or
assisting the trustee just as if the trustee has and is properly
exercising the power the trustee purports to exercise.
18100.5. (a) The trustee may present a certification of trust to
any person in lieu of providing a copy of the trust instrument to
establish the existence or terms of the trust. A certification of
trust may be executed by the trustee voluntarily or at the request of
the person with whom the trustee is dealing.
(b) The certification of trust may confirm the following facts or
contain the following information:
(1) The existence of the trust and date of execution of the trust
instrument.
(2) The identity of the settlor or settlors and the currently
acting trustee or trustees of the trust.
(3) The powers of the trustee.
(4) The revocability or irrevocability of the trust and the
identity of any person holding any power to revoke the trust.
(5) When there are multiple trustees, the signature authority of
the trustees, indicating whether all or less than all of the
currently acting trustees are required to sign in order to exercise
various powers of the trustee.
(6) The trust identification number, whether a social security
number or an employer identification number.
(7) The manner in which title to trust assets should be taken.
(c) The certification shall contain a statement that the trust has
not been revoked, modified, or amended in any manner which would
cause the representations contained in the certification of trust to
be incorrect and shall contain a statement that it is being signed by
all of the currently acting trustees of the trust. The
certification shall be in the form of an acknowledged declaration
signed by all currently acting trustees of the trust.
(d) The certification of trust shall not be required to contain
the dispositive provisions of the trust which set forth the
distribution of the trust estate.
(e) A person may require that the trustee offering the
certification of trust provide copies of those excerpts from the
original trust documents and amendments thereto which designate the
trustee and confer upon the trustee the power to act in the pending
transaction. Nothing in this section is intended to require or imply
an obligation to provide the dispositive provisions of the trust or
the entire trust and amendments thereto.
(f) A person who acts in reliance upon a certification of trust
without actual knowledge that the representations contained therein
are incorrect is not liable to any person for so acting. A person
who does not have actual knowledge that the facts contained in the
certification of trust are incorrect may assume without inquiry the
existence of the facts contained in the certification of trust.
Actual knowledge shall not be inferred solely from the fact that a
copy of all or part of the trust instrument is held by the person
relying upon the trust certification. Any transaction, and any lien
created thereby, entered into by the trustee and a person acting in
reliance upon a certification of trust shall be enforceable against
the trust assets. However, if the person has actual knowledge that
the trustee is acting outside the scope of the trust, then the
transaction is not enforceable against the trust assets. Nothing
contained herein shall limit the rights of the beneficiaries of the
trust against the trustee.
(g) A person's failure to demand a certification of trust does not
affect the protection provided that person by Section 18100, and no
inference as to whether that person has acted in good faith may be
drawn from the failure to demand a certification of trust. Nothing
in this section is intended to create an implication that a person is
liable for acting in reliance upon a certification of trust under
circumstances where the requirements of this section are not
satisfied.
(h) Except when requested by a beneficiary or in the context of
litigation concerning a trust and subject to the provisions of
subdivision (e), any person making a demand for the trust documents
in addition to a certification of trust to prove facts set forth in
the certification of trust acceptable to the third party shall be
liable for damages, including attorney's fees, incurred as a result
of the refusal to accept the certification of trust in lieu of the
requested documents if the court determines that the person acted in
bad faith in requesting the trust documents.
18101. A third person who acts in good faith is not bound to ensure
the proper application of trust property paid or delivered to the
trustee.
18102. If a third person acting in good faith and for a valuable
consideration enters into a transaction with a former trustee without
knowledge that the person is no longer a trustee, the third person
is fully protected just as if the former trustee were still a
trustee.
18103. If an express trust relating to real property is not
contained or declared in the grant to the trustee, or in an
instrument signed by the trustee and recorded in the same office with
the grant to the trustee, the grant shall be deemed absolute in
favor of a person dealing with the trustee in good faith and for a
valuable consideration.
18104. (a) If an interest in or lien or encumbrance on real
property is conveyed, created, or affected by an instrument in favor
of a person in trust but no beneficiary is indicated in the
instrument, it is presumed that the person holds the interest, lien,
or encumbrance absolutely and free of the trust. This is a
presumption affecting the burden of proof. In an action or
proceeding involving the interest, lien, or encumbrance instituted
against the person, the person shall be deemed the only necessary
representative of the undisclosed beneficiary and of the original
grantor or settlor and anyone claiming under them. A judgment is
binding upon and conclusive against these persons as to all matters
finally adjudicated in the judgment.
(b) An instrument executed by the person holding an interest,
lien, or encumbrance described in subdivision (a), whether purporting
to be the act of that person in his or her own right or in the
capacity of a trustee, is presumed to affect the interest, lien, or
encumbrance according to the tenor of the instrument. This is a
presumption affecting the burden of proof. Upon the recording of the
instrument in the county where the land affected by the instrument
is located, the presumption is conclusive in favor of a person acting
in good faith and for valuable consideration.
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