What California AB 565 Means for Trust Administration in 2026
Effective January 1, 2026, California trust and estate law underwent a significant transformation with the implementation of Assembly Bill 565 (AB 565). This legislation officially codifies "virtual representation" into the California Probate Code (Section 15804). For families and trustees navigating trust administration, this change means faster resolutions, reduced courtroom involvement, and significantly lower legal costs.
What is Virtual Representation?
During trust administration or litigation, trustees must often provide notice to, or get consent from, all beneficiaries. However, some beneficiaries are legally unable to represent themselves. In estate law, these individuals fall into four categories, often referred to as MIUUs:
Minors (children under 18)
Incapacitated persons (adults lacking legal capacity)
Unborn persons (future beneficiaries not yet born)
Unknown individuals (beneficiaries whose identities or locations cannot be found)
Virtual representation allows a competent party—such as a parent, a fiduciary, or another beneficiary with a "substantially identical interest"—to step into the shoes of the MIUU beneficiary to receive notice, provide written consent, and legally bind them to trust decisions.
The Old Way vs. The New Way
Historically, resolving trust matters involving MIUUs was a cumbersome process. California courts typically required the appointment of a Guardian ad Litem (GAL) to represent the vulnerable party. This secondary legal process often stalled proceedings for months and cost estates tens of thousands of dollars in additional legal fees.
With AB 565, California finally aligns itself with 47 other states. By allowing a representative with aligned interests to act on behalf of a minor, unborn, or incapacitated beneficiary, the new law effectively eliminates the need for a GAL in many routine trust modifications and accountings.
Crucial Safeguards
While AB 565 makes trust administration highly efficient, it includes strict guardrails to protect vulnerable beneficiaries:
No Conflicts of Interest: A representative cannot act on behalf of an MIUU beneficiary if there is a conflict of interest regarding the specific matter at hand. This is the statute's most important safeguard.
Written Consent: When representation occurs, consent must be documented in writing.
Trustee Protection: Fiduciaries who rely on virtual representation in good faith are protected from liability, provided they do not act with gross negligence or intentional bad faith.
Why This Matters for Your Family
For fiduciaries and families, AB 565 is a powerful tool to minimize the financial and emotional toll of trust administration. Routine matters that once required expensive court oversight can now be handled privately and efficiently, preserving the estate's assets for the beneficiaries rather than spending them on administrative delays.
Navigating the New Laws with Hagopjanian Law
While virtual representation is a game-changer, it is not automatic and must be applied carefully to ensure full compliance with the updated Probate Code requirements. Whether you are a trustee looking to streamline administration or a beneficiary wanting to understand your rights, having experienced legal counsel is essential.
Contact Hagopjanian Law today to discuss how the 2026 trust and estate laws impact your specific situation and ensure your family's assets are properly protected.