Distributions and representation: who takes what when a beneficiary died first

Where a statute calls for it: §240

§240 provides California's division where a statute calls for it — intestate succession among issue among them (§6402): the property is divided into as many equal shares as there are living members of the nearest generation of issue then living and deceased members of that generation who leave issue then living, each living member taking one share and each deceased member's share being divided the same way among that member's issue.

The effect is per capita with representation: the division starts at the nearest generation with a living member, not necessarily at the children's generation.

Where the instrument says "per stirpes": §246

An instrument's words take a different rule. Under §246(b), unless the instrument expressly provides otherwise, an instrument executed on or after January 1, 1986 that calls for property to be distributed or taken "per stirpes," "by representation" or "by right of representation" is distributed in the manner of §246(a): equal shares at the children's generation of the designated ancestor — one for each living child and each deceased child who left issue then living — with a deceased child's share divided the same way.

So in California the same family tree can come out differently under a trust that says "by representation" and under intestacy. The instrument's own words, read with §246, decide; reading them for a particular trust is licensed-attorney work.

Discretion, and its limits

Many trusts leave distributions to the trustee's discretion. §16080 provides that, except as §16081 provides, a discretionary power is not left to the trustee's arbitrary discretion and is exercised reasonably; §16081 adds that even "absolute," "sole" or "uncontrolled" discretion is exercised in accordance with fiduciary principles, not in bad faith or in disregard of the trust's purposes, and limits a trustee-beneficiary's discretionary distributions to themselves unless the settlor clearly provided otherwise.

A required distribution is different: it is owed, and §16004.5 forbids conditioning it on the beneficiary's release of the trustee — though the trustee may keep a reserve for reasonably anticipated expenses and withhold a portion reasonably in dispute (§16004.5(b)).

Seeing the arithmetic

The Distribution Calculator shows the exact fractions each system produces for a family shape you model — the §240 column labeled as California's default where a statute calls for it, and the strict per stirpes column that an instrument's "per stirpes" or "by representation" takes under §246. It is arithmetic, not advice about which rule a particular trust uses.

Закони, дослівно

• No release as a condition of a required distribution

  Prob. Code §16004.5 ↗

  Зрозуміле просте пояснення; дослівний текст статуту ще не засвідчено в нашій бібліотеці. Дивіться офіційний статут за посиланням вище.

• Discretionary powers exercised reasonably

  Prob. Code §16080 ↗

  Зрозуміле просте пояснення; дослівний текст статуту ще не засвідчено в нашій бібліотеці. Дивіться офіційний статут за посиланням вище.

• Absolute, sole or uncontrolled discretion

  Prob. Code §16081 ↗

  Зрозуміле просте пояснення; дослівний текст статуту ще не засвідчено в нашій бібліотеці. Дивіться офіційний статут за посиланням вище.

• Division at the nearest generation with living members

  Prob. Code §240 ↗

  Зрозуміле просте пояснення; дослівний текст статуту ще не засвідчено в нашій бібліотеці. Дивіться офіційний статут за посиланням вище.

• Division in the manner of section 246 (per stirpes)

  Prob. Code §246 ↗

  Зрозуміле просте пояснення; дослівний текст статуту ще не засвідчено в нашій бібліотеці. Дивіться офіційний статут за посиланням вище.

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