Probate Code § 16331

16331.

(a) Except as otherwise provided in subdivision (b), this article applies to both of the following:

(1) An income trust, unless the terms of the trust expressly prohibit use of this article by a specific reference to this article or an explicit expression of intent that net income not be calculated as a unitrust amount.

(2) An express unitrust, except to the extent the terms of the trust explicitly do any of the following:

(A) Prohibit use of this article by a specific reference to this article.

(B) Prohibit conversion to an income trust.

(C) Limit changes to the method of calculating the unitrust amount.

(b) This article does not apply to a trust described in Section 170(f)(2) (B), 642(c)(5) , 664(d), 2702(a)(3) (A)(ii) or (iii), or 2702(b) of the Internal Revenue Code of 1986 (26 U.S.C. Secs. 170(f)(2) (B), 642(c)(5) , 664(d), 2702(a)(3) (A)(ii) or (iii), or 2702(b)).

(c) An income trust to which this article applies under paragraph (1) of subdivision (a) may be converted to a unitrust under this article regardless of the terms of the trust concerning distributions. Conversion to a unitrust under this article does not affect other terms of the trust concerning distributions of income or principal.

(d) This article applies to an estate only to the extent a trust is a beneficiary of the estate. To the extent of the trust’s interest in the estate, the estate may be administered as a unitrust, the administration of the estate as a unitrust may be discontinued, or the percentage or method used to calculate the unitrust amount may be changed, in the same manner as for a trust under this article.

(e) This article does not create a duty to take or consider action under this article or to inform a beneficiary about the applicability of this article.

(f) A fiduciary that in good faith takes or fails to take an action under this article is not liable to a person affected by the action or inaction.