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DIVISION 9. TRUST LAW 15000-19530›PART 4. TRUST ADMINISTRATION 16000-16504›CHAPTER 2. Powers of Trustees 16200-16249›ARTICLE 2. Specific Powers of Trustees 16220-16249

§ 16222

California Probate Code · 2020-11 edition · updated 2026-10-04 · California

(a) Subject to subdivision (b), the trustee has the power to continue or participate in the operation of any business or other enterprise that is part of the trust property and may effect incorporation, dissolution, or other change in the form of the organization of the business or enterprise.

(b) Except as provided in subdivision (c), the trustee may continue the operation of a business or other enterprise only as authorized by the trust instrument or by the court. For the purpose of this subdivision, the lease of four or fewer residential units is not considered to be the operation of a business or other enterprise.

(c) The trustee may continue the operation of a business or other enterprise for a reasonable time pending a court hearing on the matter or pending a sale of the business or other enterprise.

(d) The limitation provided in subdivision (b) does not affect any power to continue or participate in the operation of a business or other enterprise that the trustee has under a trust created by an instrument executed before July 1, 1987.

(Enacted by Stats. 1990, Ch. 79.)

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California Probate Code

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