Revocable trusts.

Under existing law, a trust that is revocable by the settlor may be revoked in whole or in part by either compliance with any method of revocation provided in the trust instrument or by a writing, other than a will, signed by the settlor and delivered to the trustee during the settlor's lifetime, as specified. This bill would also allow revocation of a trust to be made by a writing signed by any other person holding the power of revocation and delivered to the trustee during the lifetime of the settlor or the person holding the power of revocation. Under existing law, if a trust is created by more than one settlor, each settlor may revoke the trust as to the portion of the trust contributed by that settlor, unless the trust instrument provides otherwise and except with respect to certain community property interests. This bill would, notwithstanding these provisions, specify that a settlor may grant to another person, including his or her spouse, a power to revoke all or part of that portion of the trust contributed by that settlor, regardless of whether that portion was separate property or community property of that settlor, and regardless of whether that power to revoke is exercisable during the lifetime of that settlor or continues after the death of that settlor, or both. Existing law establishes procedures governing the disposal of property when a trust is terminated. Under existing law, if a trust is revoked by the settlor, then the trust property is disposed of according to the directions of the settlor. This bill would instead specify that if a trust is revoked by the settlor, the trust property would be disposed of first as directed by the settlor, secondly, as provided in the trust instrument, and to the extent there is no direction by the settlor or in the trust instrument, to the settlor, or his or her estate, as specified. The bill would also specify that if a trust is revoked by any person holding a power of revocation other than the settlor, the trust property would first be disposed of as provided in the trust instrument, secondly as directed by the person exercising the power of revocation, and to the extent there is no direction in the trust instrument or by the person exercising the power of revocation, to the person exercising the power of revocation, or his or her estate. The bill would also make related conforming and nonsubstantive changes.