§ 5678
390 words·~2 min read·
/ca/probate-code/5678A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)If proceedings for the administration of the transferor’s estate are commenced, a beneficiary who receives property from the transferor under a revocable transfer on death deed may voluntarily return that property to the transferor’s estate for administration.
(b)Property returned to the transferor’s estate under this section shall be treated as if it had been specifically devised to the beneficiary by the transferor.
(c)If the beneficiary’s action or inaction increased the value of property returned to the estate or decreased the estate’s obligations, the estate shall reimburse the beneficiary by the same amount. Actions or inaction that increase the value of returned property or decrease the estate’s obligations include, but are not necessarily limited to, the following actions:
(1)A payment toward an unsecured debt of the decedent.
(2)A payment toward a debt secured against the returned property.
(3)A significant improvement of the returned property that increased the fair market value of the property.
(d)If the beneficiary’s action or inaction decreased the value of property returned to the estate or increased the estate’s obligations, the beneficiary is personally liable to the estate for that amount. Actions or inaction that decrease the value of the returned property or increase the estate’s obligations include, but are not necessarily limited to, the following actions or inaction:
(1)An action or inaction that resulted in a lien or encumbrance being recorded against the property.
(2)The receipt of income from the property, if that income would have accrued to the estate had the property not been transferred to the beneficiary.
(e)The personal representative shall provide the beneficiary a written statement of any reimbursement or liability under this section, along with a statement of the reasons for the reimbursement or liability. For the purposes of Section 11420, any reimbursement under this section shall be deemed an expense of administration.
(f)In the event that the beneficiary and the personal representative cannot agree on the reimbursement or liability due under this section, the beneficiary or personal representative may petition the court for an order determining the amount of the reimbursement or liability. In making a decision under this subdivision, the court should consider the surrounding circumstances, including whether the parties acted in good faith and whether a particular result would impose an unfair burden on the beneficiary or the estate.