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Cal. Probate Code § 16002 : California Probate Code — Trust Law — Duties Of Trustees — Trustee'S Duties In General — Duty to administer solely in interest of beneficiaries
(a) The trustee has a duty to administer the trust solely in the interest of the beneficiaries.
(b) It is not a violation of the duty provided in subdivision (a) for a trustee who administers two trusts to sell, exchange, or participate in the sale or exchange of trust property between the trusts, if both of the following requirements are met:
(1) The sale or exchange is fair and reasonable with respect to the beneficiaries of both trusts.
(2) The trustee gives to the beneficiaries of both trusts notice of all material facts related to the sale or exchange that the trustee knows or should know.
Ca. Prob. Code § 16002
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