Tubbs v. Berkowitz
The court held that, because the trust expressly gave the surviving spouse an unfettered general power of appointment, that power is a non-fiduciary authority not limited by the trustee-beneficiary's fiduciary duties, and therefore under California probate law a trustee who also holds such a power may appoint trust assets to himself without breaching his fiduciary obligations.
Date Filed: April 07, 2020
Case Name: Tubbs v. Berkowitz
Case Number: G056951
Court: California Court of Appeal, Fourth Appellate District, Division Three
(‘The court decides whether a successor trustee who also holds a general power of appointment is limited by fiduciary duties when exercising that power. It holds that the power of appointment is a non‑fiduciary authority; because the trust expressly grants the surviving spouse the unfettered right to appoint assets to himself, the trustee‑beneficiary may do so without breaching fiduciary duties. This ruling clarifies that, under California probate law, a general power of appointment can override a trustee’s fiduciary obligations, shaping how such powers are drafted and enforced in trusts.’, ‘fda862b7’)
This case summary was prepared for educational purposes. For the authoritative version, please refer to the full opinion or the official California Courts website.