§ 13208.5. — 13208.5. (Added by Stats. 2022, Ch. 29, Sec. 23.)

(a)
If the transferee’s action or inaction increased the value of property returned to the estate or decreased the estate’s obligations, the personal representative shall reimburse the transferee 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.
(b)
If the transferee’s action or inaction decreased the value of property returned to the estate or increased the estate’s obligations, the transferee 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 transferee.
(c)
The personal representative shall provide the transferee a written statement of any reimbursement or liability under this section, along with a statement of the reasons for the reimbursement or liability.
(d)
For the purposes of Section 11420, reimbursement of the transferee under subdivision (a) shall be deemed an expense of administration.
(e)
In the event that the transferee and the personal representative cannot agree on the reimbursement or liability due under this section, the transferee 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 transferee or the estate.

Legislative History

Added by Stats. 2022, Ch. 29, Sec. 23. (AB 1716) Effective January 1, 2023.