2026 Fiduciary Legal Update

Major 2026 updates in fiduciary law for trusts include new Department of Labor (DOL) guidance for ERISA accounts and expanded state-level administrative requirements. Fiduciaries face heightened risks and must navigate new requirements.

• Department of Labor (DOL) Proposed Regulations: The DOL issued proposed rules regarding fiduciary duties of prudence when selecting designated investment alternatives. This provides a safe harbor for fiduciaries of participant-directed individual account plans (like 401(k)s) who wish to offer asset allocation funds that include alternative assets (such as real estate, private equity, or digital assets). [LINK]
• Estate Administration Changes: California now requires notification to the Director of Child Support Services if an unpaid support obligation is suspected.
  • See AB 1521. Notice requirements for estates where Letters are issued on or after January 1, 2026, the personal representative has an expanded duty to notify the Director of Child Support Services if the decedent may have owed unpaid support. [LINK]
  • See Probate Code §2020, as amended. [LINK]

Given these shifts, fiduciaries (including trustees, personal representatives, and administrators) are urged to ensure their investment selections are strictly documented.