Bill No.: HB0065                  Drafter:  JHR

 

LSO No.:  05LSO-0215              Effective Date:  2/25/2005

 

Enrolled Act No.:  HEA0086

 

Chapter No.:       126

 

Prime Sponsor:     Representative Simpson

 

Catch Title:       Uniform Trust Code Amendments.

 

Subject:  Amends various provisions of the Uniform Trust Code.

 

Summary/Major Elements:

 

·         This bill:

·         Amends various provisions of the Uniform Trust Code, which was initially adopted in 2003;

·         Specifies the duties of a fiduciary, trust advisor and trust protector under directed trusts;

·         Authorizes a fiduciary to disclaim any interest in property that he would otherwise receive by gift, bequest, devise, inheritance, beneficiary designation, power of appointment or by right of survivorship;

·         Adds investment management or custody accounts with trust powers as specified to the definition of "security account";

·         Defines "ascertainable standard" to mean as provided in the Internal Revenue Code;

·         Defines "directed trust" to include a trust wherein authority is given to one or more persons to direct, consent to or disapprove a fiduciary's actual or proposed investment or noninvestment decision;

·         Prohibits a settlor from representing and binding a beneficiary with respect to termination or modification of a trust;

·         Authorizes a court to approve an order approving a modification or termination of a noncharitable irrevocable trust if the settlor and all beneficiaries consent;

·         Prevents a creditor from reaching the interest of a beneficiary who is also a trustee as specified;

·         Specifies that there is no presumption of a conflict of interest when a trustee makes an investment with an insurance agency or places securities through a securities broker with whom the trustee has specified relationships;

·         Authorizes a trustee to acquire or retain a life insurance contract upon the life of a settlor or settlor's spouse if the action is disclosed to the insured, unless otherwise so limited by the trust instrument as specified;

·        Provides that the prior Uniform Trustees Powers Act and the Uniform Prudent Investor Act provisions that have been incorporated into the Uniform Trust Code shall apply to trusts created before April 1, 2003, unless the trust instrument  states otherwise.