Various trust matters

For amend and vote only, the Senate Judiciary Committee heard Sen. Head’s SB 265 on various trust matters.  The bill does the following:

  • defines “designated representative”, “judicial proceeding”, and “nonjudicial matter” for purposes of the trust code
  • provides that a protective provision in a legacy trust prevents a creditor of the settlor from satisfying a claim from the settlor’s interest in the trust estate when the settlor is also a beneficiary of the trust
  • authorizes the establishment of legacy trusts
  • prescribes the procedures for establishing a legacy trust
  • bars most claims against a legacy trust provides immunity to the trustees and advisers of legacy trusts and the professionals involved in establishing legacy trusts
  • provides that the rule against perpetuities does not apply to legacy trusts
  • adopts the uniform directed trust act, which allows for the terms of a trust to grant a person other than a trustee power over some aspect of the trust’s administration.
  • repeals a provision regarding duties and liabilities of a trustee under the control of a third person
  • allows for the use of quiet trusts
  • provides that an interested person may enter into a binding nonjudicial settlement agreement with respect to trust matter
  • provides for nonjudicial account settlements

The bill was amended by consent to limit the types of assets that can be included in a legacy trust and allow a trustee in a legacy trust to recover costs and fees incurred from litigation brought by a lender.  The amended bill passed 6-4

Read the bill at http://iga.in.gov/legislative/2019/bills/senate/265