Legacy trusts

The Civil Law Committee heard SB 56 authorizing legacy trusts authored by Sens. Steele and Bray. The bill establishes procedures for creating a legacy trust that protects the transferor’s assets from creditors while allowing the transferor to retain an interest in the trust. The bill allows claims against the trust for fraudulent transfers, enforcement of certain child support orders and the division of property in a marriage dissolution or legal separation action. The bill also specifies that the rule against perpetuities does not apply to legacy trusts. A technical amendment was adopted by consent. The Indiana State Bar Association, Probate, Trust and Real Property Section testified at length in support of the bill. Extensive testimony in opposition to the bill was heard from the Indiana Banker’s Association, the Indiana Creditors Union League, and legal practitioners. Additional amendments were discussed. The bill was held for further review.

Read the bill at http://iga.in.gov/legislative/2015/bills/senate/56.