The Senate Civil Law Committee heard SB 56, authored by Sen. Steele and Sen. Bray, on authorizing the establishment of legacy trust and prescribing the procedures for establishing one. This bill 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. It also bars most claims against a legacy trust and permits claims against a legacy trust for certain fraudulent transfers, to enforce certain child support orders, and to enforce certain orders for the division of property with respect to a dissolution of marriage or a legal separation. The bill provides immunity to the trustees and advisers of legacy trusts and the professionals involved in establishing legacy trusts and that the rule against perpetuities does not apply to legacy trusts.
The bill was amended to change the statute of limitations to four years and add a 6 months’ notice of transfer. Another amendment allows for electronic messages and notice. The amended bill passed 4-3.
Read the bill at http://iga.in.gov/legislative/2015/bills/senate/56.