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