House Passes Finance/Interest Holdings Update Legislation

(Juneau) - The Alaska House of Representatives today unanimously passed HB 197, a bill that strengthens and updates the state's trust administration laws. Sponsored by the House Judiciary Committee, the bill carries 23 changes to statutes to keep the state competitive with other states' investment laws, while also expanding the role and scope of trustees' abilities.

Our state is already being highlighted as a leader in estate planning reform and updating, and by making the changes in the bill for trust administration, we can continue to be a place where investors will look to put their money.
~ Rep. Jay Ramras

"We have to keep an eye towards the changing investment markets in order to retain and induce more of those dollars flowing into the state," House Judiciary Chairman Jay Ramras (R-Fairbanks) said. "HB 197 will bring the state in line with other states and allow for greater discretion and maneuverability within trusts. Our state is already being highlighted as a leader in estate planning reform and updating, and by making the changes in the bill for trust administration, we can continue to be a place where investors will look to put their money."

The five major goals the bill provides are:

• That shares in a professional corporation may be held by the trustees of the professional's revocable trust.
• Expands coverage in statute that allows an Alaskan trustee of a trust to transfer assets to a similar trust administered in-state.
• Allows the Alaskan trustee of a charitable trust to change the percentage of the value of the trust that will be considered income whenever the trustee determines that the new percentage is necessary and prudent.
• Clarifies that a settlor's express intention to protect trust assets from beneficiary's potential future creditors is not evidence of intent to defraud.
• States needed provisions relating to trustees: compensation, accepting or declining trusteeship, co-trustees, vacancy, resignation, removal, delivery of property by former trustee, reimbursement of expenses, and certification of trust.

HB 197 has been referred to the Senate for its consideration.