SB 759

This bill makes several changes to the administration of trusts, the power to

decant trusts, the creation and exercise of powers of appointment, the disclosure of

certain digital property, and the classification of digital property as individual

property for purposes of determining marital property. Important provisions of the

bill are summarized as follows:

Administration of trusts

The bill makes several technical changes to the administration and regulation

of trusts in the state, including the following:

1. The bill provides that notice given to any trustee when more than one person

is serving as trustee is considered to be given to all persons serving as trustee, except

that notice must be given to all corporations and attorneys that are serving as

trustee.

2. The bill expands the concept of representation in a trust proceeding. Under

the bill, a person holding a general power of appointment or a broad limited power

of appointment may represent and bind the interests of all persons whose interests

may be eliminated, regardless of whether there is a conflict of interest. A person

holding a nongeneral power of appointment may represent and bind the interests of

any person whose interest may be limited by the exercise of the power, provided there

is no conflict of interest. A presumptive remainder beneficiary may represent and

bind the interests of a contingent successor remainder beneficiary or a more remote

contingent successor beneficiary, regardless of whether the beneficiary lacks

capacity and provided there is no conflict of interest. If a presumptive remainder

beneficiary does not represent a more remote contingent successor remainder

beneficiary, a contingent successor remainder beneficiary may represent and bind a

more remote contingent successor remainder beneficiary. The bill also confirms that

a settlor can nominate in the trust instrument a designated representative to

represent and bind any beneficiary.

3. The bill allows for the creation of a trust without initially funding the trust.

To create such a trust, the bill requires a person to declare the intention to create a

trust with the intention that the trust will be funded by assets of the person who

created the trust or by another person with legal authority to fund the trust. Under

the bill, the person making the declaration is considered to have created the trust

regardless of whether the person funds the trust with the person's own assets.

4. The bill provides for the resolution of debts against a deceased settlor of a

trust that was revocable until the settlor's death. First, the bill provides that a

claimant must assert a claim for payment of a debt of a deceased settlor within any

applicable deadline established by law. A trustee of a trust that was revocable at the

settlor's death may shorten the time period and set a deadline for filing claims with

the trustee by publishing a legal notice or giving notice to a potential claimant. A

claim that was barred by a statute of limitations at the time of the deceased settlor's