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Office of the Revisor of Statutes

SF 2384 Senate Long Description

Relating to trusts. enacting the "Uniform Trust Code" ARTICLE 1 GENERAL PROVISIONS AND DEFINITIONSSpecifying the scope of the provisions, providing for application to charitable or noncharitable express trusts and trusts created under statutes, judgments or decrees requiring administration as express trusts; defining certain terms; providing for knowledge of facts involving trusts and for governance of the duties and powers of trustees, relations among trustees and the rights and interests of beneficiaries, providing certain default and mandatory rules; common law of trusts and principles of equity to be supplementary; providing for the determination of the meaning and effect of the terms of a trust, for the principal place of administration, for the methods and waiver of notice or documents, for the treatment of certain others as qualified beneficiaries and for nonjudicial settlement agreements; providing for the application of certain rules of construction ARTICLE 2 JUDICIAL PROCEEDINGSSpecifying the role and jurisdiction of the court in the administration of trusts and providing for venue ARTICLE 3 REPRESENTATIONSpecifying the basic effect of representation; providing for representation by holders of general testamentary power of appointment, by fiduciaries and parents and by persons with substantially identical interest; authorizing appointment of representatives by the court under certain conditions ARTICLE 4 CREATION, VALIDITY, MODIFICATION AND TERMINATION OF TRUSTSpecifying certain methods and requirements for the creation of trusts; providing for the validity of trusts created in other jurisdictions; restricting the creation of trusts to lawful purposes, requiring terms of a trust to be for the benefit of beneficiaries; providing for the creation and enforcement of charitable trusts; voiding trusts induced by fraud, duress or undue influence; restricting the creation of oral trusts; authorizing and providing for the creation of trusts for the care of animals; providing for the creation of noncharitable trusts without an ascertainable beneficiary; providing for modification or termination of trusts and specifying certain proceedings for approval or disapproval, authorizing court application of the cy pres doctrine under certain conditions and reformation of the terms of a trust to correct certain mistakes or to achieve tax objectives; authorizing trustees to combine or divide trusts under certain conditions after notice to qualified beneficiaries ARTICLE 5 CREDITORS CLAIMS; SPENDTHRIFT AND DISCRETIONARY TRUSTSSpecifying the rights of creditors or assignees of beneficiaries; providing for the validity of spendthrift provisions, exceptions; providing for the effect of discretionary trusts, for creditors claims against settlors and for overdue distributions; trust property not to be subject to personal obligations of trustees ARTICLE 6 REVOCABLE TRUSTSSpecifying the capacity required to create, amend, revoke or add property to or to direct the actions of trustees of revocable trusts; providing for revocation or amendment of the trusts; specifying the powers of settlors; limiting actions contesting the validity of revocable trusts and providing for the distribution of trust property ARTICLE 7 OFFICE OF TRUSTEEProviding for the acceptance or declination of trusteeships; specifying certain trustee performance bond requirements; providing for certain actions of cotrustees; providing for vacancies in trusteeships and for the appointment of successors; providing for the resignation and removal of trustees, for the delivery of property by former trustees and for compensation of and reimbursement of expenses to trustees ARTICLE 8 DUTIES AND POWERS OF TRUSTEESpecifying the duty of trustees to administer the trusts, requiring and providing for loyalty; requiring impartial investment, management and distribution of property of trusts with more than one beneficiary; requiring prudent administration, restricting costs; requiring the use of special skills or expertise; authorizing and providing for trustee delegation of certain duties and powers; granting trustees certain powers of direction; requiring control and protection of trust property, specifying certain recordkeeping and identification requirements; providing for the enforcement and defense of claims and for the collection of trust property; specifying certain information and reporting duties of trustees; enumerating certain discretionary, general and specific powers of trustees; providing for the distribution of property upon termination of the trust ARTICLE 9 not used ARTICLE 10 LIABILITY OF TRUSTEES AND RIGHTS OF PERSONS DEALING WITH TRUSTEESpecifying certain remedies and authorized damages for breach of trust, prescribing trustee liability; providing for damages in the absence of breach under certain conditions; providing for the award attorney fees and costs; imposing a statute of limitations for beneficiary actions against trustees; providing certain liability limits or exemptions; terms of trusts relieving trustees of liability for breach of trust to be unenforceable; protecting persons assisting trustees in good faith; providing for the certification of trusts ARTICLE 11 MISCELLANEOUS PROVISIONSProviding for uniformity of application and construction of the provisions, for electronic records and signatures and for application to existing relationships ARTICLE 12 TECHNICAL PROVISIONS Repealing existing provisions regulating express trusts (ra)