Alaska2026Passed Legislature
SB225
Changes to Trust Laws and Settlement Rules
Last scannedSep 22, 2026, 12:32 AM
In one sentence
This bill allows key parties in a trust to settle matters without court approval, sets time limits for claims against trustees, and updates rules for courts to change or end irrevocable trusts.
What it does
- Allows indispensable parties to sign binding agreements that resolve trust issues without needing court approval.
- Lists specific topics these private settlements can cover, such as investing assets, changing trustee powers, appointing trustees, or ending the trust.
- Sets a three-year time limit for beneficiaries to file claims against trustees after receiving an annual report and being told where records are available.
- Bars all potential claims if a beneficiary approves a settlement agreement that clearly lists those possible claims in a report.
- Updates rules so courts can modify or end irrevocable trusts if all beneficiaries agree and continuing the trust is not necessary to achieve its main purpose.
Who it affects
- Trustees who manage money or property for others
- Beneficiaries who receive benefits from a trust
- Settlers who create trusts
- Courts that handle trust disputes
Limits and unknowns
- The new rules for changing irrevocable trusts only apply to trusts created on or after the date this law takes effect.
- Private settlement agreements are not valid if they break a main purpose of the trust.
- This bill does not state an effective date in the provided text, though it says the act takes effect immediately.
Plain language
Terms to know
- Nonjudicial settlement agreement
- A written deal signed by indispensable parties to solve a trust issue without needing a judge's approval.
- Indispensable party
- An interested person whose consent is required for any decision about the trust to be valid if it were approved by a court.
- Irrevocable trust
- A type of trust that cannot normally be changed or ended by the creator once it starts, unless specific legal conditions are met.
Official record
Sources
Read the official summary
TRUSTS; TRUST PROCEEDINGS; TRUSTEES An Act relating to trusts; relating to trust proceedings; relating to nonjudicial settlement agreements in trust matters; relating to the powers of trustees; and providing for an effective date.
Official activity
Bill history
- (S) <Bill Hearing Canceled>Text
- (S) JUDICIARY at 01:30 PM BUTROVICH 205Text
- (S) REFERRED TO JUDICIARY2048
- (S) FN2: ZERO(AJS)2048
- (S) FN1: ZERO(CED)2048
- (S) NR: DUNBAR, GRAY-JACKSON, YUNDT2048
- (S) DP: BJORKMAN2048
- (S) L&C RPT CS 1DP 3NR NEW TITLE2048
- (S) Moved CSSB 225(L&C) Out of CommitteeText
- (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)Text
- (S) Heard & HeldText
- (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)Text
- (S) Minutes (SL&C)Min
- (S) Heard & HeldText
- (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)Text
- (S) Minutes (SL&C)Min
- (S) Heard & HeldText
- (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)Text
- (S) GOVERNOR'S TRANSMITTAL LETTER1520
- (S) FN1: ZERO(CED)1520