SF0040

Official summary

2008 General Session Summary for SF0040 Bill No.: SF0040 Drafter: JHR LSO No.: 08LSO-0177 Effective Date: 7/1/2008 Enrolled Act No.: <enrnum> Chapter No.: <chptnum> Prime Sponsor: Senator Ross Catch Title: Uniform Trust Code-amendments. Subject: Amends the Uniform Trust Code to provide for discretionary trusts for the benefit of disabled persons. Summary/Major Elements: Currently, the Uniform Trust Code (UTC) does not clearly address discretionary trusts that are created for the benefit of disabled persons. This issue is particularly important in light of the requirement that the state be named as a remainder beneficiary under a trust created to allow a disabled person to become eligible for long-term care under the Medicaid program. This act: Amends the definition of "qualified beneficiary" to include the department of health as a qualified beneficiary under discretionary trusts; Provides that a discretionary trust created for the benefit of a disabled person has the protection of discretionary trusts, regardless of when the trust was created; Provides an exception for discretionary trusts created for the benefit of disabled persons from a creditor's claims, a qualified transfer affidavit requirement or the court's right to revoke such trusts; Specifies that the UTC applies to all trusts created under on or after July 1, 2003, and to judicial proceedings concerning trust created before that date that have elected to be governed by the UTC; Specifies that, unless all qualified beneficiaries of the trust and the settlor, if living, or the trustee, if the settlor is deceased, agree to the application, or a court determines that a nonconsenting qualified beneficiary will be adequately protected, or that the Uniform Trustees Powers Act and Uniform Prudent Investor Act apply and the trust does not state otherwise: 1) any rule of administration, construction, or presumption in the UTC shall not apply to trusts executed before July 12, 2003, 2) any review of actions taken before July 1, 2003 by a trustee or other person shall be reviewed under the law and standards applicable at the time . Note: Final action on this bill was not taken at the time this summary was prepared. Should changes be made to the bill upon final passage, an updated summary will be transmitted to all legislators.