Bill No.: HB0159                  Drafter:  MDO

LSO No.:  11LSO-0465              Effective Date:  7/1/2011

Enrolled Act No.:  HEA0045

Chapter No.:       126

Prime Sponsor:     Representative Brown

Catch Title:       Uniform Trust Code amendments.

Subject:  The Uniform Trust Code.

Summary/Major Elements:

● These amendments to the Uniform Trust Code provide for attachment of property in a trust by creditors or assignees of a holder of a power of appointment under certain specified circumstances;

● Provides that a creditor or assignee of a trust cannot compel a trustee to distribute any income or principal from the trust or attach the interest of the beneficiary of the trust even if the trustee has discretion to make distributions to third parties for the benefit of the beneficiary;

● Specifies that a married person who creates a trust for the benefit of their spouse shall not be treated as a settlor of a trust under § 2523(e) of the I.R.S. code, or for which an election was made under § 2523(f) of the I.R.S. code, as of and after the death of his or her spouse;

● A trust instrument may not be deemed revocable because of the settlor's receipt each year of income or principal from a grantor retained annuity trust or grantor retained unitrust that is allowed under § 2702 of the I.R.S. code.