No. CS/SB 786
Filed under Legal.
Trusts; Authorizing a trustee to obtain a settlement of his or her accounts and be discharged under certain circumstances; requiring a trustee seeking settlement and discharge to send a trust disclosure document to specified persons; providing that a trustee is discharged upon completion of distributions or transfers if no timely written objections are received and is discharged from all liability and claims arising out of any matter disclosed in the trust disclosure document, etc.
Plain English Summary
AI-GENERATEDA trustee who has been substantially compliant with disclosure duties can now settle accounts and be discharged without going to court, once 6 months have passed since taking office and the trust ends or the trustee leaves.
The trustee must send beneficiaries a disclosure document detailing planned distributions, debts, and any past-due accounting, along with a formal notice that claims are barred unless a written objection arrives within 60 days.
If nobody objects in time, the trustee is fully discharged from all liability over anything disclosed, with the same legal effect as if a judge had approved it, no matter how minor the objection would need to be.
This new process only applies to irrevocable trusts, and it adds to, rather than replaces, a trustee's existing options for settling accounts, including going to court.
AIA trustee who has substantially complied with disclosure duties may now obtain settlement of accounts and discharge without a court proceeding, once 6 months have passed since acceptance and the trust ends or the trustee leaves.
AIA trustee seeking discharge must send beneficiaries a document with the trustee's contact information, a full plan of distribution, any outstanding accounting, and a statement that the trust ended or the trustee left.
AIIf no timely written objection arrives, the trustee is discharged from all liability and claims over anything disclosed, including a failure-to-account claim, with the same effect as a final court order.
AIA beneficiary can stop this discharge process entirely by sending a written objection within 60 days, and that objection does not need to state any grounds or take any particular form.
AIThis new discharge process applies only to trusts that are irrevocable or become irrevocable on or after the effective date, leaving revocable trusts outside its reach.