No. HB 895
Filed under Legal.
Trustee Settlement and Discharge; 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-GENERATEDTrustees of irrevocable trusts can now settle accounts and be discharged without a court order. This applies when the trust ends or the trustee leaves, provided they follow specific disclosure rules.
The trustee must send a detailed disclosure document to beneficiaries and other affected parties. This document includes the distribution plan, asset schedules, and any pending debts or taxes.
Beneficiaries have 60 days to file a written objection. If no objection is received, the trustee is legally discharged from all liability for matters disclosed in the document.
This process is only available if the trustee is in substantial compliance with existing duties to inform and account. It does not replace other rights a trustee may have to settle accounts.
AIAllows a trustee to settle accounts and be discharged without a court order if the trust terminates or the trustee resigns or is removed six months after acceptance.
AIRequires the trustee to send a trust disclosure document, including a distribution plan and accounting, to qualified beneficiaries, cotrustees, and successors.
AIPrevents nonjudicial discharge if any beneficiary or affected person submits a written objection within 60 days of receiving the disclosure document.
AIDischarges the trustee from all liability and claims arising from matters adequately disclosed in the document, with the same effect as a final court order.
AIApplies the new nonjudicial settlement and discharge process to all trusts that are irrevocable or become irrevocable on or after the effective date.