(JUNEAU) - The Alaska House of Representatives unanimously approved House Bill 212 by a vote of 39 to zero on Tuesday. Sponsored by House Judiciary Committee Chair Representative Lesil McGuire (R-Anchorage), HB 212 provides statutory authority to provisions commonly found in trust instruments. Alaska has not amended its trust statutes since 1998.

"Our lack of legal definition for many trust provisions not only places our trust companies in an uncompetitive position, but also places Alaska residents at a disadvantage when compared to the citizens of our competitor states," McGuire said. "This bill rectifies many of these shortcomings."

HB 212 provides a number of revisions to Alaska's trust statutes. It provides a trust settlor with the option to appoint a trust protector and trust advisor, which offers the settlor additional control over the creation and administration of the trust. HB 212 also allows a trustee to provide trust assets to a beneficiary without making an official distribution. The provision prevents creditors from making claims on property intended for the beneficiary, such as a homestead that a settlor desired to keep in the family. HB 212 also certifies some provisions that Alaska trust practitioners have accepted for years, such as requiring that trust assets can not be claimed by a beneficiary's creditor until such time that trust assets are actually distributed to a beneficiary, nor can there be a continuing order against the trustee with respect to future distributions that a trustee would choose to make. In addition, HB 212 provides clarity to Alaska's spendthrift statutes and adds requirements that ensure against fraudulent transfers of assets.

"House Bill 212 provides necessary improvements to Alaska trust law to provide Alaska residents with benefits comparable to those of citizens in other states," McGuire said. "These revisions can be found in state law throughout the country."

HB 212 moves to the Senate.

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