(JUNEAU) - The Alaska State Senate unanimously approved House Bill 212 by a vote of 20 to zero on Tuesday. Sponsored by House Judiciary Committee Chair Representative Lesil McGuire (R-Anchorage), HB 212 makes the first amendments to Alaska's trust statutes since 1998. Many provisions that are commonly found in trust agreements will now have statutory support.

"Alaska must continue to provide legal definitions for the trust provisions that we use everyday," McGuire said. "Failure to do so not only places our trust companies in an uncompetitive position, but also puts Alaska residents at a disadvantage when compared to citizens of other states."

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.

"I am please to see both bodies of the Legislature in support of these necessary updates to Alaska trust law," McGuire said. "Alaskans deserve no less trust protection than what other states provide their residents."

HB 212 moves to the Governor for approval.

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