Sponsor Statement for HB 101

Throughout the United States there is a strong demand for means of preserving assets for future generations. The vehicle for doing this is called a trust. Across the U.S. there is a lack of strong trust law. As a result, we are seeing literally billions of dollars being transferred off shore to foreign countries where laws provide for strong trusts that can preserve assets for future generations.

Alaska is in a unique position of having a relatively simple trust law that has not been amended numerous times and augmented by confusing case law. Alaska also has a unique advantage in that we do not have a personal income tax nor do we have a state sales tax.

Currently only one state, Missouri, has enacted legislation similar to what is proposed here. Unfortunately for Missouri its trust law suffers from defects and ambiguities that are subject to court challenge . Thus investors have been reluctant to utilize Missouri trusts in lieu of off shore trusts.

Alaska is in an enviable position of being able to meet the demands of a huge financial market. In the process Alaska has the opportunity to establish itself as a major financial market for the U.S. and even the world.

To attract this potential industry and its accompanying investments, certain changes need to be made to Alaska’s trust laws. These changes have the effect of strengthening Alaska’s trust laws while maintaining strict liability for fraudulent transfers.

This bill is a win - win situation and I urge your support.