On Jul. 9, PEN LEG passed bill on directed trusts and settlements.
PEN LEG passed bill SB 1231 to make technical changes and to provide for directed trusts, nonjudicial account settlements; amending PEN LEG 20 with new chapter 77.
Bill Provisions
The bill provides that terms of trust may grant a power of direction to trust directors.
A power of direction may extend to any one or more of a trustee’s powers.
The power of direction includes a power over the investment, management, or distribution of trust property or other matters of trust administration.
Nonjudicial account settlement provides for method of nonjudicial account settlement.
The legislation defines when this method of settling accounts may be used, to whom notice must be provided, what the contents of the notice should include.
Distributions from a terminating trust, as well as any fees and expenses, may be held by or on behalf of trustee until settlement of account is approved or deemed approved.
Legislative History
On Jun. 4, 2024, bill introduced in Senate; on Jun. 24, 2024, bill passed in Senate.
On Jun. 27, 2024, bill introduced in the House; on Jul. 3, 2024, bill passed in House.
On Jul. 9, 2024, bill was signed in both chambers and sent to PEN governor for review.
Effectiveness
Upon becoming law, act shall take effect in 90 days.
Jul. 2024 PEN LEG Governor Approval
On Jul. 15, 2024, PEN LEG reported bill approval by governor, became Act 64 of 2024.
Act re directed trusts, nonjudicial account settlements, will be effective Oct. 13, 2024.
Regulators
PEN LEG
Entity Types
Fiduciary
Reference
Act 64, 7/15/2024; Bill SB1231, 7/9/2024; Citation: PEN LEG 20;
