Effective following approval by mayor and 30-day congressional review, Feb. 14, 2025.
On Jan. 8, DC LEG passed bill on trust structure, rules, procedures.
DC LEG passed Bill B25-0225, entitled Uniform directed trust amendment act of 2024.
Would provide rules to allow settlor to freely structure a directed trust while preserving fiduciary safeguards; default rules for trustee, trust directors information sharing.
Bill would also provide procedures for accepting appointment as a trust director.
Establishes distinction between power of direction, nonfiduciary power of appointment.
Bill Provisions
Amends DC LEG 19 to allow settlor to structure a directed trust and preserve fiduciary safeguards for beneficiaries, rules for data sharing among trustees and trust directors.
It also would provide procedures for accepting appointment as a trust director, and distinguish between a power of direction and a nonfiduciary power of appointment.
Amends definition for terms of the trust, and other definitions re trust and trustees.
New chapter 21 applies to trust with its principal place of administration in the District.
Does not apply to power of appointment, power of settlor, power of beneficiary/trust.
The terms of a trust may grant a power of direction to a trust director, under certain conditions, and trust director is subject to same rules as a trustee in a like position.
Lists duties/liabilities/limits of trust director and directed trustee, duty to provide data to trust director/trustee, but trustee does not have a duty to monitor, inform or advise.
Legislative History
On Mar. 16, 2023, bill introduced; on Dec. 17, 2024, final reading held and enrolled.
On Jan. 8, 2025, bill was delivered to Mayor, and response is due by Jan. 23, 2025.
Effectiveness
Bill takes effect following approval by the mayor (or in the event of veto by the mayor, action by the council to override the veto) and 30-day period of congressional review.
