SB 63 Summary

• Amends AS 34.40.110(b) to clarify that a settlor's expressed intention to protect trust assets from a beneficiary's potential future creditors is not evidence of intent to defraud creditors.

• Removes language that would have excluded discretionary distributions from the definition of "revoke or terminate" powers, maintaining restrictions on settlor control.

• Adds new subsection (n) to AS 34.40.110 protecting trust assets from creditor claims even when beneficiaries have discretionary distribution rights or when the settlor receives distributions for income tax payments under trust terms.

• Repeals and reenacts subsection (h) to clarify that transfer restrictions remain enforceable even if the settlor retains authority to appoint or remove trustees, trust protectors, or advisors.

• Maintains existing exceptions to creditor protection, including fraudulent transfer claims (requiring clear and convincing evidence), revocable trusts, and situations where the settlor is 30+ days in default on child support obligations.