HB 406 Summary

• Expands notice procedures under § 3534 to allow designated representatives to receive trust notices on behalf of beneficiaries and other interested parties.

• Creates new § 3536A permitting beneficiaries to release their beneficial interests in trusts (in whole or in part) subject to specific conditions, including written instrument requirements and restrictions on releasing conditions for eligibility or interests protected by spendthrift provisions.

• Amends § 3536(e) to clarify that beneficiaries of charitable remainder trusts can assign interests to charitable organizations and that spouses in QTIP trusts can assign interests to next succeeding beneficiaries, unless the trust expressly prohibits such transfers.

• Modifies § 3546 and § 3585 to standardize notice receipt procedures, providing that notice is presumed received 7 days after sending under § 3534, and establishes a one-year limitation period for claims after trustee reports and 120-day periods for claims against departing trustees.

• Adds provisions to § 3585 allowing beneficiaries to waive limitation periods and clarifying that the statute does not expand claim periods against deceased fiduciaries' estates or revocable trusts under other state laws.