CS/CS/HB 481 - Trusts (2017)

• Authorizes authorized trustees with absolute power to invade principal to appoint all or part of trust principal to second trusts, with requirements that second trust beneficiaries be limited to first trust beneficiaries and second trust not reduce vested interests.

• Allows authorized trustees without absolute power to invade principal to appoint trust principal to second trusts if beneficial interests remain substantially similar and powers of appointment are preserved or omitted consistently with first trust.

• Permits authorized trustees to appoint trust principal to supplemental needs trusts for beneficiaries with disabilities without affecting other beneficiaries' substantially similar beneficial interests.

• Expands electronic document posting requirements by requiring written recipient authorization specifying document types, security procedures, annual reminder notices, and 4-year document accessibility with tolling provisions if sender terminates access before 4 years.

• Effective July 1, 2017, requires trustee notice to Attorney General instead of state attorney regarding charitable trusts and modifies various trust accounting, limitation period, and notice delivery procedures.