CS for CS for SB 1554 - Trusts

• Redefines "interests of beneficiaries" in trusts to mean beneficial interests intended by the settlor, and removes requirement that trusts must be for beneficiaries' benefit, requiring only lawful purposes not contrary to public policy.

• Expands electronic notice provisions for trust documents by allowing posting to secure electronic accounts/websites with written authorization, including detailed requirements for separate notice, annual reminders, access maintenance, and tolling of limitations periods if sender terminates access.

• Authorizes trustees with invasion power to appoint trust principal to second trusts (including supplemental needs trusts for beneficiaries with disabilities) under specified conditions, while prohibiting distributions that reduce federal tax benefits, S corporation shareholder status, or beneficiary retirement distribution periods.

• Requires trustees exercising invasion power to provide written notice to all qualified beneficiaries, settlor (if applicable), other trustees, and removal/replacement powers at least 60 days before exercise, with copies of proposed instruments.

• Specifies that multiple trustees are entitled to reasonable compensation that may exceed compensation for a single trustee, and clarifies that beneficiary knowledge of missing trust accountings does not commence limitations periods for breach of trust claims.