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IN SB0265
Bill
AI Summary
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Establishes "legacy trusts" as irrevocable asset protection trusts effective July 1, 2019, allowing Indiana residents to shield assets from creditors while retaining certain interests like income distributions and power to veto distributions.
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Creates a 2-year statute of limitations for fraudulent transfer claims against legacy trusts, requiring creditors to prove fraud by clear and convincing evidence; child support obligations and certain divorce property divisions remain enforceable.
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Adopts the Uniform Directed Trust Act, allowing trust documents to appoint "trust directors" with powers over investment, management, or distribution decisions separate from the trustee, with directors held to fiduciary standards.
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Authorizes "designated representatives" to act on behalf of beneficiaries in trust matters, and allows trust terms to restrict or eliminate a beneficiary's right to information about their interest for specified periods (such as until reaching a certain age).
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Permits trustees to obtain nonjudicial settlement of accounts upon trust termination, trustee resignation/removal, or for interim periods, with 60-day objection windows that bar later claims if no objection is filed.
Legislative Description
Various trust matters. Defines "designated representative", "judicial proceeding", and "nonjudicial matter" for purposes of the trust code. Authorizes the establishment of legacy trusts. Prescribes the procedures for establishing a legacy trust and requirements for claims under a legacy trust. Provides that a court shall exercise jurisdiction over a legacy trust or a qualified disposition and adjudicate a case or controversy regarding the legacy trust, if the case or controversy is within the subject matter of the court. Adopts the uniform directed trust act, which allows for the terms of a trust to grant a person other than a trustee power
Last Action
Public Law 221
5/5/2019