Rep. Emily McAsey

Filed: 3/26/2012





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2    AMENDMENT NO. ______. Amend House Bill 4662 by replacing
3lines 17 through 26 of page 7 and lines 1 through 12 of page 8
4with the following:
5    "(e) Notice. An authorized trustee may exercise the power
6to distribute in favor of a second trust under subsections (c)
7and (d) without the consent of the settlor or the beneficiaries
8of the first trust and without court approval if:
9        (1) there are one or more legally competent current
10    beneficiaries and one or more legally competent
11    presumptive remainder beneficiaries and the authorized
12    trustee sends written notice of the trustee's decision,
13    specifying the manner in which the trustee intends to
14    exercise the power and the prospective effective date for
15    the distribution, to all of the legally competent current
16    beneficiaries and presumptive remainder beneficiaries,
17    determined as of the date the notice is sent and assuming



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1    non-exercise of all powers of appointment; and
2        (2) no beneficiary to whom notice was sent objects to
3    the distribution in writing delivered to the trustee within
4    60 days after the notice is sent ("notice period").
5    A trustee is not required to provide a copy of the notice
6to a beneficiary who is known to the trustee but who cannot be
7located by the trustee after reasonable diligence or who is not
8known to the trustee.
9    If a charity is a current beneficiary or presumptive
10remainder beneficiary of the trust, the notice shall also be
11given to the Attorney General's Charitable Trust Bureau."; and
12on page 9 by replacing lines 2 through 5 with the following:
13    "exercise of the trustee's powers. The trustee has the
14    burden of proving the proposed exercise of the power
15    furthers the purposes of the trust."; and
16on page 9, line 24, by replacing "do so" with "extend or
17lengthen its perpetuities period"; and
18on page 10 by replacing lines 25 and 26 with the following:
19"provision of applicable law, or a court order. In addition,
20distribution of trust principal to a second trust may be made
21by agreement between a trustee and all primary beneficiaries of



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1a first trust, acting either individually or by their
2respective representatives in accordance with Section 16.1 of
3this Act."; and
4on page 16, line 9, by replacing "Section" with "Section. If
5the settlor of a first trust is not also the settlor of a
6second trust, then the settlor of the first trust shall be
7considered the settlor of the second trust, but only with
8respect to the portion of second trust distributed from the
9first trust in accordance with this Section"; and
10on page 17, line 5, by replacing "The" with "Except for a
11distribution of trust principal from a first trust to a second
12trust made by agreement in accordance with Section 16.1 of this
13Act, the".