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SENATE BILL NO. 1080

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Daily Data Tracking History

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S1080................................................by JUDICIARY AND RULES
TRUSTS - Amends existing law to clarify that a trust need not have been
established during the decedent's life, but can be established by the
devise itself.

02/02    Senate intro - 1st rdg - to printing
02/03    Rpt prt - to Jud
02/11    Rpt out - rec d/p - to 2nd rdg
02/12    2nd rdg - to 3rd rdg
02/18    3rd rdg - PASSED - 34-0-1
      AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
      Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
      Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
      Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
      Stennett, Thorne, Twiggs, Wheeler, Whitworth
      NAYS--None
      Absent and excused--Branch
    Floor Sponsor - Risch
    Title apvd - to House
02/19    House intro - 1st rdg - to Jud
03/18    Rpt out - rec d/p - to 2nd rdg
03/19    2nd rdg - to 3rd rdg
    Rules susp - PASSED - 56-0-14
      AYES -- Alltus, Barraclough, Bell, Bieter, Black, Boe, Bruneel,
      Callister, Chase, Clark, Crow, Cuddy, Deal, Denney, Field(13),
      Field(20), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23),
      Hansen(29), Hornbeck, Jaquet, Jones, Judd, Kellogg, Kendell, Kunz,
      Lake, Limbaugh, Loertscher, Marley, McKague, Meyer(Duncan),
      Montgomery, Moyle, Pischner, Pomeroy, Reynolds, Ringo, Robison, Sali,
      Schaefer, Sellman, Smylie, Stevenson, Stoicheff, Stone, Tippets,
      Watson, Wheeler, Wood, Zimmermann, Mr Speaker
      NAYS -- None
      Absent and excused -- Barrett, Campbell, Ellsworth, Henbest, Kempton,
      Linford, Mader, Mortensen, Ridinger, Smith, Taylor, Tilman, Trail,
      Williams
    Floor Sponsor - Jaquet
    Title apvd - to Senate
03/22    To enrol - rpt enrol - Pres signed - Sp signed
03/23    To Governor
03/24    Governor signed
         Session Law Chapter 304
         Effective: 07/01/99

Bill Text

S1080


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1080

                             BY JUDICIARY AND RULES COMMITTEE

 1                                        AN ACT
 2    RELATING TO TESTAMENTARY ADDITIONS TO TRUSTS; AMENDING SECTION 15-2-511, IDAHO
 3        CODE, TO CLARIFY THAT A TRUST NEED NOT HAVE BEEN  ESTABLISHED  DURING  THE
 4        DECEDENT'S LIFE, BUT CAN BE ESTABLISHED BY THE DEVISE ITSELF.

 5    Be It Enacted by the Legislature of the State of Idaho:

 6        SECTION  1.  That Section 15-2-511, Idaho Code, be, and the same is hereby
 7    amended to read as follows:

 8        15-2-511.  TESTAMENTARY ADDITIONS TO TRUSTS.  A  devise  or  bequest,
 9    the validity of which is determinable by the law of this state, may be made by
10    a will 
11         (1)  (a) A will may validly devise property  to the trustee of
12        a trust established or to be established :
13             (i)  During  the testator's lifetime  by the testator or by the
14             testator and some other person or by some other person ,  
15               (  including  a funded or unfunded life insurance trust,
16             although the trustor has reserved any or all rights of  ownership  of
17             the insurance contracts )  ; or
18             (ii) At  the testator's death by the testator's devise to the trustee
19              if the trust is identified in  the  testator's  will  and  its
20             terms  are  set  forth  in a written instrument ,   (
21             other than a will )  ,   executed  before
22             or  concurrently with   after  the execution of
23             the  testator's  will or in  the valid last will of a person who
24               another  individual's  will  if  that  other  individual
25                has   predeceased   the   testator  ,      (
26             regardless of the existence, size, or character of the   corpus
27             of  the  trust ) .
28         (b)   The devise is not invalid because the trust is amendable
29        or  revocable, or because the trust was amended after the execution of the
30        will or  after  the  testator's  death . 
31         of the testator. 
32         (2)   Unless the testator's will provides otherwise,  the
33     property  so  devised  to a trust described in  subsec-
34    tion   (1)  of this section  is not  deemed to be 
35    held under a testamentary trust of the testator but  it  becomes  a
36    part  of  the trust to which it is  given   devised  and
37     (2) shall   must  be administered and  disposed  of  in
38    accordance  with the provisions of the  governing  instrument 
39    or will  setting forth the terms of the trust, including any  amendments
40    thereto  made  before    or      the  death  of  the  testator
41    (regardless  of  whether  made before or after the execution of the testator's
42    will), and, if the testator's will so provides,  including  any amendments  to
43    the  trust  made  after  the  testator's  death . 


                                      2

 1     of the testator. 
 2         (3)  Unless the testator's will provides otherwise a    A
 3      revocation  or  termination  of  the trust before the  testator's
 4     death  of the testator  causes the devise to lapse.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE
                                 
                             RS 08777

There has been considerable debate in the estate planning and
probate bar over the validity of devises of property through a
will or other such instrument to a "dry trust" - that is, a
trust which was unfunded during the lifetime of the decedent.
Such dry trusts are commonly used to receive proceeds from, for
example, life insurance or other beneficiary designation types
of assets, or to receive property "poured over" from an estate
pursuant to the will of the deceased. Often, the grantor of the
trust (or the testator, which may not be the same person) may
not wish to have the trust currently funded, and therefor
subject to a number of administrative costs and requirements,
and therefore provides for funding at the grantor's or
testator's death. the bill establishes that such dry trusts are
valid and can be used to receive property at the death of the
grantor or testator. The bill also established a general rule
that the revocation of termination of the trust allows the
testator to provide otherwise in the will. the language of this
bill come from the Uniform Testamentary Additions to Trusts
Act, as revised.


                            FISCAL NOTE

This bill will not affect revenues or expenditures.




          CONTACT:                Robert L. Aldrich
                                  1209 North Eighth Street
                                  Boise, Idaho 83702-4297
                                  Telephone: 208-336-9880
                                  FAX: 208-336-9882
                                  e-mail: roberta@micron.net (name)
          

STATEMENT OF PURPOSE/ FISCAL NOTE    S1080