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S1082................................................by JUDICIARY AND RULES
FIDUCIARY DUTIES - TRUSTEE - Adds to existing law to establish a fiduciary
duty for both personal representatives in estates and for trustees in
trusts to select assets which are fairly representative of appreciation and
depreciation whenever an in-kind distribution is made in satisfaction of
either a pecuniary devise in an estate or a transfer in a trust.
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 - 58-0-12
AYES -- Alltus, Barraclough, Bell, Bieter, Black, Boe, Callister,
Campbell, Clark, Crow, Cuddy, Denney, Ellsworth, Field(13),
Field(20), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23),
Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Kellogg, Kempton,
Kendell, Kunz, Lake, Limbaugh, Loertscher, Mader, Marley, McKague,
Meyer(Duncan), Montgomery, Moyle, Pischner, Pomeroy, Reynolds,
Ridinger, Ringo, Sali, Schaefer, Sellman, Smylie, Stevenson,
Stoicheff, Stone, Taylor, Tippets, Watson, Wheeler, Wood, Zimmermann,
Mr Speaker
NAYS -- None
Absent and excused -- Barrett, Bruneel, Chase, Deal, Judd, Linford,
Mortensen, Robison, Smith, Tilman, Trail, Williams
Floor Sponsor - Hammond
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 306
Effective: 07/01/99
S1082|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1082 BY JUDICIARY AND RULES COMMITTEE 1 AN ACT 2 RELATING TO SATISFACTION OF PECUNIARY DEVISES OR TRANSFERS BY DISTRIBUTION IN 3 KIND; AMENDING PART 1, CHAPTER 1, TITLE 15, IDAHO CODE, BY THE ADDITION OF 4 A NEW SECTION 15-1-109, IDAHO CODE, TO PROVIDE PROCEDURES FOR SATISFACTION 5 OF PECUNIARY DEVISES OR TRANSFERS BY DISTRIBUTION IN KIND AND TO PROVIDE 6 FOR A STATEMENT OF THE FIDUCIARY PRINCIPLES APPLICABLE TO FIDUCIARIES. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Part 1, Chapter 1, Title 15, Idaho Code, be, and the same 9 is hereby amended by the addition thereto of a NEW SECTION , to be 10 known and designated as Section 15-1-109, Idaho Code, and to read as follows: 11 15-1-109. SATISFACTION OF PECUNIARY DEVISES OR TRANSFERS BY DISTRIBUTION 12 IN KIND. (1) Whenever a personal representative or a trustee satisfies a pecu- 13 niary devise or transfer in trust by a distribution in kind with assets at 14 their value for federal estate tax purposes, such fiduciary, in order to 15 implement such a devise or transfer in trust, must, unless the governing 16 instrument provides otherwise, distribute assets, including cash, fairly rep- 17 resentative of appreciation or depreciation in all of the property so avail- 18 able for distribution in satisfaction of such pecuniary devise or transfer. 19 (b) Subsection (1) of this section is not intended to imply that the 20 present law of this state, relating to selection of assets by fiduciaries in 21 the circumstances herein described, has been otherwise than as set forth 22 herein, but is a statement of the fiduciary principles applicable to such 23 fiduciaries.
STATEMENT OF PURPOSE
RS 08785
This bill establishes a fiduciary duty (for both personal
representatives in estates and for trustees in trust) to
select assets which "fairly representative of appreciation or
depreciation" whenever an "in-kind" distribution is made in
satisfaction of either a pecuniary devise in an estate or a
transfer in a trust. this bill is, in part, a response to
Rev.Proc. 64-19, which requires "fairly representative" types
of language to qualify for a marital deduction which is
calculated as of the date of death. However, this bill is also
broad enough to cure an inadvertent omission o language which
is required by Rev.Proc. 64-19 in other circumstances. for
example, in satisfying a pecuniary devise at estate tax values
to which the Generation Skipping Tax exemption to be
allocated, the fiduciary must also distribute assets fairly
representative of the appreciation and depreciation of all
property available for the distribution; otherwise, it is not
certain a zero inclusion ratio can be obtained as to the
pecuniary devise.
FISCAL NOTE
This bill should have no effect on 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
STATEMENT OF PURPOSE/ FISCAL NOTE S1082