1999 Legislation
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SENATE BILL NO. 1082 – Fiduciary duty/trustee/assets selct

SENATE BILL NO. 1082

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Daily Data Tracking History



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

Bill Text


S1082


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

                                      IN 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 / Fiscal Impact


                       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