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S1070................................................by JUDICIARY AND RULES TRUSTS - Adds to existing law to set forth provisions applicable to the creation and enforcement of purpose trusts. 01/31 Senate intro - 1st rdg - to printing 02/01 Rpt prt - to Jud 02/10 Rpt out - rec d/p - to 2nd rdg 02/11 2nd rdg - to 3rd rdg 02/14 3rd rdg - PASSED - 34-0-1 AYES -- Brandt, Broadsword, Bunderson, Burkett, Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Noble, Pearce, Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams NAYS -- None Absent and excused -- Andreason Floor Sponsor - Sweet Title apvd - to House 02/15 House intro - 1st rdg - to Jud 03/04 Rpt out - rec d/p - to 2nd rdg 03/07 2nd rdg - to 3rd rdg 03/11 3rd rdg - PASSED - 66-0-4 AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark, Collins, Denney, Edmunson, Ellsworth, Eskridge, Field(18), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Mr. Speaker NAYS -- None Absent and excused -- Crow, Deal, Field(23), Wood Floor Sponsor - Hart Title apvd - to Senate 03/14 To enrol 03/15 Rpt enrol - Pres signed 03/16 Sp signed 03/17 To Governor 03/21 Governor signed Session Law Chapter 99 Effective: 07/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005IN THE SENATE SENATE BILL NO. 1070 BY JUDICIARY AND RULES COMMITTEE 1 AN ACT 2 RELATING TO PURPOSE TRUSTS; AMENDING CHAPTER 7, TITLE 15, IDAHO CODE, BY THE 3 ADDITION OF A NEW PART 6, CHAPTER 7, TITLE 15, IDAHO CODE, TO SET FORTH 4 PROVISIONS APPLICABLE TO THE CREATION AND ENFORCEMENT OF PURPOSE TRUSTS. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Chapter 7, Title 15, Idaho Code, be, and the same is 7 hereby amended by the addition thereto of a NEW PART, to be known and desig- 8 nated as Part 6, Chapter 7, Title 15, Idaho Code, and to read as follows: 9 PART 6. 10 PURPOSE TRUSTS 11 15-7-601. PURPOSE TRUSTS. (1) A trust may be created for any purpose, 12 charitable or noncharitable, under the terms of a trust agreement or will. A 13 noncharitable trust so created is a purpose trust and shall exist to serve a 14 purpose. 15 (2) A purpose trust does not need a beneficiary. 16 (3) A purpose trust shall be enforceable on the terms set forth in the 17 trust agreement by the person named to enforce the trust; provided however, 18 that the failure to name a person to enforce the trust shall not void the 19 trust or otherwise cause it to be unenforceable. 20 (4) A person named to enforce a purpose trust may resign or be removed or 21 replaced in accordance with the trust. 22 (5) If the person named to enforce the trust resigns, or is removed, or 23 is unwilling or unable to act, and if no successor is named in accordance with 24 the trust, the trustee shall forthwith apply to the court having jurisdiction 25 of the purpose trust for directions or for a person to be appointed by the 26 court to enforce the trust. The court having jurisdiction of the purpose trust 27 shall be empowered to make an order appointing a person to enforce the trust 28 on such terms as it sees fit and to designate how successors will be named. 29 (6) During any period of time when no person is named or acting to 30 enforce a purpose trust, the court having jurisdiction of the purpose trust 31 shall have the right to exercise all powers necessary to enforce the trust in 32 order to serve the purpose for which it was created. 33 (7) Any interested person, as defined in section 15-1-201(24), Idaho 34 Code, may bring an action under law or equity to enforce a purpose trust. 35 (8) Charitable trusts are not governed by this section. 36 (9) A purpose trust created prior to July 1, 2005, shall be valid and 37 enforceable from the date of the trust's creation.
STATEMENT OF PURPOSE RS 14718C-1 Idaho Law currently does not appear to allow the creation of what are called "purpose trusts". Nevertheless, such trusts have been created in Idaho and are being administered by Idaho banks and other trustees. This bill clarifies that such trusts may be created and sets terms and conditions for their operation. Specifically, purpose trusts have no beneficiary, but are created to carry out a specific purpose, such as preservation of a building. These trusts expand the estate planning options for the public at large. The bill also eliminates any question as to whether existing purpose trusts currently being administered by Idaho trustees are valid. FISCAL IMPACT This bill will have no fiscal impact. CONTACT: Robert L. Aldridge Trust and Estate Professionals of Idaho, Inc. Telephone: Office: 336-9880 cell: 631-2481 STATEMENT OF PURPOSE/FISCAL NOTE S1070