Print Friendly SENATE BILL NO. 1070 – Purpose trusts, creation
SENATE BILL NO. 1070
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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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN 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
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
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.
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