Probate, Trusts, And Fiduciaries - Digest of Bills

Digest of Bills - 2003

PROBATE, TRUSTS, AND FIDUCIARIES

S.B. 03-310 Uniform Principal and Income Act - definitions - total return trust - parameters guardianship of minor - authority of emergency guardian - Uniform TOD Security Registration Act - definitions. Modifies the "Uniform Principal and Income Act" by:

● Creating definitions for "qualified beneficiary" and "total return trust";

● Limiting a trustee's power to adjust between principal and income; and

● Specifying parameters for certain aspects of a total return trust, including conversion or reconversion or adjustment of the distribution percentage of a total return trust by a trustee or court, applicable conditions, administration of a total return trust, determination of matters by a trustee, allocations, court orders, restrictions, tax limitations, release of power, remedies, duty to inform, and application.

Extends the duration of the authority of an emergency guardian appointed by a court for a minor from 30 days to 60 days.

Modifies certain definitions in the "Uniform TOD Security Registration Act".

APPROVED by Governor May 22, 2003
EFFECTIVE May 22, 2003

H.B. 03-1312 Disposition of last remains - declaration instrument - interested parties. Authorizes a person to create a declaration instrument (instrument) that specifies any one or more of the following:

● What disposition is to be made of the person's last remains;

● Who may direct the disposition of the person's last remains;

● The ceremonial arrangements to be performed after the person's death;

● Who may direct the ceremonial arrangements after the person's death; or

● The rights, limitations, immunities, and other terms of third parties dealing with the instrument.

Authorizes a 3rd party to disregard a provision of an instrument if it is not reasonable. Provides that the most recent such instrument supersedes prior versions.

Protects from liability a 3rd party who relies on an instrument in good faith or who reasonably relies on an instrument to dispose of property.

Creates the following presumptions concerning an instrument:

● The instrument is valid; and

● The creator was competent.

Makes the directions of an instrument binding on other persons as if the declarant were alive and competent.

Authorizes a 3rd party who has reasonable cause to question the authenticity or validity of an instrument to investigate the situation or to require exhibition of the original instrument or a notarized copy of the original.

Sets the priority of persons authorized to control the disposition of a person's last remains in the following order:

● The decedent acting through an instrument;

● Either the appointed personal representative or special administrator of the decedent’s estate;

● The surviving spouse;

● A majority of the surviving adult children;

● A majority of the surviving parents or legal guardians;

● A majority of the surviving adult siblings;

● The public administrator responsible for the estate.

Requires a final judgment of the probate court if the majority of a class cannot agree on disposition.

Creates a suggested form for an instrument.

Authorizes a person to revoke his or her instrument in writing or by burning, tearing, canceling, or destroying the instrument.

Automatically revokes a delegation to the declarant's spouse to direct the disposition of the declarant's last remains upon a divorce, annulment, or separation. Allows a person who is delegated authority to direct the disposition to decline the delegation.

Creates a presumption that instruments are intended to be recognized to the fullest extent possible by other states. Specifies that instruments executed in other states that comply with this act may be relied upon by 3rd parties in this state.

APPROVED by Governor April 22, 2003
EFFECTIVE August 6, 2003
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see page vi of this digest.