ASSEMBLY ACTION Initial and Date |SENATE ACTION Initial and Date
Adopted Lost | Adopted Lost
Concurred In Not
|Concurred In Not
Receded Not | Receded Not
Amend the bill as a whole by adding new sections designated sections 5.3 through 5.7, following sec. 5, to read as follows:
“Sec. 5.3. 1. As used in this section, “action” includes a course of action and a decision on whether or not to take action.
2. A trustee may provide a notice of proposed action regarding any matter governed by sections 2 to 44, inclusive, of this act.
3. If a trustee provides a notice of proposed action, the trustee shall mail the notice of proposed action to every adult beneficiary who, at the time the notice is provided, receives, or is entitled to receive, income under the trust or who would be entitled to receive a distribution of principal if the trust were terminated. A notice of proposed action need not be provided to a person who consents in writing to the proposed action. A consent to a proposed action may be executed before or after the proposed action is taken.
4. The notice of proposed action must state:
(a) That the notice is provided pursuant to this section;
(b) The name and mailing address of the trustee;
(c) The name and telephone number of a person with whom to communicate for additional information regarding the proposed action;
(d) A description of the proposed action and an explanation of the reason for taking the action;
(e) The time within which objection to the proposed action may be made, which must be not less than 30 days after the notice of proposed action is mailed; and
(f) The date on or after which the proposed action is to be taken or is to be effective.
5. A beneficiary may object to the proposed action by mailing a written objection to the trustee at the address and within the time stated in the notice.
6. If no beneficiary entitled to receive notice of a proposed action objects to the proposed action and the other requirements of this section are met, the trustee is not liable to any present or future beneficiary with respect to that proposed action.
7. If the trustee received a written objection to the proposed action within the period specified in the notice, the trustee or a beneficiary may petition the court for an order to take the action as proposed, take the action with modification or deny the proposed action. A beneficiary who failed to object to the proposed action is not estopped from opposing the proposed action. The burden is on a beneficiary to prove that the proposed action should not be taken or should be modified.
8. If the trustee decides not to take a proposed action for which notice has been provided, the trustee shall notify the beneficiaries of his decision not to take the proposed action and the reasons for his decision. The trustee is not liable to any present or future beneficiary with respect to the decision not to take the proposed action. A beneficiary may petition the court for an order to take the action as proposed. The burden is on the beneficiary to prove that the proposed action should be taken.
9. If the proposed action for which notice has been proved is an adjustment to principal and income pursuant to section 18 of this act, the sole remedy a court may order, pursuant to subsections 7 and 8, is to make the adjustment, to make the adjustment with a modification or to order the adjustment not to be made.
Sec. 5.5. 1. The provisions of sections 2 to 44, inclusive, of this act do not impose or create a duty of a trustee to make an adjustment between principal and income pursuant to the provisions of section 18 of this act.
2. A trustee shall not be liable for:
(a) Not considering whether to make such an adjustment; or
(b) Deciding not to make such an adjustment.
Sec. 5.7. Except as specifically provided in a trust instrument, a will or sections 2 to 44, inclusive, the provisions of sections 2 to 44, inclusive, apply to any trust or estate of a decedent existing on or after October 1, 2003.”.
Amend sec. 18, page 7, by deleting lines 21 and 22.