Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Trusts And Estates Administration topic
No spam. Unsubscribe anytime.
Committee advances bill to let trustees resign without court approval if notice given
Summary
House Bill 146 would add a non‑court pathway for trustee resignation when the trust document is silent; the subcommittee voted favorably and the bill passed the committee stage recorded in the session notes.
The Civil Law Subcommittee voted to advance House Bill 146, which authorizes a trustee to resign without prior court approval provided required notice is given to beneficiaries, the settlor and other fiduciaries when the trust instrument does not already set out a resignation procedure.
Miss Thomas of the State Bar explained the bill’s mechanics: "This applies just when a trust does not specify how a trustee can resign. Under current law, the only way to do it is through a court procedure. So we're adding an additional way for a trustee to be able to resign if the trust agreement does not contain that information," she said.
Members asked several questions about successor appointment and recording. Miss Thomas said vacancies are handled under the trust act: a successor can be named in the document, selected by unanimous agreement of qualified beneficiaries, or appointed by a court. She also said recording of changes in trustees typically occurs when real property is conveyed and is not automatically done simply because a trustee resigns.
A motion to report the bill favorably was moved and seconded; committee members indicated their positions by hand-raising. The chair recorded that the bill passed at the committee level during the session.
