Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Trusts And Estates topic
No spam. Unsubscribe anytime.
Committee gives favorable reports to two trust‑related bills
Summary
The House committee gave favorable reports to HB206 and HB207. HB206 clarifies when trustees can reclassify trust principal and income; HB207 allows trustees to distribute tax payments to grantor‑trust beneficiaries. Both passed by voice vote and will proceed for further legislative consideration.
The committee voted to give favorable reports to two trust‑related bills during a brief session.
Representative Wadsworth presented HB206, describing it as an ALI model provision that clarifies how trustees may classify principal and income in trusts. "The bill gives [trustees] the authority to allocate the income to principal and principal to income," Wadsworth said, and noted the change only applies when the trust instrument does not expressly prohibit such allocations. He provided committee members with a booklet outlining the proposal.
Wadsworth also described HB207 as an ALI measure addressing tax treatment for grantor trusts. "This bill gives the trustee the authority to distribute the taxes that would be paid by that settlor because they're being classified as a grantor trust, [so] they could pay their taxes," he said, explaining the measure would allow trustees to provide funds to beneficiaries who must report income on their personal returns even when they have not received distributions.
Vice Chair Witt moved to give HB206 a favorable report; the motion was seconded and approved by voice vote. A subsequent motion to give HB207 a favorable report was also seconded and approved by voice vote. The committee recorded no roll‑call tallies in the hearing record; both items were reported favorably to the next stage of the legislative process.
The meeting adjourned after the votes.
