Directs the Louisiana State Law Institute to study and make recommendations relative to the Trust Code
The impact of HCR168 could be significant as it aims to enhance the existing Louisiana Trust Code, potentially inviting more individuals to establish their trusts within the state. It specifically allows for the exploration of new trust types such as asset protection trusts and silent trusts, which are becoming increasingly popular in other jurisdictions. These changes could help retain and attract trust business, promote local economic growth, and ensure that the trust laws better serve the needs of Louisiana citizens, thereby reducing the outflow of assets to other states.
House Concurrent Resolution 168 (HCR168) directs the Louisiana State Law Institute to study and make recommendations regarding the Louisiana Trust Code and current trust industry practices. The bill acknowledges that an increasing number of Louisiana citizens are becoming mobile and are using trust laws in other states that may provide better features and benefits. This has likely led to a loss of trust business within Louisiana, which is prompting the need for the state to assess its existing trust laws in order to remain competitive and address the complex needs of its citizens.
Overall, the sentiment surrounding HCR168 appears to be supportive, particularly among legislators who recognize the necessity for updating the Trust Code. Lawmakers understand that modernizing trust laws could prove beneficial for constituents, cultivating confidence in Louisiana’s trust offerings. Though specific opposition isn't highlighted, the discussions may raise concerns over how quickly the proposed changes can be effectively implemented and whether stakeholders are adequately consulted during the study process.
While HCR168 is designed to bring positive changes, there may be points of contention regarding what specific amendments will ultimately be recommended and whether certain interests have greater influence over the process. For example, the exploration of asset protection trusts may raise debates around how much protection is necessary and suitable for various types of citizens. There may also be concerns about ensuring that any new trust forms are equitable and accessible, avoiding the creation of loopholes that could benefit only the wealthy, thus emphasizing the need for balanced consideration in the proposed recommendations.