DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 75 Engrossed 2020 Regular Session Robby Carter
Abstract: Removes maximum terms for trusts when a term is specified and authorizes trusts to
specify an indefinite term.
Present law provides that a beneficiary must be in being and ascertainable on the date of the creation
of the trust, except as otherwise provided by law. An unborn child is deemed a person in being and
ascertainable if he is born alive.
Proposed law retains present law and provides that a successive or substitute beneficiary of principal
or interest is not required to be in being on the date of the creation of the trust.
Present law provides limitations for the maximum term of a trust, when a term is stipulated, based
on certain criteria such as the timing of the death of the settlor and the beneficiary and whether or
not a party is a natural person.
Proposed law provides that if the trust instrument stipulates no term, the trust shall terminate based
on criteria prescribed by present law.
Proposed law provides that a trust shall terminate upon the term stipulated by the trust instrument,
and that the trust may be created for any term, including an indefinite term.
Present law provides that if the stipulated term of the trust exceeds the maximum allowable term
provided by law, the term of the trust shall be deemed the maximum allowable term as provided by
present law.
Proposed law repeals this provision of present law.
(Amends R.S. 9:1803, 1831, and 1832; Repeals R.S. 9:1833)