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2024 Regular Session
SENATE BILL NO. 80
BY SENATOR FOIL (On Recommendation of the Louisiana State Law Institute)
TRUSTS. Provides for trusts for minors and persons with disabilities. (8/1/24)
1 AN ACT
2 To amend and reenact Code of Civil Procedure Arts. 4269.1, 4521(A)(3), and 4566(D),
3 relative to trusts for minors and persons with disabilities; to provide for placement
4 of a minor's property in trust; to provide for placement of payments to minors in
5 trust; to provide for placement of an interdict's property in trust; to provide for the
6 use of special needs and pooled trusts under federal law; to provide for termination
7 of trusts; and to provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. Code of Civil Procedure Arts. 4269.1, 4521(A)(3), and 4566(D) are hereby
10 amended and reenacted to read as follows:
11 Art. 4269.1. Placement of minor's property in trust
12 At any time during his administration, a tutor may apply to the court for
13 authorization to place some or all of the minor's property in trust for administration,
14 management and investment in accordance with the Louisiana Trust Code or, for a
15 beneficiary who is disabled as defined in 42 U.S.C. 1382c(a)(3), in a trust
16 qualified under 42 U.S.C. 1396p(d)(4)(C) in accordance with the law of any
17 state. The trust instrument shall name the minor as sole beneficiary of the trust, shall
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 80
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1 name a trustee, shall impose maximum spendthrift restraints, and may allow the
2 trust to last for the lifetime of the beneficiary. Except for trusts qualified under
3 42 U.S.C. 1396p(d)(4)(A) or 1396p(d)(4)(C), the trust shall, however, be subject
4 to termination at the option of the beneficiary upon attaining the age of majority. or,
5 should he fail If the minor fails to attain majority, the trust shall be subject to
6 termination at the option of his heirs or legatees. The court may, upon application,
7 make such changes in the trust instrument as may be advisable. Upon creation of the
8 trust, the tutor shall be entitled to no further commissions with respect to the trust
9 property.
10 * * *
11 Art. 4521. Payments to minor
12 A. In approving any proposal by which a minor is to be paid funds as the
13 result of a judgment or settlement, the court may order:
14 * * *
15 (3) That the funds be placed in trust in accordance with the Louisiana Trust
16 Code to be administered by an individual or corporate trustee as determined by the
17 court or, for a beneficiary who is disabled as defined in 42 U.S.C. 1382c(a)(3), in
18 a trust qualified under 42 U.S.C. 1396p(d)(4)(C) in accordance with the law of
19 any state. The trust instrument shall name the minor as sole beneficiary of the
20 trust, shall name a trustee, shall impose maximum spendthrift restraints, and
21 may allow the trust to last for the lifetime of the beneficiary. Except for trusts
22 qualified under 42 U.S.C. 1396p(d)(4)(A) or 1396p(d)(4)(C), the trust shall,
23 however, be subject to termination at the option of the beneficiary upon
24 attaining the age of majority. If the minor fails to attain majority, the trust shall
25 be subject to termination at the option of his heirs or legatees. However, the The
26 court shall not order funds which that will be paid to an unemancipated minor who
27 is in the legal custody of the Department of Children and Family Services to be
28 placed in trust if the amount of the judgment or settlement is less than fifty thousand
29 dollars.
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1 * * *
2 Art. 4566. Management of affairs of the interdict
3 * * *
4 D.(1) A curator may place the property of the interdict in trust in accordance
5 with the provisions of Article 4269.1. The Except for trusts qualified under 42
6 U.S.C. 1396p(d)(4)(A) or 1396p(d)(4)(C), the trust shall be subject to termination
7 at the option of the interdict upon termination of the interdiction, or if. If the interdict
8 dies during the interdiction, the trust shall be subject to termination at the option
9 of his heirs or legatees.
10 (2) For the purpose of retaining government benefits and upon a showing by
11 clear and convincing evidence that the interdict is permanently disabled and will not
12 recover capacity, the trust shall be irrevocable during the life of the interdict and
13 shall terminate upon the death of the interdict.
14 * * *
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Hanna Gettys.
DIGEST
SB 80 Engrossed 2024 Regular Session Foil
Present law (C.C.P. Art. 4269.1) provides for the placement of a minor's property in trust in
accordance with the Louisiana Trust Code and for termination of the trust when the minor
reaches the age of majority.
Proposed law retains present law but permits the use of pooled trusts created pursuant to the
laws of other states. Proposed law also adds an exception to termination in cases involving
pooled and special needs trusts under federal law.
Present law (C.C.P. Art. 4521(A)(3)) provides that funds awarded to a minor in judgment
or settlement may be placed in trust in accordance with the Louisiana Trust Code.
Proposed law retains present law and additionally allows the funds to be placed in a pooled
trust pursuant to the laws of other states. Proposed law further provides for the required
contents of the trust instrument and provides for termination of the trust when the
beneficiary reaches the age of majority, with exceptions for pooled and special needs trusts
under federal law.
Present law (C.C.P. Art. 4566(D)(1)) provides for the placement of an interdict's property
in trust and for termination of the trust upon termination of the interdiction.
Proposed law retains present law but adds an exception to termination in cases involving
pooled and special needs trusts under federal law.
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words in boldface type and underscored are additions. SB NO. 80
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Present law (C.C.P. Art. 4566(D)(2)) requires the trust to be irrevocable for the life of the
interdict upon a showing that the interdict is permanently disabled and will not recover
capacity.
Proposed law deletes present law.
Effective August 1, 2024.
(Amends C.C.P. Arts. 4269.1, 4521(A)(3), and 4566(D))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.