Louisiana Senate Bill SB194

Louisiana 2016 Regular Session

• Introduced: 3/3/16
• Refer: 3/3/16
• Refer: 3/14/16

Caption

Provides for an enforceable mediation or arbitration provision in a trust. (8/1/16)

Impact

The enactment of SB 194 will have a significant impact on state laws concerning trusts by ensuring that mediation or arbitration clauses in trust documents are enforceable. This means that disputes which once might have been litigated can now be resolved through these alternative dispute resolutions, thereby alleviating court burdens and promoting quicker resolutions. Furthermore, the bill stipulates that for any disputes pertaining to the validity of the trust instrument itself, all involved parties must give written consent to mediation or arbitration, introducing a safeguard that upholds the rights of all interested persons.

Summary

Senate Bill 194, proposed by Senator Peacock, establishes enforceable mediation or arbitration provisions in trust agreements within the state of Louisiana. The bill aims to provide clarity and efficiency in resolving disputes that may arise between beneficiaries, trustees, or any combination of involved parties. By allowing these provisions, the bill seeks to streamline the conflict resolution process, keeping disputes related to trusts out of the crowded court system. This measure is intended to uphold the integrity of trusts while ensuring that all parties have a clear and agreed-upon mechanism for resolving issues that may emerge.

Sentiment

General sentiment around SB 194 appears to favor the facilitation of mediation and arbitration in trust disputes, reflecting a progressive approach to conflict management in estate planning. Proponents advocate for its potential to create a more effective and less adversarial environment for resolving disputes, which can often be emotionally charged and complicated. However, some concerns may arise regarding the requirement for collective consent for mediation or arbitration on the validity of the trust, which could hinder the resolution process if not managed carefully.

Contention

A notable point of contention surrounding SB 194 is the balance between making dispute resolution more efficient while ensuring that trust validity disputes are adequately addressed. The need for written consent from all parties involved in these specific disputes raises concerns about the feasibility of timely resolutions. Critics may argue that requiring consent could potentially delay mediation or arbitration processes, inadvertently leading to complications or heightened conflicts among beneficiaries. This debate underscores the importance of establishing mechanisms that protect individual rights while promoting overall efficiency in trust management.