Louisiana Senate Bill SCR10

Louisiana 2020 2nd Special Session

• Introduced: 10/5/20
• Refer: 10/5/20
• Report Pass: 10/6/20
• Passed: 10/7/20
• Refer: 10/12/20

Caption

Requests that the Louisiana State Law Institute study certain matters pertaining to the Louisiana Trust Code.

Impact

If enacted, the findings of the Louisiana State Law Institute could lead to significant amendments in the Louisiana Trust Code. Potential changes may include mandating specific language in settlements or awards for minors or disabled individuals, and the authorization of funds to be held in various modes such as pooled trusts or blocked accounts. These adjustments aim to ensure better protection and management of assets designated for vulnerable individuals.

Summary

SCR10 is a Senate Concurrent Resolution aimed at urging the Louisiana State Law Institute to conduct a thorough study regarding the Louisiana Trust Code. The resolution highlights concerns surrounding the existing provisions in the trust law that aim to protect minors and disabled adults from potential exploitation. It specifically calls for an examination of whether current safeguards are adequate and suggests exploring necessary revisions to enhance legal protections.

Sentiment

The sentiment surrounding SCR10 appears to be generally supportive, as there is a shared concern among many legislators regarding the protection of minors and disabled individuals. The resolution reflects a proactive approach to addressing potential gaps in the law, indicating a legislative willingness to strengthen trust protections. However, specific details of potential contention could arise once recommendations are proposed, depending on stakeholders' views on the role of corporate versus individual trustees.

Contention

While the resolution itself does not propose direct changes to the law, the outcomes of the study mandated by SCR10 could elicit debate among stakeholders. There may be differing opinions regarding the inclusion of out-of-state corporate trustees operating under nonprofit statuses and how they can operate in Louisiana. Some may advocate for more inclusive practices to benefit residents, while others may express concerns about maintaining strict standards for fiduciary duties to safeguard against potential exploitation.