Louisiana House Bill HB172

Louisiana 2022 Regular Session

• Introduced: 2/24/22
• Refer: 2/24/22
• Refer: 3/14/22
• Report Pass: 4/5/22
• Engrossed: 4/11/22
• Refer: 4/12/22
• Report Pass: 5/3/22
• Enrolled: 5/16/22
• Chaptered: 5/17/22
• Passed: 5/17/22

Caption

Provides relative to revocable trusts

Impact

The amendment to R.S. 9:2061 enhances the structure of revocable trusts by emphasizing the control of the settlor over the trust affairs while the trust is operational. It introduces a clear framework that spells out the responsibilities of trustees, ensuring that their actions are predominantly focused on serving the interests of the settlor. Such a clarification could lead to greater confidence among individuals choosing to establish revocable trusts, ultimately making this estate planning tool more attractive.

Summary

House Bill 172 seeks to clarify the duties of trustees concerning revocable trusts. Primarily, the bill stipulates that the duties owed by the trustee are exclusively to the settlor while the trust remains revocable. This change aims to align Louisiana law with the practices of other states, ensuring that trustee responsibilities are universally understood to be primarily directed to the settlor during their lifetime. This is particularly significant for individuals who utilize revocable trusts as part of their estate planning.

Sentiment

The sentiment surrounding HB 172 appears to be positive, especially among legal professionals and estate planners. Supporters of the bill, including the Louisiana State Law Institute which recommended its passage, view it as a necessary clarification that modernizes the trust laws of the state. Predominantly, there are no major opposing sentiments noted in the discussions or voting history, indicating a level of consensus on the issue.

Contention

While HB 172 received unanimous support in the Senate, the discussions did highlight a critical point of contention regarding the perception of the proposed amendments. Some may argue that increasing clarity in trustee duties could inadvertently lead to less protection for beneficiaries, who might have concerns about the extent of the settlor's control over the trust assets. Nonetheless, the prevailing opinion seems to favor the enhanced clarity and uniformity that the bill introduces into Louisiana's legal framework.