Legislature(1993 - 1994)

04/20/1993 08:00 AM STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
  HB 280    UNIFORM CUSTODIAL TRUST ACT                                        
  Number 689                                                                   
  CHAIRMAN VEZEY read the title to HB 280 and called for its                   
  sponsor statement.                                                           
  TAPE 93-44, SIDE A                                                           
  Number 000                                                                   
  joined the committee to present the sponsor's statement.                     
  She explained that the intent of HB 280 was to allow                         
  everyone in Alaska the chance to develop their own trust in                  
  an easy, inexpensive way.  She noted that the person who                     
  creates the trust would remain in control unless becoming                    
  incapacitated or died, and that such a system had already                    
  been developed in several other states.  She stated HB 280                   
  would benefit Alaska seniors or those who anticipate being                   
  incapacitated for a period of time, and that the Uniform                     
  Custodial Trust Act had been endorsed by the American Bar                    
  Association.  She noted similar legislation had passed the                   
  House in the second session of the 17th Legislature, but                     
  died in the Senate due to time running out.                                  
  Number 054                                                                   
  CHAIRMAN VEZEY asked why a person would not be allowed to                    
  revoke the trust when they became incapacitated.                             
  MS. BRAND deferred to a uniform law commissioner seated in                   
  the committee room.                                                          
  Number 069                                                                   
  CHAIRMAN VEZEY asked what HB 280 would accomplish that                       
  wasn't possible under current trust law.                                     
  MS. BRAND again deferred to the commissioner.                                
  Number 069                                                                   
  ALASKA, joined the committee to testify in favor of HB 280.                  
  He stated the Uniform Custodial Trade Act (UCTA) would                       
  provide those people who anticipated being incapacitated                     
  with a chance to direct their assets after such                              
  incapacitation.  He stated the idea was to provide an easy,                  
  legal, simple way for common people to use such an idea,                     
  without the problems associated with trusts.  He stated                      
  under the current system, trusts could only be established                   
  with a lawyer, much paperwork, court appearances, and at                     
  great expense.  He said HB 280 simplified the system and                     
  even provided a form for those who would wish to use it.                     
  Number 129                                                                   
  CHAIRMAN VEZEY asked about the ability to transfer the                       
  MR. PETERSON noted that section E of HB 280 provides that an                 
  incapacitated person cannot transfer or change the trust                     
  upon his incapacitation.                                                     
  CHAIRMAN VEZEY stated he was confused by the interchangeable                 
  use of the terms "transferor, transferee, beneficiary."                      
  Number 170                                                                   
  MR. PETERSON stated the terms are indeed interchangeable                     
  depending on the role of the person referred to in the                       
  document.  He stated that in some cases, one person could                    
  play several roles.                                                          
  Number 184                                                                   
  REPRESENTATIVE ULMER explained to the committee that a bill                  
  similar to HB 280 passed the House in the previous                           
  legislature; it was non-controversial; it enjoyed widespread                 
  support; and would benefit most Alaskans; and she urged the                  
  committee to pass the bill.                                                  
  Number 197                                                                   
  MR. PETERSON also took the time to convey the endorsement of                 
  the American Association of Retired Persons (AARP), whose                    
  representative was forced to leave the meeting due to time                   
  Number 203                                                                   
  CHAIRMAN VEZEY also confirmed AARP'S endorsement, and stated                 
  he had spoken with John Shaffer of AARP.  He said he did not                 
  wish to rush the committee in its choices on HB 280, but                     
  considering its apparent widespread support, he asked the                    
  members' pleasure.                                                           
  Number 213                                                                   
  REPRESENTATIVE B. DAVIS moved passage of HB 280.                             
  Number 232                                                                   
  House Bill 280 passed by a 6-0 vote.                                         

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