HB 196: "An Act relating to wills, intestacy, nonprobate transfers, and trusts; and amending Rule 24, Alaska Rules of Civil Procedure."
00HOUSE BILL NO. 196 01 "An Act relating to wills, intestacy, nonprobate transfers, and trusts; and 02 amending Rule 24, Alaska Rules of Civil Procedure." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 13.06 is amended by adding a new section to read: 05 Sec. 13.06.068. Choice of law; validity. (a) Subject to the other provisions 06 of this section, the formal validity, intrinsic validity, effect, interpretation, revocation, 07 or alteration of a testamentary disposition of real property and the manner in which the 08 property descends at death when not disposed of by will are determined by the law of 09 the jurisdiction in which the land is situated. 10 (b) Subject to the other provisions of this section, the intrinsic validity, effect, 11 revocation, or alteration of a testamentary disposition of personal property and the 12 manner in which the property devolves at death when not disposed of by will are 13 determined by the law of the jurisdiction in which the decedent was domiciled at 14 death.
01 (c) A will disposing of personal property, wherever situated, or real property 02 situated in this state made within or outside this state by a domiciliary or 03 nondomiciliary of the state where the property is situated, is formally valid and 04 admissible to probate in this state if the will is in writing and signed by the testator 05 and otherwise executed and attested to under the local law of 06 (1) this state; 07 (2) the jurisdiction where the will was executed at the time of 08 execution; or 09 (3) the jurisdiction where the testator was domiciled, either at the time 10 of execution or at death. 11 (d) A testamentary disposition of personal property intrinsically valid under 12 the law of the jurisdiction where the testator was domiciled when the will was 13 executed is not affected by a subsequent change in the domicile of the testator to a 14 jurisdiction under the law of which the disposition is intrinsically invalid. 15 (e) The interpretation of a testamentary disposition of personal property shall 16 be made under the local law of the jurisdiction where the testator was domiciled when 17 the will was executed. 18 (f) Whether a testamentary disposition of personal property is effectively 19 revoked or altered by a subsequent testamentary instrument or by a physical act to or 20 on the will by which the testamentary disposition was made is determined by the local 21 law of the jurisdiction where the testator was domiciled when the subsequent 22 instrument was executed or the physical act performed. 23 (g) Subject to (d) - (f) of this section, the intrinsic validity, effect, revocation 24 or alteration of a testamentary disposition by which a power of appointment over 25 personal property is exercised and the question of whether the power has been 26 exercised at all are determined by 27 (1) in the case of a presently exercisable general power of appointment, 28 the local law of the jurisdiction where the donee of the power was domiciled at the 29 time of death; 30 (2) in the case of a general power of appointment exercisable by will 31 alone or a special power of appointment, the local law of the jurisdiction
01 (A) that the donor of the power expressly selected in the 02 governing instrument to govern the disposition; or 03 (B) where the donor of the power was domiciled at the time of 04 death if the donor did not expressly select in the governing instrument a 05 jurisdiction to govern the disposition. 06 (h) The formal validity of a will by which a power of appointment over 07 personal property is exercised is determined under (b) of this section on the basis that 08 the testator referred to in (b) of this section is the donee of the power. 09 (i) When a testator, who is not domiciled in this state at the time of death, 10 provides in the testator's will that the testator elects to have the disposition of the 11 testator's property situated in this state governed by the local law of this state, the 12 intrinsic validity, including the testator's general capacity, effect, interpretation, 13 revocation, or alteration of the provision, is determined by the local law of this state. 14 The formal validity of the will is determined under (b) of this section. 15 (j) Notwithstanding the definition of "real property", as set out in (l) of this 16 section, whether an estate in, leasehold of, fixture, mortgage, or other lien on land is 17 real property governed by (a) of this section or personal property governed by (b) of 18 this section is determined by the local law of the jurisdiction where the land is 19 situated. 20 (k) Notwithstanding the other provisions of AS 13.06 - AS 13.36, the 21 provisions of this section govern in AS 13.06 - AS 13.36. 22 (l) In this section, 23 (1) "effect" means the legal consequences attributed under the local law 24 of a jurisdiction to a valid testamentary disposition; 25 (2) "formal validity" means the formalities established by the local law 26 of a jurisdiction for the execution and attestation of a will; 27 (3) "interpretation" means the procedure of applying the law of a 28 jurisdiction to determine the meaning of language employed by the testator if the 29 testator's intention is not otherwise ascertainable; 30 (4) "intrinsic validity" means the rules of substantive local law by 31 which a jurisdiction determines the legality of a testamentary disposition, including the
01 general capacity of the testator; 02 (5) "local law" means the law that the courts of a jurisdiction apply 03 when adjudicating legal questions that are not related to another jurisdiction; 04 (6) "personal property" means property other than real property, and 05 includes tangible and intangible property; 06 (7) "real property" means land or an estate in land, and includes 07 leaseholds, fixtures, and mortgages or other liens on land; 08 (8) "testamentary disposition" means disposition under a will. 09 * Sec. 2. AS 13.12.401 is amended to read: 10 Sec. 13.12.401. Applicable law. Except as provided in AS 13.06.068, 11 AS 12.13.401 - 12.13.405 apply to the estate of a decedent who dies domiciled in this 12 state, and rights [. RIGHTS] to homestead allowance, exempt property, and family 13 allowance for a decedent who dies not domiciled in this state are governed by the law 14 of the decedent's domicile at death. 15 * Sec. 3. AS 13.12.502 is amended to read: 16 Sec. 13.12.502. Execution; witnessed wills; holographic wills. (a) Except 17 as provided in (b) of this section, [AND] in AS 13.06.068, and AS 13.12.513 18 [AS 13.12.506 AND 13.12.513], a will must be 19 (1) in writing; 20 (2) signed by the testator or in the testator's name by another individual 21 in the testator's conscious presence and by the testator's direction; and 22 (3) signed by at least two individuals, each of whom signs within a 23 reasonable time after the witness witnesses either the signing of the will as described 24 in (2) of this subsection or the testator's acknowledgment of that signature or the will. 25 (b) Except as provided in AS 13.06.068, a [A] will that does not comply with 26 (a) of this section is valid as a holographic will, whether or not witnessed, if the 27 signature and material portions of the document are in the testator's handwriting. 28 * Sec. 4. AS 13.12.601 is amended to read: 29 Sec. 13.12.601. Scope. Except as provided in AS 13.06.068, in [IN] the 30 absence of a finding of a contrary intention, the rules of construction in AS 13.12.601 31 - 13.12.609 control the construction of a will.
01 * Sec. 5. AS 13.12.703 is amended by adding a new subsection to read: 02 (b) The provisions of (a) of this section are subject to AS 13.06.068. 03 * Sec. 6. AS 13.12.912(a) is amended to read: 04 (a) Except as provided by AS 13.06.068, a [A] will is valid as regards form, 05 irrespective of the place where the will is made, of the location of the assets, and of 06 the nationality, domicile, or residence of the testator, if the will is made in the form 07 of an international will complying with the requirements of AS 13.12.912 - 13.12.921. 08 * Sec. 7. AS 13.16.090(c) is amended to read: 09 (c) A will that appears to have the required signatures and that contains an 10 attestation clause showing that requirements of execution under AS 13.12.502 11 [AS 13.12.502 OR 13.12.506] have been met shall be probated without further proof. 12 In other cases, the registrar may assume execution if the will appears to have been 13 properly executed, or the registrar may accept a sworn statement or affidavit of a 14 person having knowledge of the circumstances of execution, whether or not the person 15 was a witness to the will. 16 * Sec. 8. AS 13.16.175 is amended to read: 17 Sec. 13.16.175. Formal testacy proceedings; will construction; effect of 18 final order in another jurisdiction. Subject to AS 13.06.068, a [A] final order of 19 a court of another state determining testacy, the validity, or construction of a will [,] 20 made in a proceeding involving notice to and an opportunity for contest by all 21 interested persons must be accepted as determinative by the courts of this state if it 22 includes, or is based upon, a finding that the decedent was domiciled at death in the 23 state where the order was made. 24 * Sec. 9. AS 13.36.075 is amended to read: 25 Sec. 13.36.075. Trustee's standard of care and performance. Except as 26 otherwise provided by the terms of the trust or by AS 13.36.105 - 13.36.295, the 27 trustee shall observe the standards in dealing with the trust assets that would be 28 observed by a prudent person [MAN] dealing with the property of another, and, if the 29 trustee has special skills or is named trustee on the basis of representations of special 30 skills or expertise, the trustee is under a duty to use those skills. 31 * Sec. 10. AS 13.36.095(b) is amended to read:
01 (b) Subject to AS 13.36.105 - 13.36.295, a [A] trustee is personally liable for 02 obligations arising from ownership or control of property of the trust estate or for torts 03 committed in the course of administration of the trust estate only if personally at fault. 04 * Sec. 11. AS 13.36 is amended by adding new sections to article 3 to read: 05 Sec. 13.36.105. Powers attached to the office of trustee. Unless otherwise 06 provided by the trust instrument, an amendment of the trust instrument, or a court 07 order, the powers of a trustee are attached to the office and are not personal. 08 Sec. 13.36.110. Liability of trustee not joining in exercise of power. A 09 trustee who has not joined another trustee in exercising a power is not liable to the 10 beneficiaries or to others for the consequences of the exercise of the power. A 11 dissenting trustee is not liable to the beneficiaries or to others for the consequences of 12 an act in which the dissenting trustee joins at the direction of the majority trustees if 13 the dissenting trustee expresses the dissenting trustee's dissent in writing to a co-trustee 14 at or before the time of joinder. A trustee who is not authorized to exercise a power 15 is not liable to the beneficiaries or to others for 16 (1) the exercise by a co-trustee of the power; or 17 (2) the failure to exercise the power. 18 Sec. 13.36.120. Voting of corporate stock owned by trustee. A trustee of 19 a trust owning corporate stock is not prohibited by the trustee relationship from voting 20 the stock by proxy but is liable for a loss resulting to the beneficiaries from a failure 21 to use reasonable care in deciding how to vote the stock and in voting the stock. 22 Sec. 13.36.125. Creation of trust bank account to pay special debts. 23 Whenever a bank account is, by entries made on the books of the depositor and the 24 bank at the time of the deposit, created exclusively for the purpose of paying 25 dividends, interest, interest coupons, salaries, wages, or pensions or other employee 26 benefits, and the depositor at the time of opening the account does not expressly 27 declare otherwise, the depositor is considered a trustee of the account for the creditors 28 to be paid from the account, subject to any power of revocation that the depositor may 29 have reserved by agreement with the bank. 30 Sec. 13.36.130. Failure of beneficiary to present claim for payment. If a 31 beneficiary for whom a trust bank account is created under AS 13.36.125 does not
01 present the beneficiary's claim to the bank for payment within one year after the claim 02 is due, the depositor who created the trust may revoke the trust as to the beneficiary. 03 Sec. 13.36.135. Holding stock in name of nominee. (a) A trustee of a trust 04 owning stocks, bonds, notes, debentures, or other written obligations of a public or 05 private corporation may hold the obligations in the name of a nominee, without 06 mention of the trust in the records of the corporation or in the stock certificate or stock 07 registration book of the corporation, if 08 (1) the trust records and all reports or accounts rendered by the trustee 09 clearly show the ownership of the stocks, bonds, notes, debentures, or other written 10 obligations of the public or private corporation by the trustee and the facts regarding 11 the holding by the trustee; and 12 (2) the nominee deposits with the trustee a signed statement showing 13 the trust ownership, endorses the stock certificate or other title instruments for the 14 obligations in blank, and does not have possession of or access to the stock certificate 15 or other title instruments for the obligations except under the immediate supervision 16 of the trustee. 17 (b) A trustee holding obligations under (a) of this section is personally liable 18 for a loss to the trust resulting from an act of the nominee in connection with the 19 stocks, bonds, notes, debentures, or other written obligations held under (a) of this 20 section. 21 Sec. 13.36.140. Loan of trust funds. Except as provided in AS 13.36.145, 22 a corporate trustee may not lend trust funds to itself or an affiliate, or to a director, an 23 officer, or an employee of itself or an affiliate, and a noncorporate trustee may not 24 lend trust funds to itself or to a relative, an employer, an employee, or a partner or 25 other business associate. 26 Sec. 13.36.145. Corporate trustee depositing trust funds with itself. (a) 27 A corporate trustee that is subject to regulation and supervision by state or federal 28 authorities may deposit with itself trust funds that are being held out of necessity 29 pending investment, distribution, or payment of debts if the corporate trustee 30 (1) pays into the trust for the deposit the interest the corporate trustee 31 is required by state or federal law to pay on uninvested trust funds or, if there is not
01 a state or federal law requiring the payment of interest, at the same rate of interest the 02 corporate trustee pays on similar nontrust deposits; and 03 (2) maintains in its trust department as security for the deposit a 04 separate fund consisting of securities that are legal for trust investments and that are 05 at all times equal in total market value to the amount of the deposit, except that the 06 security is not required to the extent that the deposit is insured or given a preference 07 by state or federal law. 08 (b) The separate fund of securities required by (a)(2) of this section shall be 09 marked as a separate fund for (a)(2) of this section. Withdrawals from or additions 10 to the separate fund may be made from time to time, as long as the required value is 11 maintained. The income of the securities in the separate fund belongs to the corporate 12 trustee. In the statements of its financial condition published or delivered to the 13 division of banking, securities, and corporations in the Department of Commerce and 14 Economic Development, the corporate trustee shall show as separate items the amount 15 of trust funds that it has deposited with itself and the amount of securities that it holds 16 as security for the payment of the deposits. 17 Sec. 13.36.150. Trustee buying from or selling to itself. (a) A trustee, 18 unless expressly authorized by the trust instrument, may not directly or indirectly lease, 19 buy, or sell property for the trust from or to 20 (1) itself or an affiliate; 21 (2) a director, an officer, or an employee of the trustee or an affiliate; 22 or 23 (3) a relative, an employer, or a partner or other business associate. 24 (b) Notwithstanding (a) of this section or another law to the contrary, a trustee 25 may lease, buy, or sell property, including a lease, purchase, or sale in the 26 establishment of a trust service office, from or to the trust the trustee represents as a 27 trustee if specifically authorized to make the lease, purchase, or sale in a decedent's 28 will or in the instrument creating the trustee relationship. 29 Sec. 13.36.155. Permitted sales between trusts held by same corporate 30 trustee. If the transaction is fair to both trusts and if the transaction is not prohibited 31 by the instruments creating the trustee relationship, a corporate trustee may sell to
01 itself as trustee of a trust the following held by the corporate trustee as trustee for 02 another trust: 03 (1) stocks, bonds, and other securities listed on a securities exchange 04 supervised by the United States Securities and Exchange Commission; and 05 (2) obligations of the United States treasury and obligations of United 06 States government agencies. 07 Sec. 13.36.160. Corporate trustee buying its own stock. A corporate trustee 08 may not purchase for a trust shares of its own stock, or its bonds, or other securities, 09 or the stock, bonds, or other securities of an affiliate. 10 Sec. 13.36.165. Withdrawals from mingled trust funds. If a person who is 11 a trustee of two or more trusts mingles the funds of two or more trusts in the same 12 aggregate of cash or in the same bank or brokerage account or other investment, and 13 if a withdrawal is made from the cash aggregate, account, or investment by the trustee 14 for the trustee's own benefit, for the benefit of a third person who is not a beneficiary 15 or creditor of one or more of the trusts, or for an unknown purpose, the withdrawal 16 must be charged first to the amount of the personal cash, credit, or other property, if 17 any, of the trustee in the mingled fund, and, after the exhaustion of the trustee's cash, 18 credit, or other property, then to the several trusts in proportion to their several 19 interests in the cash, credit, or other property in the cash aggregate, account, or 20 investment at the time of the withdrawal. 21 Sec. 13.36.170. Unenforceable oral trust created by deed. (a) When an 22 interest in real property is conveyed by deed to a person in a trust that is unenforceable 23 under AS 09.25.010 - 09.25.020 and the intended trustee or the trustee's successor in 24 interest holds title but refuses to carry out the trust because of AS 09.25.010 - 25 09.25.020, the intended trustee or the trustee's successor in interest, except to the 26 extent that the successor in interest is a bona fide purchaser of a legal interest in the 27 real property, shall convey the interest in real property to the settlor or the settlor's 28 successor in interest. A court having jurisdiction may prescribe the conditions for 29 conveying the interest to the settlor or the settlor's successor in interest. 30 (b) If the intended trustee of an unenforceable trust under (a) of this section 31 transfers part or all of the trustee's interest and the interest is transferred to a bona fide
01 purchaser, the intended trustee is liable to the settlor or the settlor's successor in 02 interest for the value, at the time of the transfer, of the interest transferred, less any 03 offsets that a court determines to be equitable. 04 Sec. 13.36.175. Action on contract against trustee in representative 05 capacity. (a) When a trustee makes a contract that is within the trustee's powers as 06 trustee or when a predecessor trustee has made a contract within the predecessor 07 trustee's powers as trustee and a cause of action arises on the contract, the party in 08 whose favor the cause of action has accrued may collect the judgment by execution 09 on the trust property. 10 (b) In an action under this section, the plaintiff is not required to prove that 11 the trustee could have been reimbursed from the trust fund if the trustee had paid the 12 plaintiff's claim. 13 (c) A beneficiary or, in the case of a charitable trust, the attorney general and 14 a corporation that is a beneficiary or agent in the performance of the charitable trust, 15 may intervene in an action under this section and contest the right of the plaintiff to 16 recover. 17 (d) A judgment may not be rendered in favor of the plaintiff in an action under 18 this section unless the plaintiff proves that, within 30 days after the beginning of the 19 action or within another period set by the court and more than 30 days before 20 obtaining the judgment, the plaintiff has notified each of the beneficiaries who is 21 known to the trustee and who then has a present interest in the existence and nature 22 of the action, or, in the case of a charitable trust, the attorney general of this state and 23 a corporation that is a beneficiary or agent in the performance of the charitable trust. 24 The notice shall be given by mailing copies of the notice with postage prepaid to the 25 beneficiaries at their last known addresses. The trustee shall furnish the plaintiff with 26 a list of names and addresses of the beneficiaries within 10 days after the plaintiff 27 makes a written demand for the list. Notification of the persons on the list constitutes 28 compliance with the duty placed on the plaintiff by this section. 29 (e) The plaintiff in an action under this section may also hold the trustee who 30 made the contract personally liable on the contract if the contract does not exclude the 31 trustee's personal liability. In a contract action under this section, the addition of the
01 word "trustee" or the words "as trustee" after the signature of a trustee to a contract 02 constitutes prima facie evidence of an intent to exclude the trustee from personal 03 liability, and the addition of the words "and not individually" following the word 04 "trusts" or the words "as trustee" after the signature of a trustee to a contract 05 constitutes irrebuttable evidence of an intent to exclude the trustee from personal 06 liability, and the trustee is not personally liable under the contract. 07 Sec. 13.36.180. Exoneration or reimbursement for tort. (a) A trustee who 08 has incurred personal liability for a tort committed in the administration of the trust 09 is entitled to exoneration for the liability from the trust property if the trustee has not 10 discharged the claim, or to reimbursement for the liability out of trust funds if the 11 trustee has paid the claim, if 12 (1) the tort was a common incident of the kind of business activity in 13 which the trustee was properly engaged for the trust; or 14 (2) although the tort was not a common incident under (1) of this 15 subsection, the trustee or an officer or employee of the trustee was not guilty of 16 personal fault in incurring the liability. 17 (b) If a trustee commits a tort that increases the value of the trust property, the 18 trustee is entitled to exoneration or reimbursement with respect to the tort to the extent 19 of the increase in value, even though the trustee would not otherwise be entitled to 20 exoneration or reimbursement. 21 (c) Nothing in this section shall be construed to change the existing law with 22 regard to the liability of trustees of charitable trusts for torts of the trustees or their 23 employees. 24 Sec. 13.36.185. Tort liability of trust. (a) If a trustee or a predecessor of the 25 trustee incurs personal liability for a tort committed in the course of the trustee's 26 administration, the trustee in the trustee's representative capacity may be sued and 27 collection made from the trust property if the court determines in the tort action that 28 (1) the tort was a common incident of the kind of business activity in 29 which the trustee or the trustee's predecessor was properly engaged for the trust; 30 (2) although the tort was not a common incident under (1) of this 31 subsection, the trustee or the trustee's predecessor, or an officer or employee of the
01 trustee or the trustee's predecessor, was not guilty of personal fault in incurring the 02 liability; or 03 (3) although the tort does not fall under (1) or (2) of this subsection, 04 the tort increased the value of the trust property. 05 (b) If the tort is within (a)(1) or (2) of this section, the full amount of proven 06 damages may be collected from the trust property. 07 (c) If the tort is within (a)(3) of this section, collection may not be made from 08 the trust property except to the extent of the increase in the value of the trust property. 09 (d) A beneficiary may intervene in an action under this section and contest the 10 right of the plaintiff to recover. 11 (e) In an action against the trustee in the trustee's representative capacity under 12 this section, the plaintiff is not required to prove that the trustee could have secured 13 reimbursement from the trust fund if the trustee paid the plaintiff's claim. 14 (f) A judgment may not be rendered in favor of the plaintiff in an action under 15 this section unless the trustee proves that within 30 days after the beginning of the 16 action, or within another period set by the court and more than 30 days before 17 obtaining the judgment, the trustee notifies each of the beneficiaries who is known to 18 the trustee who then has a present interest in the existence and nature of the action. 19 The notice shall be given by mailing copies of the notice with postage prepaid to the 20 beneficiaries at their last known addresses. The trustee shall furnish the plaintiff with 21 a list of names and address of the beneficiaries within 10 days after the plaintiff makes 22 a written demand for the list. Notification of the persons on the list constitutes 23 compliance with the duty placed on the plaintiff by this subsection. 24 (g) Nothing in this section may be construed to change the existing law with 25 regard to the liability of trustees of charitable trusts for torts of the trustees or their 26 employees. 27 Sec. 13.36.190. Personal liability for tort committed by trustee. A trustee 28 may be held personally liable for a tort committed by the trustee, or by the trustee's 29 agents or employees in the course of their agency or employment, subject to the rights 30 of exoneration or reimbursement under AS 13.36.180. 31 Sec. 13.36.195. Power of settlor of trust. (a) The settlor of a trust affected
01 by AS 13.36.105 - 13.36.295 may, by provision in the instrument creating the trust if 02 the trust is created by a writing, by oral statement to the trustee at the time of the 03 creation of the trust if the trust is created orally, or by an amendment of the trust if the 04 settlor reserved the power to amend the trust, 05 (1) relieve the trustee from any or all of the duties, restrictions, and 06 liabilities that would otherwise be imposed on the trustee by AS 13.36.105 - 13.36.295; 07 (2) alter or deny to the trustee any or all of the privileges and powers 08 conferred on the trustee by AS 13.36.105 - 13.36.295; or 09 (3) add duties, restrictions, liabilities, privileges, or powers, to those 10 imposed or granted by AS 13.36.105 - 13.36.295. 11 (b) Notwithstanding (a) of this section, an act of the settlor may not relieve a 12 trustee from the duties, restrictions, and liabilities imposed on the trustee by 13 AS 13.36.140, 13.36.145, or 13.36.150. 14 Sec. 13.36.200. Power of beneficiary of trust. A beneficiary of a trust 15 affected by AS 13.36.105 - 13.36.295 may, if the beneficiary has full legal capacity 16 and acts on full information, by written instrument delivered to the trustee, relieve the 17 trustee, as regards the beneficiary, from any or all of the duties, restrictions, and 18 liabilities that would otherwise be imposed on the trustee by AS 13.36.105 - 13.36.295, 19 except for the duties, restrictions, and liabilities imposed by AS 13.36.140 - 20 13.36.150. The beneficiary may release the trustee from liability to the beneficiary for 21 past violations of AS 13.36.105 - 13.36.295. 22 Sec. 13.36.205. Relieving trustee of duties; power of the court. A court of 23 competent jurisdiction may, for cause shown and on notice to the beneficiaries, relieve 24 a trustee from any or all of the duties and restrictions that would otherwise be placed 25 on the trustee by AS 13.36.105 - 13.36.295 or wholly or partly excuse a trustee who 26 has acted honestly and reasonably from liability for violations of AS 13.36.105 - 27 13.36.295. 28 Sec. 13.36.210. Liability for violations. If a trustee violates a provision of 29 AS 13.36.105 - 13.36.295, the trustee may be removed as trustee and denied 30 compensation in whole or in part, and a beneficiary, co-trustee, or successor trustee 31 may treat the violation as a breach of trust.
01 Sec. 13.36.280. Uniformity of interpretation. AS 13.36.105 - 13.36.295 shall 02 be interpreted and construed so as to effectuate their general purpose to make uniform 03 the law of the states that enact the sections. 04 Sec. 13.36.290. Definitions. In AS 13.36.105 - 13.36.295, unless the context 05 or subject matter otherwise requires, 06 (1) "affiliate" means a person directly or indirectly controlling or 07 controlled by another person or a person under direct or indirect common control with 08 another person, including a person with whom a trustee has an express or implied 09 agreement regarding the purchase of trust investments by each from the other, directly 10 or indirectly, except a broker or stock exchange; 11 (2) "relative" means a spouse, ancestor, descendant, brother, or sister; 12 (3) "trust" means an express trust only; 13 (4) "trustee" includes a trustee that is a corporation or a natural person 14 and a successor or substitute trustee. 15 Sec. 13.36.295. Short Title. AS 13.36.105 - 13.36.295 may be cited as the 16 Uniform Trusts Act. 17 * Sec. 12. AS 13.38.060 is repealed and reenacted to read: 18 Sec. 13.38.060. Bond premium and discount; increase as income. (a) A 19 bond or other obligation for the payment of money is principal at its inventory value 20 except as provided in (b) of this section. The trustee may not make a provision for 21 amortization of a premium or for accumulation for discount. 22 (b) Unless otherwise provided in the trust instrument, an increase in the value 23 of the following above inventory value is distributable as income: 24 (1) a zero coupon bond; 25 (2) an annuity contract before annuitization; 26 (3) a life insurance contract before the death of the insured; 27 (4) an interest in a common trust fund; in this paragraph, "common 28 trust fund" has the meaning given in 26 U.S.C. 584 (Internal Revenue Code); 29 (5) a limited liability company, limited liability partnership, or a limited 30 partnership; and 31 (6) another obligation for the payment of money if the money is
01 payable at a future time under a fixed, variable, or discretionary schedule of 02 appreciation and if the payment exceeds the price at which the obligation was issued. 03 (c) The increase in value of the obligations described in (b) of this section is 04 distributable to the beneficiary who was the income beneficiary at the time of the 05 increase. The increase is distributable from the first cash available from the principal 06 or, if cash is not available from the principal, when cash is first available from the 07 principal due to a sale, a redemption, or another disposition. When an unrealized 08 increase is distributed as income from principal, the principal shall be reimbursed when 09 the increase is realized. 10 (d) In this section, the increase in value of an obligation described in (b) of 11 this section is not available for distribution unless the trustee receives cash on account 12 of the obligation. 13 * Sec. 13. AS 13.41.005 is amended to read: 14 Sec. 13.41.005. Application. Except as provided by AS 13.06.068, this 15 [THIS] chapter applies to the disposition at death of the following property acquired 16 by a married person: 17 (1) all personal property, wherever situated, 18 (A) that was acquired as or became, and remained, community 19 property under the laws of another jurisdiction; or 20 (B) all or the proportionate part of which was acquired with the 21 rents, issues, or income of, or the proceeds from, or in exchange for, that 22 community property; or 23 (C) traceable to that community property; 24 (2) all or the proportionate part of any real property situated in this 25 state that was acquired with the rents, issues, or income of, the proceeds from, or in 26 exchange for, property acquired as or that [WHICH] became, and remained, 27 community property under the laws of another jurisdiction, or property traceable to that 28 community property. 29 * Sec. 14. AS 13.41.010 is amended to read: 30 Sec. 13.41.010. Rebuttable presumptions. Subject to AS 13.06.068, in [IN] 31 determining whether this chapter applies to specific property, the following rebuttable
01 presumptions apply: 02 (1) property acquired during marriage by a spouse of that marriage 03 while domiciled in a jurisdiction under whose laws property could then be acquired as 04 community property is presumed to have been acquired as or to have become, and 05 remained, property to which this chapter applies; and 06 (2) real property situated in this state and personal property wherever 07 situated acquired by a married person while domiciled in a jurisdiction under whose 08 laws property could not then be acquired as community property, title to which was 09 taken in a form that created rights of survivorship, are [IS] presumed not to be 10 property to which this chapter applies. 11 * Sec. 15. AS 13.12.506 and AS 13.36.095(a) are repealed. 12 * Sec. 16. COURT RULES. (a) AS 13.36.175(c), enacted by sec. 11 of this Act, changes 13 Rule 24, Alaska Rules of Civil Procedure, by allowing a beneficiary, or the attorney general 14 and certain corporations under certain circumstances, to intervene in an action on a contract 15 against a trustee without satisfying the criteria in the court rule. 16 (b) AS 13.36.185(d), enacted by sec. 11 of this Act, changes Rule 24, Alaska Rules 17 of Civil Procedure, by allowing a beneficiary to intervene in a tort action against a trust 18 without satisfying the criteria in the court rule. 19 * Sec. 17. AS 13.06.068, enacted by sec. 1 of this Act, does not apply to a will except for 20 the will of a person dying on or after the effective date of this Act. 21 * Sec. 18. AS 13.36.105 - 13.36.295, enacted by sec. 11 of this Act, apply only to 22 (1) testamentary trusts created by wills, or codicils, of persons dying 23 on or after the effective date of this Act regardless of when the trusts and codicils are 24 executed; and 25 (2) nontestamentary trusts created on or after the effective date of this 26 Act. 27 * Sec. 19. AS 13.38.060, as amended by sec. 12 of this Act, does not apply to a trust 28 unless the trust is created on or after the effective date of this Act. 29 * Sec. 20. AS 13.36.175(c) and 13.36.185(d), enacted by sec. 11 of this Act, take effect 30 only if sec. 16 of this Act receives the two-thirds majority vote of each house required by art. 31 IV, sec. 15, Constitution of the State of Alaska.