00                            SENATE BILL NO. 81                                                                          
01 "An Act relating to the nonademption of property transfers; and providing for an                                        
02 effective date."                                                                                                        
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 13.12.712(a) is amended to read:                                                                
05            (a)  Unless the trust provides otherwise, a [A] beneficiary of a trust has a                             
06       right to [THE SPECIFIC] property that, by the terms of [TRANSFERRED BY] the                                   
07       trust, is to be specifically distributed to the beneficiary and to                                        
08                 (1)  any amount of a condemnation award that is for the taking of the                               
09       property and that is unpaid when [AT THE TIME OF] the distribution becomes                            
10       effective [TRANSFER];                                                                                         
11                 (2)  any proceeds from [UNPAID AT THE TIME OF THE                                                   
12       TRANSFER ON] fire or casualty insurance on, or other recovery for injury to, the                          
13       property that are unpaid when the distribution becomes effective; and                                         
14                 (3)  property owned by the settlor when [AT THE TIME OF] the                                        

01       distribution becomes effective if the property is [TRANSFER AND] acquired as a                                
02       result of foreclosure, or obtained in lieu of foreclosure, of the security interest for the                       
03       specifically distributed [TRANSFERRED] obligation.                                                            
04    * Sec. 2.  AS 13.12.712(b) is repealed and reenacted to read:                                                      
05            (b)  Unless the covered trust provides otherwise, if property that is to be                                  
06       specifically distributed to a beneficiary of a covered trust is instead sold or mortgaged                         
07       by a trustee of the covered trust, or if a condemnation award, insurance proceeds, or a                           
08       recovery for injury to the property is paid to a trustee of the covered trust, the                                
09       beneficiary has the right to a general pecuniary property distribution that is equal to                           
10       the net sale price, the amount of the unpaid loan, the condemnation award, the                                    
11       insurance proceeds, or the recovery.  In this subsection, "covered trust," means a trust                          
12       that was originally amendable or revocable by the settlor but that cannot be amended                              
13       or revoked by the settlor because of the settlor's incapacity.                                                    
14    * Sec. 3.  AS 13.12.712(d) and 13.12.712(e) are repealed.                                                          
15    * Sec. 4.  The uncodified law of the State of Alaska is amended by adding a new section to                         
16 read:                                                                                                                   
17       APPLICATION.  AS 13.12.712, as amended by secs. 1 - 3 of this Act, applies to a                                   
18 trust instrument, including a conveyance, that is executed on or after August 9, 2000, and to                           
19 that extent is retroactive under AS 01.10.090.                                                                          
20    * Sec. 5.  This Act takes effect immediately under AS 01.10.070(c).