HOUSE BILL NO. 102                                                                                                            
                                                                                                                                
     "An Act relating to  property exemptions for retirement                                                                    
     plans, individual  retirement accounts, and  Roth IRAs;                                                                    
     relating to  transfers of individual  retirement plans;                                                                    
     relating  to  the  rights   of  judgment  creditors  of                                                                    
     members of limited liability  companies and partners of                                                                    
     limited   liability  partnerships;   relating  to   the                                                                    
     Uniform  Probate  Code,  including  pleadings,  orders,                                                                    
     liability, and  notices under the Uniform  Probate Code                                                                    
     and   the  Alaska   Principal  and   Income  Act,   the                                                                    
     appointment  of  trust  property,  the  Alaska  Uniform                                                                    
     Prudent  Investor Act,  co-trustees, trust  protectors,                                                                    
     and trust  advisors; relating  to the  Alaska Principal                                                                    
     and  Income   Act;  relating  to  the   Alaska  Uniform                                                                    
     Transfers to  Minors Act;  relating to  the disposition                                                                    
     of human remains;  relating to the tax  on insurers for                                                                    
     life   insurance   policies;  relating   to   insurable                                                                    
     interests for  certain insurance policies;  relating to                                                                    
     restrictions on transfers  of trust interests; relating                                                                    
     to  discretionary  interests   in  irrevocable  trusts;                                                                    
     relating to the community  property of married persons;                                                                    
     and amending Rule 64, Alaska  Rules of Civil Procedure,                                                                    
     and Rule 301(a), Alaska Rules of Evidence."                                                                                
                                                                                                                                
9:19:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   WES  KELLER,   stated  that   Alaska  first                                                                    
modernized  trust in  the state  planning laws  in 1997.  He                                                                    
noted recommendations  from the trust were  made for changes                                                                    
in the  law. He thought  that the trust and  estate planning                                                                    
efforts led  to some of  the best applicable  legislation in                                                                    
the United  States. The  proposed legislation  included many                                                                    
of  the recommendations  including  measures for  retirement                                                                    
plan assets.                                                                                                                    
                                                                                                                                
DOUGLAS  BLATTMACHR, ALASKA  TRUST  COMPANY, ANCHORAGE  (via                                                                    
teleconference), testified in support of the legislation.                                                                       
                                                                                                                                
Representative   Costello  asked   if  the   bill  addressed                                                                    
revocable living trusts.                                                                                                        
                                                                                                                                
Mr.  Blattmachr replied  no, the  bill dealt  with IRAs  and                                                                    
other matters.                                                                                                                  
                                                                                                                                
Co-Chair  Stoltze  wondered  why   the  policy  issues  were                                                                    
important.                                                                                                                      
                                                                                                                                
Mr.  Blattmachr replied  that the  Alaska Trust  Company had                                                                    
been working with the legislature  to enhance Alaska's trust                                                                    
legislation.  He stated  that  Alaska had  become a  premier                                                                    
location  for estate  and  financial  planning. The  process                                                                    
drew millions of dollars in revenue to the state.                                                                               
                                                                                                                                
DAVE   SHAFTEL,   SAHFTEL   LAW  OFFICES,   ANCHORAGE   (via                                                                    
teleconference),  stated  that he  worked  with  a group  of                                                                    
attorneys and trust officers since  1997 to assist in making                                                                    
recommendations to  the legislature  for the  improvement of                                                                    
Alaska's laws regarding estate planning.                                                                                        
                                                                                                                                
9:25:43 AM                                                                                                                    
                                                                                                                                
Representative Holmes  noticed that the bill  was similar to                                                                    
another seen last year. She  asked about changes between the                                                                    
two bills.                                                                                                                      
                                                                                                                                
Mr. Shaftel responded that one  position was added to assist                                                                    
the Internal  Revenue Service (IRS) in  granting rulings for                                                                    
non-grantor trusts.  He noted that  the IRS would  grant the                                                                    
rulings  for lifetime's  powers  of  appointment. He  stated                                                                    
that  some of  the statute's  less applicable  portions were                                                                    
deleted. He  noted the new  provision that conformed  to the                                                                    
statute of  limitations. He noted  a provision  that allowed                                                                    
for transfers  of individual retirement accounts  to grantor                                                                    
trusts  for  planning purposes.  He  stated  that the  other                                                                    
provisions  in  the bill  were  reviewed  in committee  last                                                                    
year.                                                                                                                           
                                                                                                                                
9:27:44 AM                                                                                                                    
                                                                                                                                
HB  102  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:28:49 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:29:01 AM                                                                                                                    
RECONVENED