HB 102 - RETIREMENT PLANS; ROTH IRAS; PROBATE  2:06:54 PM CHAIR KELLER announced that the next order of business would be 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." [Before the committee was CSHB 102(L&C).] CHAIR KELLER, as the sponsor of HB 102, indicated that the committee has considered a past iteration of the bill, and that he is comfortable with the changes incorporated into CSHB 102(L&C). 2:08:35 PM DAVID G. SHAFTEL, Attorney at Law - presenting HB 102 on behalf of the sponsor, Representative Keller - noted that he is part of a group of attorneys and trust officers that periodically recommends improvements to Alaska's trust and estate statutes, and characterized HB 102 as an excellent bill that would provide updates to Alaska's trust and estate laws, including some of the uniform Acts adopted by Alaska. He explained that HB 102 would update the Alaska Principal and Income Act with regard to allocating principal and income, in order to address regulatory changes made by the Internal Revenue Service (IRS); would amend the [Alaska Uniform Transfers to Minors Act] to allow for the extension [of a custodian's term] for the benefit of the minor; would provide statutory changes related to retirement accounts so that the interests of beneficiaries are protected; would allow for the transfer of individual retirement accounts (IRAs) to trusts for tax-planning purposes; would clarify that life insurance [policies] can be held in a life insurance trust, which can be used to protect the proceeds and exempt them from federal estate taxes; would establish statutory provisions pertaining to the disposition of human remains, in order to address situations wherein arguments arise regarding such disposition; would update the [Alaska Community Property Act]; and - following what New York has already done - would improve the statutes pertaining to modifying a trust so that problems with a trust can be cured. He ventured that it was probably merely a lack of time that resulted in the past iteration of the bill not being enacted during the previous legislature. MR. SHAFTEL, in response to questions, explained that current law already prohibits a person from taking out a life insurance policy on someone whom he/she doesn't have an insurable interest in, and that HB 102 would not change that. He noted that a national organization representing insurance companies has already reviewed and approved the bill. 2:18:26 PM DOUGLAS J. BLATTMACHR, President and CEO, Alaska Trust Company, said his company supports HB 102, and thinks it would be good for both Alaska and Alaskans, and would bring more jobs and revenue to the state. In conclusion, he shared his company's hope that the committee would support the bill. 2:18:59 PM BETHANN B. CHAPMAN, Attorney at Law, Faulkner Banfield, PC, said simply that she supports HB 102. CHAIR KELLER, in response to questions, noted that the previous committee of referral had inserted a "sunset" clause, and offered his understanding that all the interested parties were satisfied with the changes made by that previous committee. 2:21:43 PM ERNEST PRAX, Staff, Representative Wes Keller, Alaska State Legislature, on behalf of the sponsor of HB 102, Representative Keller, added that that sunset clause of five years pertains to Section 37's proposed change to AS 21.09.210(m) - which, under CSHB 102(L&C), clarifies the tax treatment of life insurance policies [being issued for delivery to life insurance trusts] formed under or governed by Alaska law - and addresses concerns that as changed by Section 37, proposed AS 21.09.210(m) might result in a reduction in state tax revenue. 2:24:25 PM REPRESENTATIVE LYNN moved to report CSHB 102(L&C) out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 102(L&C) was reported from the House Judiciary Standing Committee.