Summary — HB 5691: "An Act Repealing the Trust Act"
Status: Referred to Joint Committee on Judiciary (REF. TO JOINT COMM. ON Judiciary)
Introduced: April 25, 2025
Subject: Uniform Trust Act
Companion bill: SB 3065
Purpose and intent
HB 5691 is a single-purpose repeal bill that, if enacted, would repeal the state's existing statute known as the "Trust Act" (often the state's codification of the Uniform Trust Code / Uniform Trust Act). The stated intent is to remove the statutory framework that currently governs the creation, administration, modification, and termination of trusts under that Act.
Key provision
- Repeal of the Trust Act statute(s): The bill’s principal effect is elimination of the statutory provisions that comprise the Trust Act. (No text of the bill is included in the materials provided, so the summary reflects the bill title and classification only.)
What is not in the record / important open questions
Because the bill text is not provided in the material supplied, the summary cannot confirm:
- Whether the repeal is partial or full (e.g., specific sections removed).
- The effective date of repeal.
- Whether the repeal contains transitional or savings clauses protecting existing trusts, trustees, beneficiaries, or pending litigation.
- Whether the repeal is accompanied by replacement language, interim rules, or cross-references to other statutes.
These details are critical to determine practical legal effects and should be reviewed in the bill text and any committee reports.
Who would be affected
- Trustees and fiduciaries: changes to statutory duties, powers, liability, notice requirements, and accounting rules (depending on repeal scope).
- Trust beneficiaries and settlors: potential changes in enforcement mechanisms, modification/termination processes, and beneficiary rights.
- Estate planners and attorneys: need to adjust drafting and advice if statutory rules are removed.
- Courts: potential increase in litigation or reliance on common law to fill statutory gaps; judges would need to interpret trust law without the repealed statutory framework.
- Financial institutions and trust companies: operational rules and compliance frameworks tied to the Trust Act could be affected.
If the repeal is enacted without a clear transition plan, existing trusts governed by the Act could face ambiguity about applicable law.
Procedural timeline (selected actions)
- 2025-01-21: Referred to Joint Committee on Judiciary (per record).
- 2025-04-25: Bill filed.
- 2025-04-28: Read first time; referred to Intergovernmental Affairs; transmitted to the Governor (as recorded).
- 2025-05-13 to 05-16: Considered in committee; committee report filed and distributed.
- 2025-05-14: Reported favorably without amendment; recommended to be sent to Local & Consent Calendar.
- 2025-05-16 & 05-19: Committee recommendations filed with Speaker/Coordinator.
- 2025-05-21: Committee report sent to Local & Consent Calendar.
Note: The provided procedural record shows multiple actions; some entries (e.g., transmission to the Governor) may reflect clerical or sequencing irregularities in the record.
Potential impacts and practical considerations
- Legal uncertainty: Repeal could create gaps where statutory rules currently provide clarity (e.g., trustee powers, modification standards, spendthrift trusts, creditor claims).
- Transitional risk: Without savings provisions, existing trusts and ongoing litigation may lack clear governing authority.
- Need for legislative follow-up: Practitioners and stakeholders should watch companion SB 3065 and any amendments that provide replacement rules or transition measures.
- Advice for stakeholders: Review the full bill text, seek guidance from trust and estate counsel, and monitor committee hearings for proposed amendments or explanatory notes.
For a definitive assessment of consequences, consult the full bill text and committee report (to see whether the repeal includes transitional language or replacement provisions).
