2009 -- S 0270

=======

LC00968

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2009

____________

A N A C T

RELATING TO FIDUCIARIES -- TRUSTEE POWERS

     Introduced By: Senators DiPalma, Sosnowski, Gallo, Felag, and C Levesque

     Date Introduced: February 11, 2009

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 18-4-2 of the General Laws in Chapter 18-4 entitled "Powers of

1-2

Fiduciaries" is hereby amended to read as follows:

1-3

     18-4-2. Powers of trustees. -- (a) Every trust, inter vivos or testamentary, previously or

1-4

subsequently effective, in which no provision is made to the contrary, shall be deemed to give to

1-5

the trustees or trustee under the trust for the time being, in addition to any other power they may

1-6

lawfully have, full power in their, his, or her discretion, or if a corporation in the discretion of its

1-7

duly authorized officer or committee:

1-8

      (1) To invest and reinvest the trust estate, or any part of it, in real or personal property,

1-9

foreign or domestic, including, without limiting the generality of the preceding provisions,

1-10

savings accounts of banks and trust companies and shares of stock or other securities of

1-11

corporations, building and loan associations, investment trusts, and investment companies, and to

1-12

vary from time to time the investments of the trust estate;

1-13

      (2) To exercise discretionary powers of sale, lease, partition by suit or deed, and

1-14

exchange over the trust estate, or any part of it, whether real or personal property; in case of any

1-15

sale, to sell at public or private sale, for cash or on credit and together or in parcels; in case of any

1-16

lease, to lease for a period that the trustees or trustee shall deem advisable, whether terminating

1-17

during the continuance of the trusts or thereafter; and in case of any partition or in case of any

1-18

exchange, to give or receive money for equality of partition or exchange;

1-19

      (3) To appoint a proxy or proxies, with or without power of substitution, to vote shares

2-1

of a corporation or association included in the trust estate as directed or in a manner that the

2-2

proxy or proxies shall deem best;

2-3

      (4) To participate in, assent to, or disapprove any plan for the reorganization,

2-4

recapitalization, consolidation, merger, winding up, or readjustment of the indebtedness of any

2-5

corporation or association, and to take any and all action required by reason of participation in the

2-6

plan; and

2-7

      (5) Upon the termination of any trust with respect to any portion of the trust estate, to set

2-8

aside the portion from the remainder of the trust estate; upon the termination of any trust with

2-9

respect to the entire trust estate, or any part of it, to partition the trust estate into the shares, if any,

2-10

in which it is distributable; and in connection with the setting aside of any portion or any partition

2-11

to exercise the power of sale conferred by this section upon the trustees or trustee, and to allocate

2-12

to any share in or part of the trust estate specific investments at their fair value at the time of

2-13

allocation as determined by the trustees or trustee acting in good faith.

2-14

     (6) To donate a conservation easement on any real property in order to obtain the benefit

2-15

of the estate tax exclusion allowed under sections 170 and 2031(c), respectively, of the United

2-16

States Internal Revenue Code of 1986, as amended, if:

2-17

     (i) Each party who has an interest in the real property that would be affected by the

2-18

conservation easement consents in writing to the donation, or

2-19

     (ii) The trust instrument directs, requires or permits a donation of a conservation

2-20

easement in gross, in which case no consent shall be required.

2-21

      (b) The trustees or trustee may be authorized by the superior court to execute any or all

2-22

of the powers set forth in subdivisions (a)(1) to (a)(5) of this section, upon the terms and

2-23

conditions that the court may deem proper, notwithstanding any provision of any trust instrument

2-24

which is or may possibly be deemed to be inconsistent with the exercise of any of these powers,

2-25

if, in the opinion of the court, authority to exercise the power or powers is or may become

2-26

necessary or desirable to enable the trustees or trustee to properly perform the duties and

2-27

accomplish the purposes of the trust, the authorization to be granted only upon written application

2-28

to a justice of the court and upon the notice, if any, that the justice may direct.

2-29

     SECTION 2. This act shall take effect upon passage.

=======

LC00968

=======

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO FIDUCIARIES -- TRUSTEE POWERS

***

3-1

     This act would expand the powers of a trustee to allow them to donate a conservation

3-2

easement on any real property in order to obtain the benefit of the state tax exclusion.

3-3

     This act would take effect upon passage.

=======

LC00968

=======