House advances two uniform trust bills to third reading after committee reports

The Vermont House ordered two uniform trust bills to third reading after floor presentations and committee reports Thursday.

Representative Adriano, speaking for committees, told members H.279, the Uniform Trust Decanting Act, would put statutory "guardrails" around trust decanting — the practice of pouring assets from one trust into another to better serve beneficiaries. The bill, placed in chapter 14a of the Vermont Statutes Annotated, sets definitions, limits the statute to irrevocable trusts (excluding purely charitable trusts), requires beneficiary notice (§1407), sets rules for principal place of administration (§1405), and addresses tax and perpetuities concerns (§1419, §1420). Adriano said decanting currently occurs under common law in Vermont and the statute is intended to increase clarity for trustees and beneficiaries.

H.350, the Uniform Directed Trust Act, also drew floor explanation from Adriano. The bill defines "trust director" roles and clarifies duties and liabilities for both trust directors and directed trustees (sections §1306–§1316), specifies limitations on director powers (§1305), and sets standards for information sharing (§1310). Adriano said the measures align Vermont law with uniform‑law recommendations and were vetted by the Vermont Bar Association, Vermont Bankers Association and other practitioners.

Both bills were reported favorably out of Judiciary and Ways and Means; the floor record shows Judiciary committee votes and Ways and Means reviews supporting the measures. Committee testimony included attorneys, banking representatives, probate judges and financial advisors. The House recorded committee passage and then ordered each bill read a third time.

What happens next: Third‑reading consideration will follow the chamber's rules; if passed on third reading the bills would move to the Senate for its consideration or to any further steps required by law.