Attorneys tell Senate committee SB225 will let Alaskans modify trusts outside court

At the Senate Labor and Commerce Committee hearing on March 23, several Alaska trust and estate practitioners testified in support of a committee substitute to Senate Bill 225 that would allow parties to resolve certain trust matters outside of court when all interested parties agree.

Peter Bridal, a tax and estate planning attorney in Anchorage, said the change would let Alaska "modify trusts without judicial involvement when all the parties are in agreement," helping the state remain competitive with jurisdictions such as Delaware and Nevada. "It's very important that we get it adopted to make us more competitive," Bridal said.

Matthew Blomacher of Peak Trust Company likewise expressed support for the CS, saying it would advance Alaska and create court efficiencies. Miriam Hall, who read a prepared statement, called Alaska a leading jurisdiction for trust planning and said the CS's nonjudicial settlement agreement provisions reflect input from Alaska practitioners and would reduce costs and delays for families. Chelsea Ricola, an estate attorney at Foley Pearson Ricola Iverson (DC) and a drafting-committee participant, said she had twice recently sought judicial modifications for outdated trusts and that the CS would allow parties to modify trusts by consent outside the court system, reducing time and expense for constituents.

Conrad Jackson, staff to Senator Bjorkman, summarized the CS: it replaces significant portions of the original bill with a new section addressing nonjudicial settlement agreements; includes conforming changes; establishes limits on claims, repeals AS 13.36.360(b) and contains applicability language making the changes effective only for trusts created on or after the bill's effective date. The committee adopted the CS as the working document and, without objection, reported SB225 from committee "with individual recommendations and attached fiscal note."

What happens next: Reported from committee, SB225 will advance to the Senate calendar for further consideration. Supporters at the hearing urged the committee to pass provisions that will allow Alaska to align trust practice with other trust-friendly jurisdictions and reduce court workload.