Fiduciaries Generally


Fiduciaries. Raises from $5,000 to $10,000 the threshold amount of an estate for which (i) a fiduciary may qualify without giving surety on his bond, (ii) filing of an inventory is waived, and (iii) the filing of a probate tax return and payment of the tax is waived.
Patron - Watts

Appointment of new or substitute trustees. Clarifies that if a trustee moves out of the Commonwealth he is not disqualified unless continued residence is required by law. The bill also adds a catch-all to the list of disqualifiers so that a new trustee may be appointed if the existing trustee "for any other reason" becomes ineligible.
Patron - Howell

Trustee's standard of judgment and care required; authorized investments. Provides that a trustee under an irrevocable life insurance trust does not have a duty to (i) determine whether the policy is and remains a proper investment, (ii) dispose of such policy in order to diversify the investments of the trust, or (iii) exercise policy options under the contract not essential to the continuation of the policy. The bill does not otherwise affect the application of the standard of judgment and care of a fiduciary generally.
Patron - Howell

Commissioners of accounts. Authorizes the court, in its order authorizing the trust or additions thereto, to subject trustees of trusts created for minors in personal injury cases to the same duties to qualify and account as apply to testamentary trustees. The bill requires the clerk of the court to furnish the commissioner of accounts with copies of any orders appointing fiduciaries who qualified within the month and other relevant information, and with copies of any trustee's deed. Trustees are required to file an inventory with the commissioner within four months after receipt of any assets and the assets are to be valued in the inventory as of the date they are received by the trustee. The trustee's deed must include the trustee's mailing address. The provisions governing the filing of a list of heirs are simplified and various provisions are modified to reflect forms created by the Office of the Executive Secretary and provided to the clerks.
Patron - Deeds


Fiduciaries; commissioners of accounts. Requires that commissioners of accounts make an annual public report of fees earned, from the previous year, which is to be available for public inspection. The bill prohibits the appointment of any member of the General Assembly to serve as a commissioner of accounts. The bill does not affect legislators who are already commissioners.
Patron - Wardrup

Small estates. Increases from $5,000 to $10,000 the maximum value of an estate for purposes of (i) allowing fiduciaries to qualify without surety on their bond and (ii) waiving an inventory when an heir, beneficiary or creditor qualifies. The minimum value of an estate requiring the filing of a tax return is also increased from $5,000 to $10,000. Finally, the bill requires that the value of an estate for tax purposes is determined at the time of death, eliminating the alternate valuation date previously allowed under the federal estate tax law. The bill is recommended by the Judicial Council. This bill is incorporated into HB 344.
Patron - Tate

Carried Over

Uniform Prudent Investor Act. Adopts the uniform act, which is intended to facilitate reasonable investment practices by trustees. The bill adopts a standard of prudence which is applied to an investment as part of a total portfolio rather than to the individual investment; makes the fiduciary's central consideration an evaluation of risk versus return; allows investment in anything that meets the requirements of prudent investing; recognizes the need for diversification; and allows delegation of investment and management functions.
Patron - Clement