AN ACT RELATING TO APPLICABILITY OF AN ACT REGARDING TRUSTEES
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. FINDINGS; PURPOSE
(a) The general assembly finds that, in 2004, the general assembly determined during deliberations on H.747, an act relating to removal and replacement of trustees upon petition by a beneficiary or co-trustee, that there were problems in the administration of certain existing trusts and potentially with trusts created subsequent to the passage of the act. The general assembly further finds that No. 106 of the Acts of the 2003 Adj. Sess. (2004) was enacted to solve those problems by tightening up the process and changing the venue of the decision to ensure the wishes of the grantor are honored, not by changing the obligations of the trust contract.
(b) The purpose of this bill is to make clear that the intent of the general assembly in enacting the act authorizing the replacement of trustees was to have the act apply to trusts in existence at the time as well as trusts created after the passage of the act.
Sec. 2. 14 V.S.A. § 2314(e) is added to read:
(e) A court may order trustees who are replaced pursuant to an action brought under this section to reimburse the trust for attorney fees and court costs paid by the trust relating to the action.
Sec. 3. TRUSTEE REMOVAL ACT APPLIES TO EXISTING TRUSTS
Sec. 2 of No. 106 of the Acts of the 2003 Adj. Sess. (2004) shall apply both to trusts existing at the time of the effective date of the act and to trusts created thereafter.
The Vermont General Assembly
115 State Street