Connie Eyster, CBA Trust & Estate Section and chair of subcommittee reviewing Part 5, explained that this part deals with creditor's rights to trust assets and was reserved for further review when the rest of the act was enacted. The subcommittee has reached consensus on Part 5 and is recommending some clarifications regarding limitations of actions, what is not a distribution, and some exceptions for special needs trusts. More significant variations adopted include who are the creditors and exceptions to the spendthrift clauses, self-settlor trusts, and third-party beneficiaries. Twenty of the 33 states that have enacted the act have amended or not enacted the language in the creditors and exceptions section. The final change concerns preserving Colorado case law regarding power of appointments.
The commission asked whether the proposed changes would prevent this from being a uniform law. Ms. Eyster answered that she did not know, but can only say that other states that have made amendments seem to still be considered uniform. She added that the review is complete and has been approved by the section and is waiting for approval from the CBA Legislative Policy Committee.
Commissioner Gardner moved to draft the Uniform Trust Act, Part 5, as amended by the CBA. Commissioner Morris seconded and the motion passed without objection. The commission thanked the CBA for the thoroughness of their review and their assistance in moving this forward.