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Minutes for HB2144 - Committee on Judiciary
Short Title
Authorizing modification of a noncharitable irrevocable trust to provide that the rule against perpetuities is inapplicable, providing that the Kansas uniform statutory rule against perpetuities is inapplicable to trusts under certain circumstances and modifying the definition of resident trust in the Kansas income tax act.
Minutes Content for Wed, Feb 1, 2023
Chairperson Patton opened the hearing on HB2144. Natalie Scott provided an overview of the bill. (Attachment 3) Ms. Scott stood for questions.
Proponent
Will Bergman (Attachment 4) explained this bill, if passed, will bring more high paying jobs to Kansas, allow for Kansas trust companies to better market themselves nationally, and help modernize the Kansas Trust Code. HB2144 will allow Kansas trust companies to administer trusts with Rules Against Perpetuities and compete more fairly with other trusts companies nationally. Last year, the definition of resident trust was amended in Kansas to mean “a trust, which is administered in this state and was created by or consisting of property owned by a person domiciled in this state on the date the trust or portion of the trust became irrevocable.” This has been an important change because it has allowed for Kansas trust companies to provide services to individuals from other states without the risk of double taxation, as had previously been the case. This year, they are requesting that the additional requirement of “one income beneficiary who, on the last day of the taxable year, was a resident of the state”, be added to the definition because in certain older documents, the state of residence for the grantor is not disclosed. Mr. Bergman respectfully ask for favorable consideration so that we can provide the best service to our clients both in Kansas and across the nation from our headquarters in Kansas. He stood for questions.
Written Proponent
Joe Karnes, Legislative Representative, The Trust Division of Kansas Bankers Association (Attachment 5)
Written Neutral
Christy Molzen, Staff Attorney, Kansas Judicial Council (Attachment 6)
Chairperson Patton closed the hearing on HB2144.
Chairperson Patton indicated that Thursday's meeting would be dedicated to final action on bills previously heard. He adjourned the meeting at 4:21 pm.
