This bill amends existing trust laws in Alaska to introduce provisions for nonjudicial settlement agreements, allowing indispensable parties to resolve trust matters without court approval, provided the agreements do not violate the trust's material purpose. The bill outlines various matters that can be addressed through these agreements, such as the investment of trust assets, modification of trust terms, and the appointment of trustees. Additionally, it establishes that a nonjudicial settlement agreement becomes effective once signed by all indispensable parties and allows for court approval of such agreements if necessary.

The bill also modifies the statute of limitations for claims against trustees by introducing a new provision that bars potential claims if a report disclosing those claims is approved in a nonjudicial settlement agreement. Furthermore, it allows for the modification or termination of irrevocable trusts with the consent of all beneficiaries, establishing a rebuttable presumption that such actions are justified if the settlor consents. The bill repeals a previous subsection related to trust modification and clarifies its applicability to trusts created after the bill's effective date.

Statutes affected:
SB0225A, AM SB 225, introduced 01/23/2026: 13.36.035, 13.36.060, 13.36.057, 13.36.115, 13.06.050, 13.36.079, 13.36.157, 13.36.158, 13.36.159, U.S.C, 13.06.120, 13.36.215, 13.36.370, 34.40.110
SB0225B, AM CSSB 225(L&C), introduced 03/25/2026: 13.36.035, 13.36.100, 13.06.120, 13.06.050, 13.36.057, 13.36.360, 34.40.110