The proposed bill amends Alaska's trust laws to enhance the privacy of settlors and beneficiaries in noncharitable trust proceedings by introducing a new subsection to AS 13.36.035. This new provision mandates that court records related to these proceedings be sealed and accessible only to specific parties, such as the settlor, trustees, beneficiaries, and court personnel, unless a compelling public interest is demonstrated. Additionally, the bill allows for nonjudicial settlement agreements among indispensable parties on various trust matters, provided these agreements do not violate the trust's material purpose.

Further amendments clarify the powers of authorized trustees, particularly regarding discretionary distributions and the establishment of ascertainable standards for trust management. The bill defines "authorized trustee" to include fiduciaries other than the settlor, expands the powers of trust protectors, and modifies the time limits for creditors to challenge fraudulent transfers from four years to one year. It also requires settlors to sign a sworn affidavit affirming their solvency at the time of initial trust funding and repeals certain existing provisions. The amended laws will apply to trusts created on or after the effective date of the Act, which is set to take effect immediately upon passage.

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