This 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, enabling essential parties to enter binding agreements on trust matters without violating the trust's material purpose. It also clarifies the powers of trustees, allowing them to make discretionary distributions and establish appointed trusts without needing consent from the settlor or interested parties, although court approval can be sought.

Further changes include the introduction of the term "authorized trustee," which refers to a trustee or fiduciary, excluding the settlor, with the power to distribute trust principal to current beneficiaries. The definition of "beneficiary" is clarified to encompass individuals who may receive income or principal from a trust, even if their interest is contingent. The bill reduces the time frame for creditors to bring actions regarding fraudulent transfers from four years to one year and requires settlors to sign a sworn affidavit affirming their solvency at the time of initial trust funding. It also introduces provisions for trust protectors to modify trust instruments and issue notices of proposed actions, while several sections of existing law are repealed. The new provisions will apply to trusts created on or after the effective date of the Act, which is set to take effect immediately.

Statutes affected:
HB0277A, AM HB 277, 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