The bill amends the Kansas uniform trust code, specifically K.S.A. 58a-505, to clarify the treatment of spendthrift and discretionary trusts in relation to creditors of the settlor. It establishes that certain resultant trusts are not subject to claims from the settlor's creditors, thereby providing additional protection for these trusts. The bill outlines that during the settlor's lifetime, the property of a revocable trust remains subject to creditor claims, while for irrevocable trusts, creditors can only access the maximum amount that can be distributed to the settlor. After the settlor's death, the property of a revocable trust is also subject to claims, costs of administration, and other expenses related to the settlor's estate.

Additionally, the bill includes specific provisions that exempt certain types of irrevocable trusts from creditor claims, particularly those that are reversionary trusts or resultant trusts funded by the exercise of a power of appointment by the settlor's spouse. The existing section of K.S.A. 58a-505 is repealed, and the new legal language is inserted to reflect these changes. The act will take effect upon its publication in the statute book.

Statutes affected:
As introduced: