Bill S.11, introduced by Senator Chittenden, seeks to establish the framework for creating stewardship trusts in Vermont. The bill amends existing law by changing the maximum duration for noncharitable trusts from 21 years to 500 years. It introduces a new section, 14A V.S.A. 409a, which outlines the specific provisions for stewardship trusts, allowing them to be created for business purposes without a definite beneficiary and enabling them to pursue both economic and noneconomic benefits. The stewardship trust can hold ownership interests in various business entities and is enforced by appointed trust enforcers who act as fiduciaries.

Additionally, the bill mandates the formation of a trust stewardship committee consisting of at least three members, who also act as fiduciaries. This committee has the authority to manage the trust, including appointing or removing trustees and enforcers, and must report annually on the trust's financial status. The bill stipulates that trustees must follow directions from the stewardship committee unless such actions conflict with the trust's terms or fiduciary duties. The act is set to take effect upon passage, thereby allowing for the immediate establishment of stewardship trusts in Vermont.

Statutes affected:
As Introduced: 14A-409