The bill S.11, introduced by Senator Chittenden, aims to authorize the creation of stewardship trusts in Vermont. It amends existing law regarding noncharitable trusts by increasing the maximum duration for which such trusts can be enforced from 21 years to 500 years. Additionally, it introduces a new section, 14A V.S.A. 409a, which outlines the specific provisions for stewardship trusts. These trusts can be established for business purposes without a definite beneficiary and may pursue both economic and noneconomic benefits. The bill also details the roles and responsibilities of trust enforcers and a trust stewardship committee, which must consist of at least three members who act as fiduciaries.

The stewardship trust framework includes provisions for appointing trust enforcers, managing vacancies on the stewardship committee, and allowing the committee to take significant actions such as removing trustees or directing distributions. The bill stipulates that trustees must act according to the committee's directions unless it contradicts the trust's terms or breaches fiduciary duties. Upon termination of a stewardship trust, the remaining property must be distributed according to the trust's terms or as determined by the court. The act is set to take effect upon passage.

Statutes affected:
As Introduced: 14A-409