The bill S.11, introduced by Senator Chittenden, aims to authorize the creation of stewardship trusts in Vermont. It amends existing law by changing the maximum duration for a noncharitable trust from 21 years to 500 years. Additionally, it introduces a new section, 14A V.S.A. 409a, which outlines the structure and governance of stewardship trusts. These trusts can be established for business purposes without a definite beneficiary and may seek both economic and noneconomic benefits. The bill specifies that stewardship trusts can hold ownership interests in various business entities and establishes a trust stewardship committee, which must consist of at least three fiduciary members.

The bill also details the roles and responsibilities of trust enforcers and the stewardship committee, including their authority to appoint successors, remove trustees, and manage trust property. It stipulates that a trustee must act according to the committee's directions unless it contradicts the trust's terms or breaches fiduciary duties. Furthermore, the bill allows for the modification or termination of a stewardship trust by unanimous agreement of the committee and trust enforcers. Upon termination, the trustee is required to distribute the remaining trust property 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