Bill H.622, introduced by Representative Bartley of Fairfax, seeks to authorize the creation of stewardship trusts in Vermont. The bill amends existing law by changing the maximum duration for a noncharitable trust from 21 years to 500 years. It also introduces a new section, 14A V.S.A. 409a, which outlines the establishment and governance of stewardship trusts. These trusts can be created for business purposes without a definite beneficiary and may pursue both economic and noneconomic benefits. The bill specifies that stewardship trusts can hold ownership interests in various business entities and establishes a framework for trust enforcers and a trust stewardship committee to oversee the trust's operations.

The stewardship trust governance structure includes provisions for appointing trust enforcers and a trust stewardship committee, which must consist of at least three members. The committee has the authority to take significant actions, such as removing trustees or directing distributions, and must report annually on the trust's financial status. Additionally, the bill stipulates that trustees must act according to the committee's directions unless doing so would breach fiduciary duties. The act is set to take effect upon passage, providing a new legal framework for stewardship trusts in Vermont.

Statutes affected:
As Introduced: 14A-409