Uniform Trust Code: Difference between revisions

Revision as of 12:28, 15 February 2025

Revision as of 01:04, 18 March 2025

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==Background==

The increased use of trusts[[Trust (law)|trust]]s in [[estate planning]] during the latter half of the 20th century highlighted inconsistencies in how trust law was governed across the United States. In 1993, recognizing the need for a more uniform approach, the [[Uniform Law Commission]] (ULC) appointed a study committee chaired by Justice [[Maurice A. Hartnett III]] of the [[Delaware Supreme Court]]. This committee's task was to assess the necessity and feasibility of developing a comprehensive and standardized model uniform trust code. Following the committee's recommendation in 1994, the ULC established a drafting committee, again led by Justice Hartnett. This committee aimed for broad representation and included legal experts from various organizations, such as the [[American Bar Association]] (ABA) and its Section of Real Property, Probate and Trust Law, the [[American College of Trust and Estate Counsel]] (ACTEC), the [[American Bankers Association]], and state bar associations from California and Colorado.<ref name="English 2002">{{cite journal |last1=English |first1=David |title=The Uniform Trust Code (2000): Significant Provisions and Policy Issues |journal=Missouri Law Review |date=2002 |volume=67 |issue=2 |pages=143–212 |url=https://scholarship.law.missouri.edu/mlr/vol67/iss2/2/ |access-date=3 July 2024}}</ref>

The UTC's development did not occur in isolation. It drew upon existing legal resources, such as the Restatement of Trusts and the Restatement of Property. Additionally, the UTC incorporated provisions from smaller, more specific uniform acts related to trusts while also superseding some outdated ones (including Article VII of the [[Uniform Probate Code]], the [[Uniform Prudent Investor Act]] of 1994, the Uniform Trustee and Powers Act of 1964, and the Uniform Trusts Act of 1937).<ref name="English 2002"/>

The drafting committee undertook a deliberate process from 1994 to 2000. To ensure comprehensive input, they consulted with advisors and legal groups like the Joint Editorial Board for Uniform Trusts and Estates Acts and ACTEC's Committee on State Laws. The final text of the Uniform Trust Code (UTC) was approved by the ULC commissioners in August 2000. The American Bar Association's House of Delegates officially endorsed the UTC in February 2001. The following months saw the finalization of detailed interpretive comments in April 2001 and minor clean-up revisions in August 2001.<ref name="English 2002"/> In 2002, Kansas became the first state to enact a version of the code.<ref>{{cite web |title=Kansas is first to enact Uniform Trust Code |website=Kansas City Business Journal |date=20 May 2002 |url=https://www.bizjournals.com/kansascity/stories/2002/05/20/daily24.html |access-date=3 July 2024}}</ref>