Bill > H0622

This bill modifies existing Vermont law to authorize the creation of "stewardship trusts," which are a new type of trust designed for business purposes that may pursue both economic and non-economic benefits without requiring a specific, identifiable beneficiary. The bill amends current law regarding noncharitable trusts to extend their duration from 21 to 500 years, and it introduces a new section that details the structure and operation of stewardship trusts. These trusts can hold ownership interests in various business entities and will be overseen by "trust enforcers" who are responsible for ensuring the trust's purpose is met and will act as fiduciaries. Additionally, a "trust stewardship committee" with at least three members, also acting as fiduciaries, will be established to oversee the trust's operations, with the power to appoint and remove trustees and trust enforcers, direct distributions, and exercise rights related to trust assets. The trustee of a stewardship trust is generally required to follow the directions of the trust stewardship committee and has limited liability. The bill also outlines procedures for filling vacancies on the stewardship committee, resignation of committee members and trust enforcers, and the reporting requirements for the committee. Finally, it specifies that the trust stewardship committee and trust enforcers, acting together, can modify or terminate the trust by unanimous agreement, and upon termination, remaining property will be distributed according to the trust's terms or by court order. Importantly, individuals serving as a trustee cannot also serve as a trust enforcer or committee member, and trust enforcers cannot serve on the stewardship committee.

Justice

https://legislature.vermont.gov/bill/status/2026/H.622