Bill > HB2722

This bill amends the Kansas Uniform Trust Code to clarify that certain types of trusts, specifically "resultant trusts" (which are trusts that arise from the operation of law, often when property is transferred to someone who then holds it for the benefit of another), are not subject to claims from the original person who created the trust (the "settlor") or their creditors. This change is made by adding a new subsection (c) to an existing law, K.S.A. 58a-505, which generally outlines when trust property can be reached by creditors. The new provision carves out exceptions for specific situations involving irrevocable trusts that were created under certain federal tax code provisions related to marital deductions (sections 2523(e) and 2523(f) of the Internal Revenue Code) where the settlor is a beneficiary of the resultant trust, or when a resultant trust is funded by the exercise of a power of appointment by a spouse in an irrevocable trust created for that spouse's benefit, with the surviving spouse then being considered the settlor of the resultant trust. The bill also repeals the existing version of K.S.A. 58a-505, meaning the new provisions will replace the old ones.

Justice

Judiciary (House)

https://kslegislature.gov/li/b2025_26/measures/hb2722/