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2013 -- S 0292 | |
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LC01020 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2013 | |
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A N A C T | |
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RELATING TO PROPERTY - ESTATES IN REAL PROPERTY | |
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Introduced By: Senators Walaska, and Bates | |
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Date Introduced: February 12, 2013 | |
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Referred To: Senate Judiciary | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Chapter 34-4 of the General Laws entitled "Estates in Real Property" is |
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hereby amended by adding thereto the following section: |
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34-4-30. Conveyance to or by nominee trust. – (a) Notwithstanding provisions of |
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section 34-4-27, conveyances of real estate to a nominee trust or to the trustee of a nominee trust |
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and conveyances of real estate by a trustee of a nominee trust are not defective, and the |
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conveyance shall be deemed valid so long as the following shall have occurred: |
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(1) A memorandum of trust pursuant to section 34-4-27 shall have been properly |
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prepared and recorded; and |
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(2) The trustee of the nominee trust shall include in the memorandum of trust a statement |
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that the trustee has received the consent of each of the beneficiaries authorizing the action of the |
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trustee as required by the nominee trust. |
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(b) A trustee, executing a memorandum of trust and representing that he/she/it has |
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obtained the consent of the beneficiaries, shall be subject to personal liability to each of the |
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beneficiaries as well as the grantees and the grantees’ successors and/or assigns under the |
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instrument purported to be executed with the consent of the beneficiaries, in the event such |
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consent was not obtained. |
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(c) A nominee trust is defined as a trust in which the trustee(s) is/are not granted |
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discretionary authority to act without the consent, concurrence or direction of the beneficiaries. |
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SECTION 2. This act shall take effect upon passage and shall have retroactive effect. |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO PROPERTY - ESTATES IN REAL PROPERTY | |
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This act would allow conveyances into and from nominee trusts pursuant to certain |
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requirements regarding the preparation and recording of a memorandum of trust. |
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This act would take effect upon passage and would have retroactive effect. |
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