2014 -- H 7301

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LC003437

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO PROPERTY - ESTATES IN REAL PROPERTY

     Introduced By: Representatives Keable, and Lally

     Date Introduced: January 30, 2014

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 34-4 of the General Laws entitled "Estates in Real Property" is

hereby amended by adding thereto the following section:

     34-4-30. Conveyance to or by nominee trust. – (a) Notwithstanding the provisions of §

34-4-27, conveyances of real estate to a nominee trust or to the trustee of a nominee trust, and

conveyances of real estate by a trustee of a nominee trust are not defective, and the conveyance

shall be deemed valid so long as the following shall have occurred:

     (1) A memorandum of trust pursuant to § 34-4-27 shall have been properly prepared and

recorded; and

     (2) The trustee of the nominee trust shall include in the memorandum of trust a statement

that the trustee has received the consent of each of the beneficiaries authorizing the action of the

trustee as required by the nominee trust.

     (b) A trustee, executing a memorandum of trust and representing that he/she/it has

obtained the consent of the beneficiaries, shall be subject to personal liability to each of the

beneficiaries as well as the grantees and the grantees’ successors and/or assigns under the

instrument purported to be executed with the consent of the beneficiaries, in the event such

consent was not obtained.

     (c) A nominee trust is defined as a trust in which the trustee(s) is/are not granted

discretionary authority to act without the consent, concurrence or direction of the beneficiaries.

     SECTION 2. This act shall take effect upon passage, and shall have retroactive effect.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY - ESTATES IN REAL PROPERTY

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     This act would allow conveyances to and from nominee trusts pursuant to certain

requirements regarding the preparation and recording of a memorandum of trust.

     This act would take effect upon passage, and would have retroactive effect.

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LC003437

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