2016 -- S 2102

========

LC003983

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

____________

A N   A C T

RELATING TO PROPERTY - ESTATES IN REAL PROPERTY

     Introduced By: Senators Lombardi, Archambault, DiPalma, Conley, and Lombardo

     Date Introduced: January 21, 2016

     Referred To: Senate 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, title to real estate conveyed 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 on that account 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

to the effect 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 they have 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 apply retroactively to prior

deeds from and to a nominee trust.

========

LC003983

========

LC003983 - Page 2 of 3

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY - ESTATES IN REAL PROPERTY

***

     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 apply retroactively to prior deeds

from and to a nominee trust.

========

LC003983

========

LC003983 - Page 3 of 3