2016 -- S 2102

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LC003983

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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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:

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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 the provisions of

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

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conveyances of real estate by a trustee of a nominee trust are not on that account defective, and

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

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

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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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to the effect that the trustee has received the consent of each of the beneficiaries authorizing the

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action of the trustee as required by the nominee trust.

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     (b) A trustee executing a memorandum of trust and representing that they have obtained

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the consent of the beneficiaries shall be subject to personal liability to each of the beneficiaries as

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well as the grantees and the grantees' successors and/or assigns under the instrument purported to

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be executed with the consent of the beneficiaries, in the event such 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 apply retroactively to prior

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deeds from and to a nominee trust.

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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

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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 apply retroactively to prior deeds

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from and to a nominee trust.

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