Alaska Statutes Relating to Estate Planning and Estate and Trust Administration

FREQUENTLY USED ALASKA STATUTES FOR ESTATE PLANNING
Title 09: Code of Civil Procedure
09.38.025 - Exemption of unmatured life insurance and annuity contracts. 09.38.025(a) [AMENDED 2010] COMMENTARY: 2010 Alaska amendment provides exemption for life insurance and annuity contracts up to $500,000 of accrued dividends and loan values available to the individual.
Title 10: Corporations and Associations
10.45.050 - Issuance of shares. COMMENTARY: Professional corporation stock may be owned by revocable trust.
10.50.010-.995 - Alaska Revised Limited Liability Company Act. The following provisions are designed to maximize tax benefits for limited liability companies: 10.50.010 - Authorized purposes. 10.50.070 - Organizers. 10.50.125 - Tenure of manager. 10.50.150(c) - Authorization of company affairs. 10.50.155 - Membership requirements. 10.50.185 - Resignation of member. 10.50.265 - Liability of members to third parties. 10.50.400 - Dissolution. 10.50.405 - Dissolution by court. 10.50.570 - Conversion to limited liability company. 10.50.380 - A Rights of judgment creditors. COMMENTARY: Charging order is only remedy of creditor of a member.
Title 13: Decedents' Estates, Guardianship, Transfer, and Trusts
13.06.068 - Choice of law; validity. COMMENTARY: Allows probate of nonresident’s will.
13.06.120 [AMENDED 2010] - Pleadings; when parties bound by orders; notice. COMMENTARY: Virtual representation. 2010 amendment added designated representative.
13.12.205 [AMENDED 2010] - Decedent’s nonprobate transfers to others. COMMENTARY: 2010 amendment excludes DAPTs from augmented estate.
13.12.530-.590 [AMENDED 2010] - Establishment of Will and Trust Validity Before Death. COMMENTARY: 2010 amendment establishing pre-mortem probate and trust validity procedures.
13.12.720 - Family-owned business deduction.
13.16.055(a) [AMENDED 2010] COMMENTARY: 2010 amendment establishes venue for probate of nonresident decedent.
13.16.560 - Distribution in kind; valuation; method.
13.16.680 - Collection of personal property by affidavit. COMMENTARY: Affidavit procedure for estates less than $50,000.
13.33.101 - Nonprobate transfers on death. COMMENTARY: Subsection (d) provides that life insurance and retirement benefits are not subject to the debts of the insured or the participant no matter to whom the proceeds are paid, including the estate.
13.36.035(c) - Court jurisdiction; choice of law. COMMENTARY: Contacts necessary for Alaska law to apply; a key DAPT statute.
13.36.043 - Change of situs to Alaska. Various Uniform Trust Act provisions: 13.36.055 - Proceedings for review of employment of agents and review of compensation of trustee and employees of trust. 13.36.071 - Accepting or rejecting trusteeship. 13.36.072 - Co-trustees. 13.36.073 - Vacancy in trusteeship; appointment of successor. 13.36.074 - Resignation of trustee. 13.36.076 - Removal of trustee. 13.36.077 - Delivery of property by former trustee. 13.36.078 - Reimbursement of expenses. 13.36.105 - Powers attached to the office of trustee. 13.36.107 - General powers; fiduciary duties. 13.36.109 - Specific powers of trustees. 13.36.110 - Liability of trustee relating to exercise of power. 13.36.120 - Voting of corporate stock owned by trustee. 13.36.125 - Creation of trust bank account to pay special debts. 13.36.130 - Failure of beneficiary to present claim for payment. 13.36.135 - Holding stock in name of nominee. 13.36.140 - Loan of trust funds. 13.36.145 - Corporate trustee depositing trust funds with itself. 13.36.150 - Trustee buying from or selling to itself. 13.36.155 - Permitted sales between trusts held by same corporate trustee. 13.36.160 - Corporate trustee buying its own stock. 13.36.165 - Withdrawals from mingled trust funds. 13.36.170 - Unenforceable oral trust created by deed. 13.36.175 - Action on contract against trustee in representative capacity. 13.36.180 - Exoneration or reimbursement for tort. 13.36.185 - Tort liability of trust. 13.36.190 - Personal liability for tort committed by trustee. 13.36.192 - Power of settlor of trust. 13.36.194 - Power of beneficiary of trust. 13.36.196 - Relieving trustee of duties; power of the court. 13.36.198 - Liability for violations.
13.36.079 - Certification of trust; penalty.
13.36.080 - Duty to inform and account to beneficiaries. COMMENTARY: Includes exemptions from notice requirement while settlor is alive.
13.36.100 - Limitations on proceedings against trustees.
13.36.109 [AMENDED 2010] - Specific powers of trustees. COMMENTARY: 2010 amendment allows trustees to consider distributions as being made from capital gains.
13.36.110 - Liability of trustee relating to exercise of power.
13.36.153 - Restrictions on exercising certain trustee powers. COMMENTARY: Trustee tax savings provision.
13.36.157 - Trustee's special power to appoint to other trust. COMMENTARY: Trustee’s decanting power.
13.36.169 - Elections to qualify property for marital deduction and generation-skipping transfer tax allocations.
13.36.225-.285 - Uniform Prudent Investor Act.
13.36.310 - Challenges to trusts. COMMENTARY: DAPT claims protected.
13.36.320 - Nonqualified persons serving as trustees.
13.36.330 - Penalty clause. COMMENTARY: Incontestability clause enforceable even if probable cause exists for instituting the proceedings.
13.36.335 - Application of special distribution provisions. COMMENTARY: Distribution provisions relating to administration of estates also apply to administration of revocable trusts.
13.36.338 - Presumption of revocability.
13.36.340 - Modification and revocation of revocable trusts.
13.36.345 - Modification or termination of irrevocable trusts because of unanticipated circumstances.
13.36.350 - Reformation to correct mistakes in irrevocable trusts.
13.36.355 - Construction of trust to achieve settlor's tax objectives.
13.36.360 - Modification or termination of irrevocable trust by consent.
13.36.365 - Uneconomical irrevocable trust.
13.36.368 - Claims against revocable trusts. COMMENTARY: Provides a claim procedure for revocable trusts similar to the procedure for the administration of estates.
13.36.370 - Trust protector.
13.36.375 - Trustee advisor.
13.36.390(2) - Definitions: Qualified Person. COMMENTARY: Requirements for Alaska trustee.
13.38.200-.990 - Alaska Principal and Income Act. 13.38.210 - Trustee's power to adjust. 13.38.300 - Power to convert to unitrust. 13.38.730 - Property not productive of income. COMMENTARY: Marital deduction savings clause.
13.70.010-.195 [AMENDED 2010] - Uniform Disclaimer of Property Interests Act. COMMENTARY: Uniform Disclaimer of Property Interests Act with various Alaska changes.
13.70.110 [AMENDED 2010] - When disclaimer permitted, barred, or limited. COMMENTARY: Disclaimer permitted even though disclaimant is insolvent.
Title 14: Education, Libraries, and Museums
14.40.802 - Alaska Higher Education Savings Trust COMMENTARY: Alaska’s section 529 plan provisions.
Title 21: Insurance
21.09.210 - Tax COMMENTARY: Excess premium tax on life insurance.
Title 32: Partnership
32.11.010-.990 - Alaska Revised Limited Partnership Act. The following provisions are designed to maximize tax benefits and creditor protection for limited partnerships: 32.11.095 - Conversion of certain entities to a limited partnership. 32.11.260 - Withdrawal of limited partner. 32.11.370 - Dissolution. 32.11.380 - Judicial dissolution. 32.11.835 - Amendment of partnership agreement.
32.11.340 - Rights of creditor. COMMENTARY: Charging order is only remedy of a creditor of a limited partner.
Title 34: Property
34.25.055 - Conveyances to or from trusts.
34.27.051 - Statutory rule against perpetuities. COMMENTARY: 1,000 year perpetuities provision.
34.27.053 - Savings provision.
34.27.070 - Application.
34.27.075 - Relationship to common law rule.
34.27.100 - Suspension of the power of alienation.
34.40.110 - Restricting transfers of trust interests. COMMENTARY: Spendthrift trust provision; a key DAPT statute.
34.40.110(b) [AMENDED 2010] COMMENTARY: 2010 amendment clarified burden of proof; DAPT settlor can remove and replace trustees and trust protector; DAPT can be governed by a standard or absolute discretion; DAPT trustee can reimburse settlor for income tax.
34.40.110(l) - Divorce: protection of beneficiary's interest in trust.
34.40.115 - Subjecting appointed property to claims of donee's creditor. COMMENTARY: Generally, property that donee of a power of appointment is authorized to appoint is not subject to the claims of creditors of the donee.
34.77.010 - .995 - Alaska Community Property Act. 34.77.030 - Classification of property of spouses. 34.77.060 - Certain property transactions between spouses. 34.77.070 - Obligations of spouses. COMMENTARY: An obligation of only one spouse may be satisfied from only that spouse’s one-half of the community property. How to opt¬-in to Alaska’s community property system. 34.77.090 - Community property agreement. 34.77.100 - Community property trust. 34.77.155 - Division of community property at death. COMMENTARY: Aggregate system; non-pro rata division allowed.

FREQUENTLY USED ALASKA STATUTES FOR ESTATE PLANNING

Title 09: Code of Civil Procedure

09.38.025 - Exemption of unmatured life insurance and annuity contracts.

09.38.025(a) [AMENDED 2010]

COMMENTARY: 2010 Alaska amendment provides exemption for life insurance and annuity contracts up to $500,000 of accrued dividends and loan values available to the individual.

Title 10: Corporations and Associations

10.45.050 - Issuance of shares.

COMMENTARY: Professional corporation stock may be owned by revocable trust.

10.50.010-.995 - Alaska Revised Limited Liability Company Act.

The following provisions are designed to maximize tax benefits for limited liability companies:

10.50.010 - Authorized purposes.
10.50.070 - Organizers.
10.50.125 - Tenure of manager.
10.50.150(c) - Authorization of company affairs.
10.50.155 - Membership requirements.
10.50.185 - Resignation of member.
10.50.265 - Liability of members to third parties.
10.50.400 - Dissolution.
10.50.405 - Dissolution by court.
10.50.570 - Conversion to limited liability company.

10.50.380 - A Rights of judgment creditors.

COMMENTARY: Charging order is only remedy of creditor of a member.

Title 13: Decedents' Estates, Guardianship, Transfer, and Trusts

13.06.068 - Choice of law; validity.

COMMENTARY: Allows probate of nonresident’s will.

13.06.120 [AMENDED 2010] - Pleadings; when parties bound by orders; notice.

COMMENTARY: Virtual representation. 2010 amendment added designated representative.

13.12.205 [AMENDED 2010] - Decedent’s nonprobate transfers to others.

COMMENTARY: 2010 amendment excludes DAPTs from augmented estate.

13.12.530-.590 [AMENDED 2010] - Establishment of Will and Trust Validity Before Death.

COMMENTARY: 2010 amendment establishing pre-mortem probate and trust validity procedures.

13.12.720 - Family-owned business deduction.

13.16.055(a) [AMENDED 2010]

COMMENTARY: 2010 amendment establishes venue for probate of nonresident decedent.

13.16.560 - Distribution in kind; valuation; method.

13.16.680 - Collection of personal property by affidavit.

COMMENTARY: Affidavit procedure for estates less than $50,000.

13.33.101 - Nonprobate transfers on death.

COMMENTARY: Subsection (d) provides that life insurance and retirement benefits are not subject to the debts of the insured or the participant no matter to whom the proceeds are paid, including the estate.

13.36.035(c) - Court jurisdiction; choice of law.

COMMENTARY: Contacts necessary for Alaska law to apply; a key DAPT statute.

13.36.043 - Change of situs to Alaska.

Various Uniform Trust Act provisions:

13.36.055 - Proceedings for review of employment of agents and review of compensation of trustee and employees of trust.
13.36.071 - Accepting or rejecting trusteeship.
13.36.072 - Co-trustees.
13.36.073 - Vacancy in trusteeship; appointment of successor.
13.36.074 - Resignation of trustee.
13.36.076 - Removal of trustee.
13.36.077 - Delivery of property by former trustee.
13.36.078 - Reimbursement of expenses.
13.36.105 - Powers attached to the office of trustee.
13.36.107 - General powers; fiduciary duties.
13.36.109 - Specific powers of trustees.
13.36.110 - Liability of trustee relating to exercise of power.
13.36.120 - Voting of corporate stock owned by trustee.
13.36.125 - Creation of trust bank account to pay special debts.
13.36.130 - Failure of beneficiary to present claim for payment.
13.36.135 - Holding stock in name of nominee.
13.36.140 - Loan of trust funds.
13.36.145 - Corporate trustee depositing trust funds with itself.
13.36.150 - Trustee buying from or selling to itself.
13.36.155 - Permitted sales between trusts held by same corporate trustee.
13.36.160 - Corporate trustee buying its own stock.
13.36.165 - Withdrawals from mingled trust funds.
13.36.170 - Unenforceable oral trust created by deed.
13.36.175 - Action on contract against trustee in representative capacity.
13.36.180 - Exoneration or reimbursement for tort.
13.36.185 - Tort liability of trust.
13.36.190 - Personal liability for tort committed by trustee.
13.36.192 - Power of settlor of trust.
13.36.194 - Power of beneficiary of trust.
13.36.196 - Relieving trustee of duties; power of the court.
13.36.198 - Liability for violations.

13.36.079 - Certification of trust; penalty.

13.36.080 - Duty to inform and account to beneficiaries.

COMMENTARY: Includes exemptions from notice requirement while settlor is alive.

13.36.100 - Limitations on proceedings against trustees.

13.36.109 [AMENDED 2010] - Specific powers of trustees.

COMMENTARY: 2010 amendment allows trustees to consider distributions as being made from capital gains.

13.36.110 - Liability of trustee relating to exercise of power.

13.36.153 - Restrictions on exercising certain trustee powers.

COMMENTARY: Trustee tax savings provision.

13.36.157 - Trustee's special power to appoint to other trust.

COMMENTARY: Trustee’s decanting power.

13.36.169 - Elections to qualify property for marital deduction and generation-skipping transfer tax allocations.

13.36.225-.285 - Uniform Prudent Investor Act.

13.36.310 - Challenges to trusts.

COMMENTARY: DAPT claims protected.

13.36.320 - Nonqualified persons serving as trustees.

13.36.330 - Penalty clause.

COMMENTARY: Incontestability clause enforceable even if probable cause exists for instituting the proceedings.

13.36.335 - Application of special distribution provisions.

COMMENTARY: Distribution provisions relating to administration of estates also apply to administration of revocable trusts.

13.36.338 - Presumption of revocability.

13.36.340 - Modification and revocation of revocable trusts.

13.36.345 - Modification or termination of irrevocable trusts because of unanticipated circumstances.

13.36.350 - Reformation to correct mistakes in irrevocable trusts.

13.36.355 - Construction of trust to achieve settlor's tax objectives.

13.36.360 - Modification or termination of irrevocable trust by consent.

13.36.365 - Uneconomical irrevocable trust.

13.36.368 - Claims against revocable trusts.

COMMENTARY: Provides a claim procedure for revocable trusts similar to the procedure for the administration of estates.

13.36.370 - Trust protector.

13.36.375 - Trustee advisor.

13.36.390(2) - Definitions: Qualified Person.

COMMENTARY: Requirements for Alaska trustee.

13.38.200-.990 - Alaska Principal and Income Act.

13.38.210 - Trustee's power to adjust.
13.38.300 - Power to convert to unitrust.
13.38.730 - Property not productive of income.

COMMENTARY: Marital deduction savings clause.

13.70.010-.195 [AMENDED 2010] - Uniform Disclaimer of Property Interests Act.

COMMENTARY: Uniform Disclaimer of Property Interests Act with various Alaska changes.

13.70.110 [AMENDED 2010] - When disclaimer permitted, barred, or limited.

COMMENTARY: Disclaimer permitted even though disclaimant is insolvent.

Title 14: Education, Libraries, and Museums

14.40.802 - Alaska Higher Education Savings Trust

COMMENTARY: Alaska’s section 529 plan provisions.

Title 21: Insurance

21.09.210 - Tax

COMMENTARY: Excess premium tax on life insurance.

Title 32: Partnership

32.11.010-.990 - Alaska Revised Limited Partnership Act.

The following provisions are designed to maximize tax benefits and creditor protection for limited partnerships:

32.11.095 - Conversion of certain entities to a limited partnership.
32.11.260 - Withdrawal of limited partner.
32.11.370 - Dissolution.
32.11.380 - Judicial dissolution.
32.11.835 - Amendment of partnership agreement.

32.11.340 - Rights of creditor.

COMMENTARY: Charging order is only remedy of a creditor of a limited partner.

Title 34: Property

34.25.055 - Conveyances to or from trusts.

34.27.051 - Statutory rule against perpetuities.

COMMENTARY: 1,000 year perpetuities provision.

34.27.053 - Savings provision.

34.27.070 - Application.

34.27.075 - Relationship to common law rule.

34.27.100 - Suspension of the power of alienation.

34.40.110 - Restricting transfers of trust interests.

COMMENTARY: Spendthrift trust provision; a key DAPT statute.

34.40.110(b) [AMENDED 2010]

COMMENTARY: 2010 amendment clarified burden of proof; DAPT settlor can remove and replace trustees and trust protector; DAPT can be governed by a standard or absolute discretion; DAPT trustee can reimburse settlor for income tax.

34.40.110(l) - Divorce: protection of beneficiary's interest in trust.

34.40.115 - Subjecting appointed property to claims of donee's creditor.

COMMENTARY: Generally, property that donee of a power of appointment is authorized to appoint is not subject to the claims of creditors of the donee.

34.77.010 - .995 - Alaska Community Property Act.

34.77.030 - Classification of property of spouses.
34.77.060 - Certain property transactions between spouses.
34.77.070 - Obligations of spouses.

COMMENTARY: An obligation of only one spouse may be satisfied from only that spouse’s one-half of the community property. How to opt¬-in to Alaska’s community property system.

34.77.090 - Community property agreement.
34.77.100 - Community property trust.
34.77.155 - Division of community property at death.

COMMENTARY: Aggregate system; non-pro rata division allowed.