2012 -- S 2668

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LC01897

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO PROPERTY - ESTATES IN REAL PROPERTY

     

     

     Introduced By: Senators Jabour, Pinga, and Walaska

     Date Introduced: March 01, 2012

     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 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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LC01897

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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 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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LC01897

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S2668