It is enacted by the General Assembly as follows:

SECTION 1. Chapter 18-4 of the general laws entitled "Powers of Fiduciaries" is hereby amended by adding thereto the following section:

{ADD 18-4-27. Validity of trusts. -- ADD} {ADD (a) A trust which is otherwise valid and which has been created by a written instrument, including but not limited to a trust the principal of which is composed in whole or in part of real property, shall not be held invalid for any one or more of the following reasons:

(1) Because the settlor or another person or both possess the power to revoke, amend, alter, or modify the trust in whole or in part;

(2) Because the settlor or another person or both possess the power to appoint by deed or will the persons and organizations to whom the income shall be paid or the principal distributed;

(3) Because the settlor or another person or both possess the power to add to, or withdraw from, the trust all or any part of the principal or income at one or at different times;

(4) Because the settlor or another person or both possess the power to remove the trustee or trustees and appoint a successor trustee or trustees:

(5) Because the settlor has retained the right to receive all or part of the income of the trust during his life or for any part thereof; or

(6) Because the settlor is the sole trustee and the sole current beneficiary of the trust during his lifetime.

(b) This section shall apply to all trusts created by written instrument, whether created before or after the effective date of this section, except where the validity of the trust is in issue in a case pending on the date of passage of this act.

(c) The doctrine of merger shall not apply to invalidate an otherwise valid revocable or irrevocable trust unless the legal title to the trust property and the entire beneficial interest, including future and contingent beneficial interests, become irrevocably united in one person who is not under an incapacity.

(d) If the beneficiary of a spendthrift trust having the entire beneficial interest in the trust property becomes without his consent the sole trustees, such beneficiary may procure the appointment of a new trustee and have the trust reconstituted.

(c) Nothing contained herein shall affect the validity of those accounts, including but not limited to bank accounts, share accounts, deposits, certificates of deposit, savings certificates, and other similar arrangements, heretofore or hereafter established at any bank, savings and loan association, or credit union by one or more persons, in trust for one or more other persons. ADD}

SECTION 2. This act shall take effect upon passage and it shall apply to all trusts whenever settled, except where the validity of the trust is in issue in a case pending on the date of passage of this act.