Juneau -- Once signed by the Governor, Senate Bill 162 could bring new money into Alaskan charities by creating perpetual charitable lead trusts. The bill sponsored by Senator Robin Taylor passed the house Thursday and will correct a technical tax problem created when the Alaska Trust Act was amended in 1997.

Under existing law, according to Taylor, "A typical perpetual charitable lead trust can not be created. This change allows such a trust to be established in perpetuity with all income going to the designated charity for 20 years before benefiting the creator's descendents. The remedial nature of the bill does not diminish the substantive rights of any beneficiary. A unique aspect of this bill goes far beyond Alaska's borders. Financial trusts in all 50 states could establish trusts for charities. By changing the common law rule, a portion of the trust those could continue to assist a charity for up to 110 years, provided required guidelines are met."

The change to the Alaska Trust Act creates an attractive financial environment for individuals and organizations across the country. In return Alaska charities will benefit from the proceeds created from the trusts.

SB 162 will be reconsidered tomorrow and returned to the Senate for concurrence.

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