Alaska State Legislature

News From The House Majority

Ken Freeman, Press Secretary
State Capitol
Juneau, AK 99801
Phone: (907) 465-3804
Actuality line: 1-800-478-6540
web site: http://www.akrepublicans.org

Family Trust Bill Moves To Senate Floor

For Immediate Release: March 10, 1997 Contact: Rep. Al Vezey (907) 465-3719

JUNEAU - Making Alaska a national and international center for administering trusts is the intent of legislation sponsored by Representative Al Vezey (R-North Pole) which passed out of the Senate Judiciary Committee last Friday and is on its way to the Senate floor.

According to Vezey, there is a strong demand for a means of preserving assets for future generations throughout the United States. The vehicle for doing this is called a trust. Across the U.S. there is a lack of a strong trust law.

"We are seeing literally billions of dollars being transferred off shore to foreign countries where laws provide for strong trusts that can preserve assets for future generations," said Vezey.

Vezey said HB 101 makes changes to Alaska's current trust law to provide for a stronger type of trust that is protected from future creditors and that can be maintained for an indefinite period of time.

"Alaska is in a unique position of having a relatively simple trust law that has not been amended numerous times and augmented by confusing case law. Alaska also has a unique advantage in that we do not have a personal income tax nor do we have a state sales tax," said Vezey.

Vezey said Alaska is in an enviable position of being able to meet the demands of a huge financial market.

"Alaska has the opportunity to establish itself as a major financial market for the U.S. and even the world," said Vezey. "There is a one-half trillion dollar industry waiting for a place to invest. Alaska, with its new and uncomplicated trust laws, is viewed by the financial community as a perfect choice."

Vezey said in order to attract these investments, certain changes have been suggested to the statutes governing trusts in Alaska.

"When enacted, these changes to Alaska law will open the door to in-state management of billions of dollars that are now going to offshore jurisdictions. According to the latest figures reported by the Congressional Joint Committee on Taxation, American families transferred over $460 billion off-shore in 1995," said Vezey.

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