Alaska State Legislature

News From The House Majority

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

Measure To Strengthen Family Trust Law Passes Senate

Promotes Development of Financial Service Industry in Alaska

For Immediate Release: March 13, 1997 Contact: Rep. Al Vezey (907) 465-3719

JUNEAU - The Senate Thursday passed legislation to strengthen Alaska's Family Trust Law by a vote of 16-3. HB 101, sponsored by Representative Al Vezey, is intended to make Alaska a national and international center for administering trusts.

The House of Representatives passed HB 101 February 24. The House is expected to concur with minor changes made in the Senate.

Rep. Vezey said that several years ago he began researching to determine what could be done to stimulate economic development in the state of Alaska and how Alaska's financial markets could be expanded. Leaders in the banking and trust industry told him that there is a demand for a state with strong family trust law.

"I discovered that with a few minor changes in Alaska trusts laws, Alaska could become a very viable alternative for American families who in an attempt to preserve assets for future generations have opened off-shore trust accounts in the Caribbean that are valued in excess of $450 billion," Rep. Vezey said.

When asked in committee hearings how would Alaska let the word know about this new Alaska trust, Rep. Vezey responded that Alaska banks already have affiliations with national banking corporations, trust companies and insurance companies. He said he has heard estimates that the day the bill becomes effective, there will be dozens of very large trusts established in Alaska.

"We are in an enviable position of being able to meet the demands of a huge worldwide financial market. Alaska has no income tax, no sales tax, excellent communications and an ideal location relative to the world financial markets in London, New York, Tokyo and Hong Kong. In the process, Alaska has the opportunity to establish itself as a major financial market for the U.S. and even the world," said Vezey.

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