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

Legislature Passes Measure To Strengthen Family Trusts

Promotes Development of Financial Service Industry in Alaska

For Immediate Release: March 19, 1997 Contact: Rep. Al Vezey (907) 465-3719

JUNEAU - Strengthening Alaska's Family Trust laws to make the state a national and international center for administering trusts is the intent of legislation recently passed by the Alaska State Legislature. HB 101, sponsored by Representative Al Vezey, was transmitted to Governor Knowles Tuesday after final passage last week.

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 the state'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 laws.

Robert Manley, a tax attorney from Anchorage said during teleconference testimony on HB 101 that if Alaska had a favorable legal environment for family trusts, the state could attract considerable money from foreign countries.

"Often times there is concern in foreign countries about political instability and citizens of these foreign countries take advantage of these trusts to protect their assets," Manley said.

Rep. Vezey said that U.S. citizens also want to preserve assets for future generations and that has resulted in hundreds of billions of dollars being transferred off-shore to foreign countries in the Caribbean.

Vezey said that with the passage of HB 101, American families can have a source for strong trusts in the United States if this bill becomes law.

"Alaska banks already have affiliations with national banking corporations, Alaskan trust companies and insurance companies. I have heard estimates that the day the bill becomes effective, there will be dozens of very large trusts established in Alaska," said Vezey.

"Alaska is now in an enviable position of being able to meet the demands of a huge worldwide financial market. 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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