Brief ⁽¹⁾

HB 2465 concerns investments by fiduciaries and, for the most part, makes technical changes relating to the prudent investor rule. The bill repeals provisions of the prudent investor act placed in Chapter 17 of the Kansas Statutes Annotated and re-enacts those provisions in Chapter 58 of the Kansas Statutes Annotated.

One provision is incorporated into the rule that appeared in prior law but was not incorporated into the prudent investor rule as updated in the 2000 Session of the Legislature. The provision concerns the written instructions of a grantor and clarifies the ability of the trustee to follow those written directions. The trustee is authorized to follow such written instructions regardless of any fiduciary obligation to which the directing party also may be subject.

Background

The bill is supported by the Kansas Bar Association and the Kansas Bankers Association, Trust Division.

The fiscal note prepared by the Division of the Budget indicates passage of the bill will have no fiscal effect.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi