Rhode Island General Laws 18-9.2-3. No retained interest of transferor
A qualified disposition shall be subject to § 18-9.2-4 of this chapter notwithstanding a transferor‘s retention of any or all of the powers and rights described in subdivision 18-9.2-2(10)(ii) and the transferor’s service as investment advisor pursuant to subdivision 18-9.2-2(9)(iv). The transferor shall have only such powers and rights as are conferred by the trust instrument. Except as permitted by subdivisions 18-9.2-2(9)(iv) and 18-9.2-2(10)(ii), a transferor shall have no rights or authority with respect to the property that is the subject of a qualified disposition or the income therefrom, and any agreement or understanding purporting to grant or permit the retention of any greater rights or authority shall be void.
History of Section.
P.L. 1999, ch. 402, § 1; P.L. 2007, ch. 302, § 1; P.L. 2007, ch. 478, § 1.
Terms Used In Rhode Island General Laws 18-9.2-3
- advisor: includes a trust "protector" or any other person who, in addition to a qualified trustee, holds one or more trust powers. See Rhode Island General Laws 18-9.2-2
- Disposition: means a transfer, conveyance or assignment of property (including a change in the legal ownership of property occurring upon the substitution of one trustee for another or the addition of one or more new trustees), or the exercise of a power so as to cause a transfer of property, to a trustee or trustees, but shall not include the release or relinquishment of an interest that theretofore was the subject of a qualified disposition. See Rhode Island General Laws 18-9.2-2
- Property: includes real property, personal property, and interests in real or personal property. See Rhode Island General Laws 18-9.2-2
- Qualified disposition: means a disposition by or from a transferor to a trustee, with or without consideration, by means of a trust instrument. See Rhode Island General Laws 18-9.2-2
- Transferor: means a natural person who, or entity which, as an owner of property or as a holder of a general power of appointment, which authorizes the holder to appoint in favor of the holder, the holder's creditors, the holder's estate or the creditors of the holder's estate, or as a trustee, directly or indirectly, makes a disposition or causes a disposition to be made. See Rhode Island General Laws 18-9.2-2
- Trust instrument: means an instrument appointing a qualified trustee or qualified trustees for the property that is the subject of a disposition, which instrument:
(i) Expressly incorporates the general or public laws of this state to govern the validity, construction, and administration of the trust;
(ii) Is irrevocable; provided, that a trust instrument shall not be deemed revocable due to its inclusion in one or more of the following:
(A) A transferor's power to veto a distribution from the trust;
(B) A power of appointment (other than a power to appoint to the transferor, the transferor's creditors, the transferor's estate or the creditors of the transferor's estate) exercisable by will or other written instrument of the transferor effective only upon the transferor's death;
(C) The transferor's potential or actual receipt of income, including rights to such income retained in the trust instrument;
(D) The transferor's potential or actual receipt of income or principal from a charitable remainder unitrust or charitable remainder annuity trust as such terms are defined in § 664 of the Internal Revenue Code of 1986 [26 U. See Rhode Island General Laws 18-9.2-2