Current Status Introducing Body:
HouseBill Number: 4619Ratification Number: 594Act Number: 449Primary Sponsor: HuffType of Legislation: GBSubject: Trustee, contract of insurance on life of trustorDate Bill Passed both Bodies: 19940601Computer Document Number: GJK/20278SD.94Governor's Action: SDate of Governor's Action: 19940616Introduced Date: 19940126Date of Last Amendment: 19940525Last History Body: ------Last History Date: 19940616Last History Type: Act No. 449Scope of Legislation: StatewideAll Sponsors: Huff Wilkins R. Smith Sharpe A. Young StoneType of Legislation: General Bill
Bill Body Date Action Description CMN Leg Involved ---- ------ ------------ ------------------------------ --- ------------ 4619 ------ 19940616 Act No. 449 4619 ------ 19940616 Signed by Governor 4619 ------ 19940602 Ratified R 594 4619 House 19940601 Concurred in Senate amendment, enrolled for ratification 4619 Senate 19940525 Amended, read third time, returned to House with amendments 4619 Senate 19940519 Read second time, ordered to third reading with notice of general amendments 4619 Senate 19940519 Recalled from Committee 11 4619 Senate 19940509 Introduced, read first time, 11 referred to Committee 4619 House 19940506 Read third time, sent to Senate 4619 House 19940505 Amended, read second time, unanimous consent for third reading on next Legislative day 4619 House 19940421 Committee Report: Favorable 25 with amendment 4619 House 19940126 Introduced, read first time, 25 referred to CommitteeView additional legislative information at the LPITS web site.
(A449, R594, H4619)
AN ACT TO AMEND SECTION 62-7-302, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A TRUSTEE'S STANDARD OF CARE, SO AS TO FURTHER PROVIDE FOR THE DUTIES OF A TRUSTEE WITH RESPECT TO ACQUIRING OR RETAINING A CONTRACT OF INSURANCE UPON THE LIFE OF THE TRUSTOR OR UPON THE LIVES OF THE TRUSTOR AND HIS SPOUSE, CHILDREN, OR PARENTS, AND BY ADDING SECTION 62-1-109 SO AS TO CLARIFY THE DUTIES OR OBLIGATIONS OF AN ATTORNEY FOR A PERSON SERVING AS FIDUCIARY.
Be it enacted by the General Assembly of the State of South Carolina:
Trustee's duties with respect to a contract of life insurance
SECTION 1. Section 62-7-302 of the 1976 Code, as last amended by Act 158 of 1991, is further amended by adding a new subsection (e) to read:
"(e) Notwithstanding subsections (a) through (d), the duties of a trustee with respect to acquiring or retaining a contract of insurance upon the life of the trustor, or upon the lives of the trustor and the trustor's spouse, children, or parents do not include a duty to:
(i) determine whether any such contract is or remains a proper investment;
(ii) exercise policy options available under any such contract; or
(iii) diversify any such contract.
The trustee is not liable to the beneficiaries under the instrument or to any other party for any loss arising from the absence of this duty upon the trustee. Except as specifically provided in the trust instrument, the provisions of this subsection apply to any trust established before or after the effective date of this subsection and to any life insurance policy acquired by the trustee before or after the effective date of this subsection."
Attorney's duties for a person serving as a fiduciary
SECTION 2. The 1976 Code is amended by adding:
"Section 62-1-109. Unless expressly provided otherwise in a written employment agreement, the creation of an attorney-client relationship between a lawyer and a person serving as a fiduciary shall not impose upon the lawyer any duties or obligations to other persons interested in the estate, trust estate, or other fiduciary property, even though fiduciary funds may be used to compensate the lawyer for legal services rendered to the fiduciary. This section is intended to be declaratory of the common law and governs relationships in existence between lawyers and persons serving as fiduciaries as well as such relationships hereafter created."
SECTION 3. This act takes effect upon approval by the Governor.
Approved the 16th day of June, 1994.