Proposal would make creditor rules inapplicable to two trust types

The proposed amendment would make this section's rules inapplicable to two kinds of resultant trusts. These exceptions apply only to the two kinds of resultant trusts described in subsection (c). One kind is an irrevocable reversionary trust created under the specified federal tax provision, with the initial trust's settlor as a beneficiary of the resultant trust. The other must be funded by a spouse exercising a power of appointment in a specified irrevocable trust funded entirely by the settlor's completed gifts; the surviving spouse who exercises the power would be treated as the resultant trust's settlor. The proposal says it would take effect after publication in the statute book, but it died in committee and did not establish this change as law.