KansasHB 25902025–2026 Regular SessionHouse

Enacting the Kansas community property trust act to authorize the use of community property trusts during the marriage of settlor spouses and amending the Kansas uniform trust code to allow trustees to reimburse settlors of grantor trusts, authorize the use of designated representatives for trusts and permit the terms of a governing instrument to expand, restrict or eliminate certain general rules applicable to fiduciaries, trusts and trust administration.

Sponsored By: Committee on Financial Institutions and Pensions

Signed by Governor

senate committee on financial institutions and insurancehouse committee on financial institutions and pensions

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 2 benefits, 0 costs, 5 mixed.

Married couples gain shared property trusts

Married couples can place some or all property in a Kansas community property trust, even without living in Kansas. Both spouses must sign, include the required warning, and use a Kansas-resident trustee or Kansas-authorized fiduciary company. Assets count as community property during marriage; assets distributed out lose that treatment under this rule. Spouses can set management, inheritance, divorce, and governing-law terms, but cannot violate public policy, criminal statutes, or child-support rights. Changes and revocation follow the trust terms, except each spouse can change who receives their half at death.

Trust rules protect surviving spouses’ half

When one spouse dies, the survivor owns half the trust’s total value, outside the deceased spouse’s inheritance directions. The deceased spouse’s half follows their will or succession law. The survivor’s half is excluded from the elective estate used to calculate a spouse’s statutory inheritance claim. Kansas also recognizes these trusts under the federal community-property tax-basis rule in 26 U.S.C. § 1014(b)(6). Property already treated as community property elsewhere keeps that status in the trust and, as Kansas law allows, after revocation. The law does not guarantee a specific tax saving.

Divorcing spouses split trust assets equally

Divorce generally ends the community property trust, with half its assets going to each spouse. A pending divorce case alone does not end it, but a case pending for 180 days generally does. Exceptions apply when, within those 180 days, either spouse objects in writing, a court orders otherwise, spouses agree in writing, or trust terms provide otherwise. Distributions must preserve the assets’ community property character. Trustees cannot leave former spouses as undivided co-owners of real estate or business interests without both spouses’ separate written consent during the case.

Trust debt claims follow spouses’ shares

For a debt incurred by one spouse before or during marriage, creditors can reach that spouse’s half of the trust. The other spouse’s half is outside that recovery rule. For debts both spouses incur during marriage, creditors can reach trust property generally. Placing assets in this trust does not make them immune from these debt claims.

Trust creators can receive tax reimbursements

Unless trust terms say otherwise, trustees can reimburse grantor-trust creators for income taxes attributable to the trust. This covers liability under 26 U.S.C. § 671 or other applicable federal tax law. The trustee chooses whether to pay; reimbursement is not required. Payments cannot exceed the trust-attributable tax liability and reduce assets remaining for beneficiaries.

Representatives can bind trust beneficiaries

Designated representatives can act for and bind beneficiaries in specified court proceedings and out-of-court trust matters. This includes children, incapacitated people, unborn beneficiaries, and people whose identity or location cannot reasonably be found. Representatives must agree to serve, are presumed to owe fiduciary duties, and submit to Kansas jurisdiction for trust matters. Under one settlor-appointment method, representatives cannot be the settlor or related or subordinate to the settlor. That method also requires written notice to the specified parent or guardian within 30 days.

Spouses gain grounds to challenge trusts

A spouse resisting enforcement can prove legal grounds to invalidate a community property trust made during marriage. Grounds include extreme unfairness, lack of voluntary agreement, fraud, duress, coercion, or specified failures to disclose information. A court decides whether the trust is legally unconscionable, meaning unfair enough to be unenforceable. Not having a separate lawyer, by itself, does not make the trust unenforceable.

Sponsors & Cosponsors

Sponsor

  • Committee on Financial Institutions and Pensions

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 656 • No: 2

House vote • 4/23/2026

Yea: 40 Nay: 0

Yes: 40 • No: 0

House vote • 4/23/2026

Yea: 125 Nay: 0

Yes: 125 • No: 0

House vote • 4/23/2026

Yea: 123 Nay: 1

Yes: 123 • No: 1

House vote • 4/23/2026

Yea: 40 Nay: 0

Yes: 40 • No: 0

House vote • 3/26/2026

Conference Committee Report was adopted

Yes: 125 • No: 0

Senate vote • 3/25/2026

Conference Committee Report was adopted

Yes: 40 • No: 0

Senate vote • 3/19/2026

Final Action - Passed as amended

Yes: 40 • No: 0

House vote • 2/18/2026

Final Action - Passed

Yes: 123 • No: 1

Actions Timeline

  1. Engrossed on Tuesday, March 31, 2026

    4/9/2026House
  2. Enrolled and presented to Governor on Friday, April 3, 2026

    4/9/2026House
  3. Approved by Governor on Thursday, April 9, 2026

    4/9/2026House
  4. Conference Committee Report was adopted; Yea 125, Nay 0

    3/26/2026House
  5. Conference committee report now available

    3/25/2026Senate
  6. Conference Committee Report was adopted; Yea 40, Nay 0

    3/25/2026Senate
  7. Motion to accede adopted; Sen. Brenda Dietrich, Sen. Michael Fagg and Sen. Silas Miller appointed as conferees

    3/24/2026Senate
  8. Nonconcurred with amendments; Conference Committee requested; appointed Rep. Nick Hoheisel, Rep. Angela Stiens and Rep. Rui Xu

    3/23/2026House
  9. Final Action - Passed as amended; Yea 40, Nay 0

    3/19/2026Senate
  10. Committee of the Whole - Committee Report be adopted

    3/18/2026Senate
  11. Committee of the Whole - Be passed as amended

    3/18/2026Senate
  12. Committee Report recommending bill be passed as amended by Senate Committee on Financial Institutions and Insurance

    3/11/2026Senate
  13. Hearing: Thursday, March 5, 2026, 9:30 AM — Room 546-S

    3/5/2026Senate
  14. Referred to Senate Committee on Financial Institutions and Insurance

    2/19/2026Senate
  15. Final Action - Passed; Yea 123, Nay 1, Absent 1

    2/18/2026House
  16. Received and Introduced

    2/18/2026Senate
  17. Committee of the Whole - Be passed

    2/17/2026House
  18. Committee Report recommending bill be passed by House Committee on Financial Institutions and Pensions

    2/11/2026House
  19. Hearing: Monday, February 2, 2026, 9:00 AM — Room 582-N

    2/2/2026House
  20. Introduced

    1/29/2026House
  21. Referred to House Committee on Financial Institutions and Pensions

    1/29/2026House

Bill Text

  • As Amended by Senate Committee

  • As Introduced

  • Enrolled

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