Provides that a communication between an attorney and client acting as a trustee or other fiduciary, is privileged and protected from disclosure to the same extent as if the client was acting in his, her, or its individual capacity.
Summary
H5365 amends Rhode Island law governing trusts and fiduciaries to expressly protect attorney-client communications involving a trustee or other fiduciary. The bill provides that when a person is acting in a fiduciary capacity, communications with counsel are privileged to the same extent as if that person were acting in an individual capacity. It also states that the privilege is not waived merely because the fiduciary relationship exists with beneficiaries or because trust assets are used to pay legal fees.
The bill further clarifies that the attorney’s client is the person serving as trustee or fiduciary, not a successor who later assumes that role. At the same time, it allows a trustee and successor fiduciary to agree to share privileged communications about trust matters, while preserving the privilege against third-party disclosure unless consent or a court order permits it. The measure does not alter existing law on privilege exceptions involving claims through a deceased person.
Impact
This act adds a new section to Rhode Island General Laws chapter 18-1, creating a specific statutory rule for confidential communications in the trust and fiduciary context. It strengthens and clarifies the attorney-client privilege for trustees, personal representatives, and other fiduciaries, and it limits arguments that privilege is waived because beneficiaries have an interest in the trust or because trust funds paid for the legal advice. The law takes effect upon passage and affects trustees, beneficiaries, successor fiduciaries, and attorneys advising fiduciaries.
Sentiment
The available record suggests the bill was broadly supported and noncontroversial. It passed the House on May 27, 2025 by a unanimous 72-0 vote, and there are no committee transcripts indicating opposition or significant debate. The unanimous vote suggests general agreement that the bill clarifies existing privilege rules rather than making a major policy change.
Contention
No specific points of contention are reflected in the available materials. The main legal issue addressed by the bill is whether beneficiaries or successor fiduciaries can access attorney-client communications involving a trustee or other fiduciary, and the bill resolves that in favor of preserving privilege absent consent, agreement, or court order. Any potential concern would likely come from parties seeking greater access to trust-related communications, but no opposition is documented in the provided record.
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Prohibiting the office of the state bank commissioner or any other state agency from becoming a receiver for a technology-enabled fiduciary financial institution that becomes insolvent or declares bankruptcy.