Utah 2025 Regular Session

Utah Senate Bill SB0100 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled Copy S.B. 100
	1	+	02-07 14:26 1st Sub. (Green) S.B. 100
	2	+	Todd Weiler proposes the following substitute bill:
2	3		1
3	4		Estate Planning Recodification
4	5		2025 GENERAL SESSION
5	6		STATE OF UTAH
6	7		Chief Sponsor: Todd Weiler
7	8		House Sponsor: Anthony E. Loubet
8	9		2
9	10
10	11		3
11	12		LONG TITLE
12	13		4
13	14		General Description:
14	15		5
15	16		This bill recodifies and amends statutes related to estate planning.
16	17		6
17	18		Highlighted Provisions:
18	19		7
19	20		This bill:
20	21		8
21	22		▸ coordinates definitions between Title 75, Utah Uniform Probate Code, Title 75A,
22	23		9
23	24		Fiduciaries, and Title 75B, Trusts;
24	25		10
25	26		▸ modifies the definitions for Title 75, Utah Uniform Probate Code;
26	27		11
27	28		▸ recodifies and clarifies a statute regarding the effective date of Title 75, Utah Uniform
28	29		12
29	30		Probate Code;
30	31		13
31	32		▸ recodifies Title 75, Chapter 7, Utah Uniform Trust Code, to Title 75B, Chapter 2,
32	33		14
33	34		Uniform Trust Code;
34	35		15
35	36		▸ recodifies Title 75, Chapter 12, Uniform Directed Trust Act, to Title 75B, Chapter 3,
36	37		16
37	38		Uniform Directed Trust Act;
38	39		17
39	40		▸ includes a coordination clause to explain that certain definitions will not be enacted in
40	41		18
41	42		Title 75A, Chapter 9, Uniform Health-Care Decisions Act, if this bill and S.B. 134,
42	43		19
43	44		Health-Care Decisions Act Amendments, both pass and become law;
44	45		20
45	46		▸ includes a coordination clause to address a technical conflict with a cross-reference
46	47		21
47	48		change if this bill and H.B. 334, Guardianships and Supported Decision-Making
48	49		22
49	50		Agreements Amendments, both pass and become law; and
50	51		23
51	52		▸ makes technical and conforming changes.
52	53		24
53	54		Money Appropriated in this Bill:
54	55		25
55	56		None
56	57		26
57	58		Other Special Clauses:
58	59		27
59		-	This bill provides coordination clauses. ~~S.B. 100 Enrolled Copy~~
	60	+	This bill provides coordination clauses.
60	61		28
61	62		Utah Code Sections Affected:
	63	+	1st Sub. S.B. 100 1st Sub. (Green) S.B. 100 02-07 14:26
62	64		29
63	65		AMENDS:
64	66		30
65	67		7-5-1, as last amended by Laws of Utah 2013, Chapter 364
66	68		31
67	69		7-5-6, as last amended by Laws of Utah 2014, Chapter 189
68	70		32
69	71		7-5-7, as last amended by Laws of Utah 2014, Chapters 97, 189
70	72		33
71	73		7-5-10, as last amended by Laws of Utah 2004, Chapter 89
72	74		34
73	75		7-5-11, as last amended by Laws of Utah 2014, Chapter 189
74	76		35
75	77		8-4-2, as last amended by Laws of Utah 2010, Chapter 324
76	78		36
77	79		26B-3-1008, as renumbered and amended by Laws of Utah 2023, Chapter 306
78	80		37
79	81		26B-3-1013, as renumbered and amended by Laws of Utah 2023, Chapter 306
80	82		38
81	83		49-11-303, as last amended by Laws of Utah 2005, Chapter 116
82	84		39
83	85		51-7-14, as last amended by Laws of Utah 2023, Chapter 242
84	86		40
85	87		53B-8a-107, as last amended by Laws of Utah 2023, Chapter 242
86	88		41
87	89		58-9-703, as last amended by Laws of Utah 2007, Chapter 144
88	90		42
89	91		59-10-103, as last amended by Laws of Utah 2023, Chapter 44
90	92		43
91	93		75-1-102, as enacted by Laws of Utah 1975, Chapter 150
92	94		44
93	95		75-1-103, as enacted by Laws of Utah 1975, Chapter 150
94	96		45
95	97		75-1-104, as enacted by Laws of Utah 1975, Chapter 150
96	98		46
97	99		75-1-105, as enacted by Laws of Utah 1975, Chapter 150
98	100		47
99	101		75-1-106, as enacted by Laws of Utah 1975, Chapter 150
100	102		48
101	103		75-1-201, as last amended by Laws of Utah 2024, Chapter 364
102	104		49
103	105		75-1-301, as last amended by Laws of Utah 1992, Chapter 30
104	106		50
105	107		75-1-303, as enacted by Laws of Utah 1975, Chapter 150
106	108		51
107	109		75-1-304, as enacted by Laws of Utah 1975, Chapter 150
108	110		52
109	111		75-1-305, as enacted by Laws of Utah 1975, Chapter 150
110	112		53
111	113		75-1-309, as enacted by Laws of Utah 1975, Chapter 150
112	114		54
113	115		75-1-310, as enacted by Laws of Utah 1975, Chapter 150
114	116		55
115	117		75-1-311, as last amended by Laws of Utah 1977, Chapter 194
116	118		56
117	119		75-1-404, as enacted by Laws of Utah 1975, Chapter 150
118	120		57
119	121		75-2-803, as last amended by Laws of Utah 2024, Chapter 153
120	122		58
121	123		75-2-1209, as last amended by Laws of Utah 2004, Chapter 89
122	124		59
123	125		75-2-1402, as enacted by Laws of Utah 2020, Sixth Special Session, Chapter 1
124	126		60
125	127		75-3-101, as enacted by Laws of Utah 1975, Chapter 150
126	128		61
127	129		75-3-105, as enacted by Laws of Utah 1975, Chapter 150
128		-	- 2 - Enrolled Copy S.B. 100
129	130		62
130	131		75-3-303, as last amended by Laws of Utah 2013, Chapter 364
	132	+	- 2 - 02-07 14:26 1st Sub. (Green) S.B. 100
131	133		63
132	134		75-3-308, as last amended by Laws of Utah 1998, Chapter 39
133	135		64
134	136		75-3-504, as enacted by Laws of Utah 1975, Chapter 150
135	137		65
136	138		75-3-608, as enacted by Laws of Utah 1975, Chapter 150
137	139		66
138	140		75-3-616, as enacted by Laws of Utah 1975, Chapter 150
139	141		67
140	142		75-3-703, as last amended by Laws of Utah 2004, Chapter 89
141	143		68
142	144		75-3-704, as last amended by Laws of Utah 1988, Chapter 110
143	145		69
144	146		75-3-710, as last amended by Laws of Utah 1983, Chapter 226
145	147		70
146	148		75-3-714, as last amended by Laws of Utah 1992, Chapter 30
147	149		71
148	150		75-3-913, as last amended by Laws of Utah 2004, Chapter 89
149	151		72
150	152		75-3-915, as enacted by Laws of Utah 1975, Chapter 150
151	153		73
152	154		75-3-916, as last amended by Laws of Utah 1983, Chapter 226
153	155		74
154	156		75-3-1008, as enacted by Laws of Utah 1975, Chapter 150
155	157		75
156	158		75-5-303, as last amended by Laws of Utah 2024, Chapter 113
157	159		76
158	160		75-5-412, as enacted by Laws of Utah 1975, Chapter 150
159	161		77
160	162		75-5-416, as last amended by Laws of Utah 2014, Chapter 142
161	163		78
162	164		75-5-417, as last amended by Laws of Utah 2022, Chapter 358
163	165		79
164	166		75-5b-102, as enacted by Laws of Utah 2008, Chapter 253
165	167		80
166	168		75-6-201, as last amended by Laws of Utah 1986, Chapter 158
167	169		81
168	170		75A-1-101, as enacted by Laws of Utah 2024, Chapter 364
169	171		82
170	172		75A-1-201, as renumbered and amended by Laws of Utah 2024, Chapter 364
171	173		83
172	174		75A-2-102, as renumbered and amended by Laws of Utah 2024, Chapter 364
173	175		84
174	176		75A-2-120, as renumbered and amended by Laws of Utah 2024, Chapter 364
175	177		85
176	178		75A-3-101, as renumbered and amended by Laws of Utah 2024, Chapter 364
177	179		86
178	180		75A-4-102, as renumbered and amended by Laws of Utah 2024, Chapter 364
179	181		87
180	182		75A-4-302, as renumbered and amended by Laws of Utah 2024, Chapter 364
181	183		88
182	184		75A-5-102, as renumbered and amended by Laws of Utah 2024, Chapter 364
183	185		89
184	186		75A-5-202, as renumbered and amended by Laws of Utah 2024, Chapter 364
185	187		90
186	188		75A-5-203, as renumbered and amended by Laws of Utah 2024, Chapter 364
187	189		91
188	190		75A-5-303, as renumbered and amended by Laws of Utah 2024, Chapter 364
189	191		92
190	192		75A-5-304, as renumbered and amended by Laws of Utah 2024, Chapter 364
191	193		93
192	194		75A-6-102, as renumbered and amended by Laws of Utah 2024, Chapter 364
193	195		94
194	196		75A-6-112, as renumbered and amended by Laws of Utah 2024, Chapter 364
195	197		95
196	198		75A-6-113, as renumbered and amended by Laws of Utah 2024, Chapter 364
197		-	- 3 - S.B. 100 Enrolled Copy
198	199		96
199	200		75A-7-102, as renumbered and amended by Laws of Utah 2024, Chapter 364
	201	+	- 3 - 1st Sub. (Green) S.B. 100 02-07 14:26
200	202		97
201	203		75A-8-102, as renumbered and amended by Laws of Utah 2024, Chapter 364
202	204		98
203	205		75B-1-101, as enacted by Laws of Utah 2024, Chapter 364
204	206		99
205	207		75B-1-201, as enacted by Laws of Utah 2024, Chapter 364
206	208		100
207	209		75B-1-301, as enacted by Laws of Utah 2024, Chapter 364
208	210		101
209	211		75B-1-302, as renumbered and amended by Laws of Utah 2024, Chapter 364
210	212		102
211	213		78B-5-505, as last amended by Laws of Utah 2021, Chapter 260
212	214		103
213	215		ENACTS:
214	216		104
215	217		75B-2-101, Utah Code Annotated 1953
216	218		105
217	219		75B-3-101, Utah Code Annotated 1953
218	220		106
219	221		RENUMBERS AND AMENDS:
220	222		107
221	223		75-1-111, (Renumbered from 75-8-101, as enacted by Laws of Utah 1975, Chapter
222	224		108
223	225		150)
224	226		109
225	227		75B-2-102, (Renumbered from 75-7-102, as enacted by Laws of Utah 2004, Chapter
226	228		110
227	229		89)
228	230		111
229	231		75B-2-103, (Renumbered from 75-7-103, as last amended by Laws of Utah 2020,
230	232		112
231	233		Chapter 348)
232	234		113
233	235		75B-2-104, (Renumbered from 75-7-104, as enacted by Laws of Utah 2004, Chapter
234	236		114
235	237		89)
236	238		115
237	239		75B-2-105, (Renumbered from 75-7-105, as last amended by Laws of Utah 2024,
238	240		116
239	241		Chapter 364)
240	242		117
241	243		75B-2-106, (Renumbered from 75-7-106, as enacted by Laws of Utah 2004, Chapter
242	244		118
243	245		89)
244	246		119
245	247		75B-2-107, (Renumbered from 75-7-107, as last amended by Laws of Utah 2024,
246	248		120
247	249		Chapter 364)
248	250		121
249	251		75B-2-108, (Renumbered from 75-7-108, as enacted by Laws of Utah 2004, Chapter
250	252		122
251	253		89)
252	254		123
253	255		75B-2-109, (Renumbered from 75-7-109, as enacted by Laws of Utah 2004, Chapter
254	256		124
255	257		89)
256	258		125
257	259		75B-2-110, (Renumbered from 75-7-110, as enacted by Laws of Utah 2004, Chapter
258	260		126
259	261		89)
260	262		127
261	263		75B-2-111, (Renumbered from 75-7-111, as enacted by Laws of Utah 2004, Chapter
262	264		128
263	265		89)
264	266		129
265	267		75B-2-112, (Renumbered from 75-7-112, as enacted by Laws of Utah 2004, Chapter
266		-	- 4 - Enrolled Copy S.B. 100
267	268		130
268	269		89)
	270	+	- 4 - 02-07 14:26 1st Sub. (Green) S.B. 100
269	271		131
270	272		75B-2-113, (Renumbered from 75-7-1201, as enacted by Laws of Utah 2004, Forth
271	273		132
272	274		Special Session, Chapters 1, 1)
273	275		133
274	276		75B-2-201, (Renumbered from 75-7-201, as last amended by Laws of Utah 2003,
275	277		134
276	278		Second Special Session, Chapters 3, 3)
277	279		135
278	280		75B-2-202, (Renumbered from 75-7-202, as last amended by Laws of Utah 2004,
279	281		136
280	282		Chapter 89)
281	283		137
282	284		75B-2-203, (Renumbered from 75-7-203, as last amended by Laws of Utah 2024,
283	285		138
284	286		Chapter 158)
285	287		139
286	288		75B-2-204, (Renumbered from 75-7-204, as last amended by Laws of Utah 2003,
287	289		140
288	290		Second Special Session, Chapters 3, 3)
289	291		141
290	292		75B-2-205, (Renumbered from 75-7-205, as last amended by Laws of Utah 2024,
291	293		142
292	294		Chapter 158)
293	295		143
294	296		75B-2-301, (Renumbered from 75-7-301, as last amended by Laws of Utah 2024,
295	297		144
296	298		Chapter 364)
297	299		145
298	300		75B-2-302, (Renumbered from 75-7-302, as repealed and reenacted by Laws of Utah
299	301		146
300	302		2004, Chapter 89)
301	303		147
302	304		75B-2-303, (Renumbered from 75-7-303, as repealed and reenacted by Laws of Utah
303	305		148
304	306		2004, Chapter 89)
305	307		149
306	308		75B-2-304, (Renumbered from 75-7-304, as repealed and reenacted by Laws of Utah
307	309		150
308	310		2004, Chapter 89)
309	311		151
310	312		75B-2-305, (Renumbered from 75-7-305, as repealed and reenacted by Laws of Utah
311	313		152
312	314		2004, Chapter 89)
313	315		153
314	316		75B-2-401, (Renumbered from 75-7-401, as last amended by Laws of Utah 2009,
315	317		154
316	318		Chapter 278)
317	319		155
318	320		75B-2-402, (Renumbered from 75-7-402, as repealed and reenacted by Laws of Utah
319	321		156
320	322		2004, Chapter 89)
321	323		157
322	324		75B-2-403, (Renumbered from 75-7-403, as repealed and reenacted by Laws of Utah
323	325		158
324	326		2004, Chapter 89)
325	327		159
326	328		75B-2-404, (Renumbered from 75-7-404, as repealed and reenacted by Laws of Utah
327	329		160
328	330		2004, Chapter 89)
329	331		161
330	332		75B-2-405, (Renumbered from 75-7-405, as repealed and reenacted by Laws of Utah
331	333		162
332	334		2004, Chapter 89)
333	335		163
334	336		75B-2-406, (Renumbered from 75-7-406, as repealed and reenacted by Laws of Utah
335		-	- 5 - S.B. 100 Enrolled Copy
336	337		164
337	338		2004, Chapter 89)
	339	+	- 5 - 1st Sub. (Green) S.B. 100 02-07 14:26
338	340		165
339	341		75B-2-407, (Renumbered from 75-7-407, as repealed and reenacted by Laws of Utah
340	342		166
341	343		2004, Chapter 89)
342	344		167
343	345		75B-2-408, (Renumbered from 75-7-408, as repealed and reenacted by Laws of Utah
344	346		168
345	347		2004, Chapter 89)
346	348		169
347	349		75B-2-409, (Renumbered from 75-7-409, as repealed and reenacted by Laws of Utah
348	350		170
349	351		2004, Chapter 89)
350	352		171
351	353		75B-2-410, (Renumbered from 75-7-410, as repealed and reenacted by Laws of Utah
352	354		172
353	355		2004, Chapter 89)
354	356		173
355	357		75B-2-411, (Renumbered from 75-7-411, as repealed and reenacted by Laws of Utah
356	358		174
357	359		2004, Chapter 89)
358	360		175
359	361		75B-2-412, (Renumbered from 75-7-412, as enacted by Laws of Utah 2004, Chapter
360	362		176
361	363		89)
362	364		177
363	365		75B-2-413, (Renumbered from 75-7-413, as enacted by Laws of Utah 2004, Chapter
364	366		178
365	367		89)
366	368		179
367	369		75B-2-414, (Renumbered from 75-7-414, as enacted by Laws of Utah 2004, Chapter
368	370		180
369	371		89)
370	372		181
371	373		75B-2-415, (Renumbered from 75-7-415, as enacted by Laws of Utah 2004, Chapter
372	374		182
373	375		89)
374	376		183
375	377		75B-2-416, (Renumbered from 75-7-416, as enacted by Laws of Utah 2004, Chapter
376	378		184
377	379		89)
378	380		185
379	381		75B-2-417, (Renumbered from 75-7-417, as enacted by Laws of Utah 2004, Chapter
380	382		186
381	383		89)
382	384		187
383	385		75B-2-501, (Renumbered from 75-7-501, as last amended by Laws of Utah 2024,
384	386		188
385	387		Chapter 364)
386	388		189
387	389		75B-2-502, (Renumbered from 75-7-502, as enacted by Laws of Utah 2004, Chapter
388	390		190
389	391		89)
390	392		191
391	393		75B-2-503, (Renumbered from 75-7-503, as last amended by Laws of Utah 2021,
392	394		192
393	395		Chapter 260)
394	396		193
395	397		75B-2-504, (Renumbered from 75-7-504, as enacted by Laws of Utah 2004, Chapter
396	398		194
397	399		89)
398	400		195
399	401		75B-2-505, (Renumbered from 75-7-505, as last amended by Laws of Utah 2024,
400	402		196
401	403		Chapter 364)
402	404		197
403	405		75B-2-506, (Renumbered from 75-7-506, as enacted by Laws of Utah 2004, Chapter
404		-	- 6 - Enrolled Copy S.B. 100
405	406		198
406	407		89)
	408	+	- 6 - 02-07 14:26 1st Sub. (Green) S.B. 100
407	409		199
408	410		75B-2-507, (Renumbered from 75-7-507, as enacted by Laws of Utah 2004, Chapter
409	411		200
410	412		89)
411	413		201
412	414		75B-2-508, (Renumbered from 75-7-508, as last amended by Laws of Utah 2023,
413	415		202
414	416		Chapter 330)
415	417		203
416	418		75B-2-509, (Renumbered from 75-7-509, as last amended by Laws of Utah 2023,
417	419		204
418	420		Chapter 330)
419	421		205
420	422		75B-2-510, (Renumbered from 75-7-510, as renumbered and amended by Laws of
421	423		206
422	424		Utah 2004, Chapter 89)
423	425		207
424	426		75B-2-511, (Renumbered from 75-7-511, as last amended by Laws of Utah 2023,
425	427		208
426	428		Chapter 330)
427	429		209
428	430		75B-2-512, (Renumbered from 75-7-512, as renumbered and amended by Laws of
429	431		210
430	432		Utah 2004, Chapter 89)
431	433		211
432	434		75B-2-513, (Renumbered from 75-7-513, as last amended by Laws of Utah 2004,
433	435		212
434	436		Chapter 282 and renumbered and amended by Laws of Utah 2004, Chapter 89)
435	437		213
436	438		75B-2-514, (Renumbered from 75-7-514, as renumbered and amended by Laws of
437	439		214
438	440		Utah 2004, Chapter 89)
439	441		215
440	442		75B-2-515, (Renumbered from 75-7-515, as renumbered and amended by Laws of
441	443		216
442	444		Utah 2004, Chapter 89)
443	445		217
444	446		75B-2-516, (Renumbered from 75-7-516, as renumbered and amended by Laws of
445	447		218
446	448		Utah 2004, Chapter 89)
447	449		219
448	450		75B-2-517, (Renumbered from 75-7-517, as renumbered and amended by Laws of
449	451		220
450	452		Utah 2004, Chapter 89)
451	453		221
452	454		75B-2-518, (Renumbered from 75-7-518, as renumbered and amended by Laws of
453	455		222
454	456		Utah 2004, Chapter 89)
455	457		223
456	458		75B-2-519, (Renumbered from 75-7-519, as renumbered and amended by Laws of
457	459		224
458	460		Utah 2004, Chapter 89)
459	461		225
460	462		75B-2-601, (Renumbered from 75-7-604, as enacted by Laws of Utah 2004, Chapter
461	463		226
462	464		89)
463	465		227
464	466		75B-2-602, (Renumbered from 75-7-605, as enacted by Laws of Utah 2004, Chapter
465	467		228
466	468		89)
467	469		229
468	470		75B-2-603, (Renumbered from 75-7-606, as last amended by Laws of Utah 2019,
469	471		230
470	472		Chapter 153)
471	473		231
472	474		75B-2-604, (Renumbered from 75-7-607, as enacted by Laws of Utah 2004, Chapter
473		-	- 7 - S.B. 100 Enrolled Copy
474	475		232
475	476		89)
	477	+	- 7 - 1st Sub. (Green) S.B. 100 02-07 14:26
476	478		233
477	479		75B-2-701, (Renumbered from 75-7-701, as enacted by Laws of Utah 2004, Chapter
478	480		234
479	481		89)
480	482		235
481	483		75B-2-702, (Renumbered from 75-7-702, as enacted by Laws of Utah 2004, Chapter
482	484		236
483	485		89)
484	486		237
485	487		75B-2-703, (Renumbered from 75-7-703, as last amended by Laws of Utah 2019,
486	488		238
487	489		Chapter 153)
488	490		239
489	491		75B-2-704, (Renumbered from 75-7-704, as enacted by Laws of Utah 2004, Chapter
490	492		240
491	493		89)
492	494		241
493	495		75B-2-705, (Renumbered from 75-7-705, as enacted by Laws of Utah 2004, Chapter
494	496		242
495	497		89)
496	498		243
497	499		75B-2-706, (Renumbered from 75-7-706, as enacted by Laws of Utah 2004, Chapter
498	500		244
499	501		89)
500	502		245
501	503		75B-2-707, (Renumbered from 75-7-707, as enacted by Laws of Utah 2004, Chapter
502	504		246
503	505		89)
504	506		247
505	507		75B-2-708, (Renumbered from 75-7-708, as enacted by Laws of Utah 2004, Chapter
506	508		248
507	509		89)
508	510		249
509	511		75B-2-709, (Renumbered from 75-7-709, as enacted by Laws of Utah 2004, Chapter
510	512		250
511	513		89)
512	514		251
513	515		75B-2-801, (Renumbered from 75-7-801, as enacted by Laws of Utah 2004, Chapter
514	516		252
515	517		89)
516	518		253
517	519		75B-2-802, (Renumbered from 75-7-802, as enacted by Laws of Utah 2004, Chapter
518	520		254
519	521		89)
520	522		255
521	523		75B-2-803, (Renumbered from 75-7-803, as enacted by Laws of Utah 2004, Chapter
522	524		256
523	525		89)
524	526		257
525	527		75B-2-804, (Renumbered from 75-7-804, as enacted by Laws of Utah 2004, Chapter
526	528		258
527	529		89)
528	530		259
529	531		75B-2-805, (Renumbered from 75-7-805, as enacted by Laws of Utah 2004, Chapter
530	532		260
531	533		89)
532	534		261
533	535		75B-2-806, (Renumbered from 75-7-806, as enacted by Laws of Utah 2004, Chapter
534	536		262
535	537		89)
536	538		263
537	539		75B-2-807, (Renumbered from 75-7-807, as enacted by Laws of Utah 2004, Chapter
538	540		264
539	541		89)
540	542		265
541	543		75B-2-808, (Renumbered from 75-7-808, as enacted by Laws of Utah 2004, Chapter
542		-	- 8 - Enrolled Copy S.B. 100
543	544		266
544	545		89)
	546	+	- 8 - 02-07 14:26 1st Sub. (Green) S.B. 100
545	547		267
546	548		75B-2-809, (Renumbered from 75-7-809, as enacted by Laws of Utah 2004, Chapter
547	549		268
548	550		89)
549	551		269
550	552		75B-2-810, (Renumbered from 75-7-810, as enacted by Laws of Utah 2004, Chapter
551	553		270
552	554		89)
553	555		271
554	556		75B-2-811, (Renumbered from 75-7-811, as enacted by Laws of Utah 2004, Chapter
555	557		272
556	558		89)
557	559		273
558	560		75B-2-812, (Renumbered from 75-7-812, as enacted by Laws of Utah 2004, Chapter
559	561		274
560	562		89)
561	563		275
562	564		75B-2-813, (Renumbered from 75-7-813, as enacted by Laws of Utah 2004, Chapter
563	565		276
564	566		89)
565	567		277
566	568		75B-2-814, (Renumbered from 75-7-814, as last amended by Laws of Utah 2024,
567	569		278
568	570		Chapter 364)
569	571		279
570	572		75B-2-815, (Renumbered from 75-7-815, as enacted by Laws of Utah 2004, Chapter
571	573		280
572	574		89)
573	575		281
574	576		75B-2-816, (Renumbered from 75-7-816, as last amended by Laws of Utah 2024,
575	577		282
576	578		Chapter 364)
577	579		283
578	580		75B-2-817, (Renumbered from 75-7-817, as enacted by Laws of Utah 2004, Chapter
579	581		284
580	582		89)
581	583		285
582	584		75B-2-901, (Renumbered from 75-7-901, as enacted by Laws of Utah 2004, Chapter
583	585		286
584	586		89)
585	587		287
586	588		75B-2-902, (Renumbered from 75-7-902, as enacted by Laws of Utah 2004, Chapter
587	589		288
588	590		89)
589	591		289
590	592		75B-2-903, (Renumbered from 75-7-903, as enacted by Laws of Utah 2004, Chapter
591	593		290
592	594		89)
593	595		291
594	596		75B-2-904, (Renumbered from 75-7-904, as enacted by Laws of Utah 2004, Chapter
595	597		292
596	598		89)
597	599		293
598	600		75B-2-905, (Renumbered from 75-7-905, as enacted by Laws of Utah 2004, Chapter
599	601		294
600	602		89)
601	603		295
602	604		75B-2-906, (Renumbered from 75-7-906, as enacted by Laws of Utah 2004, Chapter
603	605		296
604	606		89)
605	607		297
606	608		75B-2-907, (Renumbered from 75-7-907, as enacted by Laws of Utah 2004, Chapter
607	609		298
608	610		89)
609	611		299
610	612		75B-2-1001, (Renumbered from 75-7-1001, as enacted by Laws of Utah 2004, Chapter
611		-	- 9 - S.B. 100 Enrolled Copy
612	613		300
613	614		89)
	615	+	- 9 - 1st Sub. (Green) S.B. 100 02-07 14:26
614	616		301
615	617		75B-2-1002, (Renumbered from 75-7-1002, as enacted by Laws of Utah 2004, Chapter
616	618		302
617	619		89)
618	620		303
619	621		75B-2-1003, (Renumbered from 75-7-1003, as enacted by Laws of Utah 2004, Chapter
620	622		304
621	623		89)
622	624		305
623	625		75B-2-1004, (Renumbered from 75-7-1004, as enacted by Laws of Utah 2004, Chapter
624	626		306
625	627		89)
626	628		307
627	629		75B-2-1005, (Renumbered from 75-7-1005, as enacted by Laws of Utah 2004, Chapter
628	630		308
629	631		89)
630	632		309
631	633		75B-2-1006, (Renumbered from 75-7-1006, as enacted by Laws of Utah 2004, Chapter
632	634		310
633	635		89)
634	636		311
635	637		75B-2-1007, (Renumbered from 75-7-1007, as enacted by Laws of Utah 2004, Chapter
636	638		312
637	639		89)
638	640		313
639	641		75B-2-1008, (Renumbered from 75-7-1008, as enacted by Laws of Utah 2004, Chapter
640	642		314
641	643		89)
642	644		315
643	645		75B-2-1009, (Renumbered from 75-7-1009, as enacted by Laws of Utah 2004, Chapter
644	646		316
645	647		89)
646	648		317
647	649		75B-2-1010, (Renumbered from 75-7-1010, as enacted by Laws of Utah 2004, Chapter
648	650		318
649	651		89)
650	652		319
651	653		75B-2-1011, (Renumbered from 75-7-1011, as last amended by Laws of Utah 2018,
652	654		320
653	655		Chapter 281)
654	656		321
655	657		75B-2-1012, (Renumbered from 75-7-1012, as enacted by Laws of Utah 2004, Chapter
656	658		322
657	659		89)
658	660		323
659	661		75B-2-1013, (Renumbered from 75-7-1013, as enacted by Laws of Utah 2004, Chapter
660	662		324
661	663		89)
662	664		325
663	665		75B-2-1101, (Renumbered from 75-7-1101, as enacted by Laws of Utah 2004, Chapter
664	666		326
665	667		89)
666	668		327
667	669		75B-2-1102, (Renumbered from 75-7-1102, as enacted by Laws of Utah 2004, Chapter
668	670		328
669	671		89)
670	672		329
671	673		75B-2-1103, (Renumbered from 75-7-1103, as enacted by Laws of Utah 2004, Chapter
672	674		330
673	675		89)
674	676		331
675	677		75B-3-102, (Renumbered from 75-12-102, as enacted by Laws of Utah 2019, Chapter
676	678		332
677	679		153)
678	680		333
679	681		75B-3-103, (Renumbered from 75-12-103, as enacted by Laws of Utah 2019, Chapter
680		-	- 10 - Enrolled Copy S.B. 100
681	682		334
682	683		153)
	684	+	- 10 - 02-07 14:26 1st Sub. (Green) S.B. 100
683	685		335
684	686		75B-3-104, (Renumbered from 75-12-104, as enacted by Laws of Utah 2019, Chapter
685	687		336
686	688		153)
687	689		337
688	690		75B-3-105, (Renumbered from 75-12-105, as enacted by Laws of Utah 2019, Chapter
689	691		338
690	692		153)
691	693		339
692	694		75B-3-106, (Renumbered from 75-12-106, as enacted by Laws of Utah 2019, Chapter
693	695		340
694	696		153)
695	697		341
696	698		75B-3-107, (Renumbered from 75-12-107, as enacted by Laws of Utah 2019, Chapter
697	699		342
698	700		153)
699	701		343
700	702		75B-3-108, (Renumbered from 75-12-108, as enacted by Laws of Utah 2019, Chapter
701	703		344
702	704		153)
703	705		345
704	706		75B-3-109, (Renumbered from 75-12-109, as enacted by Laws of Utah 2019, Chapter
705	707		346
706	708		153)
707	709		347
708	710		75B-3-110, (Renumbered from 75-12-110, as enacted by Laws of Utah 2019, Chapter
709	711		348
710	712		153)
711	713		349
712	714		75B-3-111, (Renumbered from 75-12-111, as enacted by Laws of Utah 2019, Chapter
713	715		350
714	716		153)
715	717		351
716	718		75B-3-112, (Renumbered from 75-12-112, as enacted by Laws of Utah 2019, Chapter
717	719		352
718	720		153)
719	721		353
720	722		75B-3-113, (Renumbered from 75-12-113, as enacted by Laws of Utah 2019, Chapter
721	723		354
722	724		153)
723	725		355
724	726		75B-3-114, (Renumbered from 75-12-114, as enacted by Laws of Utah 2019, Chapter
725	727		356
726	728		153)
727	729		357
728	730		75B-3-115, (Renumbered from 75-12-115, as enacted by Laws of Utah 2019, Chapter
729	731		358
730	732		153)
731	733		359
732	734		75B-3-116, (Renumbered from 75-12-116, as enacted by Laws of Utah 2019, Chapter
733	735		360
734	736		153)
735	737		361
736	738		75B-3-117, (Renumbered from 75-12-117, as enacted by Laws of Utah 2019, Chapter
737	739		362
738	740		153)
739	741		363
740	742		75B-3-118, (Renumbered from 75-12-118, as enacted by Laws of Utah 2019, Chapter
741	743		364
742	744		153)
743	745		365
744	746		REPEALS:
745	747		366
746	748		75-7-101, as repealed and reenacted by Laws of Utah 2004, Chapter 89
747	749		367
748	750		75-12-101, as enacted by Laws of Utah 2019, Chapter 153
749		-	- 11 - S.B. 100 Enrolled Copy
750	751		368
751	752		Utah Code Sections affected by Coordination Clause:
	753	+	- 11 - 1st Sub. (Green) S.B. 100 02-07 14:26
752	754		369
753	755		7-5-1, as last amended by Laws of Utah 2013, Chapter 364
754	756		370
755	757
756	758		371
757	759		Be it enacted by the Legislature of the state of Utah:
758	760		372
759	761		The following section is affected by a coordination clause at the end of this bill.
760	762		373
761	763		Section 1. Section 7-5-1 is amended to read:
762	764		374
763	765		7-5-1 . Definitions -- Allowable trust companies -- Exceptions.
764	766		375
765	767		(1) As used in this chapter:
766	768		376
767	769		(a) "Business trust" means an entity engaged in a trade or business that is created by a
768	770		377
769	771		declaration of trust that transfers property to trustees, to be held and managed by
770	772		378
771	773		them for the benefit of persons holding certificates representing the beneficial interest
772	774		379
773	775		in the trust estate and assets.
774	776		380
775	777		(b) "Trust" means the same as that term is defined in Section 75B-1-101.
776	778		381
777	779		[(b)] (c) "Trust business" means, except as provided in Subsection [(1)(c)] (1)(d), a
778	780		382
779	781		business in which one acts in any agency or fiduciary capacity, including that of
780	782		383
781	783		personal representative, executor, administrator, conservator, guardian, assignee,
782	784		384
783	785		receiver, depositary, or trustee under appointment as trustee for any purpose
784	786		385
785	787		permitted by law[, including the definition of "trust" set forth in Subsection
786	788		386
787	789		75-1-201(55)].
788	790		387
789	791		[(c)] (d) "Trust business" does not include the following means of holding money, assets,
790	792		388
791	793		or other property:
792	794		389
793	795		(i) money held in a client trust account by an attorney authorized to practice law in
794	796		390
795	797		this state;
796	798		391
797	799		(ii) money held in connection with the purchase or sale of real estate by a person
798	800		392
799	801		licensed as a principal broker in accordance with Title 61, Chapter 2f, Real Estate
800	802		393
801	803		Licensing and Practices Act;
802	804		394
803	805		(iii) money or other assets held in escrow by a person authorized by the department in
804	806		395
805	807		accordance with Chapter 22, Regulation of Independent Escrow Agents, or by the [
806	808		396
807	809		Utah ]Insurance Department to act as an escrow agent in this state;
808	810		397
809	811		(iv) money held by a homeowners' association or similar organization to pay
810	812		398
811	813		maintenance and other related costs for commonly owned property;
812	814		399
813	815		(v) money held in connection with the collection of debts or payments on loans by a
814	816		400
815	817		person acting solely as the agent or representative or otherwise at the sole
816	818		401
817	819		direction of the person to which the debt or payment is owed, including money
818		-	- 12 - Enrolled Copy S.B. 100
819	820		402
820	821		held by an escrow agent for payment of taxes or insurance;
	822	+	- 12 - 02-07 14:26 1st Sub. (Green) S.B. 100
821	823		403
822	824		(vi) money and other assets held in trust on an occasional or isolated basis by a
823	825		404
824	826		person who does not represent that the person is engaged in the trust business in
825	827		405
826	828		Utah;
827	829		406
828	830		(vii) money or other assets found by a court to be held in an implied, resulting, or
829	831		407
830	832		constructive trust;
831	833		408
832	834		(viii) money or other assets held by a court appointed conservator, guardian, receiver,
833	835		409
834	836		trustee, or other fiduciary if:
835	837		410
836	838		(A) the conservator, receiver, guardian, trustee, or other fiduciary is responsible to
837	839		411
838	840		the court in the same manner as a personal representative under Title 75,
839	841		412
840	842		Chapter 3, Part 5, Supervised Administration, or as a receiver under Rule 66,
841	843		413
842	844		Utah Rules of Civil Procedure; and
843	845		414
844	846		(B) the conservator, trustee, or other fiduciary is a certified public accountant or
845	847		415
846	848		has qualified for and received a designation as a certified financial planner,
847	849		416
848	850		chartered financial consultant, certified financial analyst, or similar designation
849	851		417
850	852		suitable to the court, that evidences the conservator's, trustee's, or other
851	853		418
852	854		fiduciary's professional competence to manage financial matters;
853	855		419
854	856		(ix) money or other assets held by a credit services organization operating in
855	857		420
856	858		compliance with Title 13, Chapter 21, Credit Services Organizations Act;
857	859		421
858	860		(x) money, securities, or other assets held in a customer account in connection with
859	861		422
860	862		the purchase or sale of securities by a regulated securities broker, dealer, or
861	863		423
862	864		transfer agent; or
863	865		424
864	866		(xi) money, assets, and other property held in a business trust for the benefit of
865	867		425
866	868		holders of certificates of beneficial interest if the fiduciary activities of the
867	869		426
868	870		business trust are merely incidental to conducting business in the business trust
869	871		427
870	872		form.
871	873		428
872	874		[(d)] (e) "Trust company" means an institution authorized to engage in the trust business
873	875		429
874	876		under this chapter. Only the following may be a trust company:
875	877		430
876	878		(i) a Utah depository institution or its wholly owned subsidiary;
877	879		431
878	880		(ii) an out-of-state depository institution authorized to engage in business as a
879	881		432
880	882		depository institution in Utah or its wholly owned subsidiary;
881	883		433
882	884		(iii) a corporation, including a credit union service organization, owned entirely by
883	885		434
884	886		one or more federally insured depository institutions as defined in Subsection
885	887		435
886	888		7-1-103(8);
887		-	- 13 - S.B. 100 Enrolled Copy
888	889		436
889	890		(iv) a direct or indirect subsidiary of a depository institution holding company that
	891	+	- 13 - 1st Sub. (Green) S.B. 100 02-07 14:26
890	892		437
891	893		also has a direct or indirect subsidiary authorized to engage in business as a
892	894		438
893	895		depository institution in Utah; and
894	896		439
895	897		(v) any other corporation continuously and lawfully engaged in the trust business in
896	898		440
897	899		this state since before July 1, 1981.
898	900		441
899	901		(2) Only a trust company may engage in the trust business in this state.
900	902		442
901	903		(3) The requirements of this chapter do not apply to:
902	904		443
903	905		(a) an institution authorized to engage in a trust business in another state that is engaged
904	906		444
905	907		in trust activities in this state solely to fulfill its duties as a trustee of a trust created
906	908		445
907	909		and administered in another state;
908	910		446
909	911		(b) a national bank, federal savings bank, federal savings and loan association, or federal
910	912		447
911	913		credit union authorized to engage in business as a depository institution in Utah, or
912	914		448
913	915		any wholly owned subsidiary of any of these, to the extent the institution is
914	916		449
915	917		authorized by its primary federal regulator to engage in the trust business in this state;
916	918		450
917	919		or
918	920		451
919	921		(c) a state agency that is otherwise authorized by statute to act as a conservator, receiver,
920	922		452
921	923		guardian, trustee, or in any other fiduciary capacity.
922	924		453
923	925		Section 2. Section 7-5-6 is amended to read:
924	926		454
925	927		7-5-6 . Confidentiality of communications and writings concerning trust --
926	928		455
927	929		Actions to protect property or authorized under probate laws not precluded.
928	930		456
929	931		Any trust company exercising the powers and performing the duties described in this
930	932		457
931	933		chapter shall keep inviolate all communications and writings made to or by that trust company
932	934		458
933	935		relating to the existence, condition, management or administration of any agency or fiduciary
934	936		459
935	937		account confided to it and no creditor or stockholder of any such trust company shall be
936	938		460
937	939		entitled to disclosure or knowledge of any such communication or writing, except that the
938	940		461
939	941		directors, president, vice president, manager, treasurer, and trust officers, and any employees
940	942		462
941	943		assigned to work on the trust business, and the attorney or auditor employed by it shall be
942	944		463
943	945		entitled to knowledge of any such communication or writing and except that in any suit or
944	946		464
945	947		proceeding relating to the existence, condition, management or administration of the account,
946	948		465
947	949		the court in which the suit is pending may require disclosure of any such communication or
948	950		466
949	951		writing. A trust company is not, however, precluded from filing an action in court to protect
950	952		467
951	953		trust account property or as authorized under [Title 75, Utah Uniform Probate Code] Title 75B,
952	954		468
953	955		Trusts.
954	956		469
955	957		Section 3. Section 7-5-7 is amended to read:
956		-	- 14 - Enrolled Copy S.B. 100
957	958		470
958	959		7-5-7 . Management and investment of trust money.
	960	+	- 14 - 02-07 14:26 1st Sub. (Green) S.B. 100
959	961		471
960	962		(1) Money received or held by a trust company as agent or fiduciary, whether for
961	963		472
962	964		investment or distribution, shall be invested or distributed as soon as practicable as
963	965		473
964	966		authorized under the instrument creating the account and may not be held uninvested
965	967		474
966	968		any longer than is reasonably necessary.
967	969		475
968	970		(2) If the instrument creating an agency or fiduciary account contains provisions
969	971		476
970	972		authorizing the trust company, its officers, or its directors to exercise their discretion in
971	973		477
972	974		the matter of investments, money held in the trust account under that instrument may be
973	975		478
974	976		invested only in those classes of securities which are approved by the directors of the
975	977		479
976	978		trust company or a committee of directors appointed for that purpose. If a trust company
977	979		480
978	980		acts in any agency or fiduciary capacity under appointment by a court [of competent] with
979	981		481
980	982		jurisdiction, it shall make and account for the investments according to [Title 75, Utah
981	983		482
982	984		Uniform Probate Code] Title 75B, Trusts, unless the underlying instrument provides
983	985		483
984	986		otherwise.
985	987		484
986	988		(3)(a) Money received or held as agent or fiduciary by any trust company which is also a
987	989		485
988	990		depository institution, whether for investment or distribution, may be deposited in the
989	991		486
990	992		commercial department or savings department of that trust company to the credit of
991	993		487
992	994		its trust department. Whenever the money so deposited in a fiduciary or managing
993	995		488
994	996		agency account exceed the amount of federal deposit insurance applicable to that
995	997		489
996	998		account, the trust company shall deliver to the trust department or put under its
997	999		490
998	1000		control collateral security as outlined in Regulation 9.10 of the Comptroller of the
999	1001		491
1000	1002		Currency. However, if the instrument creating such a fiduciary or managing agency
1001	1003		492
1002	1004		account expressly provides that money may be deposited to the commercial or
1003	1005		493
1004	1006		savings department of the trust company, then the money may be so deposited
1005	1007		494
1006	1008		without setting aside collateral securities as required under this section and the
1007	1009		495
1008	1010		deposits in the event of insolvency of any such trust company shall be treated as other
1009	1011		496
1010	1012		general deposits are treated. A trust company that deposits trust funds in its
1011	1013		497
1012	1014		commercial or savings department shall be liable for interest on the deposits only at
1013	1015		498
1014	1016		the rates, if any, paid by the trust company on deposits of like kind not made to the
1015	1017		499
1016	1018		credit of its trust department.
1017	1019		500
1018	1020		(b) Money received or held as agent or fiduciary by a trust company, whether for
1019	1021		501
1020	1022		investment or distribution, may be deposited in an affiliated depository institution.
1021	1023		502
1022	1024		Whenever the money so deposited in a fiduciary or managing agency account exceed
1023	1025		503
1024	1026		the amount of federal deposit insurance applicable to that account, the depository
1025		-	- 15 - S.B. 100 Enrolled Copy
1026	1027		504
1027	1028		institution shall deliver to the trust company or put under its control collateral
	1029	+	- 15 - 1st Sub. (Green) S.B. 100 02-07 14:26
1028	1030		505
1029	1031		security as outlined in Regulation 9.10 of the Comptroller of the Currency. However,
1030	1032		506
1031	1033		if the instrument creating the fiduciary or managing agency account expressly
1032	1034		507
1033	1035		permits money to be deposited in the affiliated depository institution, the money may
1034	1036		508
1035	1037		be so deposited without setting aside collateral securities as required under this
1036	1038		509
1037	1039		section and deposits in the event of insolvency of the depository institution shall be
1038	1040		510
1039	1041		treated as other general deposits are treated. A trust company that deposits trust
1040	1042		511
1041	1043		money in an affiliated depository institution is liable for interest on the deposits only
1042	1044		512
1043	1045		at the rates, if any, paid by the depository institution on deposits of like kind.
1044	1046		513
1045	1047		(4) In carrying out all aspects of its trust business, a trust company shall have all the
1046	1048		514
1047	1049		powers, privileges, and duties as set forth in Sections [75-7-813 and 75-7-814] 75B-2-813
1048	1050		515
1049	1051		and 75B-2-814 with respect to trustees, whether or not the trust company is acting as a
1050	1052		516
1051	1053		trustee as defined in [Title 75, Utah Uniform Probate Code] Section 75B-1-101.
1052	1054		517
1053	1055		(5) Nothing in this section may alter, amend, or limit the powers of a trust company acting
1054	1056		518
1055	1057		in a fiduciary capacity as specified in the particular instrument or order creating the
1056	1058		519
1057	1059		fiduciary relationship.
1058	1060		520
1059	1061		Section 4. Section 7-5-10 is amended to read:
1060	1062		521
1061	1063		7-5-10 . Lending trust funds to trust company, officer, director, or employee as
1062	1064		522
1063	1065		felony.
1064	1066		523
1065	1067		(1) Unless expressly permitted in the instrument creating a trust account or by a person
1066	1068		524
1067	1069		authorized to give that permission or by a court order as permitted in Section [75-7-802,
1068	1070		525
1069	1071		no trust company shall] 75B-2-802, a trust company may not lend to itself or to any
1070	1072		526
1071	1073		officer or director or employee of the trust company any funds held in any trust account
1072	1074		527
1073	1075		under the powers conferred in this chapter.
1074	1076		528
1075	1077		(2) Any officer, director or employee making such a loan, or to whom such a loan is made,
1076	1078		529
1077	1079		is guilty of a third degree felony.
1078	1080		530
1079	1081		Section 5. Section 7-5-11 is amended to read:
1080	1082		531
1081	1083		7-5-11 . Self-dealing with trust property -- Own stock as trust property -- Policies
1082	1084		532
1083	1085		for dealing with trust securities.
1084	1086		533
1085	1087		(1) Except as provided in Section 7-5-7, in [Title 75, Utah Uniform Probate Code] Title
1086	1088		534
1087	1089		75B, Trusts, or as authorized under the instrument creating the relationship, a trust
1088	1090		535
1089	1091		company may not invest funds held as an agent or fiduciary in stock or obligations of, or
1090	1092		536
1091	1093		with such funds acquire property from, the trust company or any of its directors, officers
1092	1094		537
1093	1095		or employees, nor shall a trust company sell property held as an agent or fiduciary to the
1094		-	- 16 - Enrolled Copy S.B. 100
1095	1096		538
1096	1097		company or to any of its directors, officers, or employees.
	1098	+	- 16 - 02-07 14:26 1st Sub. (Green) S.B. 100
1097	1099		539
1098	1100		(2) A trust company may retain and vote stock of the trust company or of any of its
1099	1101		540
1100	1102		affiliates received by it as assets of any trust account or in any other fiduciary
1101	1103		541
1102	1104		relationship of which it is appointed agent or fiduciary, unless the instrument creating
1103	1105		542
1104	1106		the relationship otherwise provides.
1105	1107		543
1106	1108		(3) Every trust company shall adopt written policies and procedures regarding decisions or
1107	1109		544
1108	1110		recommendations to purchase or sell any security to facilitate compliance with federal
1109	1111		545
1110	1112		and state securities laws. These policies and procedures, in particular, shall prohibit the
1111	1113		546
1112	1114		trust company from using material inside information in connection with any decision or
1113	1115		547
1114	1116		recommendation to purchase or sell any security.
1115	1117		548
1116	1118		Section 6. Section 8-4-2 is amended to read:
1117	1119		549
1118	1120		8-4-2 . Endowment care cemetery trust funds -- Deposits in endowment fund --
1119	1121		550
1120	1122		Reports -- Penalties for failure to file -- Investment of trust fund money -- Attestation.
1121	1123		551
1122	1124		(1) An endowment care cemetery shall establish an endowment care trust fund [pursuant to
1123	1125		552
1124	1126		Title 75, Chapter 7, Utah Uniform Trust Code] in accordance with Title 75B, Chapter 2,
1125	1127		553
1126	1128		Uniform Trust Code.
1127	1129		554
1128	1130		(a) Any newly established endowment care cemetery or existing cemetery converting to
1129	1131		555
1130	1132		an [ ]endowment care cemetery shall deposit a minimum of $25,000 in the
1131	1133		556
1132	1134		endowment care trust fund.
1133	1135		557
1134	1136		(b) Each endowment care cemetery shall deposit in the endowment care trust fund for
1135	1137		558
1136	1138		each plot space sold or disposed of a minimum of:
1137	1139		559
1138	1140		(i) $1.50 a square foot for each grave;
1139	1141		560
1140	1142		(ii) $15 for each niche; and
1141	1143		561
1142	1144		(iii) $60 for each crypt.
1143	1145		562
1144	1146		(2)(a) An endowment care cemetery shall collect endowment care funds only pursuant to
1145	1147		563
1146	1148		a written contract of sale signed by the endowment care cemetery and the purchaser.
1147	1149		564
1148	1150		(b) The contract of sale shall specify the terms of the endowment care trust consistent
1149	1151		565
1150	1152		with this section and the terms of payment.
1151	1153		566
1152	1154		(c) If requested by the purchaser, a copy of the endowment care trust shall be provided
1153	1155		567
1154	1156		to the purchaser.
1155	1157		568
1156	1158		(3)(a) Each endowment care cemetery shall prepare an annual written report for the
1157	1159		569
1158	1160		benefit of its trustor lot holders.
1159	1161		570
1160	1162		(b) The report shall contain:
1161	1163		571
1162	1164		(i) information determined to be reasonable and necessary to show compliance with
1163		-	- 17 - S.B. 100 Enrolled Copy
1164	1165		572
1165	1166		the provisions of this chapter;
	1167	+	- 17 - 1st Sub. (Green) S.B. 100 02-07 14:26
1166	1168		573
1167	1169		(ii) the number and square feet of grave space;
1168	1170		574
1169	1171		(iii) the number of crypts and niches sold or disposed of under endowment care
1170	1172		575
1171	1173		during a specific period; and
1172	1174		576
1173	1175		(iv) the dollar amount of sales, amounts paid, amounts receivable, and amounts
1174	1176		577
1175	1177		deposited in endowment care funds for crypts, niches, and grave space during a
1176	1178		578
1177	1179		specific period, set forth on the accrual basis as determined by the cemetery
1178	1180		579
1179	1181		authority.
1180	1182		580
1181	1183		(c) An officer of the endowment care cemetery authority shall verify the report.
1182	1184		581
1183	1185		(d) The report shall be on file in the principal office of the endowment care cemetery
1184	1186		582
1185	1187		and shall be made available upon request.
1186	1188		583
1187	1189		(e) The report shall be completed by the 15th day of the third month following the end
1188	1190		584
1189	1191		of the endowment care cemetery's fiscal year.
1190	1192		585
1191	1193		(4) An officer, director, partner, proprietor, or other person having control of the records of
1192	1194		586
1193	1195		an endowment care cemetery shall provide the reports and records necessary to comply
1194	1196		587
1195	1197		with the provisions of this chapter.
1196	1198		588
1197	1199		(5) A person is guilty of a class A misdemeanor who willfully and intentionally fails to:
1198	1200		589
1199	1201		(a) deposit funds collected as endowment care funds into the endowment care trust
1200	1202		590
1201	1203		within 30 days of receipt of the funds; or
1202	1204		591
1203	1205		(b) prepare the report required by Subsection (3).
1204	1206		592
1205	1207		(6) Endowment care funds may be invested separately or together. The investment income
1206	1208		593
1207	1209		shall be divided between the funds in the proportion that each contributed to the invested
1208	1210		594
1209	1211		amount.
1210	1212		595
1211	1213		(7) Endowment care funds shall be invested in accordance with Section 31A-18-105 and [
1212	1214		596
1213	1215		Title 75, Chapter 7, Utah Uniform Trust Code] Title 75B, Chapter 2, Uniform Trust Code.
1214	1216		597
1215	1217		(8)(a) An endowment care cemetery shall place endowment care funds with an
1216	1218		598
1217	1219		independent trustee appointed by the endowment care cemetery.
1218	1220		599
1219	1221		(b) A trustee may be independent even if it has common ownership with the cemetery.
1220	1222		600
1221	1223		(c) The independent trustee shall be a depository institution, as defined by Section
1222	1224		601
1223	1225		7-1-103, or an insurer, as defined in Section 31A-1-301.
1224	1226		602
1225	1227		(9)(a) The trustee shall submit to the endowment care cemetery an annual independent
1226	1228		603
1227	1229		attestation of the endowment care trust funds.
1228	1230		604
1229	1231		(b) The attestation shall state:
1230	1232		605
1231	1233		(i) the total amount of the general and special endowment care funds invested by law;
1232		-	- 18 - Enrolled Copy S.B. 100
1233	1234		606
1234	1235		(ii) the amount of cash on hand not invested;
	1236	+	- 18 - 02-07 14:26 1st Sub. (Green) S.B. 100
1235	1237		607
1236	1238		(iii) the location, description, and character of the investments in which the special
1237	1239		608
1238	1240		endowment care funds are invested;
1239	1241		609
1240	1242		(iv) the value of any securities held in the endowment care fund; and
1241	1243		610
1242	1244		(v) the actual financial condition of the funds.
1243	1245		611
1244	1246		(10)(a) A trustee may not receive compensation for services and expenses, including
1245	1247		612
1246	1248		audits, in excess of 5% of the income derived from an endowment care fund in any
1247	1249		613
1248	1250		year.
1249	1251		614
1250	1252		(b) If there are insufficient funds from the income derived from the endowment care
1251	1253		615
1252	1254		trust fund to pay for the attestation of the endowment care funds, the endowment care
1253	1255		616
1254	1256		cemetery shall pay amounts due from funds other than the endowment care trust fund
1255	1257		617
1256	1258		or income derived from that fund.
1257	1259		618
1258	1260		(11) The income from an endowment care fund shall be used for the care, maintenance, and
1259	1261		619
1260	1262		embellishment of the cemetery as determined by the endowment care cemetery, and to
1261	1263		620
1262	1264		pay for administering the fund.
1263	1265		621
1264	1266		Section 7. Section 26B-3-1008 is amended to read:
1265	1267		622
1266	1268		26B-3-1008 . Statute of limitations -- Survival of right of action -- Insurance
1267	1269		623
1268	1270		policy not to limit time allowed for recovery.
1269	1271		624
1270	1272		(1)(a) Subject to Subsection (6), action commenced by the department under this part
1271	1273		625
1272	1274		against a health insurance entity shall be commenced within:
1273	1275		626
1274	1276		(i) subject to Subsection (7), six years after the day on which the department submits
1275	1277		627
1276	1278		the claim for recovery or payment for the health care item or service upon which
1277	1279		628
1278	1280		the action is based; or
1279	1281		629
1280	1282		(ii) six months after the date of the last payment for medical assistance, whichever is
1281	1283		630
1282	1284		later.
1283	1285		631
1284	1286		(b) An action against any other third party, the recipient, or anyone to whom the
1285	1287		632
1286	1288		proceeds are payable shall be commenced within:
1287	1289		633
1288	1290		(i) four years after the date of the injury or onset of the illness; or
1289	1291		634
1290	1292		(ii) six months after the date of the last payment for medical assistance, whichever is
1291	1293		635
1292	1294		later.
1293	1295		636
1294	1296		(2) The death of the recipient does not abate any right of action established by this part.
1295	1297		637
1296	1298		(3)(a) No insurance policy issued or renewed after June 1, 1981, may contain any
1297	1299		638
1298	1300		provision that limits the time in which the department may submit its claim to
1299	1301		639
1300	1302		recover medical assistance benefits to a period of less than 24 months from the date
1301		-	- 19 - S.B. 100 Enrolled Copy
1302	1303		640
1303	1304		the provider furnishes services or goods to the recipient.
	1305	+	- 19 - 1st Sub. (Green) S.B. 100 02-07 14:26
1304	1306		641
1305	1307		(b) No insurance policy issued or renewed after April 30, 2007, may contain any
1306	1308		642
1307	1309		provision that limits the time in which the department may submit its claim to
1308	1310		643
1309	1311		recover medical assistance benefits to a period of less than that described in
1310	1312		644
1311	1313		Subsection (1)(a).
1312	1314		645
1313	1315		(4) The provisions of this section do not apply to Section 26B-3-1013 or Sections
1314	1316		646
1315	1317		26B-3-1015 through 26B-3-1023.
1316	1318		647
1317	1319		(5) The provisions of this section supersede any other sections regarding the time limit in
1318	1320		648
1319	1321		which an action shall be commenced, including Section [75-7-509] 75B-2-509.
1320	1322		649
1321	1323		(6)(a) Subsection (1)(a) extends the statute of limitations on a cause of action described
1322	1324		650
1323	1325		in Subsection (1)(a) that was not time-barred on or before April 30, 2007.
1324	1326		651
1325	1327		(b) Subsection (1)(a) does not revive a cause of action that was time-barred on or before
1326	1328		652
1327	1329		April 30, 2007.
1328	1330		653
1329	1331		(7) An action described in Subsection (1)(a) may not be commenced if the claim for
1330	1332		654
1331	1333		recovery or payment described in Subsection (1)(a)(i) is submitted later than three years
1332	1334		655
1333	1335		after the day on which the health care item or service upon which the claim is based was
1334	1336		656
1335	1337		provided.
1336	1338		657
1337	1339		Section 8. Section 26B-3-1013 is amended to read:
1338	1340		658
1339	1341		26B-3-1013 . Estate and trust recovery.
1340	1342		659
1341	1343		(1)(a) Except as provided in Subsection (1)(b), upon a recipient's death, the department
1342	1344		660
1343	1345		may recover from the recipient's recovery estate and any trust, in which the recipient
1344	1346		661
1345	1347		is the grantor and a beneficiary, medical assistance correctly provided for the benefit
1346	1348		662
1347	1349		of the recipient when the recipient was 55 years old or older.
1348	1350		663
1349	1351		(b) The department may not make an adjustment or a recovery under Subsection (1)(a):
1350	1352		664
1351	1353		(i) while the deceased recipient's spouse is still living; or
1352	1354		665
1353	1355		(ii) if the deceased recipient has a surviving child who is:
1354	1356		666
1355	1357		(A) under 21 years old; or
1356	1358		667
1357	1359		(B) blind or disabled, as defined in the state plan.
1358	1360		668
1359	1361		(2)(a) The amount of medical assistance correctly provided for the benefit of a recipient
1360	1362		669
1361	1363		and recoverable under this section is a lien against the deceased recipient's recovery
1362	1364		670
1363	1365		estate or any trust when the recipient is the grantor and a beneficiary.
1364	1366		671
1365	1367		(b) The lien holds the same priority as reasonable and necessary medical expenses of the
1366	1368		672
1367	1369		last illness as provided in Section 75-3-805.
1368	1370		673
1369	1371		(3)(a) For a lien described in Subsection (2), the department shall provide notice in
1370		-	- 20 - Enrolled Copy S.B. 100
1371	1372		674
1372	1373		accordance with Section 38-12-102.
	1374	+	- 20 - 02-07 14:26 1st Sub. (Green) S.B. 100
1373	1375		675
1374	1376		(b) Before final distribution, the department shall perfect the lien as follows:
1375	1377		676
1376	1378		(i) for an estate, by presenting the lien to the estate's personal representative in
1377	1379		677
1378	1380		accordance with Section 75-3-804; and
1379	1381		678
1380	1382		(ii) for a trust, by presenting the lien to the trustee in accordance with Section [
1381	1383		679
1382	1384		75-7-510] 75B-2-510.
1383	1385		680
1384	1386		(c) The department may file an amended lien before the entry of the final order to close
1385	1387		681
1386	1388		the estate or trust.
1387	1389		682
1388	1390		(4) Claims against a deceased recipient's inter vivos trust shall be presented in accordance
1389	1391		683
1390	1392		with Sections [75-7-509 and 75-7-510] 75B-2-509 and 75B-2-510.
1391	1393		684
1392	1394		(5) Any trust provision that denies recovery for medical assistance is void at the time of its
1393	1395		685
1394	1396		making.
1395	1397		686
1396	1398		(6) Nothing in this section affects the right of the department to recover Medicaid
1397	1399		687
1398	1400		assistance before a recipient's death under Section 26B-3-1003 or 26B-3-1014.
1399	1401		688
1400	1402		(7) A lien imposed under this section is of indefinite duration.
1401	1403		689
1402	1404		Section 9. Section 49-11-303 is amended to read:
1403	1405		690
1404	1406		49-11-303 . Fund investment standard -- Prudent investor rule.
1405	1407		691
1406	1408		The fund shall be invested in accordance with the prudent investor rule established in [
1407	1409		692
1408	1410		Title 75, Chapter 7, Part 9, Utah Uniform Prudent Investor Act] Title 75B, Chapter 2, Part 9,
1409	1411		693
1410	1412		Uniform Prudent Investor Act.
1411	1413		694
1412	1414		Section 10. Section 51-7-14 is amended to read:
1413	1415		695
1414	1416		51-7-14 . Prudent investor rule for management of investments -- Proxy voting --
1415	1417		696
1416	1418		Sale of security or investment for less than cost -- State treasurer access.
1417	1419		697
1418	1420		(1) Subject to Subsection (2), a person selecting investments authorized by Sections 51-7-11
1419	1421		698
1420	1422		and 51-7-13 shall:
1421	1423		699
1422	1424		(a) select investments not for speculation but for investment; and
1423	1425		700
1424	1426		(b) consider:
1425	1427		701
1426	1428		(i) the probable safety of the capital;
1427	1429		702
1428	1430		(ii) the probable benefits to be derived;
1429	1431		703
1430	1432		(iii) the probable duration for which that investment may be made;
1431	1433		704
1432	1434		(iv) the investment objectives specified in Section 51-7-17; and
1433	1435		705
1434	1436		(v) the investment portfolio as a whole.
1435	1437		706
1436	1438		(2) A public treasurer shall:
1437	1439		707
1438	1440		(a) invest public funds in accordance with the prudent investor rule established in [Title
1439		-	- 21 - S.B. 100 Enrolled Copy
1440	1441		708
1441		-	75, Chapter 7, Part 9, Utah Uniform Prudent Investor Act] Title 75B, Chapter 2, Part 9,
	1442	+	75, Chapter 7, Part 9, Utah Uniform Prudent Investor Act] Title 75B, Chapter 2, Part
	1443	+	- 21 - 1st Sub. (Green) S.B. 100 02-07 14:26
1442	1444		709
1443		-	Uniform Prudent Investor Act;
	1445	+	9, Uniform Prudent Investor Act;
1444	1446		710
1445	1447		(b) make public fund investment decisions with the sole purpose of maximizing the
1446	1448		711
1447	1449		risk-adjusted return on the investments; and
1448	1450		712
1449	1451		(c) to the extent practicable:
1450	1452		713
1451	1453		(i)(A) retain the right to vote investor proxies; or
1452	1454		714
1453	1455		(B) if the investments are commingled with another investor's funds, request the
1454	1456		715
1455	1457		right to vote investor proxies; and
1456	1458		716
1457	1459		(ii) ensure proxy voting is exercised to maximize risk-adjusted returns for the
1458	1460		717
1459	1461		exclusive benefit of beneficiaries.
1460	1462		718
1461	1463		(3) A public treasurer may sell or otherwise dispose of, at less than cost, any security or
1462	1464		719
1463	1465		investment in which public funds under the public treasurer's jurisdiction have been
1464	1466		720
1465	1467		invested if that sale or other disposition tends to maximize the benefits that may be
1466	1468		721
1467	1469		derived from the changed investment.
1468	1470		722
1469	1471		(4)(a) A public treasurer shall make proxy voting records available to the state treasurer
1470	1472		723
1471	1473		upon the state treasurer's request.
1472	1474		724
1473	1475		(b) The state treasurer is subject to the same restrictions on disclosure of the proxy
1474	1476		725
1475	1477		voting records as the originating public treasurer.
1476	1478		726
1477	1479		Section 11. Section 53B-8a-107 is amended to read:
1478	1480		727
1479	1481		53B-8a-107 . Program, administrative, and endowment funds -- Investment and
1480	1482		728
1481	1483		payments from funds -- Proxy voting -- State treasurer access.
1482	1484		729
1483	1485		(1) The plan shall segregate money received by the plan into three funds, the program fund,
1484	1486		730
1485	1487		the administrative fund, and the endowment fund.
1486	1488		731
1487	1489		(2) The board shall:
1488	1490		732
1489	1491		(a) invest the plan in a manner that is consistent with the prudent investor rule for
1490	1492		733
1491	1493		trustees established in [Title 75, Chapter 7, Part 9, Utah Uniform Prudent Investor Act]
1492	1494		734
1493	1495		Title 75B, Chapter 2, Part 9, Uniform Prudent Investor Act;
1494	1496		735
1495	1497		(b) in accordance with the board's fiduciary responsibilities, make investment decisions
1496	1498		736
1497	1499		with the sole purpose of maximizing the risk-adjusted return on the investments; and
1498	1500		737
1499	1501		(c) to the extent practicable:
1500	1502		738
1501	1503		(i)(A) retain the right to vote investor proxies; or
1502	1504		739
1503	1505		(B) if the investments are commingled with another investor's funds, request the
1504	1506		740
1505	1507		right to vote investor proxies; and
1506	1508		741
1507	1509		(ii) ensure proxy voting is exercised to maximize risk-adjusted returns for the
1508		-	- 22 - Enrolled Copy S.B. 100
1509	1510		742
1510	1511		exclusive benefit of beneficiaries.
	1512	+	- 22 - 02-07 14:26 1st Sub. (Green) S.B. 100
1511	1513		743
1512	1514		(3) Transfers may be made from the program fund to the administrative fund to pay
1513	1515		744
1514	1516		operating costs:
1515	1517		745
1516	1518		(a) associated with administering the plan and as required under Sections 53B-8a-103
1517	1519		746
1518	1520		through 53B-8a-105; and
1519	1521		747
1520	1522		(b) as included in the budget approved by the board.
1521	1523		748
1522	1524		(4)(a) All money paid by account owners in connection with account agreements shall
1523	1525		749
1524	1526		be deposited as received into separate accounts within the program fund which shall
1525	1527		750
1526	1528		be invested and accounted for separately.
1527	1529		751
1528	1530		(b) Money accrued by account owners in the program fund may be used for:
1529	1531		752
1530	1532		(i) payments to any institution of higher education;
1531	1533		753
1532	1534		(ii) payments to the account owner or beneficiary;
1533	1535		754
1534	1536		(iii) transfers to another 529 plan; or
1535	1537		755
1536	1538		(iv) other expenditures or transfers made in accordance with the account agreement.
1537	1539		756
1538	1540		(5)(a) All money received by the plan from the proceeds of gifts and other endowments
1539	1541		757
1540	1542		for the purposes of the plan shall be:
1541	1543		758
1542	1544		(i) deposited, according to the nature of the donation, as received into the endowment
1543	1545		759
1544	1546		fund or the administrative fund; and
1545	1547		760
1546	1548		(ii) invested and accounted for separately.
1547	1549		761
1548	1550		(b) Any gifts, grants, or donations made by any governmental unit or any person, firm,
1549	1551		762
1550	1552		partnership, or corporation to the plan for deposit to the endowment fund or the
1551	1553		763
1552	1554		administrative fund is a grant, gift, or donation to the state for the accomplishment of
1553	1555		764
1554	1556		a valid public eleemosynary, charitable, and educational purpose and is not included
1555	1557		765
1556	1558		in the income of the donor for Utah tax purposes.
1557	1559		766
1558	1560		(c) The endowment fund or the administrative fund may be used to enhance the savings
1559	1561		767
1560	1562		of low income account owners investing in the plan, for scholarships, or for other
1561	1563		768
1562	1564		college savings incentive programs as approved by the board.
1563	1565		769
1564	1566		(d) Transfers may be made between the endowment fund and the administrative fund
1565	1567		770
1566	1568		upon approval by the board.
1567	1569		771
1568	1570		(e) Endowment fund earnings not accruing to a beneficiary under an account agreement,
1569	1571		772
1570	1572		not transferred to the administrative fund, or not otherwise approved by the board for
1571	1573		773
1572	1574		expenditure, shall be reinvested in the endowment fund.
1573	1575		774
1574	1576		(6) Subsection (2) does not prohibit the board from offering individual account owners a
1575	1577		775
1576	1578		variety of voluntary investment options that have different risk profiles and investment
1577		-	- 23 - S.B. 100 Enrolled Copy
1578	1579		776
1579	1580		objectives.
	1581	+	- 23 - 1st Sub. (Green) S.B. 100 02-07 14:26
1580	1582		777
1581	1583		(7)(a) The board shall make proxy voting records available to the state treasurer upon
1582	1584		778
1583	1585		the state treasurer's request.
1584	1586		779
1585	1587		(b) The state treasurer is subject to the same restrictions on disclosure of the proxy
1586	1588		780
1587	1589		voting records as the board.
1588	1590		781
1589	1591		Section 12. Section 58-9-703 is amended to read:
1590	1592		782
1591	1593		58-9-703 . Trust agreement.
1592	1594		783
1593	1595		(1) Each trust established by a funeral service establishment shall be administered in
1594	1596		784
1595	1597		accordance with a trust agreement conforming with:
1596	1598		785
1597	1599		(a) the requirements of this chapter;
1598	1600		786
1599	1601		(b) rules adopted with respect to this chapter;
1600	1602		787
1601	1603		(c) the provisions of [Title 75, Chapter 7, Utah Uniform Trust Code] Title 75B, Chapter
1602	1604		788
1603	1605		2, Uniform Trust Code; and
1604	1606		789
1605	1607		(d) all other state and federal laws applicable to trusts and trust agreements.
1606	1608		790
1607	1609		(2) Each trust agreement shall require that the funeral service establishment maintain a copy
1608	1610		791
1609	1611		of the trust agreement until five years after all of its obligations under the trust
1610	1612		792
1611	1613		agreement have been executed or transferred.
1612	1614		793
1613	1615		(3) Each trust agreement shall require that the trustee:
1614	1616		794
1615	1617		(a) separately account for each contract; and
1616	1618		795
1617	1619		(b) separately record payments with respect to each contract made into the corpus of the
1618	1620		796
1619	1621		trust.
1620	1622		797
1621	1623		(4) Each trust agreement shall provide for distributions from the trust in accordance with
1622	1624		798
1623	1625		the provisions of this chapter upon:
1624	1626		799
1625	1627		(a) the death of the beneficiary;
1626	1628		800
1627	1629		(b) revocation of the contract by the funeral service establishment upon nonpayment by
1628	1630		801
1629	1631		the buyer; or
1630	1632		802
1631	1633		(c) revocation of the contract by the beneficiary or buyer.
1632	1634		803
1633	1635		Section 13. Section 59-10-103 is amended to read:
1634	1636		804
1635	1637		59-10-103 . Definitions.
1636	1638		805
1637	1639		(1) As used in this chapter:
1638	1640		806
1639	1641		(a)(i) "Adjusted gross income":
1640	1642		807
1641	1643		(A) for a resident or nonresident individual, means the same as that term is
1642	1644		808
1643	1645		defined in Section 62, Internal Revenue Code; or
1644	1646		809
1645	1647		(B) for a resident or nonresident estate or trust, is as calculated in Section 67(e),
1646		-	- 24 - Enrolled Copy S.B. 100
1647	1648		810
1648	1649		Internal Revenue Code.
	1650	+	- 24 - 02-07 14:26 1st Sub. (Green) S.B. 100
1649	1651		811
1650	1652		(ii) "Adjusted gross income" does not include:
1651	1653		812
1652	1654		(A) income received from a loan forgiven in accordance with 15 U.S.C. Sec.
1653	1655		813
1654	1656		636(a)[ ](36), to the extent that a deduction for the expenditures paid with the
1655	1657		814
1656	1658		loan is disallowed, or a similar paycheck protection loan that is authorized by
1657	1659		815
1658	1660		the federal government, provided in response to COVID-19, forgiven if the
1659	1661		816
1660	1662		borrower meets the expenditure requirements, and exempt from federal income
1661	1663		817
1662	1664		tax, to the extent that a deduction for the expenditures paid with the loan is
1663	1665		818
1664	1666		disallowed; or
1665	1667		819
1666	1668		(B) an amount that an individual receives in accordance with Section 6428,
1667	1669		820
1668	1670		Internal Revenue Code, or an amount that an individual receives that is
1669	1671		821
1670	1672		authorized by the federal government as a tax credit for the 2020 tax year,
1671	1673		822
1672	1674		provided in response to COVID-19, paid in advance of the filing of the
1673	1675		823
1674	1676		individual's 2020 federal income tax return, and exempt from federal income
1675	1677		824
1676	1678		tax.
1677	1679		825
1678	1680		(b) "Corporation" includes:
1679	1681		826
1680	1682		(i) an association;
1681	1683		827
1682	1684		(ii) a joint stock company; and
1683	1685		828
1684	1686		(iii) an insurance company.
1685	1687		829
1686	1688		(c) "COVID-19" means:
1687	1689		830
1688	1690		(i) the severe acute respiratory syndrome coronavirus 2; or
1689	1691		831
1690	1692		(ii) the disease caused by severe acute respiratory syndrome coronavirus 2.
1691	1693		832
1692	1694		(d) "Distributable net income" means the same as that term is defined in Section 643,
1693	1695		833
1694	1696		Internal Revenue Code.
1695	1697		834
1696	1698		(e) "Employee" means the same as that term is defined in Section 59-10-401.
1697	1699		835
1698	1700		(f) "Employer" means the same as that term is defined in Section 59-10-401.
1699	1701		836
1700	1702		(g) "Federal taxable income":
1701	1703		837
1702	1704		(i) for a resident or nonresident individual, means taxable income as defined by
1703	1705		838
1704	1706		Section 63, Internal Revenue Code; or
1705	1707		839
1706	1708		(ii) for a resident or nonresident estate or trust, is as calculated in Section 641(a) and
1707	1709		840
1708	1710		(b), Internal Revenue Code.
1709	1711		841
1710	1712		(h) "Fiduciary" means:
1711	1713		842
1712	1714		(i) a guardian;
1713	1715		843
1714	1716		(ii) a trustee;
1715		-	- 25 - S.B. 100 Enrolled Copy
1716	1717		844
1717	1718		(iii) an executor;
	1719	+	- 25 - 1st Sub. (Green) S.B. 100 02-07 14:26
1718	1720		845
1719	1721		(iv) an administrator;
1720	1722		846
1721	1723		(v) a receiver;
1722	1724		847
1723	1725		(vi) a conservator; or
1724	1726		848
1725	1727		(vii) any person acting in any fiduciary capacity for any individual.
1726	1728		849
1727	1729		(i) "Guaranteed annuity interest" means the same as that term is defined in 26 C.F.R.
1728	1730		850
1729	1731		Sec. 1.170A-6(c)(2).
1730	1732		851
1731	1733		(j) "Homesteaded land diminished from the Uintah and Ouray Reservation" means the
1732	1734		852
1733	1735		homesteaded land that was held to have been diminished from the Uintah and Ouray
1734	1736		853
1735	1737		Reservation in Hagen v. Utah, 510 U.S. 399 (1994).
1736	1738		854
1737	1739		(k) "Individual" means a natural person and includes aliens and minors.
1738	1740		855
1739	1741		(l) "Irrevocable trust" means a trust in which the settlor may not revoke or terminate all
1740	1742		856
1741	1743		or part of the trust without the consent of a person who has a substantial beneficial
1742	1744		857
1743	1745		interest in the trust and the interest would be adversely affected by the exercise of the
1744	1746		858
1745	1747		settlor's power to revoke or terminate all or part of the trust.
1746	1748		859
1747	1749		(m) "Military service" means the same as that term is defined in Pub. L. No. 108-189,
1748	1750		860
1749	1751		Sec. 101.
1750	1752		861
1751	1753		(n) "Nonresident individual" means an individual who is not a resident of this state.
1752	1754		862
1753	1755		(o) "Nonresident trust" or "nonresident estate" means a trust or estate which is not a
1754	1756		863
1755	1757		resident estate or trust.
1756	1758		864
1757	1759		(p)(i) "Partnership" includes a syndicate, group, pool, joint venture, or other
1758	1760		865
1759	1761		unincorporated organization:
1760	1762		866
1761	1763		(A) through or by means of which any business, financial operation, or venture is
1762	1764		867
1763	1765		carried on; and
1764	1766		868
1765	1767		(B) that is not, within the meaning of this chapter, a trust, an estate, or a
1766	1768		869
1767	1769		corporation.
1768	1770		870
1769	1771		(ii) "Partnership" does not include any organization not included under the definition
1770	1772		871
1771	1773		of "partnership" in Section 761, Internal Revenue Code.
1772	1774		872
1773	1775		(iii) "Partner" includes a member in a syndicate, group, pool, joint venture, or
1774	1776		873
1775	1777		organization described in Subsection (1)(p)(i).
1776	1778		874
1777	1779		(q) "Pass-through entity" means the same as that term is defined in Section 59-10-1402.
1778	1780		875
1779	1781		(r) "Pass-through entity taxpayer" means the same as that term is defined in Section
1780	1782		876
1781	1783		59-10-1402.
1782	1784		877
1783	1785		(s) "Qualified nongrantor charitable lead trust" means a trust:
1784		-	- 26 - Enrolled Copy S.B. 100
1785	1786		878
1786	1787		(i) that is irrevocable;
	1788	+	- 26 - 02-07 14:26 1st Sub. (Green) S.B. 100
1787	1789		879
1788	1790		(ii) that has a trust term measured by:
1789	1791		880
1790	1792		(A) a fixed term of years; or
1791	1793		881
1792	1794		(B) the life of a person living on the day on which the trust is created;
1793	1795		882
1794	1796		(iii) under which:
1795	1797		883
1796	1798		(A) a portion of the value of the trust assets is distributed during the trust term:
1797	1799		884
1798	1800		(I) to an organization described in Section 170(c), Internal Revenue Code; and
1799	1801		885
1800	1802		(II) as a guaranteed annuity interest or a unitrust interest; and
1801	1803		886
1802	1804		(B) assets remaining in the trust at the termination of the trust term are distributed
1803	1805		887
1804	1806		to a beneficiary:
1805	1807		888
1806	1808		(I) designated in the trust; and
1807	1809		889
1808	1810		(II) that is not an organization described in Section 170(c), Internal Revenue
1809	1811		890
1810	1812		Code;
1811	1813		891
1812	1814		(iv) for which the trust is allowed a deduction under Section 642(c), Internal Revenue
1813	1815		892
1814	1816		Code; and
1815	1817		893
1816	1818		(v) under which the grantor of the trust is not treated as the owner of any portion of
1817	1819		894
1818	1820		the trust for federal income tax purposes.
1819	1821		895
1820	1822		(t) "Resident individual" means an individual who is domiciled in this state for any
1821	1823		896
1822	1824		period of time during the taxable year, but only for the duration of the period during
1823	1825		897
1824	1826		which the individual is domiciled in this state.
1825	1827		898
1826	1828		(u) "Resident estate" or "resident trust" means the same as that term is defined in Section [
1827	1829		899
1828	1830		75-7-103] 75B-2-103.
1829	1831		900
1830	1832		(v) " Service member" means the same as that term is defined in Pub. L. No. 108-189,
1831	1833		901
1832	1834		Sec. 101.
1833	1835		902
1834	1836		(w) "State income tax percentage for a nonresident estate or trust" means a percentage
1835	1837		903
1836	1838		equal to a nonresident estate's or trust's state taxable income for the taxable year
1837	1839		904
1838	1840		divided by the nonresident estate's or trust's total adjusted gross income for that
1839	1841		905
1840	1842		taxable year after making the adjustments required by:
1841	1843		906
1842	1844		(i) Section 59-10-202;
1843	1845		907
1844	1846		(ii) Section 59-10-207;
1845	1847		908
1846	1848		(iii) Section 59-10-209.1; or
1847	1849		909
1848	1850		(iv) Section 59-10-210.
1849	1851		910
1850	1852		(x) "State income tax percentage for a nonresident individual" means a percentage equal
1851	1853		911
1852	1854		to a nonresident individual's state taxable income for the taxable year divided by the
1853		-	- 27 - S.B. 100 Enrolled Copy
1854	1855		912
1855	1856		difference between:
	1857	+	- 27 - 1st Sub. (Green) S.B. 100 02-07 14:26
1856	1858		913
1857	1859		(i) subject to Section 59-10-1405, the nonresident individual's total adjusted gross
1858	1860		914
1859	1861		income for that taxable year, after making the:
1860	1862		915
1861	1863		(A) additions and subtractions required by Section 59-10-114; and
1862	1864		916
1863	1865		(B) adjustments required by Section 59-10-115; and
1864	1866		917
1865	1867		(ii) if the nonresident individual described in Subsection (1)(x)(i) is a service
1866	1868		918
1867	1869		member, the compensation the service member receives for military service if the
1868	1870		919
1869	1871		service member is serving in compliance with military orders.
1870	1872		920
1871	1873		(y) "State income tax percentage for a part-year resident individual" means, for a taxable
1872	1874		921
1873	1875		year, a fraction:
1874	1876		922
1875	1877		(i) the numerator of which is the sum of:
1876	1878		923
1877	1879		(A) subject to Section 59-10-1404.5, for the time period during the taxable year
1878	1880		924
1879	1881		that the part-year resident individual is a resident, the part-year resident
1880	1882		925
1881	1883		individual's total adjusted gross income for that time period, after making the:
1882	1884		926
1883	1885		(I) additions and subtractions required by Section 59-10-114; and
1884	1886		927
1885	1887		(II) adjustments required by Section 59-10-115; and
1886	1888		928
1887	1889		(B) for the time period during the taxable year that the part-year resident
1888	1890		929
1889	1891		individual is a nonresident, an amount calculated by:
1890	1892		930
1891	1893		(I) determining the part-year resident individual's adjusted gross income for
1892	1894		931
1893	1895		that time period, after making the:
1894	1896		932
1895	1897		(Aa) additions and subtractions required by Section 59-10-114; and
1896	1898		933
1897	1899		(Bb) adjustments required by Section 59-10-115; and
1898	1900		934
1899	1901		(II) calculating the portion of the amount determined under Subsection
1900	1902		935
1901	1903		(1)(y)(i)(B)(I) that is derived from Utah sources in accordance with Section
1902	1904		936
1903	1905		59-10-117; and
1904	1906		937
1905	1907		(ii) the denominator of which is the difference between:
1906	1908		938
1907	1909		(A) the part-year resident individual's total adjusted gross income for that taxable
1908	1910		939
1909	1911		year, after making the:
1910	1912		940
1911	1913		(I) additions and subtractions required by Section 59-10-114; and
1912	1914		941
1913	1915		(II) adjustments required by Section 59-10-115; and
1914	1916		942
1915	1917		(B) if the part-year resident individual is a service member, any compensation the
1916	1918		943
1917	1919		service member receives for military service during the portion of the taxable
1918	1920		944
1919	1921		year that the service member is a nonresident if the service member is serving
1920	1922		945
1921	1923		in compliance with military orders.
1922		-	- 28 - Enrolled Copy S.B. 100
1923	1924		946
1924	1925		(z) "Taxable income" or "state taxable income":
	1926	+	- 28 - 02-07 14:26 1st Sub. (Green) S.B. 100
1925	1927		947
1926	1928		(i) subject to Section 59-10-1404.5, for a resident individual, means the resident
1927	1929		948
1928	1930		individual's adjusted gross income after making the:
1929	1931		949
1930	1932		(A) additions and subtractions required by Section 59-10-114; and
1931	1933		950
1932	1934		(B) adjustments required by Section 59-10-115;
1933	1935		951
1934	1936		(ii) for a nonresident individual, is an amount calculated by:
1935	1937		952
1936	1938		(A) determining the nonresident individual's adjusted gross income for the taxable
1937	1939		953
1938	1940		year, after making the:
1939	1941		954
1940	1942		(I) additions and subtractions required by Section 59-10-114; and
1941	1943		955
1942	1944		(II) adjustments required by Section 59-10-115; and
1943	1945		956
1944	1946		(B) calculating the portion of the amount determined under Subsection
1945	1947		957
1946	1948		(1)(z)(ii)(A) that is derived from Utah sources in accordance with Section
1947	1949		958
1948	1950		59-10-117;
1949	1951		959
1950	1952		(iii) for a resident estate or trust, is as calculated under Section 59-10-201.1; and
1951	1953		960
1952	1954		(iv) for a nonresident estate or trust, is as calculated under Section 59-10-204.
1953	1955		961
1954	1956		(aa) "Taxpayer" means any of the following that has income subject in whole or part to
1955	1957		962
1956	1958		the tax imposed by this chapter:
1957	1959		963
1958	1960		(i) an individual;
1959	1961		964
1960	1962		(ii) an estate, a trust, or a beneficiary of an estate or a trust that is not a pass-through
1961	1963		965
1962	1964		entity or a pass-through entity taxpayer;
1963	1965		966
1964	1966		(iii) a pass-through entity; or
1965	1967		967
1966	1968		(iv) a pass-through entity taxpayer.
1967	1969		968
1968	1970		(bb) "Trust term" means a time period:
1969	1971		969
1970	1972		(i) beginning on the day on which a qualified nongrantor charitable lead trust is
1971	1973		970
1972	1974		created; and
1973	1975		971
1974	1976		(ii) ending on the day on which the qualified nongrantor charitable lead trust
1975	1977		972
1976	1978		described in Subsection (1)(bb)(i) terminates.
1977	1979		973
1978	1980		(cc) "Uintah and Ouray Reservation" means the lands recognized as being included
1979	1981		974
1980	1982		within the Uintah and Ouray Reservation in:
1981	1983		975
1982	1984		(i) Hagen v. Utah, 510 U.S. 399 (1994); and
1983	1985		976
1984	1986		(ii) Ute Indian Tribe v. Utah, 114 F.3d 1513 (10th Cir. 1997).
1985	1987		977
1986	1988		(dd) "Unadjusted income" means an amount equal to the difference between:
1987	1989		978
1988	1990		(i) the total income required to be reported by a resident or nonresident estate or trust
1989	1991		979
1990	1992		on the resident or nonresident estate's or trust's federal income tax return for
1991		-	- 29 - S.B. 100 Enrolled Copy
1992	1993		980
1993	1994		estates and trusts for the taxable year; and
	1995	+	- 29 - 1st Sub. (Green) S.B. 100 02-07 14:26
1994	1996		981
1995	1997		(ii) the sum of the following:
1996	1998		982
1997	1999		(A) fees paid or incurred to the fiduciary of a resident or nonresident estate or trust:
1998	2000		983
1999	2001		(I) for administering the resident or nonresident estate or trust; and
2000	2002		984
2001	2003		(II) that the resident or nonresident estate or trust deducts as allowed on the
2002	2004		985
2003	2005		resident or nonresident estate's or trust's federal income tax return for estates
2004	2006		986
2005	2007		and trusts for the taxable year;
2006	2008		987
2007	2009		(B) the income distribution deduction that a resident or nonresident estate or trust
2008	2010		988
2009	2011		deducts under Section 651 or 661, Internal Revenue Code, as allowed on the
2010	2012		989
2011	2013		resident or nonresident estate's or trust's federal income tax return for estates
2012	2014		990
2013	2015		and trusts for the taxable year;
2014	2016		991
2015	2017		(C) the amount that a resident or nonresident estate or trust deducts as a deduction
2016	2018		992
2017	2019		for estate tax or generation skipping transfer tax under Section 691(c), Internal
2018	2020		993
2019	2021		Revenue Code, as allowed on the resident or nonresident estate's or trust's
2020	2022		994
2021	2023		federal income tax return for estates and trusts for the taxable year; and
2022	2024		995
2023	2025		(D) the amount that a resident or nonresident estate or trust deducts as a personal
2024	2026		996
2025	2027		exemption under Section 642(b), Internal Revenue Code, as allowed on the
2026	2028		997
2027	2029		resident or nonresident estate's or trust's federal income tax return for estates
2028	2030		998
2029	2031		and trusts for the taxable year.
2030	2032		999
2031	2033		(ee) "Unitrust interest" means the same as that term is defined in 26 C.F.R. Sec.
2032	2034		1000
2033	2035		1.170A-6(c)(2).
2034	2036		1001
2035	2037		(ff) "Ute tribal member" means an individual who is enrolled as a member of the Ute
2036	2038		1002
2037	2039		Indian Tribe of the Uintah and Ouray Reservation.
2038	2040		1003
2039	2041		(gg) "Ute tribe" means the Ute Indian Tribe of the Uintah and Ouray Reservation.
2040	2042		1004
2041	2043		(hh) "Wages" means the same as that term is defined in Section 59-10-401.
2042	2044		1005
2043	2045		(2)(a) Any term used in this chapter has the same meaning as when used in comparable
2044	2046		1006
2045	2047		context in the laws of the United States relating to federal income taxes unless a
2046	2048		1007
2047	2049		different meaning is clearly required.
2048	2050		1008
2049	2051		(b) Any reference to the Internal Revenue Code or to the laws of the United States shall
2050	2052		1009
2051	2053		mean the Internal Revenue Code or other provisions of the laws of the United States
2052	2054		1010
2053	2055		relating to federal income taxes that are in effect for the taxable year.
2054	2056		1011
2055	2057		(c) Any reference to a specific section of the Internal Revenue Code or other provision
2056	2058		1012
2057	2059		of the laws of the United States relating to federal income taxes shall include any
2058	2060		1013
2059	2061		corresponding or comparable provisions of the Internal Revenue Code as amended,
2060		-	- 30 - Enrolled Copy S.B. 100
2061	2062		1014
2062	2063		redesignated, or reenacted.
	2064	+	- 30 - 02-07 14:26 1st Sub. (Green) S.B. 100
2063	2065		1015
2064	2066		Section 14. Section 75-1-102 is amended to read:
2065	2067		1016
2066	2068		75-1-102 . Purposes -- Rule of construction.
2067	2069		1017
2068	2070		(1) This [code] title shall be liberally construed and applied to promote its underlying
2069	2071		1018
2070	2072		purposes and policies.
2071	2073		1019
2072	2074		(2) The underlying purposes and policies of this [code] title are:
2073	2075		1020
2074	2076		(a) [To] to simplify and clarify the law concerning the affairs of decedents, missing
2075	2077		1021
2076	2078		persons, protected persons, minors, and incapacitated persons;
2077	2079		1022
2078	2080		(b) [To] to discover and make effective the intent of a decedent in distribution of [his] the
2079	2081		1023
2080	2082		decedent's property;
2081	2083		1024
2082	2084		(c) [To] to promote a speedy and efficient system for administering the estate of the
2083	2085		1025
2084	2086		decedent and making distribution to [his] the decedent's successors;
2085	2087		1026
2086	2088		(d) [To] to facilitate use and enforcement of certain trusts; and
2087	2089		1027
2088	2090		(e) [To] to make uniform the law among the various jurisdictions.
2089	2091		1028
2090	2092		Section 15. Section 75-1-103 is amended to read:
2091	2093		1029
2092	2094		75-1-103 . Supplementary general principles of law applicable.
2093	2095		1030
2094	2096		Unless displaced by the particular provisions of this [code] title, the principles of law and
2095	2097		1031
2096	2098		equity supplement [its provisions] the provisions of this title.
2097	2099		1032
2098	2100		Section 16. Section 75-1-104 is amended to read:
2099	2101		1033
2100	2102		75-1-104 . Severability.
2101	2103		1034
2102	2104		If any provision of this [code] title or the application [thereof] of this title to any person or
2103	2105		1035
2104	2106		circumstances is held invalid, the invalidity shall not affect other provisions or applications of [
2105	2107		1036
2106	2108		the code which] this title that can be given effect without the invalid provision or application,
2107	2109		1037
2108	2110		and to this end the provisions of this [code] title are declared to be severable.
2109	2111		1038
2110	2112		Section 17. Section 75-1-105 is amended to read:
2111	2113		1039
2112	2114		75-1-105 . Construction against implied repeal.
2113	2115		1040
2114	2116		This [code] title is a general act intended as a unified coverage of [its] the title's subject
2115	2117		1041
2116	2118		matter, and no part of [it] this title shall be deemed impliedly repealed by subsequent
2117	2119		1042
2118	2120		legislation if it can reasonably be avoided.
2119	2121		1043
2120	2122		Section 18. Section 75-1-106 is amended to read:
2121	2123		1044
2122	2124		75-1-106 . Effect of fraud and evasion.
2123	2125		1045
2124	2126		(1) Whenever fraud has been perpetrated in connection with any proceeding or in any
2125	2127		1046
2126	2128		statement filed under this [code] title or if fraud is used to avoid or circumvent the
2127	2129		1047
2128	2130		provisions or purposes of this [code] title, any person injured thereby may obtain
2129		-	- 31 - S.B. 100 Enrolled Copy
2130	2131		1048
2131	2132		appropriate relief against the perpetrator of the fraud or restitution from any person[ (] ,
	2133	+	- 31 - 1st Sub. (Green) S.B. 100 02-07 14:26
2132	2134		1049
2133	2135		other than a bona fide purchaser[)] , benefitting from the fraud, whether innocent or not.
2134	2136		1050
2135	2137		(2) Any proceeding must be commenced within three years after the discovery of the fraud,
2136	2138		1051
2137	2139		but no proceeding may be brought against one not a perpetrator of the fraud later than
2138	2140		1052
2139	2141		five years after the time of commission of the fraud.
2140	2142		1053
2141	2143		(3) This section has no bearing on remedies relating to fraud practiced on a decedent during [
2142	2144		1054
2143	2145		his] the decedent's lifetime which affects the succession of [his] the decedent's estate.
2144	2146		1055
2145	2147		Section 19. Section 75-1-111, which is renumbered from Section 75-8-101 is renumbered
2146	2148		1056
2147	2149		and amended to read:
2148	2150		1057
2149	2151		[75-8-101] 75-1-111 . Time of taking effect -- Provisions for transition.
2150	2152		1058
2151	2153		(1) This [code] title takes effect on July 1, 1977.
2152	2154		1059
2153	2155		(2) Except as [provided elsewhere in this code, on the effective date of this code] otherwise
2154	2156		1060
2155	2157		provided by this title:
2156	2158		1061
2157	2159		(a) [This code] this title applies to any wills of decedents dying [thereafter.] on or after
2158	2160		1062
2159	2161		July 1, 1977;
2160	2162		1063
2161	2163		(b) [The code] the title applies to any proceedings in court [then pending or thereafter
2162	2164		1064
2163	2165		commenced] that are pending or commenced on or after July 1, 1977, regardless of
2164	2166		1065
2165	2167		the time of the death of decedent except to the extent that in the opinion of the court
2166	2168		1066
2167	2169		the former procedure should be made applicable in a particular case in the interest of
2168	2170		1067
2169	2171		justice or because of infeasibility of application of the procedure of this [code.] title;
2170	2172		1068
2171	2173		(c) [Every] every personal representative including a person administering an estate of a
2172	2174		1069
2173	2175		minor or incompetent holding an appointment on [that date] July 1, 1977, continues to
2174	2176		1070
2175	2177		hold the appointment but has only the powers conferred by this [code] title and is
2176	2178		1071
2177	2179		subject to the duties imposed with respect to any act occurring or done [thereafter.] on
2178	2180		1072
2179	2181		or after July 1, 1977;
2180	2182		1073
2181	2183		(d)(i) [An] an act done before [the effective date] July 1, 1977, in any proceeding and
2182	2184		1074
2183	2185		any accrued right is not impaired by this [code.] title; and
2184	2186		1075
2185	2187		(ii) [If] if a right is acquired, extinguished or barred upon the expiration of a
2186	2188		1076
2187	2189		prescribed period of time which has commenced to run by the provisions of any
2188	2190		1077
2189	2191		statute before [the effective date] July 1, 1977, the provisions shall remain in force
2190	2192		1078
2191	2193		with respect to that right[.] ; and
2192	2194		1079
2193	2195		(e) [Any] any rule of construction or presumption provided in this [code] title applies to
2194	2196		1080
2195	2197		instruments executed and multiple-party accounts opened before [the effective date]
2196	2198		1081
2197	2199		July 1, 1977, unless there is a clear indication of a contrary intent.
2198		-	- 32 - Enrolled Copy S.B. 100
2199	2200		1082
2200	2201		Section 20. Section 75-1-201 is amended to read:
	2202	+	- 32 - 02-07 14:26 1st Sub. (Green) S.B. 100
2201	2203		1083
2202	2204		75-1-201 . Title definitions.
2203	2205		1084
2204	2206		As used in this title:
2205	2207		1085
2206	2208		(1) "Agent" includes an attorney-in-fact under a durable or nondurable power of attorney,
2207	2209		1086
2208	2210		an individual authorized to make decisions concerning another's health care, and an
2209	2211		1087
2210	2212		individual authorized to make decisions for another under a natural death act.
2211	2213		1088
2212	2214		(2) "Application" means a written request to the registrar for an order of informal probate or
2213	2215		1089
2214	2216		appointment under Chapter 3, Part 3, Informal Probate and Appointment Proceedings.
2215	2217		1090
2216	2218		(3)(a) "Beneficiary," as it relates to trust beneficiaries, includes:
2217	2219		1091
2218	2220		(i) a person who has any present or future interest, vested or contingent; and
2219	2221		1092
2220	2222		(ii) the owner of an interest by assignment or other transfer.
2221	2223		1093
2222	2224		(b) "Beneficiary," as it relates to a charitable trust, includes any person entitled to
2223	2225		1094
2224	2226		enforce the trust.
2225	2227		1095
2226	2228		(c) "Beneficiary," as it relates to a beneficiary of a beneficiary designation, means a
2227	2229		1096
2228	2230		beneficiary of:
2229	2231		1097
2230	2232		(i) an insurance or annuity policy;
2231	2233		1098
2232	2234		(ii) an account with POD designation;
2233	2235		1099
2234	2236		(iii) a security registered in beneficiary form (TOD);
2235	2237		1100
2236	2238		(iv) a pension, profit-sharing, retirement, or similar benefit plan; or
2237	2239		1101
2238	2240		(v) other nonprobate transfer at death.
2239	2241		1102
2240	2242		(d) "Beneficiary," as it relates to a beneficiary designated in a governing instrument,
2241	2243		1103
2242	2244		includes:
2243	2245		1104
2244	2246		(i) a grantee of a deed, a devisee, a trust beneficiary, a beneficiary of a beneficiary
2245	2247		1105
2246	2248		designation, a donee, appointee, or taker in default of a power of appointment; and
2247	2249		1106
2248	2250		(ii) a person in whose favor a power of attorney or a power held in any individual,
2249	2251		1107
2250	2252		fiduciary, or representative capacity is exercised.
2251	2253		1108
2252	2254		(4) "Beneficiary designation" means a governing instrument naming a beneficiary of an
2253	2255		1109
2254	2256		insurance or annuity policy, of an account with POD designation, of a security registered
2255	2257		1110
2256	2258		in beneficiary form (TOD), or of a pension, profit-sharing, retirement, or similar benefit
2257	2259		1111
2258	2260		plan, or other nonprobate transfer at death.
2259	2261		1112
2260	2262		(5)(a) "Child" includes any individual entitled to take as a child under this title by
2261	2263		1113
2262	2264		intestate succession from the parent whose relationship is involved.
2263	2265		1114
2264	2266		(b) "Child" does not include an individual who is only a stepchild, a foster child, a
2265	2267		1115
2266	2268		grandchild, or any more remote descendant.
2267		-	- 33 - S.B. 100 Enrolled Copy
2268	2269		1116
2269	2270		(6)(a) "Claims," in respect to estates of decedents and protected persons, includes
	2271	+	- 33 - 1st Sub. (Green) S.B. 100 02-07 14:26
2270	2272		1117
2271	2273		liabilities of the decedent or protected person, whether arising in contract, in tort, or
2272	2274		1118
2273	2275		otherwise, and liabilities of the estate which arise at or after the death of the decedent
2274	2276		1119
2275	2277		or after the appointment of a conservator, including funeral expenses and expenses of
2276	2278		1120
2277	2279		administration.
2278	2280		1121
2279	2281		(b) "Claims" does not include estate or inheritance taxes, or demands or disputes
2280	2282		1122
2281	2283		regarding title of a decedent or protected person to specific assets alleged to be
2282	2284		1123
2283	2285		included in the estate.
2284	2286		1124
2285	2287		(7) "Community property with a right of survivorship" means joint tenants with the right of
2286	2288		1125
2287	2289		survivorship.
2288	2290		1126
2289	2291		(8) "Conservator" means a person who is appointed by a court to manage the estate of a
2290	2292		1127
2291	2293		protected person.
2292	2294		1128
2293	2295		(9) "Court" means any of the courts of record in this state having jurisdiction in matters
2294	2296		1129
2295	2297		relating to the affairs of decedents.
2296	2298		1130
2297	2299		(10) "Descendant" means all of an individual's descendants of all generations, with the
2298	2300		1131
2299	2301		relationship of parent and child at each generation being determined by the definition of
2300	2302		1132
2301	2303		child and parent contained in this title.
2302	2304		1133
2303	2305		(11) "Devise," when used as a noun, means a testamentary disposition of real or personal
2304	2306		1134
2305	2307		property and, when used as a verb, means to dispose of real or personal property by will.
2306	2308		1135
2307	2309		(12) "Devisee" means any person designated in a will to receive a devise. For the purposes
2308	2310		1136
2309	2311		of Chapter 3, Probate of Wills and Administration, in the case of a devise to an existing
2310	2312		1137
2311	2313		trust or trustee, or to a trustee in trust described by will, the trust or trustee is the devisee,
2312	2314		1138
2313	2315		and the beneficiaries are not devisees.
2314	2316		1139
2315	2317		(13) "Disability" means cause for a protective order as described by Section 75-5-401.
2316	2318		1140
2317	2319		(14) "Distributee" means any person who has received property of a decedent from his
2318	2320		1141
2319	2321		personal representative other than as a creditor or purchaser. A testamentary trustee is a
2320	2322		1142
2321	2323		distributee only to the extent of distributed assets or increment thereto remaining in his
2322	2324		1143
2323	2325		hands. A beneficiary of a testamentary trust to whom the trustee has distributed
2324	2326		1144
2325	2327		property received from a personal representative is a distributee of the personal
2326	2328		1145
2327	2329		representative. For purposes of this provision, "testamentary trustee" includes a trustee
2328	2330		1146
2329	2331		to whom assets are transferred by will, to the extent of the devised assets.
2330	2332		1147
2331	2333		(15) "Estate" includes the property of the decedent, trust, or other person whose affairs are
2332	2334		1148
2333	2335		subject to this title as originally constituted and as it exists from time to time during
2334	2336		1149
2335	2337		administration.
2336		-	- 34 - Enrolled Copy S.B. 100
2337	2338		1150
2338	2339		(16) "Exempt property" means that property of a decedent's estate which is described in
	2340	+	- 34 - 02-07 14:26 1st Sub. (Green) S.B. 100
2339	2341		1151
2340	2342		Section 75-2-403.
2341	2343		1152
2342	2344		(17) "Fiduciary" includes a personal representative, guardian, conservator, and trustee.
2343	2345		1153
2344	2346		(18) "Foreign personal representative" means a personal representative of another
2345	2347		1154
2346	2348		jurisdiction.
2347	2349		1155
2348	2350		(19) "Formal proceedings" means proceedings conducted before a judge with notice to
2349	2351		1156
2350	2352		interested persons.
2351	2353		1157
2352	2354		(20) "General personal representative" does not include a special administrator.
2353	2355		1158
2354	2356		(21) "Governing instrument" means a deed, will, trust, insurance or annuity policy, account
2355	2357		1159
2356	2358		with POD designation, security registered in beneficiary form (TOD), pension,
2357	2359		1160
2358	2360		profit-sharing, retirement, or similar benefit plan, instrument creating or exercising a
2359	2361		1161
2360	2362		power of appointment or a power of attorney, or a dispositive, appointive, or nominative
2361	2363		1162
2362	2364		instrument of any similar type.
2363	2365		1163
2364	2366		[(22)(a) "Guardian" means a person who has qualified as a guardian of a minor or
2365	2367		1164
2366	2368		incapacitated person pursuant to testamentary or court appointment, or by written
2367	2369		1165
2368	2370		instrument as provided in Section 75-5-202.5.]
2369	2371		1166
2370	2372		[(b) "Guardian" does not include a person who is merely a guardian ad litem.]
2371	2373		1167
2372	2374		(22)(a) "Guardian" means a person appointed by the court to make decisions with
2373	2375		1168
2374	2376		respect to the personal affairs of an individual.
2375	2377		1169
2376	2378		(b) "Guardian" includes a coguardian.
2377	2379		1170
2378	2380		(c) "Guardian" does not include a guardian ad litem.
2379	2381		1171
2380	2382		(23) "Heirs," except as controlled by Section 75-2-711, means persons, including the
2381	2383		1172
2382	2384		surviving spouse and state, who are entitled under the statutes of intestate succession to
2383	2385		1173
2384	2386		the property of a decedent.
2385	2387		1174
2386	2388		(24) "Incapacitated" means a judicial determination after proof by clear and convincing
2387	2389		1175
2388	2390		evidence that an adult's ability to do the following is impaired to the extent that the
2389	2391		1176
2390	2392		individual lacks the ability, even with appropriate technological assistance, to meet the
2391	2393		1177
2392	2394		essential requirements for financial protection or physical health, safety, or self-care:
2393	2395		1178
2394	2396		(a) receive and evaluate information;
2395	2397		1179
2396	2398		(b) make and communicate decisions; or
2397	2399		1180
2398	2400		(c) provide for necessities such as food, shelter, clothing, health care, or safety.
2399	2401		1181
2400	2402		(25) "Incapacity" means incapacitated.
2401	2403		1182
2402	2404		(26) "Informal proceedings" mean a proceeding conducted without notice to interested
2403	2405		1183
2404	2406		persons by an officer of the court acting as a registrar for probate of a will or
2405		-	- 35 - S.B. 100 Enrolled Copy
2406	2407		1184
2407	2408		appointment of a personal representative.
	2409	+	- 35 - 1st Sub. (Green) S.B. 100 02-07 14:26
2408	2410		1185
2409	2411		(27)(a) "Interested person" includes heirs, devisees, children, spouses, creditors,
2410	2412		1186
2411	2413		beneficiaries, and any others having a property right in or claim against a trust estate
2412	2414		1187
2413	2415		or the estate of a decedent, ward, or protected person. The meaning of interested
2414	2416		1188
2415	2417		person as it relates to particular persons may vary from time to time and is
2416	2418		1189
2417	2419		determined according to the particular purposes of, and matter involved in, any
2418	2420		1190
2419	2421		proceeding.
2420	2422		1191
2421	2423		(b) "Interested person" includes persons having priority for appointment as personal
2422	2424		1192
2423	2425		representative, other fiduciaries representing interested persons, a settlor of a trust, if
2424	2426		1193
2425	2427		living, or the settlor's legal representative, if any, if the settlor is living but
2426	2428		1194
2427	2429		incapacitated.
2428	2430		1195
2429	2431		(28) "Issue" means a descendant of an individual.
2430	2432		1196
2431	2433		(29)(a) "Joint tenants with the right of survivorship" includes coowners of property held
2432	2434		1197
2433	2435		under circumstances that entitle one or more to the whole of the property on the death
2434	2436		1198
2435	2437		of the other.
2436	2438		1199
2437	2439		(b) "Joint tenants with the right of survivorship" does not include forms of coownership
2438	2440		1200
2439	2441		registration in which the underlying ownership of each party is in proportion to that
2440	2442		1201
2441	2443		party's contribution.
2442	2444		1202
2443	2445		(30) "Lease" includes an oil, gas, or other mineral lease.
2444	2446		1203
2445	2447		(31) "Letters" includes letters testamentary, letters of guardianship, letters of
2446	2448		1204
2447	2449		administration, and letters of conservatorship.
2448	2450		1205
2449	2451		(32) "Minor" means [a person] an individual who is under 18 years old.
2450	2452		1206
2451	2453		(33) "Minor protected person" means a minor for whom a conservator has been appointed
2452	2454		1207
2453	2455		because of minority.
2454	2456		1208
2455	2457		(34) "Minor ward" means a minor for whom a guardian has been appointed solely because
2456	2458		1209
2457	2459		of minority.
2458	2460		1210
2459	2461		(35) "Mortgage" means any conveyance, agreement, or arrangement in which property is
2460	2462		1211
2461	2463		used as security.
2462	2464		1212
2463	2465		(36) "Nonresident decedent" means a decedent who was domiciled in another jurisdiction at
2464	2466		1213
2465	2467		the time of the decedent's death.
2466	2468		1214
2467	2469		[(37) "Organization" includes a corporation, limited liability company, business trust,
2468	2470		1215
2469	2471		estate, trust, partnership, joint venture, association, government or governmental
2470	2472		1216
2471	2473		subdivision or agency, or any other legal or commercial entity.]
2472	2474		1217
2473	2475		(37) "Organization" means an association, a business trust, a corporation, a partnership, a
2474		-	- 36 - Enrolled Copy S.B. 100
2475	2476		1218
2476	2477		government or governmental subdivision, agency, or instrumentality, an estate, a limited
	2478	+	- 36 - 02-07 14:26 1st Sub. (Green) S.B. 100
2477	2479		1219
2478	2480		liability company, a joint venture, a trust, or any other legal or commercial entity.
2479	2481		1220
2480	2482		(38)(a) "Parent" includes any person entitled to take, or who would be entitled to take if
2481	2483		1221
2482	2484		the child died without a will, as a parent under this title by intestate succession from
2483	2485		1222
2484	2486		the child whose relationship is in question.
2485	2487		1223
2486	2488		(b) "Parent" does not include any person who is only a stepparent, foster parent, or
2487	2489		1224
2488	2490		grandparent.
2489	2491		1225
2490	2492		(39) "Payor" means a trustee, insurer, business entity, employer, government, governmental
2491	2493		1226
2492	2494		agency or subdivision, or any other person authorized or obligated by law or a governing
2493	2495		1227
2494	2496		instrument to make payments.
2495	2497		1228
2496	2498		(40) "Person" means an individual or an organization.
2497	2499		1229
2498	2500		[(41) "Personal representative" includes executor, administrator, successor personal
2499	2501		1230
2500	2502		representative, special administrator, and persons who perform substantially the same
2501	2503		1231
2502	2504		function under the law governing their status.]
2503	2505		1232
2504	2506		(41) "Personal representative" means an executor, an administrator, a successor personal
2505	2507		1233
2506	2508		representative, a special administrator, or a person who performs substantially the same
2507	2509		1234
2508	2510		function under the law governing the person's status.
2509	2511		1235
2510	2512		(42) "Petition" means a written request to the court for an order after notice.
2511	2513		1236
2512	2514		(43) "Proceeding" includes action at law and suit in equity.
2513	2515		1237
2514	2516		[(44) "Property" includes both real and personal property or any interest therein and means
2515	2517		1238
2516	2518		anything that may be the subject of ownership.]
2517	2519		1239
2518	2520		(44) "Property" means anything that may be the subject of ownership, whether real or
2519	2521		1240
2520	2522		personal, legal or equitable, or any interest in anything that may be the subject of
2521	2523		1241
2522	2524		ownership.
2523	2525		1242
2524	2526		(45) "Protected person" means a person for whom a conservator has been appointed.
2525	2527		1243
2526	2528		(46) "Protective proceeding" means a proceeding described in Section 75-5-401.
2527	2529		1244
2528	2530		(47) "Record" means information that is inscribed on a tangible medium or that is stored in
2529	2531		1245
2530	2532		an electronic or other medium and is retrievable in perceivable form.
2531	2533		1246
2532	2534		(48) "Registrar" means the official of the court designated to perform the functions of
2533	2535		1247
2534	2536		registrar as provided in Section 75-1-307.
2535	2537		1248
2536	2538		(49) "Security" includes any note, stock, treasury stock, bond, debenture, evidence of
2537	2539		1249
2538	2540		indebtedness, certificate of interest, or participation in an oil, gas, or mining title or lease
2539	2541		1250
2540	2542		or in payments out of production under such a title or lease, collateral trust certificate,
2541	2543		1251
2542	2544		transferable share, voting trust certificate, and, in general, any interest or instrument
2543		-	- 37 - S.B. 100 Enrolled Copy
2544	2545		1252
2545	2546		commonly known as a security, or any certificate of interest or participation, any
	2547	+	- 37 - 1st Sub. (Green) S.B. 100 02-07 14:26
2546	2548		1253
2547	2549		temporary or interim certificate, receipt, or certificate of deposit for, or any warrant or
2548	2550		1254
2549	2551		right to subscribe to or purchase, any of the foregoing.
2550	2552		1255
2551	2553		(50) "Settlement," in reference to a decedent's estate, includes the full process of
2552	2554		1256
2553	2555		administration, distribution, and closing.
2554	2556		1257
2555	2557		(51) "Settlor" means the same as that term is defined in Section 75B-1-101.
2556	2558		1258
2557	2559		[(51)] (52) "Sign" means, with present intent to authenticate or adopt a record other than a
2558	2560		1259
2559	2561		will that is not an electronic will as defined in Section 75-2-1402:
2560	2562		1260
2561	2563		(a) to execute or adopt a tangible symbol; or
2562	2564		1261
2563	2565		(b) to attach to or logically associate with the record an electronic symbol, sound, or
2564	2566		1262
2565	2567		process.
2566	2568		1263
2567	2569		[(52)] (53) "Special administrator" means a personal representative as described in Sections
2568	2570		1264
2569	2571		75-3-614 through 75-3-618.
2570	2572		1265
2571	2573		[(53)] (54) "State" means a state of the United States, the District of Columbia, the
2572	2574		1266
2573	2575		Commonwealth of Puerto Rico, the United States Virgin Islands, any territory or insular
2574	2576		1267
2575	2577		possession subject to the jurisdiction of the United States, or a Native American tribe or
2576	2578		1268
2577	2579		band recognized by federal law or formally acknowledged by a state.
2578	2580		1269
2579	2581		[(54)] (55) "Successor personal representative" means a personal representative, other than a
2580	2582		1270
2581	2583		special administrator, who is appointed to succeed a previously appointed personal
2582	2584		1271
2583	2585		representative.
2584	2586		1272
2585	2587		[(55)] (56) "Successors" means persons, other than creditors, who are entitled to property of
2586	2588		1273
2587	2589		a decedent under the decedent's will or this title.
2588	2590		1274
2589		-	[(56)] (57) "Supervised administration" means the proceedings described in Chapter 3, Part 5,
	2591	+	[(56)] (57) "Supervised administration" means the proceedings described in Chapter 3, Part
2590	2592		1275
2591		-	Supervised Administration.
	2593	+	5, Supervised Administration.
2592	2594		1276
2593	2595		[(57)] (58)(a) "Survive" means, except for Chapter 6, Part 3, Uniform Transfer on Death
2594	2596		1277
2595	2597		Security Registration Act, that an individual has neither predeceased an event,
2596	2598		1278
2597	2599		including the death of another individual, nor is considered to have predeceased an
2598	2600		1279
2599	2601		event under Section 75-2-104 or 75-2-702.
2600	2602		1280
2601	2603		(b) "Survive" includes its derivatives, such as "survives," "survived," "survivor," and
2602	2604		1281
2603	2605		"surviving."
2604	2606		1282
2605	2607		[(58)] (59) "Testacy proceeding" means a proceeding to establish a will or determine
2606	2608		1283
2607	2609		intestacy.
2608	2610		1284
2609	2611		[(59)] (60) "Testator" includes an individual of either sex.
2610	2612		1285
2611	2613		[(60)(a) "Trust" includes:]
2612		-	- 38 - Enrolled Copy S.B. 100
2613	2614		1286
2614	2615		[(i) a health savings account, as defined in Section 223of the Internal Revenue Code;]
	2616	+	- 38 - 02-07 14:26 1st Sub. (Green) S.B. 100
2615	2617		1287
2616	2618		[(ii) an express trust, private or charitable, with additions thereto, wherever and
2617	2619		1288
2618	2620		however created; or]
2619	2621		1289
2620	2622		[(iii) a trust created or determined by judgment or decree under which the trust is to
2621	2623		1290
2622	2624		be administered in the manner of an express trust. ]
2623	2625		1291
2624	2626		[(b) "Trust" does not include:]
2625	2627		1292
2626	2628		[(i) a constructive trust;]
2627	2629		1293
2628	2630		[(ii) a resulting trust;]
2629	2631		1294
2630	2632		[(iii) a conservatorship;]
2631	2633		1295
2632	2634		[(iv) a personal representative;]
2633	2635		1296
2634	2636		[(v) a trust account as defined in Chapter 6, Nonprobate Transfers;]
2635	2637		1297
2636	2638		[(vi) a custodial arrangement under Title 75A, Chapter 8, Uniform Transfers To
2637	2639		1298
2638	2640		Minors Act;]
2639	2641		1299
2640	2642		[(vii) a business trust providing for certificates to be issued to beneficiaries;]
2641	2643		1300
2642	2644		[(viii) a common trust fund;]
2643	2645		1301
2644	2646		[(ix) a voting trust;]
2645	2647		1302
2646	2648		[(x) a preneed funeral plan under Title 58, Chapter 9, Funeral Services Licensing Act;]
2647	2649		1303
2648	2650		[(xi) a security arrangement;]
2649	2651		1304
2650	2652		[(xii) a liquidation trust;]
2651	2653		1305
2652	2654		[(xiii) a trust for the primary purpose of paying debts, dividends, interest, salaries,
2653	2655		1306
2654	2656		wages, profits, pensions, or employee benefits of any kind; or]
2655	2657		1307
2656	2658		[(xiv) any arrangement under which a person is nominee or escrowee for another.]
2657	2659		1308
2658	2660		[(61) "Trustee" includes an original, additional, and successor trustee, and cotrustee,
2659	2661		1309
2660	2662		whether or not appointed or confirmed by the court.]
2661	2663		1310
2662	2664		(61) "Trust" means the same as that term is defined in Section 75B-1-101.
2663	2665		1311
2664	2666		(62) "Trustee" means the same as that term is defined in Section 75B-1-101.
2665	2667		1312
2666	2668		[(62)] (63) "Ward" means [a person] an individual for whom a guardian has been appointed.
2667	2669		1313
2668	2670		[(63) "Will" includes codicil and any testamentary instrument which merely appoints an
2669	2671		1314
2670	2672		executor, revokes or revises another will, nominates a guardian, or expressly excludes or
2671	2673		1315
2672	2674		limits the right of an individual or class to succeed to property of the decedent passing
2673	2675		1316
2674	2676		by intestate succession.]
2675	2677		1317
2676	2678		(64)(a) "Will" means a writing or other record:
2677	2679		1318
2678	2680		(i) by which an individual directs the disposition of the individual's estate upon the
2679	2681		1319
2680	2682		individual's death; and
2681		-	- 39 - S.B. 100 Enrolled Copy
2682	2683		1320
2683	2684		(ii) only effective upon the death of the individual.
	2685	+	- 39 - 1st Sub. (Green) S.B. 100 02-07 14:26
2684	2686		1321
2685	2687		(b) "Will" includes a writing or the other record described in Subsection (64)(a) that is:
2686	2688		1322
2687	2689		(i) a codicil; or
2688	2690		1323
2689	2691		(ii) an instrument that merely:
2690	2692		1324
2691	2693		(A) appoints a personal representative;
2692	2694		1325
2693	2695		(B) nominates a guardian for a minor or an individual who is incapacitated;
2694	2696		1326
2695	2697		(C) revokes or revises a prior writing or other record described in Subsection
2696	2698		1327
2697	2699		(64)(a); or
2698	2700		1328
2699	2701		(D) expressly limits or excludes the right of an individual or class to succeed to
2700	2702		1329
2701	2703		property by interstate succession.
2702	2704		1330
2703	2705		Section 21. Section 75-1-301 is amended to read:
2704	2706		1331
2705	2707		75-1-301 . Territorial application.
2706	2708		1332
2707	2709		Except as otherwise provided in this [code] title, this [code] title applies to:
2708	2710		1333
2709	2711		(1) [The] the affairs and estates of decedents, missing persons, and persons to be protected,
2710	2712		1334
2711	2713		domiciled in this state;
2712	2714		1335
2713	2715		(2) [The] the property of nonresidents located in this state or property coming into the
2714	2716		1336
2715	2717		control of a fiduciary who is subject to the laws of this state;
2716	2718		1337
2717	2719		(3) [Incapacitated] incapacitated persons and minors in this state;
2718	2720		1338
2719	2721		(4) [Survivorship] survivorship and related accounts in this state; and
2720	2722		1339
2721	2723		(5) [Trusts] trusts subject to administration in this state.
2722	2724		1340
2723	2725		Section 22. Section 75-1-303 is amended to read:
2724	2726		1341
2725	2727		75-1-303 . Venue -- Multiple proceedings -- Transfer -- Orders and hearings.
2726	2728		1342
2727	2729		(1) Where a proceeding under this [code] title could be maintained in more than one place in
2728	2730		1343
2729	2731		this state, the court in which the proceeding is first commenced has the exclusive right to
2730	2732		1344
2731	2733		proceed.
2732	2734		1345
2733	2735		(2)(a) If proceedings concerning the same estate, protected person, ward, or trust are
2734	2736		1346
2735	2737		commenced in more than one court of this state[,] :
2736	2738		1347
2737	2739		(i) the court in which the proceeding was first commenced shall continue to hear the
2738	2740		1348
2739	2741		matter[, and the other courts] ; and
2740	2742		1349
2741	2743		(ii) the other court shall hold the matter in abeyance until the question of venue is
2742	2744		1350
2743	2745		decided[; and if] .
2744	2746		1351
2745	2747		(b) If the ruling court determines that venue is properly in another court, [it] the ruling
2746	2748		1352
2747	2749		court shall transfer the proceeding to the other court.
2748	2750		1353
2749	2751		(3) If a court finds that in the interest of justice a proceeding or a file should be located in
2750		-	- 40 - Enrolled Copy S.B. 100
2751	2752		1354
2752	2753		another court of this state, the court making the finding may transfer the proceeding or
	2754	+	- 40 - 02-07 14:26 1st Sub. (Green) S.B. 100
2753	2755		1355
2754	2756		file to the other court.
2755	2757		1356
2756	2758		(4)(a) The [judge of the ]court in which any proceeding under this [code] title is pending
2757	2759		1357
2758	2760		may make any order relating to the proceeding in chambers at any place in [his] the
2759	2761		1358
2760	2762		court's district, and the order shall have the same force and effect as if made by the
2761	2763		1359
2762	2764		court sitting in the proper county.
2763	2765		1360
2764	2766		(b) The hearing of any matter requiring notice shall be had at the time and place
2765	2767		1361
2766	2768		appointed or at the time to which the same may be postponed, except that where there
2767	2769		1362
2768	2770		is no contest or where all the parties consent, the hearing may be had at any place
2769	2771		1363
2770	2772		within the judicial district in which the matter is pending.
2771	2773		1364
2772	2774		Section 23. Section 75-1-304 is amended to read:
2773	2775		1365
2774	2776		75-1-304 . Practice in court.
2775	2777		1366
2776	2778		Unless specifically provided to the contrary in this [code] title or unless inconsistent with [
2777	2779		1367
2778	2780		its] this title's provisions, the [rules of civil procedure] Utah Rules of Civil Procedure, including
2779	2781		1368
2780	2782		the rules concerning vacation of orders and appellate review, govern formal proceedings under
2781	2783		1369
2782	2784		this [code] title.
2783	2785		1370
2784	2786		Section 24. Section 75-1-305 is amended to read:
2785	2787		1371
2786	2788		75-1-305 . Records and certified copies.
2787	2789		1372
2788	2790		(1) The clerk of the court shall keep a record for each decedent, ward, protected
2789	2791		1373
2790	2792		person, or trust involved in any document which may be filed with the court under this [
2791	2793		1374
2792	2794		code] title, including petitions and applications, demands for notices or bonds, and of any
2793	2795		1375
2794	2796		orders or responses relating thereto by the registrar or court, and establish and maintain a
2795	2797		1376
2796	2798		system for indexing, filing, or recording which is sufficient to enable users of the records
2797	2799		1377
2798	2800		to obtain adequate information.
2799	2801		1378
2800	2802		(2) Upon payment of the fees required by law the clerk must issue certified copies of any
2801	2803		1379
2802	2804		probated wills, letters issued to personal representatives, or any other record or paper
2803	2805		1380
2804	2806		filed or recorded.
2805	2807		1381
2806	2808		(3) Certificates relating to probated wills must indicate whether the decedent was domiciled
2807	2809		1382
2808	2810		in this state and whether the probate was formal or informal.
2809	2811		1383
2810	2812		(4) Certificates relating to letters must show the date of appointment.
2811	2813		1384
2812	2814		Section 25. Section 75-1-309 is amended to read:
2813	2815		1385
2814	2816		75-1-309 . Oath or affirmation on filed documents.
2815	2817		1386
2816	2818		(1) Except as otherwise specifically provided in this [code] title or by rule, every
2817	2819		1387
2818	2820		document filed with the court under this code, including applications, petitions, and
2819		-	- 41 - S.B. 100 Enrolled Copy
2820	2821		1388
2821	2822		demands for notice, shall be deemed to include an oath, affirmation, or statement to the
	2823	+	- 41 - 1st Sub. (Green) S.B. 100 02-07 14:26
2822	2824		1389
2823	2825		effect that its representations are true as far as the person executing or filing it knows or
2824	2826		1390
2825	2827		is informed[; and penalties] .
2826	2828		1391
2827	2829		(2) Penalties for perjury may follow deliberate falsification therein.
2828	2830		1392
2829	2831		Section 26. Section 75-1-310 is amended to read:
2830	2832		1393
2831	2833		75-1-310 . Costs -- In discretion of court.
2832	2834		1394
2833	2835		When not otherwise prescribed in this [code, the court, or the Supreme Court on appeal
2834	2836		1395
2835	2837		from the court, may, in its ] title, the court, or an appellate court on appeal from the court, may
2836	2838		1396
2837	2839		in the court's discretion, order costs to be paid by any party to the proceedings or out of the
2838	2840		1397
2839	2841		assets of the estate as justice may require.
2840	2842		1398
2841	2843		Section 27. Section 75-1-311 is amended to read:
2842	2844		1399
2843	2845		75-1-311 . Consent to jurisdiction.
2844	2846		1400
2845	2847		(1) By submitting an application for informal probate or appointment or a petition for
2846	2848		1401
2847	2849		formal probate, adjudication of intestacy, or appointment the applicant or petitioner
2848	2850		1402
2849	2851		subjects himself to the jurisdiction of the court in all matters arising under this [code] title.
2850	2852		1403
2851	2853		(2) Notice of any proceeding sought to be maintained against the applicant or petitioner
2852	2854		1404
2853	2855		pursuant to his submission to jurisdiction shall be delivered to him or mailed to him by
2854	2856		1405
2855	2857		ordinary first-class mail at his address as it is known to the moving party or as listed in
2856	2858		1406
2857	2859		the application or petition or as thereafter reported to the court.
2858	2860		1407
2859	2861		Section 28. Section 75-1-404 is amended to read:
2860	2862		1408
2861	2863		75-1-404 . Publication in newspapers.
2862	2864		1409
2863	2865		(1) Newspapers shall publish all notices of proceedings under [the code] this title under
2864	2866		1410
2865	2867		the heading "Probate, Guardianship, Conservator and Trust Notices. Consult clerk of the
2866	2868		1411
2867	2869		court or the respective signers for further information." [These notices]
2868	2870		1412
2869	2871		(2) The notices under Subsection (1) shall be published as often during the prescribed
2870	2872		1413
2871	2873		period as the paper is regularly issued, unless otherwise provided by law or directed by
2872	2874		1414
2873	2875		the court, and as far as possible in one column in the alphabetical order of the surnames
2874	2876		1415
2875	2877		of decedents, wards, incapacitated persons, and creators of trusts.
2876	2878		1416
2877	2879		Section 29. Section 75-2-803 is amended to read:
2878	2880		1417
2879	2881		75-2-803 . Definitions -- Effect of homicide on intestate succession, wills, trusts,
2880	2882		1418
2881	2883		joint assets, life insurance, and beneficiary designations -- Petition -- Forfeiture --
2882	2884		1419
2883	2885		Revocation.
2884	2886		1420
2885	2887		(1) As used in this section:
2886	2888		1421
2887	2889		(a) "Conviction" means the same as that term is defined in Section 77-38b-102.
2888		-	- 42 - Enrolled Copy S.B. 100
2889	2890		1422
2890	2891		(b) "Decedent" means a deceased individual.
	2892	+	- 42 - 02-07 14:26 1st Sub. (Green) S.B. 100
2891	2893		1423
2892	2894		(c) "Disposition or appointment of property" includes a transfer of an item of property or
2893	2895		1424
2894	2896		any other benefit to a beneficiary designated in a governing instrument.
2895	2897		1425
2896	2898		(d)(i) Except as provided in Subsection (1)(d)(ii), "disqualifying homicide" means
2897	2899		1426
2898	2900		any felony homicide offense described in Title 76, Chapter 5, Offenses Against
2899	2901		1427
2900	2902		the Individual, for which the elements are established by a preponderance of the
2901	2903		1428
2902	2904		evidence and by applying the same principles of culpability and defenses
2903	2905		1429
2904	2906		described in Title 76, Utah Criminal Code.
2905	2907		1430
2906	2908		(ii) "Disqualifying homicide" does not include an offense for:
2907	2909		1431
2908	2910		(A) automobile homicide, as described in Section 76-5-207; and
2909	2911		1432
2910	2912		(B) automobile homicide involving using a handheld wireless communication
2911	2913		1433
2912	2914		device while driving, as described in Section 76-5-207.5.
2913	2915		1434
2914	2916		(e) "Governing instrument" means a governing instrument executed by the decedent.
2915	2917		1435
2916	2918		(f) "Killer" means an individual who commits a disqualifying homicide.
2917	2919		1436
2918	2920		(g) "Revocable" means a disposition, appointment, provision, or nomination under
2919	2921		1437
2920	2922		which the decedent, at the time of or immediately before death, was alone
2921	2923		1438
2922	2924		empowered, by law or under the governing instrument, to cancel the designation in
2923	2925		1439
2924	2926		favor of the killer regardless of whether at the time or immediately before death:
2925	2927		1440
2926	2928		(i) the decedent was empowered to designate the decedent in place of the decedent's
2927	2929		1441
2928	2930		killer; or
2929	2931		1442
2930	2932		(ii) the decedent had the capacity to exercise the power.
2931	2933		1443
2932	2934		(2)(a) An individual who commits a disqualifying homicide of the decedent forfeits all
2933	2935		1444
2934	2936		benefits under this chapter with respect to the decedent's estate, including an intestate
2935	2937		1445
2936	2938		share, an elective share, an omitted spouse's or child's share, a homestead allowance,
2937	2939		1446
2938	2940		exempt property, and a family allowance.
2939	2941		1447
2940	2942		(b) If the decedent died intestate, the decedent's intestate estate passes as if the killer
2941	2943		1448
2942	2944		disclaimed the killer's intestate share.
2943	2945		1449
2944	2946		(3) The killing of the decedent by means of a disqualifying homicide:
2945	2947		1450
2946	2948		(a) revokes any revocable:
2947	2949		1451
2948	2950		(i) disposition or appointment of property made by the decedent to the killer in a
2949	2951		1452
2950	2952		governing instrument;
2951	2953		1453
2952	2954		(ii) provision in a governing instrument conferring a general or nongeneral power of
2953	2955		1454
2954	2956		appointment on the killer; and
2955	2957		1455
2956	2958		(iii) nomination of the killer in a governing instrument, nominating or appointing the
2957		-	- 43 - S.B. 100 Enrolled Copy
2958	2959		1456
2959	2960		killer to serve in any fiduciary or representative capacity, including a personal
	2961	+	- 43 - 1st Sub. (Green) S.B. 100 02-07 14:26
2960	2962		1457
2961	2963		representative, executor, trustee, or agent; and
2962	2964		1458
2963	2965		(b) severs the interests of the decedent and killer in property held by them at the time of
2964	2966		1459
2965	2967		the killing as joint tenants with the right of survivorship, transforming the interests of
2966	2968		1460
2967	2969		the decedent and killer into tenancies in common.
2968	2970		1461
2969	2971		(4) A severance under Subsection (3)(b) does not affect any third-party interest in property
2970	2972		1462
2971	2973		acquired for value and in good faith reliance on an apparent title by survivorship in the
2972	2974		1463
2973	2975		killer unless a writing declaring the severance has been noted, registered, filed, or
2974	2976		1464
2975	2977		recorded in records appropriate to the kind and location of the property which are relied
2976	2978		1465
2977	2979		upon, in the ordinary course of transactions involving such property, as evidence of
2978	2980		1466
2979	2981		ownership.
2980	2982		1467
2981	2983		(5) Provisions of a governing instrument are given effect as if the killer disclaimed all
2982	2984		1468
2983	2985		provisions revoked by this section or, in the case of a revoked nomination in a fiduciary
2984	2986		1469
2985	2987		or representative capacity, as if the killer predeceased the decedent.
2986	2988		1470
2987	2989		(6) A wrongful acquisition of property or interest by one who kills another under
2988	2990		1471
2989	2991		circumstances not covered by this section shall be treated in accordance with the
2990	2992		1472
2991	2993		principle that a killer cannot profit from the killer's wrong.
2992	2994		1473
2993	2995		(7)(a) An interested person may petition the court to determine whether an individual
2994	2996		1474
2995	2997		has committed a disqualifying homicide of the decedent.
2996	2998		1475
2997	2999		(b) An individual has committed a disqualifying homicide of the decedent for purposes
2998	3000		1476
2999	3001		of this section if:
3000	3002		1477
3001	3003		(i) unless the court finds that disinheritance would create a manifest injustice, the
3002	3004		1478
3003	3005		court finds that, by a preponderance of the evidence, the individual has committed
3004	3006		1479
3005	3007		a disqualifying homicide of the decedent; or
3006	3008		1480
3007	3009		(ii) the court finds that a judgment of conviction has been entered against the
3008	3010		1481
3009	3011		individual for a disqualifying homicide of the decedent and all direct appeals for
3010	3012		1482
3011	3013		the judgment have been exhausted.
3012	3014		1483
3013	3015		(8)(a) Before a court determines whether an individual committed a disqualifying
3014	3016		1484
3015	3017		homicide of the decedent under Subsection (7), the decedent's estate may petition the
3016	3018		1485
3017	3019		court to:
3018	3020		1486
3019	3021		(i) enter a temporary restraining order, an injunction, or a temporary restraining order
3020	3022		1487
3021	3023		and an injunction, to preserve the property or assets of the killer or the killer's
3022	3024		1488
3023	3025		estate;
3024	3026		1489
3025	3027		(ii) require the execution of a trustee's bond under Section [75-7-702] 75B-2-702 for
3026		-	- 44 - Enrolled Copy S.B. 100
3027	3028		1490
3028	3029		the killer's estate;
	3030	+	- 44 - 02-07 14:26 1st Sub. (Green) S.B. 100
3029	3031		1491
3030	3032		(iii) establish a constructive trust on any property or assets of the killer or the killer's
3031	3033		1492
3032	3034		estate that is effective from the time the killer's act caused the death of the
3033	3035		1493
3034	3036		decedent; or
3035	3037		1494
3036	3038		(iv) take any other action necessary to preserve the property or assets of the killer or
3037	3039		1495
3038	3040		the killer's estate:
3039	3041		1496
3040	3042		(A) until a court makes a determination under Subsection (7); or
3041	3043		1497
3042	3044		(B) for the payment of all damages and judgments for conduct resulting in the
3043	3045		1498
3044	3046		disqualifying homicide of the decedent.
3045	3047		1499
3046	3048		(b) Upon a petition for a temporary restraining order or an injunction under Subsection
3047	3049		1500
3048	3050		(8)(a)(i), a court may enter a temporary restraining order against an owner's property
3049	3051		1501
3050	3052		in accordance with Rule 65A of the Utah Rules of Civil Procedure, without notice or
3051	3053		1502
3052	3054		opportunity of a hearing, if the court determines that:
3053	3055		1503
3054	3056		(i) there is a substantial likelihood that the property is, or will be, necessary to satisfy
3055	3057		1504
3056	3058		a judgment or damages owed by the killer for conduct resulting in the
3057	3059		1505
3058	3060		disqualifying homicide of the decedent; and
3059	3061		1506
3060	3062		(ii) notice of the hearing would likely result in the property being:
3061	3063		1507
3062	3064		(A) sold, distributed, destroyed, or removed; and
3063	3065		1508
3064	3066		(B) unavailable to satisfy a judgment or damages owed by the killer for conduct
3065	3067		1509
3066	3068		resulting in the disqualifying homicide of the decedent.
3067	3069		1510
3068	3070		(9)(a)(i) A payor or other third party is not liable for having made a payment or
3069	3071		1511
3070	3072		transferred an item of property or any other benefit to a beneficiary designated in a
3071	3073		1512
3072	3074		governing instrument affected by a disqualifying homicide, or for having taken
3073	3075		1513
3074	3076		any other action in good faith reliance on the validity of the governing instrument,
3075	3077		1514
3076	3078		upon request and satisfactory proof of the decedent's death, before the payor or
3077	3079		1515
3078	3080		other third party received written notice of a claimed forfeiture or revocation
3079	3081		1516
3080	3082		under this section.
3081	3083		1517
3082	3084		(ii) A payor or other third party is liable for a payment made or other action taken
3083	3085		1518
3084	3086		after the payor or other third party received written notice of a claimed forfeiture
3085	3087		1519
3086	3088		or revocation under this section.
3087	3089		1520
3088	3090		(b)(i) Written notice of a claimed forfeiture or revocation under Subsection (9)(a)
3089	3091		1521
3090	3092		shall be mailed to the payor's or other third party's main office or home by
3091	3093		1522
3092	3094		registered or certified mail, return receipt requested, or served upon the payor or
3093	3095		1523
3094	3096		other third party in the same manner as a summons in a civil action.
3095		-	- 45 - S.B. 100 Enrolled Copy
3096	3097		1524
3097	3098		(ii) Upon receipt of written notice of a claimed forfeiture or revocation under this
	3099	+	- 45 - 1st Sub. (Green) S.B. 100 02-07 14:26
3098	3100		1525
3099	3101		section, a payor or other third party may pay any amount owed or transfer or
3100	3102		1526
3101	3103		deposit any item of property held by the payor or third party to or with:
3102	3104		1527
3103	3105		(A) the court having jurisdiction of the probate proceedings relating to the
3104	3106		1528
3105	3107		decedent's estate; or
3106	3108		1529
3107	3109		(B) if no proceedings have been commenced, the court having jurisdiction of
3108	3110		1530
3109	3111		probate proceedings relating to the decedent's estates located in the county of
3110	3112		1531
3111	3113		the decedent's residence.
3112	3114		1532
3113	3115		(iii) The court shall hold the funds or item of property and, upon the court's
3114	3116		1533
3115	3117		determination under this section, shall order disbursement in accordance with the
3116	3118		1534
3117	3119		determination.
3118	3120		1535
3119	3121		(iv) Payments, transfers, or deposits made to or with the court discharge the payor or
3120	3122		1536
3121	3123		other third party from all claims for the value of amounts paid to or items of
3122	3124		1537
3123	3125		property transferred to or deposited with the court.
3124	3126		1538
3125	3127		(10)(a) A person who purchases property for value and without notice, or who receives a
3126	3128		1539
3127	3129		payment or other item of property in partial or full satisfaction of a legally
3128	3130		1540
3129	3131		enforceable obligation, is:
3130	3132		1541
3131	3133		(i) not obligated under this section to return the payment, item of property, or benefit;
3132	3134		1542
3133	3135		and
3134	3136		1543
3135	3137		(ii) not liable under this section for the amount of the payment or the value of the
3136	3138		1544
3137	3139		item of property or benefit.
3138	3140		1545
3139	3141		(b) Notwithstanding Subsection (10)(a), a person who, not for value, receives a payment,
3140	3142		1546
3141	3143		item of property, or any other benefit to which the person is not entitled under this
3142	3144		1547
3143	3145		section is:
3144	3146		1548
3145	3147		(i) obligated to return the payment, item of property, or benefit to the person who is
3146	3148		1549
3147	3149		entitled to the payment, property, or benefit under this section; and
3148	3150		1550
3149	3151		(ii) personally liable for the amount of the payment or the value of the item of
3150	3152		1551
3151	3153		property or benefit to the person who is entitled to the payment, property, or
3152	3154		1552
3153	3155		benefit under this section.
3154	3156		1553
3155	3157		(c) If this section or any part of this section is preempted by federal law with respect to a
3156	3158		1554
3157	3159		payment, an item of property, or any other benefit covered by this section, a person
3158	3160		1555
3159	3161		who, not for value, receives the payment, item of property, or any other benefit to
3160	3162		1556
3161	3163		which the person is not entitled under this section is:
3162	3164		1557
3163	3165		(i) obligated to return the payment, item of property, or benefit to the person who
3164		-	- 46 - Enrolled Copy S.B. 100
3165	3166		1558
3166	3167		would have been entitled to the payment, property, or benefit if this section or part
	3168	+	- 46 - 02-07 14:26 1st Sub. (Green) S.B. 100
3167	3169		1559
3168	3170		were not preempted; and
3169	3171		1560
3170	3172		(ii) personally liable for the amount of the payment or the value of the item of
3171	3173		1561
3172	3174		property or benefit, to the person who would have been entitled to the payment,
3173	3175		1562
3174	3176		property, or benefit if this section or part were not preempted.
3175	3177		1563
3176	3178		Section 30. Section 75-2-1209 is amended to read:
3177	3179		1564
3178	3180		75-2-1209 . Real estate conveyed to a trust under the Statutory Rule Against
3179	3181		1565
3180	3182		Perpetuities.
3181	3183		1566
3182	3184		On or after the effective date, when title to real property is granted to the trustee of a
3183	3185		1567
3184	3186		trust governed by Title 75, Chapter 2, Part 12, Statutory Rule Against Perpetuities, the terms of
3185	3187		1568
3186	3188		the trust, provisions regarding the appointment of successor trustees, and the names and
3187	3189		1569
3188	3190		addresses of successor trustees must be disclosed in accordance with Section [75-7-816]
3189	3191		1570
3190	3192		75B-2-816.
3191	3193		1571
3192	3194		Section 31. Section 75-2-1402 is amended to read:
3193	3195		1572
3194	3196		75-2-1402 . Definitions.
3195	3197		1573
3196	3198		As used in this part:
3197	3199		1574
3198	3200		(1) "Electronic" means relating to technology having electrical, digital, magnetic, wireless,
3199	3201		1575
3200	3202		optical, electromagnetic, or similar capabilities.
3201	3203		1576
3202	3204		(2) "Electronic presence" means the relationship of two or more individuals in different
3203	3205		1577
3204	3206		locations communicating in real time to the same extent as if the individuals were
3205	3207		1578
3206	3208		physically present in the same location.
3207	3209		1579
3208	3210		(3) "Electronic will" means a will executed electronically in compliance with Subsection
3209	3211		1580
3210	3212		75-2-1405(1).
3211	3213		1581
3212	3214		(4) "Record" means information that is inscribed on a tangible medium or that is stored in
3213	3215		1582
3214	3216		an electronic or other medium and is retrievable in perceivable form.
3215	3217		1583
3216	3218		(5) "Sign" means, with present intent to authenticate or adopt a record:
3217	3219		1584
3218	3220		(a) to execute or adopt a tangible symbol; or
3219	3221		1585
3220	3222		(b) to affix to or logically associate with the record an electronic symbol or process.
3221	3223		1586
3222	3224		(6)(a) "State" means a state of the United States, the District of Columbia, Puerto Rico,
3223	3225		1587
3224	3226		the United States Virgin Islands, or any territory or insular possession subject to the
3225	3227		1588
3226	3228		jurisdiction of the United States.
3227	3229		1589
3228	3230		(b) "State" includes a federally recognized Indian tribe.
3229	3231		1590
3230	3232		[(7) "Will" includes a codicil and any testamentary instrument that merely appoints an
3231	3233		1591
3232	3234		executor, revokes or revises another will, nominates a guardian, or expressly excludes or
3233		-	- 47 - S.B. 100 Enrolled Copy
3234	3235		1592
3235	3236		limits the right of an individual or class to succeed to property of the decedent passing
	3237	+	- 47 - 1st Sub. (Green) S.B. 100 02-07 14:26
3236	3238		1593
3237	3239		by intestate succession.]
3238	3240		1594
3239	3241		Section 32. Section 75-3-101 is amended to read:
3240	3242		1595
3241	3243		75-3-101 . Devolution of estate at death -- Restrictions.
3242	3244		1596
3243	3245		(1) The power of a person to leave property by will and the rights of creditors,
3244	3246		1597
3245	3247		devisees, and heirs to his property are subject to the restrictions and limitations
3246	3248		1598
3247	3249		contained in this [code] title to facilitate the prompt settlement of estates.
3248	3250		1599
3249	3251		(2) Upon the death of a person his real and personal property devolves to persons to whom
3250	3252		1600
3251	3253		it is devised by his last will or to those indicated as substitutes for them in cases
3252	3254		1601
3253	3255		involving lapse, renunciation, or other circumstances affecting the devolution of testate
3254	3256		1602
3255	3257		estate, or in the absence of testamentary disposition, to his heirs, or to those indicated as
3256	3258		1603
3257	3259		substitutes for them in cases involving renunciation or other circumstances affecting
3258	3260		1604
3259	3261		devolution of intestate estates, subject to homestead allowance, exempt property and
3260	3262		1605
3261	3263		family allowance, rights of creditors, elective share of the surviving spouse, and
3262	3264		1606
3263	3265		administration.
3264	3266		1607
3265	3267		Section 33. Section 75-3-105 is amended to read:
3266	3268		1608
3267	3269		75-3-105 . Proceedings affecting devolution and administration -- Jurisdiction of
3268	3270		1609
3269	3271		subject matter.
3270	3272		1610
3271	3273		(1)(a) Persons interested in decedents' estates may apply to the registrar for
3272	3274		1611
3273	3275		determination in the informal proceedings provided in this chapter and may petition
3274	3276		1612
3275	3277		the court for orders in formal proceedings within the court's jurisdiction, including,
3276	3278		1613
3277	3279		but not limited to those described in this chapter.
3278	3280		1614
3279	3281		(b) The court may hear and determine formal proceedings involving administration and
3280	3282		1615
3281	3283		distribution of decedents' estates after notice to interested persons in conformity with
3282	3284		1616
3283	3285		Section 75-1-401.
3284	3286		1617
3285	3287		(c) Persons notified are bound though less than all interested persons may have been
3286	3288		1618
3287	3289		given notice.
3288	3290		1619
3289	3291		(2) For purposes of this [code] title, formal proceedings involving administration and
3290	3292		1620
3291	3293		distribution of decedent's estates shall include proceedings to determine the heirs of a
3292	3294		1621
3293	3295		decedent and proceedings to construe a duly probated will of a decedent, whether or not
3294	3296		1622
3295	3297		the estate of the decedent is being, or previously has been, administered or distributed.
3296	3298		1623
3297	3299		Section 34. Section 75-3-303 is amended to read:
3298	3300		1624
3299	3301		75-3-303 . Informal probate -- Proof and findings required.
3300	3302		1625
3301	3303		(1) In an informal proceeding for original probate of a will, the registrar shall determine
3302		-	- 48 - Enrolled Copy S.B. 100
3303	3304		1626
3304	3305		whether:
	3306	+	- 48 - 02-07 14:26 1st Sub. (Green) S.B. 100
3305	3307		1627
3306	3308		(a) the application is complete;
3307	3309		1628
3308	3310		(b) the applicant has made oath or affirmation that the statements contained in the
3309	3311		1629
3310	3312		application are true to the best of his knowledge and belief;
3311	3313		1630
3312	3314		(c) the applicant appears from the application to be an interested person[ as defined in
3313	3315		1631
3314	3316		Subsection 75-1-201(24)];
3315	3317		1632
3316	3318		(d) on the basis of the statements in the application, venue is proper;
3317	3319		1633
3318	3320		(e) an original, duly executed and apparently unrevoked will was presented to the court
3319	3321		1634
3320	3322		for electronic storage and electronic filing and is now in the possession of the
3321	3323		1635
3322	3324		applicant or the applicant's attorney, or is in the registrar's possession;
3323	3325		1636
3324	3326		(f) any notice required by Section 75-3-204 has been given and that the application is
3325	3327		1637
3326	3328		not within Section 75-3-304; and
3327	3329		1638
3328	3330		(g) it appears from the application that the time limit for original probate has not expired.
3329	3331		1639
3330	3332		(2) The application shall be denied if it indicates that a personal representative has been
3331	3333		1640
3332	3334		appointed in another county of this state or except as provided in Subsection (4), if it
3333	3335		1641
3334	3336		appears that this or another will of the decedent has been the subject of a previous
3335	3337		1642
3336	3338		probate order.
3337	3339		1643
3338	3340		(3) A will which appears to have the required signatures and which contains an attestation
3339	3341		1644
3340	3342		clause showing that requirements of execution under Section 75-2-502, 75-2-503, or
3341	3343		1645
3342	3344		75-2-506 have been met shall be probated without further proof. In other cases, the
3343	3345		1646
3344	3346		registrar may assume execution if the will appears to have been properly executed, or he
3345	3347		1647
3346	3348		may accept a sworn statement or affidavit of any person having knowledge of the
3347	3349		1648
3348	3350		circumstances of execution, whether or not the person was a witness to the will.
3349	3351		1649
3350	3352		(4) Informal probate of a will which has been previously probated elsewhere may be
3351	3353		1650
3352	3354		granted at any time upon written application by any interested person, together with
3353	3355		1651
3354	3356		deposit of an authenticated copy of the will and of the statement probating it from the
3355	3357		1652
3356	3358		office or court where it was first probated.
3357	3359		1653
3358	3360		(5) A will from a place which does not provide for probate of a will after death and which is
3359	3361		1654
3360	3362		not eligible for probate under Subsection (1) above may be probated in this state upon
3361	3363		1655
3362	3364		receipt by the registrar of a duly authenticated copy of the will and a duly authenticated
3363	3365		1656
3364	3366		certificate of its legal custodian that the copy filed is a true copy and that the will has
3365	3367		1657
3366	3368		become operative under the law of the other place.
3367	3369		1658
3368	3370		Section 35. Section 75-3-308 is amended to read:
3369	3371		1659
3370	3372		75-3-308 . Informal appointment proceedings -- Proof and findings required.
3371		-	- 49 - S.B. 100 Enrolled Copy
3372	3373		1660
3373	3374		(1) In informal appointment proceedings, the registrar shall determine whether:
	3375	+	- 49 - 1st Sub. (Green) S.B. 100 02-07 14:26
3374	3376		1661
3375	3377		(a) the application for informal appointment of a personal representative is complete;
3376	3378		1662
3377	3379		(b) the applicant has made oath or affirmation that the statements contained in the
3378	3380		1663
3379	3381		application are true to the best of his knowledge and belief;
3380	3382		1664
3381	3383		(c) the applicant appears from the application to be an interested person[ as defined in
3382	3384		1665
3383	3385		Subsection 75-1-201(24)];
3384	3386		1666
3385	3387		(d) on the basis of the statements in the application, venue is proper;
3386	3388		1667
3387	3389		(e) any will to which the requested appointment relates has been formally or informally
3388	3390		1668
3389	3391		probated; but this requirement does not apply to the appointment of a special
3390	3392		1669
3391	3393		administrator;
3392	3394		1670
3393	3395		(f) any notice required by Section 75-3-204 has been given; and
3394	3396		1671
3395	3397		(g) from the statements in the application, the person whose appointment is sought has
3396	3398		1672
3397	3399		priority entitling him to the appointment.
3398	3400		1673
3399	3401		(2) Unless Section 75-3-612 controls, the application shall be denied if it indicates that a
3400	3402		1674
3401	3403		personal representative who has not filed a written statement of resignation as provided
3402	3404		1675
3403	3405		in Subsection 75-3-610(3) has been appointed in this or another county of this state, that[
3404	3406		1676
3405	3407		(] , unless the applicant is the domiciliary personal representative or his nominee[)] , the
3406	3408		1677
3407	3409		decedent was not domiciled in this state, and that a personal representative whose
3408	3410		1678
3409	3411		appointment has not been terminated has been appointed by a court in the state of
3410	3412		1679
3411	3413		domicile, or that other requirements of this section have not been met.
3412	3414		1680
3413	3415		Section 36. Section 75-3-504 is amended to read:
3414	3416		1681
3415	3417		75-3-504 . Powers of personal representative.
3416	3418		1682
3417	3419		(1) Unless restricted by the court, a supervised personal representative has, without
3418	3420		1683
3419	3421		interim orders approving exercise of a power, all powers of personal representatives
3420	3422		1684
3421	3423		under this [code] title, but he shall not exercise his power to make any distribution of the
3422	3424		1685
3423	3425		estate without prior order of the court.
3424	3426		1686
3425	3427		(2) Any other restriction on the power of a personal representative which may be ordered
3426	3428		1687
3427	3429		by the court must be endorsed on his letters of appointment and, unless so endorsed, is
3428	3430		1688
3429	3431		ineffective as to persons dealing in good faith with the personal representative.
3430	3432		1689
3431	3433		Section 37. Section 75-3-608 is amended to read:
3432	3434		1690
3433	3435		75-3-608 . Termination of appointment -- General.
3434	3436		1691
3435	3437		(1) Termination of appointment of a personal representative occurs as indicated in
3436	3438		1692
3437	3439		Sections 75-3-609 through 75-3-612.
3438	3440		1693
3439	3441		(2) Termination ends the right and power pertaining to the office of personal representative
3440		-	- 50 - Enrolled Copy S.B. 100
3441	3442		1694
3442	3443		as conferred by this [code] title or any will, except that a personal representative, at any
	3444	+	- 50 - 02-07 14:26 1st Sub. (Green) S.B. 100
3443	3445		1695
3444	3446		time prior to distribution or until restrained or enjoined by court order, may perform acts
3445	3447		1696
3446	3448		necessary to protect the estate and may deliver the assets to a successor representative.
3447	3449		1697
3448	3450		(3) Termination does not discharge a personal representative from liability for transactions
3449	3451		1698
3450	3452		or omissions occurring before termination or relieve him of the duty to preserve assets
3451	3453		1699
3452	3454		subject to his control, to account therefor, and to deliver the assets.
3453	3455		1700
3454	3456		(4) Termination does not affect the jurisdiction of the court over the personal representative
3455	3457		1701
3456	3458		but terminates his authority to represent the estate in any pending or future proceeding.
3457	3459		1702
3458	3460		Section 38. Section 75-3-616 is amended to read:
3459	3461		1703
3460	3462		75-3-616 . Special administrator -- Appointed informally -- Powers and duties.
3461	3463		1704
3462	3464		(1) A special administrator appointed by the registrar in informal proceedings pursuant
3463	3465		1705
3464	3466		to Subsection 75-3-614(1)(a) has the duty to collect and manage the assets of the estate,
3465	3467		1706
3466	3468		to preserve them, to account therefor and to deliver them to the general personal
3467	3469		1707
3468	3470		representative upon [his] the special administrator's qualification.
3469	3471		1708
3470	3472		(2) The special administrator has the power of a personal representative under the [code] title
3471	3473		1709
3472	3474		necessary to perform his duties.
3473	3475		1710
3474	3476		Section 39. Section 75-3-703 is amended to read:
3475	3477		1711
3476	3478		75-3-703 . General duties -- Relation and liability to persons interested in estate --
3477	3479		1712
3478	3480		Standing to sue.
3479	3481		1713
3480	3482		(1)(a) A personal representative is a fiduciary who shall observe the standard of care
3481	3483		1714
3482	3484		applicable to trustees as described by Section [75-7-902] 75B-2-902.
3483	3485		1715
3484	3486		(b) A personal representative is under a duty to settle and distribute the estate of the
3485	3487		1716
3486	3488		decedent in accordance with the terms of any probated and effective will and this [
3487	3489		1717
3488	3490		code] title and as expeditiously and efficiently as is consistent with the best interests
3489	3491		1718
3490	3492		of the estate. [He]
3491	3493		1719
3492	3494		(c) A personal representative shall use the authority conferred upon [him] the personal
3493	3495		1720
3494	3496		representative by this [code] title, the terms of the will, if any, and any order in
3495	3497		1721
3496	3498		proceedings to which [he] the personal representative is party for the best interests of
3497	3499		1722
3498	3500		successors to the estate.
3499	3501		1723
3500	3502		(2)(a) A personal representative [shall not] may not be surcharged for acts of
3501	3503		1724
3502	3504		administration or distribution if the conduct in question was authorized at the time.
3503	3505		1725
3504	3506		(b) Subject to other obligations of administration, an informally probated will is
3505	3507		1726
3506	3508		authority to administer and distribute the estate according to [its terms] the terms of
3507	3509		1727
3508	3510		the will.
3509		-	- 51 - S.B. 100 Enrolled Copy
3510	3511		1728
3511	3512		(c) An order of appointment of a personal representative, whether issued in informal or
	3513	+	- 51 - 1st Sub. (Green) S.B. 100 02-07 14:26
3512	3514		1729
3513	3515		formal proceedings, is authority to distribute apparently intestate assets to the heirs of
3514	3516		1730
3515	3517		the decedent if, at the time of distribution, the personal representative is not aware of
3516	3518		1731
3517	3519		a pending testacy proceeding, a proceeding to vacate an order entered in an earlier
3518	3520		1732
3519	3521		testacy proceeding, a formal proceeding questioning his appointment or fitness to
3520	3522		1733
3521	3523		continue, or a supervised administration proceeding.
3522	3524		1734
3523	3525		(d) Nothing in this section affects the duty of the personal representative to administer
3524	3526		1735
3525	3527		and distribute the estate in accordance with the rights of claimants, the surviving
3526	3528		1736
3527	3529		spouse, any minor and dependent children, and any pretermitted child of the decedent
3528	3530		1737
3529	3531		as described elsewhere in this [code] title.
3530	3532		1738
3531	3533		(3) Except as to proceedings which do not survive the death of the decedent, a personal
3532	3534		1739
3533	3535		representative of a decedent domiciled in this state at [his] the decedent's death has the
3534	3536		1740
3535	3537		same standing to sue and be sued in the courts of this state and courts of any other
3536	3538		1741
3537	3539		jurisdiction as [his] the decedent had immediately prior to death.
3538	3540		1742
3539	3541		Section 40. Section 75-3-704 is amended to read:
3540	3542		1743
3541	3543		75-3-704 . Personal representative to proceed without court order -- Exception.
3542	3544		1744
3543	3545		A personal representative shall proceed expeditiously with the settlement and
3544	3546		1745
3545	3547		distribution of a decedent's estate and except as otherwise specified or ordered in regard to a
3546	3548		1746
3547	3549		supervised personal representative, do so without adjudication, order, or direction of the court,
3548	3550		1747
3549	3551		but may invoke the jurisdiction of the court in proceedings authorized by this [code] title to
3550	3552		1748
3551	3553		resolve questions concerning the estate or its administration.
3552	3554		1749
3553	3555		Section 41. Section 75-3-710 is amended to read:
3554	3556		1750
3555	3557		75-3-710 . Powers of personal representatives -- In general.
3556	3558		1751
3557	3559		(1) Until termination of his appointment a personal representative has the same power
3558	3560		1752
3559	3561		over the title to property of the estate that an absolute owner would have, in trust,
3560	3562		1753
3561	3563		however, for the benefit of the creditors and others interested in the estate.
3562	3564		1754
3563	3565		(2) This power may be exercised without notice, hearing, or order of court, unless otherwise
3564	3566		1755
3565	3567		specifically provided by this [code] title.
3566	3568		1756
3567	3569		Section 42. Section 75-3-714 is amended to read:
3568	3570		1757
3569	3571		75-3-714 . Transactions authorized for personal representatives -- Exceptions.
3570	3572		1758
3571	3573		Except as restricted or otherwise provided by this [code] title, by the will or by an order
3572	3574		1759
3573	3575		in a formal proceeding and subject to the priorities stated in Section 75-3-902, a personal
3574	3576		1760
3575	3577		representative, acting reasonably for the benefit of the interested persons, may properly:
3576	3578		1761
3577	3579		(1) retain assets owned by the decedent pending distribution or liquidation including those
3578		-	- 52 - Enrolled Copy S.B. 100
3579	3580		1762
3580	3581		in which the representative is personally interested or which are otherwise improper for
	3582	+	- 52 - 02-07 14:26 1st Sub. (Green) S.B. 100
3581	3583		1763
3582	3584		trust investment;
3583	3585		1764
3584	3586		(2) receive assets from fiduciaries, or other sources;
3585	3587		1765
3586	3588		(3) perform, compromise, or refuse performance of the decedent's contracts that continue as
3587	3589		1766
3588	3590		obligations of the estate, as he may determine under the circumstances. In performing
3589	3591		1767
3590	3592		enforceable contracts by the decedent to convey or lease land, the personal
3591	3593		1768
3592	3594		representative, among other possible courses of action, may:
3593	3595		1769
3594	3596		(a) execute and deliver a deed of conveyance for cash payment of all sums remaining
3595	3597		1770
3596	3598		due or the purchaser's note for the sum remaining due secured by a mortgage or deed
3597	3599		1771
3598	3600		of trust on the land; or
3599	3601		1772
3600	3602		(b) deliver a deed in escrow with directions that the proceeds, when paid in accordance
3601	3603		1773
3602	3604		with the escrow agreement, be paid to the successors of the decedent, as designated
3603	3605		1774
3604	3606		in the escrow agreement;
3605	3607		1775
3606	3608		(4) satisfy written charitable pledges of the decedent irrespective of whether the pledges
3607	3609		1776
3608	3610		constituted binding obligations of the decedent or were properly presented as claims, if
3609	3611		1777
3610	3612		in the judgment of the personal representative the decedent would have wanted the
3611	3613		1778
3612	3614		pledges completed under the circumstances;
3613	3615		1779
3614	3616		(5) if funds are not needed to meet debts and expenses currently payable and are not
3615	3617		1780
3616	3618		immediately distributable, deposit or invest liquid assets of the estate, including money
3617	3619		1781
3618	3620		received from the sale of other assets, in federally insured interest-bearing accounts,
3619	3621		1782
3620	3622		readily marketable secured loan arrangements, or other prudent investments which
3621	3623		1783
3622	3624		would be reasonable for use by trustees generally;
3623	3625		1784
3624	3626		(6) acquire or dispose of an asset, including land in this or another state, for cash or on
3625	3627		1785
3626	3628		credit, at public or private sale; and manage, develop, improve, exchange, partition,
3627	3629		1786
3628	3630		change the character of, or abandon an estate asset;
3629	3631		1787
3630	3632		(7) make ordinary or extraordinary repairs or alterations in buildings or other structures,
3631	3633		1788
3632	3634		demolish any improvements, or raze existing or erect new party walls or buildings;
3633	3635		1789
3634	3636		(8) subdivide, develop, or dedicate land to public use; make or obtain the vacation of plats
3635	3637		1790
3636	3638		and adjust boundaries; adjust differences in valuation on exchange or partition by giving
3637	3639		1791
3638	3640		or receiving considerations; or dedicate easements to public use without consideration;
3639	3641		1792
3640	3642		(9) enter for any purpose into a lease as lessor or lessee, with or without option to purchase
3641	3643		1793
3642	3644		or renew, for a term within or extending beyond the period of administration;
3643	3645		1794
3644	3646		(10) enter into a lease or arrangement for exploration and removal of minerals or other
3645	3647		1795
3646	3648		natural resources or enter into a pooling or unitization agreement;
3647		-	- 53 - S.B. 100 Enrolled Copy
3648	3649		1796
3649	3650		(11) abandon property when, in the opinion of the personal representative, it is valueless, is
	3651	+	- 53 - 1st Sub. (Green) S.B. 100 02-07 14:26
3650	3652		1797
3651	3653		so encumbered, or is in condition that it is of no benefit to the estate;
3652	3654		1798
3653	3655		(12) vote stocks or other securities in person or by general or limited proxy;
3654	3656		1799
3655	3657		(13) pay calls, assessments, and other sums chargeable or accruing against or on account of
3656	3658		1800
3657	3659		securities, unless barred by the provisions relating to claims;
3658	3660		1801
3659	3661		(14) hold a security in the name of a nominee or in other form without disclosure of the
3660	3662		1802
3661	3663		interest of the estate but the personal representative is liable for any act of the nominee
3662	3664		1803
3663	3665		in connection with the security so held;
3664	3666		1804
3665	3667		(15) insure the assets of the estate against damage, loss, and liability and himself against
3666	3668		1805
3667	3669		liability as to third persons;
3668	3670		1806
3669	3671		(16) borrow money with or without security to be repaid from the estate assets or otherwise;
3670	3672		1807
3671	3673		and advance money for the protection of the estate;
3672	3674		1808
3673	3675		(17) effect a fair and reasonable compromise with any debtor or obligor, or extend, renew,
3674	3676		1809
3675	3677		or in any manner modify the terms of any obligation owing to the estate. If the personal
3676	3678		1810
3677	3679		representative holds a mortgage, pledge, or other lien upon property of another person,
3678	3680		1811
3679	3681		he may, in lieu of foreclosure, accept a conveyance or transfer of encumbered assets
3680	3682		1812
3681	3683		from the owner thereof in satisfaction of the indebtedness secured by lien;
3682	3684		1813
3683	3685		(18) pay taxes, assessments, compensation of the personal representative, and other
3684	3686		1814
3685	3687		expenses incident to the administration of the estate;
3686	3688		1815
3687	3689		(19) sell or exercise stock subscription or conversion rights; and consent, directly or
3688	3690		1816
3689	3691		through a committee or other agent, to the reorganization, consolidation, merger,
3690	3692		1817
3691	3693		dissolution, or liquidation of a corporation or other business enterprise;
3692	3694		1818
3693	3695		(20) allocate items of income or expense to either estate income or principal, as permitted
3694	3696		1819
3695	3697		or provided by law;
3696	3698		1820
3697	3699		(21) employ persons, including attorneys, auditors, investment advisers, or agents, even if
3698	3700		1821
3699	3701		they are associated with the personal representative, to advise or assist the personal
3700	3702		1822
3701	3703		representative in the performance of his administrative duties; act without independent
3702	3704		1823
3703	3705		investigation upon their recommendations; and instead of acting personally, employ one
3704	3706		1824
3705	3707		or more agents to perform any act of administration, whether or not discretionary;
3706	3708		1825
3707	3709		(22) prosecute or defend claims or proceedings in any jurisdiction for the protection of the
3708	3710		1826
3709	3711		estate and of the personal representative in the performance of his duties;
3710	3712		1827
3711	3713		(23) sell, mortgage, or lease any real or personal property of the estate or any interest in it
3712	3714		1828
3713	3715		for cash, credit, or for part cash and part credit, and with or without security for unpaid
3714	3716		1829
3715	3717		balances;
3716		-	- 54 - Enrolled Copy S.B. 100
3717	3718		1830
3718	3719		(24) continue any unincorporated business or venture in which the decedent was engaged at
	3720	+	- 54 - 02-07 14:26 1st Sub. (Green) S.B. 100
3719	3721		1831
3720	3722		the time of his death:
3721	3723		1832
3722	3724		(a) in the same business form for a period of not more than four months from the date of
3723	3725		1833
3724	3726		appointment of a general personal representative if continuation is a reasonable
3725	3727		1834
3726	3728		means of preserving the value of the business including good will;
3727	3729		1835
3728	3730		(b) in the same business form for any additional period of time that may be approved by
3729	3731		1836
3730	3732		order of the court in a formal proceeding to which the persons interested in the estate
3731	3733		1837
3732	3734		are parties; or
3733	3735		1838
3734	3736		(c) throughout the period of administration if the business is incorporated by the
3735	3737		1839
3736	3738		personal representative and if none of the probable distributees of the business who
3737	3739		1840
3738	3740		are competent adults object to its incorporation and retention in the estate;
3739	3741		1841
3740	3742		(25) incorporate any business or venture in which the decedent was engaged at the time of
3741	3743		1842
3742	3744		his death;
3743	3745		1843
3744	3746		(26) provide for exoneration of the personal representative from personal liability in any
3745	3747		1844
3746	3748		contract entered into on behalf of the estate;
3747	3749		1845
3748	3750		(27) satisfy and settle claims and distribute the estate as provided in this [code] title.
3749	3751		1846
3750	3752		Section 43. Section 75-3-913 is amended to read:
3751	3753		1847
3752	3754		75-3-913 . Distributions to trustee.
3753	3755		1848
3754	3756		(1) Before distributing to a trustee, the personal representative may require that the trust be
3755	3757		1849
3756	3758		registered if the state in which [it] the trust is to be administered provides for registration
3757	3759		1850
3758	3760		and that the trustee inform the qualified beneficiaries [as provided in Section 75-7-811]
3759	3761		1851
3760	3762		as described in Section 75B-2-811.
3761	3763		1852
3762	3764		(2) If the trust instrument does not excuse the trustee from giving bond, the personal
3763	3765		1853
3764	3766		representative may:
3765	3767		1854
3766		-	(a) ~~[ ]~~petition the appropriate court to require that the trustee post bond if [he] the trustee
	3768	+	(a) petition the appropriate court to require that the trustee post bond if [he] the trustee
3767	3769		1855
3768	3770		apprehends that distribution might jeopardize the interests of persons who are not
3769	3771		1856
3770	3772		able to protect themselves[; and he may ] ; and
3771	3773		1857
3772	3774		(b) withhold distribution until the court has acted.
3773	3775		1858
3774	3776		(3) No inference of negligence on the part of the personal representative shall be drawn
3775	3777		1859
3776	3778		from [his] the personal representative's failure to exercise the authority conferred by
3777	3779		1860
3778	3780		Subsections (1) and (2).
3779	3781		1861
3780	3782		Section 44. Section 75-3-915 is amended to read:
3781	3783		1862
3782	3784		75-3-915 . Distribution to person under disability.
3783	3785		1863
3784	3786		A personal representative may discharge [his] the personal representative's obligation to
3785		-	- 55 - S.B. 100 Enrolled Copy
3786	3787		1864
3787	3788		distribute to any person under legal disability by distributing to [his] the person's conservator,
	3789	+	- 55 - 1st Sub. (Green) S.B. 100 02-07 14:26
3788	3790		1865
3789	3791		or any other person authorized by this [code] title or otherwise to give a valid receipt and
3790	3792		1866
3791	3793		discharge for the distribution.
3792	3794		1867
3793	3795		Section 45. Section 75-3-916 is amended to read:
3794	3796		1868
3795	3797		75-3-916 . Apportionment of estate taxes.
3796	3798		1869
3797	3799		(1) As used in this section:
3798	3800		1870
3799	3801		(a) "Estate" means the gross estate of a decedent as determined for the purpose of federal
3800	3802		1871
3801	3803		estate tax and the estate tax payable to this state;
3802	3804		1872
3803	3805		(b) "Fiduciary" means personal representative, executor, administrator of any
3804	3806		1873
3805	3807		description, or trustee;
3806	3808		1874
3807	3809		(c) "Person" means any individual, partnership, association, joint stock company,
3808	3810		1875
3809	3811		corporation, government, political subdivision, governmental agency, or local
3810	3812		1876
3811	3813		governmental agency;
3812	3814		1877
3813	3815		(d) "Person interested in the estate" means any person, including a personal
3814	3816		1878
3815	3817		representative, conservator, guardian, or trustee entitled to receive, or who has
3816	3818		1879
3817	3819		received, from a decedent while alive or by reason of the death of a decedent any
3818	3820		1880
3819	3821		property or interest in property included in the decedent's taxable estate;
3820	3822		1881
3821	3823		(e) "State" means any state, territory, or possession of the United States, the District of
3822	3824		1882
3823	3825		Columbia, or the Commonwealth of Puerto Rico; and
3824	3826		1883
3825	3827		(f) "Tax" means the federal estate tax and the inheritance, estate, or other death tax
3826	3828		1884
3827	3829		payable to this state and interest and penalties imposed in addition to the tax but
3828	3830		1885
3829	3831		specifically does not include the federal generation skipping transfer tax.
3830	3832		1886
3831	3833		(2)(a) Unless otherwise provided in the will or other dispositive instrument, the tax shall
3832	3834		1887
3833	3835		be apportioned among all persons interested in the estate.
3834	3836		1888
3835	3837		(b) The apportionment shall be made in the proportion that the value of the interest of
3836	3838		1889
3837	3839		each person interested in the estate bears to the total value of the interests of all
3838	3840		1890
3839	3841		persons interested in the estate.
3840	3842		1891
3841	3843		(c) The values used in determining the tax shall be used for that purpose.
3842	3844		1892
3843	3845		(d) If the decedent's will or other dispositive instrument directs a method of
3844	3846		1893
3845	3847		apportionment of tax different from the method described in this [code] title, the
3846	3848		1894
3847	3849		method described in the will or other dispositive instrument controls.
3848	3850		1895
3849	3851		(3)(a) The court having jurisdiction over the administration of the estate of a decedent
3850	3852		1896
3851	3853		shall determine the apportionment of the tax. If there are no probate proceedings, the
3852	3854		1897
3853	3855		court of the county in which the decedent was domiciled at death shall determine the
3854		-	- 56 - Enrolled Copy S.B. 100
3855	3856		1898
3856	3857		apportionment of the tax upon the petition of the person required to pay the tax.
	3858	+	- 56 - 02-07 14:26 1st Sub. (Green) S.B. 100
3857	3859		1899
3858	3860		(b) If the court finds that it is inequitable to apportion interest and penalties in the
3859	3861		1900
3860	3862		manner provided in Subsection (2), because of special circumstances, it may direct
3861	3863		1901
3862	3864		the apportionment in the manner it finds equitable.
3863	3865		1902
3864	3866		(c)(i) The expenses reasonably incurred by any fiduciary and by other persons
3865	3867		1903
3866	3868		interested in the estate concerning the determination of the amount and
3867	3869		1904
3868	3870		apportionment of the tax shall be apportioned as provided in Subsection (2) and
3869	3871		1905
3870	3872		charged and collected as a part of the tax apportioned.
3871	3873		1906
3872	3874		(ii) If the court finds it is inequitable to apportion the expenses as provided in
3873	3875		1907
3874	3876		Subsection (2), it may direct the apportionment equitably.
3875	3877		1908
3876	3878		(d) If the court finds that the assessment of penalties and interest assessed in relation to
3877	3879		1909
3878	3880		the tax is due to delay caused by the negligence of the fiduciary, the court may charge
3879	3881		1910
3880	3882		the fiduciary with the amount of the assessed penalties and interest.
3881	3883		1911
3882	3884		(e) In any suit or judicial proceeding to recover from any person interested in the estate
3883	3885		1912
3884	3886		the amount of the tax apportioned to the person in accordance with this [code] title,
3885	3887		1913
3886	3888		the determination of the court in this regard is prima facie correct.
3887	3889		1914
3888	3890		(4)(a)(i) The fiduciary or other person required to pay the tax may withhold from any
3889	3891		1915
3890	3892		property of the decedent in his possession and distributable to any person
3891	3893		1916
3892	3894		interested in the estate, the amount of tax attributable to his interest.
3893	3895		1917
3894	3896		(ii) If the property in possession of the fiduciary or other person required to pay the
3895	3897		1918
3896	3898		tax and distributable to any person interested in the estate is insufficient to satisfy
3897	3899		1919
3898	3900		the proportionate amount of the tax determined to be due from the person, the
3899	3901		1920
3900	3902		fiduciary or other person required to pay the tax may recover the deficiency from
3901	3903		1921
3902	3904		the person interested in the estate.
3903	3905		1922
3904	3906		(iii) If the property is not in the possession of the fiduciary or other person required to
3905	3907		1923
3906	3908		pay the tax, the fiduciary or the other person required to pay the tax may recover
3907	3909		1924
3908	3910		from any person interested in the estate the amount of the tax apportioned to the
3909	3911		1925
3910	3912		person in accordance with this section.
3911	3913		1926
3912	3914		(b) If property held by the fiduciary or other person required to pay the tax is distributed
3913	3915		1927
3914	3916		prior to final apportionment of the tax, the fiduciary or other person may require the
3915	3917		1928
3916	3918		distributee to provide a bond or other security for the apportionment liability in the
3917	3919		1929
3918	3920		form and amount prescribed by the fiduciary, with the approval of the court having
3919	3921		1930
3920	3922		jurisdiction of the administration of the estate.
3921	3923		1931
3922	3924		(5)(a) In making an apportionment, allowances shall be made for any exemptions
3923		-	- 57 - S.B. 100 Enrolled Copy
3924	3925		1932
3925	3926		granted, any classification made of persons interested in the estate, and any
	3927	+	- 57 - 1st Sub. (Green) S.B. 100 02-07 14:26
3926	3928		1933
3927	3929		deductions and credits allowed by the law imposing the tax.
3928	3930		1934
3929	3931		(b)(i) Any exemption or deduction allowed by reason of the relationship of any
3930	3932		1935
3931	3933		person to the decedent or by reason of the purposes of the gift inures to the benefit
3932	3934		1936
3933	3935		of the person bearing that relationship or receiving the gift.
3934	3936		1937
3935	3937		(ii) When an interest is subject to a prior present interest which is not allowable as a
3936	3938		1938
3937	3939		deduction, the tax apportionable against the present interest shall be paid from
3938	3940		1939
3939	3941		principal.
3940	3942		1940
3941	3943		(c) Any deduction for property previously taxed and any credit for gift taxes or death
3942	3944		1941
3943	3945		taxes of a foreign country paid by the decedent or his estate inures to the
3944	3946		1942
3945	3947		proportionate benefit of all persons liable to apportionment.
3946	3948		1943
3947	3949		(d) Any credit for inheritance, succession, or estate taxes or taxes of this nature in
3948	3950		1944
3949	3951		respect to property or interests includable in the estate inures to the benefit of the
3950	3952		1945
3951	3953		persons or interests chargeable with the payment of the tax to the extent that, or in
3952	3954		1946
3953	3955		proportion as, the credit reduces the tax.
3954	3956		1947
3955	3957		(e)(i) To the extent that property passing to or in trust for a surviving spouse or child
3956	3958		1948
3957	3959		or any charitable, public, or similar gift or bequest does not constitute an
3958	3960		1949
3959	3961		allowable deduction for purposes of the tax solely by reason of an inheritance tax
3960	3962		1950
3961	3963		or other death tax imposed upon and deductible from the property, the property
3962	3964		1951
3963	3965		shall not be included in the computation provided for in Subsection (2), and to that
3964	3966		1952
3965	3967		extent no apportionment shall be made against the property.
3966	3968		1953
3967	3969		(ii) This does not apply in any instance where the result will be to deprive the estate
3968	3970		1954
3969	3971		of a deduction otherwise allowable under Section 2053(d)[ of the Internal
3970	3972		1955
3971	3973		Revenue Code of 1954 of the United States] , Internal Revenue Code, relating to
3972	3974		1956
3973	3975		deduction for state death taxes on transfers for public, charitable, or religious uses.
3974	3976		1957
3975	3977		(6)(a) No interest in income and no estate for years or for life or other temporary interest
3976	3978		1958
3977	3979		in any property or fund is subject to apportionment as between the temporary interest
3978	3980		1959
3979	3981		and the remainder.
3980	3982		1960
3981	3983		(b) The tax on the temporary interest and the tax, if any, on the remainder is chargeable
3982	3984		1961
3983	3985		against the corpus of the property or funds subject to the temporary interest and
3984	3986		1962
3985	3987		remainder.
3986	3988		1963
3987	3989		(7)(a) Neither the fiduciary nor other person required to pay the tax is under any duty to
3988	3990		1964
3989	3991		institute any suit or proceeding to recover from any person interested in the estate the
3990	3992		1965
3991	3993		amount of the tax apportioned to the person until the expiration of the three months
3992		-	- 58 - Enrolled Copy S.B. 100
3993	3994		1966
3994	3995		next following final determination of the tax.
	3996	+	- 58 - 02-07 14:26 1st Sub. (Green) S.B. 100
3995	3997		1967
3996	3998		(b) A fiduciary or other person required to pay the tax who institutes the suit or
3997	3999		1968
3998	4000		proceeding within a reasonable time after the three months' period is not subject to
3999	4001		1969
4000	4002		any liability or surcharge because any portion of the tax apportioned to any person
4001	4003		1970
4002	4004		interested in the estate was collectible at a time following the death of the decedent
4003	4005		1971
4004	4006		but thereafter became uncollectible. If the fiduciary or other person required to pay
4005	4007		1972
4006	4008		the tax cannot collect from any person interested in the estate the amount of the tax
4007	4009		1973
4008	4010		apportioned to the person, the amount not recoverable shall be paid from the
4009	4011		1974
4010	4012		residuary estate.
4011	4013		1975
4012	4014		(c) To the extent that the residuary estate is not adequate, the balance shall be equitably
4013	4015		1976
4014	4016		apportioned among the other persons interested in the estate who are subject to
4015	4017		1977
4016	4018		apportionment.
4017	4019		1978
4018	4020		(8)(a) Subject to this section, a fiduciary acting in another state or a person required to
4019	4021		1979
4020	4022		pay the tax who is domiciled in another state may institute an action in the courts of
4021	4023		1980
4022	4024		this state and may recover a proportionate amount of the federal estate tax, of an
4023	4025		1981
4024	4026		estate tax payable to another state, or of a death duty due by a decedent's estate to
4025	4027		1982
4026	4028		another state, from a person interested in the estate who is either domiciled in this
4027	4029		1983
4028	4030		state or who owns property in this state subject to attachment or execution.
4029	4031		1984
4030	4032		(b) For the purposes of the action the determination of apportionment by the court
4031	4033		1985
4032	4034		having jurisdiction of the administration of the decedent's estate in the other state is
4033	4035		1986
4034	4036		prima facie correct.
4035	4037		1987
4036	4038		(c) The provisions of this section apply only if the state in which the determination of
4037	4039		1988
4038	4040		apportionment was made affords a substantially similar remedy.
4039	4041		1989
4040	4042		(9) This section does not apply to the apportionment of expenses incurred in connection
4041	4043		1990
4042	4044		with the determination of the amount and apportionment of the taxes due on account of
4043	4045		1991
4044	4046		the death of decedents dying prior to July 1, 1983.
4045	4047		1992
4046	4048		Section 46. Section 75-3-1008 is amended to read:
4047	4049		1993
4048	4050		75-3-1008 . Subsequent administration.
4049	4051		1994
4050	4052		(1) If other property of the estate is discovered after an estate has been settled and the
4051	4053		1995
4052	4054		personal representative discharged or after one year after a closing statement has been
4053	4055		1996
4054	4056		filed, the court upon petition of any interested person and upon notice as it directs may
4055	4057		1997
4056	4058		appoint the same or a successor personal representative to administer the
4057	4059		1998
4058	4060		subsequently-discovered estate.
4059	4061		1999
4060	4062		(2) If a new appointment is made, unless the court orders otherwise, the provisions of this [
4061		-	- 59 - S.B. 100 Enrolled Copy
4062	4063		2000
4063	4064		code] title apply as appropriate[;] but no claim previously barred may be asserted in the
	4065	+	- 59 - 1st Sub. (Green) S.B. 100 02-07 14:26
4064	4066		2001
4065	4067		subsequent administration.
4066	4068		2002
4067	4069		Section 47. Section 75-5-303 is amended to read:
4068	4070		2003
4069	4071		75-5-303 . Procedure for court appointment of a guardian of an incapacitated
4070	4072		2004
4071	4073		person.
4072	4074		2005
4073	4075		(1) An incapacitated person or any person interested in the incapacitated person's welfare
4074	4076		2006
4075	4077		may petition for a finding of incapacity and appointment of a guardian.
4076	4078		2007
4077	4079		(2)(a) Upon the filing of a petition, the court shall set a date for hearing on the issues of
4078	4080		2008
4079	4081		incapacity.
4080	4082		2009
4081	4083		(b) Unless the allegedly incapacitated person has counsel of the person's own choice, the
4082	4084		2010
4083	4085		court shall appoint an attorney to represent the person in the proceeding the cost of
4084	4086		2011
4085	4087		which shall be paid by the person alleged to be incapacitated, unless the allegedly
4086	4088		2012
4087	4089		incapacitated person and the allegedly incapacitated person's parents are indigent.
4088	4090		2013
4089	4091		(c) If the court determines that the petition is without merit, the attorney fees and court
4090	4092		2014
4091	4093		costs shall be paid by the person filing the petition.
4092	4094		2015
4093	4095		(d) If the court appoints the petitioner or the petitioner's nominee as guardian of the
4094	4096		2016
4095	4097		incapacitated person, regardless of whether the nominee is specified in the moving
4096	4098		2017
4097	4099		petition or nominated during the proceedings, the petitioner shall be entitled to
4098	4100		2018
4099	4101		receive from the incapacitated person reasonable attorney fees and court costs
4100	4102		2019
4101	4103		incurred in bringing, prosecuting, or defending the petition.
4102	4104		2020
4103	4105		(3) The legal representation of the incapacitated person by an attorney shall terminate upon
4104	4106		2021
4105	4107		the appointment of a guardian, unless:
4106	4108		2022
4107	4109		(a) there are separate conservatorship proceedings still pending before the court
4108	4110		2023
4109	4111		subsequent to the appointment of a guardian;
4110	4112		2024
4111	4113		(b) there is a timely filed appeal of the appointment of the guardian or the determination
4112	4114		2025
4113	4115		of incapacity; or
4114	4116		2026
4115	4117		(c) upon an express finding of good cause, the court orders otherwise.
4116	4118		2027
4117	4119		(4) The person alleged to be incapacitated may be examined by a physician or physician
4118	4120		2028
4119	4121		assistant appointed by the court who shall submit a report in writing to the court and
4120	4122		2029
4121	4123		may be interviewed by a visitor sent by the court. The visitor also may interview the
4122	4124		2030
4123	4125		person seeking appointment as guardian, visit the present place of abode of the person
4124	4126		2031
4125	4127		alleged to be incapacitated and the place it is proposed that the person will be detained
4126	4128		2032
4127	4129		or reside if the requested appointment is made, conduct other investigations or
4128	4130		2033
4129	4131		observations as directed by the court, and submit a report in writing to the court.
4130		-	- 60 - Enrolled Copy S.B. 100
4131	4132		2034
4132	4133		(5)(a) The person alleged to be incapacitated shall be present at the hearing in person
	4134	+	- 60 - 02-07 14:26 1st Sub. (Green) S.B. 100
4133	4135		2035
4134	4136		and see or hear all evidence bearing upon the person's condition. If the person
4135	4137		2036
4136	4138		seeking the guardianship requests a waiver of presence of the person alleged to be
4137	4139		2037
4138	4140		incapacitated, the court shall order an investigation by a court visitor, the costs of
4139	4141		2038
4140	4142		which shall be paid by the person seeking the guardianship.
4141	4143		2039
4142	4144		(b) The investigation by a court visitor is not required if there is clear and convincing
4143	4145		2040
4144	4146		evidence from a physician that the person alleged to be incapacitated has:
4145	4147		2041
4146	4148		(i) fourth stage Alzheimer's Disease;
4147	4149		2042
4148	4150		(ii) extended comatosis; or
4149	4151		2043
4150	4152		(iii)(A) an intellectual disability; and
4151	4153		2044
4152	4154		(B) an intelligence quotient score under 25.
4153	4155		2045
4154	4156		(c) The person alleged to be incapacitated is entitled to be represented by counsel, to
4155	4157		2046
4156	4158		present evidence, to cross-examine witnesses, including the court-appointed
4157	4159		2047
4158	4160		physician and the visitor, and to trial by jury. The issue may be determined at a
4159	4161		2048
4160	4162		closed hearing without a jury if the person alleged to be incapacitated or the person's
4161	4163		2049
4162	4164		counsel so requests.
4163	4165		2050
4164	4166		(d) Counsel for the person alleged to be incapacitated[, as defined in Subsection
4165	4167		2051
4166	4168		75-1-201(22),] is not required if:
4167	4169		2052
4168	4170		(i) the person is the biological or adopted child of the petitioner;
4169	4171		2053
4170	4172		(ii) the value of the person's entire estate does not exceed $20,000 as established by
4171	4173		2054
4172	4174		an affidavit of the petitioner in accordance with Section 75-3-1201;
4173	4175		2055
4174	4176		(iii) the person appears in court with the petitioner;
4175	4177		2056
4176	4178		(iv) the person is given the opportunity to communicate, to the extent possible, the
4177	4179		2057
4178	4180		person's acceptance of the appointment of petitioner;
4179	4181		2058
4180	4182		(v) no attorney from the state court's list of attorneys who have volunteered to
4181	4183		2059
4182	4184		represent respondents in guardianship proceedings is able to provide counsel to
4183	4185		2060
4184	4186		the person within 60 days of the date of the appointment described in Subsection
4185	4187		2061
4186	4188		(2);
4187	4189		2062
4188	4190		(vi) the court is satisfied that counsel is not necessary in order to protect the interests
4189	4191		2063
4190	4192		of the person; and
4191	4193		2064
4192	4194		(vii) the court appoints a visitor under Subsection (4).
4193	4195		2065
4194	4196		Section 48. Section 75-5-412 is amended to read:
4195	4197		2066
4196	4198		75-5-412 . Terms and requirements of bonds.
4197	4199		2067
4198	4200		(1) The following requirements and provisions apply to any bond required under Section
4199		-	- 61 - S.B. 100 Enrolled Copy
4200	4201		2068
4201	4202		75-5-411:
	4203	+	- 61 - 1st Sub. (Green) S.B. 100 02-07 14:26
4202	4204		2069
4203	4205		(a) [Unless] unless otherwise provided by the terms of the approved bond, sureties are
4204	4206		2070
4205	4207		jointly and severally liable with the conservator and with each other;
4206	4208		2071
4207	4209		(b)(i) [By] by executing an approved bond of a conservator, the surety consents to the
4208	4210		2072
4209	4211		jurisdiction of the court which issued letters to the primary obligor in any
4210	4212		2073
4211	4213		proceeding pertaining to the fiduciary duties of the conservator and naming the
4212	4214		2074
4213	4215		surety as a party defendant[.] ; and
4214	4216		2075
4215	4217		(ii) [Notice] notice of the proceeding shall be delivered to the surety or mailed to him
4216	4218		2076
4217	4219		by registered or certified mail at his address as listed with the court where the
4218	4220		2077
4219	4221		bond is filed and to his address as then known to the petitioner;
4220	4222		2078
4221	4223		(c) [On] on petition of a successor conservator or any interested person, a proceeding
4222	4224		2079
4223	4225		may be initiated against a surety for breach of the obligation of the bond of the
4224	4226		2080
4225	4227		conservator; and
4226	4228		2081
4227	4229		(d) [The] the bond of the conservator is not void after the first recovery but may be
4228	4230		2082
4229	4231		proceeded against from time to time until the whole penalty is exhausted.
4230	4232		2083
4231	4233		(2) No proceeding may be commenced against the surety on any matter as to which an
4232	4234		2084
4233	4235		action or proceeding against the primary obligor is barred by adjudication or limitation
4234	4236		2085
4235	4237		under this [code] title.
4236	4238		2086
4237	4239		Section 49. Section 75-5-416 is amended to read:
4238	4240		2087
4239	4241		75-5-416 . Petitions for orders subsequent to appointment.
4240	4242		2088
4241	4243		(1) Any person interested in the welfare of a person for whom a conservator has been
4242	4244		2089
4243	4245		appointed may file a petition in the appointing court for an order:
4244	4246		2090
4245	4247		(a) requiring bond or security or additional bond or security, or reducing bond;
4246	4248		2091
4247	4249		(b) requiring an accounting for the administration of the conservatorship estate;
4248	4250		2092
4249	4251		(c) directing distribution;
4250	4252		2093
4251	4253		(d) removing the conservator and appointing a temporary or successor conservator; or
4252	4254		2094
4253	4255		(e) granting other appropriate relief, including any relief available under [Title 75,
4254	4256		2095
4255	4257		Chapter 7, Utah Uniform Trust Code] Title 75B, Chapter 2, Uniform Trust Code, if
4256	4258		2096
4257	4259		the protected person is a grantor, settlor, trustor, or beneficiary of a trust.
4258	4260		2097
4259	4261		(2) A conservator may petition the appointing court for instructions concerning the
4260	4262		2098
4261	4263		conservator's fiduciary responsibility.
4262	4264		2099
4263	4265		(3) Upon notice and hearing the court may give appropriate instructions or make any
4264	4266		2100
4265	4267		appropriate order.
4266	4268		2101
4267	4269		Section 50. Section 75-5-417 is amended to read:
4268		-	- 62 - Enrolled Copy S.B. 100
4269	4270		2102
4270	4271		75-5-417 . General duty of conservator.
	4272	+	- 62 - 02-07 14:26 1st Sub. (Green) S.B. 100
4271	4273		2103
4272	4274		(1) A conservator shall act as a fiduciary and shall observe the standards of care as set forth
4273	4275		2104
4274	4276		in Section [75-7-902] 75B-2-902.
4275	4277		2105
4276	4278		(2)(a) For all estates in excess of $50,000 excluding the residence owned by the ward,
4277	4279		2106
4278	4280		the conservator shall send a report with a full accounting to the court on an annual
4279	4281		2107
4280	4282		basis.
4281	4283		2108
4282	4284		(b) For estates less than $50,000 excluding the residence owned by the ward, the
4283	4285		2109
4284	4286		conservator shall fill out an informal annual report and mail the report to the court.
4285	4287		2110
4286	4288		(c) A report under Subsection (2)(a) or (b) shall include a statement regarding:
4287	4289		2111
4288	4290		(i) all assets at the beginning and end of the reporting year;
4289	4291		2112
4290	4292		(ii) any income received during the year;
4291	4293		2113
4292	4294		(iii) any disbursements for the support of the ward;
4293	4295		2114
4294	4296		(iv) any investments or trusts that are held for the ward's benefit;
4295	4297		2115
4296	4298		(v) any expenditures or fees charged to the ward's estate; and
4297	4299		2116
4298	4300		(vi) any other expenses incurred by the ward's estate.
4299	4301		2117
4300	4302		(d) The Judicial Council shall approve the forms for the accounting reports described in
4301	4303		2118
4302	4304		Subsections (2)(a) and (b).
4303	4305		2119
4304	4306		(e) An annual accounting report under Subsection (2)(a) or (b) shall be examined and
4305	4307		2120
4306	4308		approved by the court.
4307	4309		2121
4308	4310		(3)(a) Corporate fiduciaries are not required to fully petition the court, but shall submit
4309	4311		2122
4310	4312		their internal report annually to the court.
4311	4313		2123
4312	4314		(b) A report under Subsection (3)(a) shall be examined and approved by the court.
4313	4315		2124
4314	4316		(4) Upon a motion and after a hearing, the court may alter the frequency of, or the
4315	4317		2125
4316	4318		information included in, an accounting report provided to a ward in accordance with
4317	4319		2126
4318	4320		Subsection 75-5-301.5(2)(t).
4319	4321		2127
4320	4322		(5)(a) The court may impose a fine in an amount not to exceed $5,000, if, after receiving
4321	4323		2128
4322	4324		written notice of the failure to file and after a grace period of two months have
4323	4325		2129
4324	4326		elapsed, a conservator or corporate fiduciary:
4325	4327		2130
4326	4328		(i) makes a substantial misstatement on filings of any required annual reports;
4327	4329		2131
4328	4330		(ii) is guilty of gross impropriety in handling the property of the ward; or
4329	4331		2132
4330	4332		(iii) willfully fails to file the report required by this section.
4331	4333		2133
4332	4334		(b) The court may also order restitution of funds misappropriated from the estate of a
4333	4335		2134
4334	4336		ward.
4335	4337		2135
4336	4338		(c) The penalty shall be paid by the conservator or corporate fiduciary and may not be
4337		-	- 63 - S.B. 100 Enrolled Copy
4338	4339		2136
4339	4340		paid by the estate.
	4341	+	- 63 - 1st Sub. (Green) S.B. 100 02-07 14:26
4340	4342		2137
4341	4343		(6) These provisions and penalties governing annual reports do not apply if the conservator
4342	4344		2138
4343	4345		is the parent of the ward.
4344	4346		2139
4345	4347		Section 51. Section 75-5b-102 is amended to read:
4346	4348		2140
4347	4349		75-5b-102 . Definitions.
4348	4350		2141
4349	4351		[In] As used in this chapter:
4350	4352		2142
4351	4353		(1) "Adult" means an individual who has attained 18 years of age.
4352	4354		2143
4353	4355		(2) "Conservator" means a person appointed by the court to administer the property of an
4354	4356		2144
4355	4357		adult, including a person appointed under Title 75, Chapter 5, Part 4, Protection of
4356	4358		2145
4357	4359		Property of Persons Under Disability and Minors.
4358	4360		2146
4359	4361		(3) "Emergency" means circumstances that likely will result in substantial harm to a
4360	4362		2147
4361	4363		respondent's health, safety, or welfare, and in which the appointment of a guardian is
4362	4364		2148
4363	4365		necessary because no other person has authority to and is willing to act on the
4364	4366		2149
4365	4367		respondent's behalf.
4366	4368		2150
4367	4369		[(4) "Guardian" means a person appointed by the court to make decisions regarding the
4368	4370		2151
4369	4371		person of an adult, including a person appointed under Title 75, Chapter 5, Part 3,
4370	4372		2152
4371	4373		Guardians of Incapacitated Persons.]
4372	4374		2153
4373	4375		[(5)] (4) "Guardianship order" means an order appointing a guardian.
4374	4376		2154
4375	4377		[(6)] (5) "Guardianship proceeding" means a proceeding in which an order for the
4376	4378		2155
4377	4379		appointment of a guardian is sought or has been issued.
4378	4380		2156
4379	4381		[(7)] (6) "Home state" means the state in which the respondent was physically present for at
4380	4382		2157
4381	4383		least six consecutive months immediately before the filing of a petition for the
4382	4384		2158
4383	4385		appointment of a guardian or protective order. A period of temporary absence counts as
4384	4386		2159
4385	4387		part of the six-month period.
4386	4388		2160
4387	4389		[(8)] (7) "Incapacitated person" means an adult for whom a guardian has been appointed.
4388	4390		2161
4389	4391		[(9)] (8) "Party" means the respondent, petitioner, guardian, conservator, or any other person
4390	4392		2162
4391	4393		allowed by the court to participate in a guardianship or protective proceeding.
4392	4394		2163
4393	4395		[(10)] (9) "Person," except in the terms "incapacitated person" or "protected person," means
4394	4396		2164
4395	4397		an individual, corporation, business trust, estate, trust, partnership, limited liability
4396	4398		2165
4397	4399		company, association, joint venture, government or governmental subdivision, agency or
4398	4400		2166
4399	4401		instrumentality, public corporation, or any other legal or commercial entity.
4400	4402		2167
4401	4403		[(11)] (10) "Protected person" means an adult for whom a protective order has been made.
4402	4404		2168
4403	4405		[(12)] (11) "Protective order" means an order appointing a conservator or another court
4404	4406		2169
4405	4407		order related to management of an adult's property.
4406		-	- 64 - Enrolled Copy S.B. 100
4407	4408		2170
4408	4409		[(13)] (12) "Protective proceeding" means a judicial proceeding in which a protective order
	4410	+	- 64 - 02-07 14:26 1st Sub. (Green) S.B. 100
4409	4411		2171
4410	4412		is sought or has been issued.
4411	4413		2172
4412	4414		[(14)] (13) "Record" means information that is inscribed on a tangible medium or that is
4413	4415		2173
4414	4416		stored in an electronic or other medium and is retrievable in perceivable form.
4415	4417		2174
4416	4418		[(15)] (14) "Respondent" means an adult for whom a protective order or the appointment of
4417	4419		2175
4418	4420		a guardian is sought.
4419	4421		2176
4420	4422		[(16)] (15) "Significant-connection state" means a state, other than the home state, with
4421	4423		2177
4422	4424		which a respondent has a significant connection other than mere physical presence and
4423	4425		2178
4424	4426		in which substantial evidence concerning the respondent is available.
4425	4427		2179
4426	4428		[(17)] (16) "State" means a state of the United States, the District of Columbia, Puerto Rico,
4427	4429		2180
4428	4430		the United States Virgin Islands, a federally recognized Indian tribe, or any territory or
4429	4431		2181
4430	4432		insular possession subject to the jurisdiction of the United States.
4431	4433		2182
4432	4434		Section 52. Section 75-6-201 is amended to read:
4433	4435		2183
4434	4436		75-6-201 . Provisions for payment or transfer at death.
4435	4437		2184
4436	4438		(1) Any of the following provisions in an insurance policy, contract of employment, bond,
4437	4439		2185
4438	4440		mortgage, promissory note, deposit agreement, pension plan, trust agreement,
4439	4441		2186
4440	4442		conveyance, or any other written instrument effective as a contract, gift, conveyance, or
4441	4443		2187
4442	4444		trust are considered nontestamentary, and this [code] title does not invalidate the
4443	4445		2188
4444	4446		instrument or any provision:
4445	4447		2189
4446	4448		(a) that money or other benefits previously due to, controlled, or owned by a decedent
4447	4449		2190
4448	4450		shall be paid after his death to a person designated by the decedent in either the
4449	4451		2191
4450	4452		instrument or a separate writing, including a will, executed at the same time as the
4451	4453		2192
4452	4454		instrument or subsequently;
4453	4455		2193
4454	4456		(b) that any money due or to become due under the instrument shall cease to be payable
4455	4457		2194
4456	4458		in event of the death of the promisee or the promisor before payment or demand; or
4457	4459		2195
4458	4460		(c) that any property which is the subject of the instrument shall pass to a person
4459	4461		2196
4460	4462		designated by the decedent in either the instrument or a separate writing, including a
4461	4463		2197
4462	4464		will, executed at the same time as the instrument or subsequently.
4463	4465		2198
4464	4466		(2) Nothing in this section limits the rights of creditors under other laws of this state.
4465	4467		2199
4466	4468		(3)(a) Any provision in a lease of a safety deposit repository to the effect that two or
4467	4469		2200
4468	4470		more persons shall have access to the repository, that purports to create a joint
4469	4471		2201
4470	4472		tenancy in the repository or in the contents of the repository, or that purports to vest
4471	4473		2202
4472	4474		ownership of the contents of the repository in the surviving lessee is ineffective to
4473	4475		2203
4474	4476		create joint ownership of the contents of the repository or to transfer ownership at
4475		-	- 65 - S.B. 100 Enrolled Copy
4476	4477		2204
4477	4478		death of one of the lessees to the survivor.
	4479	+	- 65 - 1st Sub. (Green) S.B. 100 02-07 14:26
4478	4480		2205
4479	4481		(b) Ownership of the contents of the repository and devolution of title to these contents
4480	4482		2206
4481	4483		is determined according to rules of law without regard to the lease provisions.
4482	4484		2207
4483	4485		(c) The contents of the repository may be delivered on request to any person who has
4484	4486		2208
4485	4487		access to the repository by the terms of the lease agreement without liability on the
4486	4488		2209
4487	4489		part of the financial institution or other person where the repository is located.
4488	4490		2210
4489	4491		(4) Any motor vehicle, trailer, semitrailer, or boat registration in the names of two or more
4490	4492		2211
4491	4493		individuals shall be deemed to be held in joint tenancy with right of survivorship unless
4492	4494		2212
4493	4495		otherwise indicated.
4494	4496		2213
4495	4497		Section 53. Section 75A-1-101 is amended to read:
4496	4498		2214
4497	4499		75A-1-101 . Definitions for title.
4498	4500		2215
4499	4501		[Reserved.] As used in this title:
4500	4502		2216
4501	4503		(1) "Conservator" means the same as that term is defined in Section 75-1-201.
4502	4504		2217
4503	4505		(2) "Descendant" means the same as that term is defined in Section 75-1-201.
4504	4506		2218
4505	4507		(3) "Electronic" means relating to technology having electrical, digital, magnetic, wireless,
4506	4508		2219
4507	4509		optical, electromagnetic, or similar capabilities.
4508	4510		2220
4509	4511		(4) "Estate" means, except as provided in Section 75A-5-102, the same as that term is
4510	4512		2221
4511	4513		defined in Section 75-1-201.
4512	4514		2222
4513	4515		(5) "Good faith" means honesty in fact in the conduct or transaction concerned and the
4514	4516		2223
4515	4517		observance of reasonable fiduciary standards.
4516	4518		2224
4517	4519		(6) "Guardian" means the same as that term is defined in Section 75-1-201.
4518	4520		2225
4519	4521		(7) "Person" means the same as that term is defined in Section 75-1-201.
4520	4522		2226
4521	4523		(8) "Personal representative" means the same as that term is defined in Section 75-1-201.
4522	4524		2227
4523	4525		(9) "Property" means the same as that term is defined in Section 75-1-201.
4524	4526		2228
4525	4527		(10) "Record" means the same as that term is defined in Section 75-1-201.
4526	4528		2229
4527	4529		(11) "Sign" means the same as that term is defined in Section 75-1-201.
4528	4530		2230
4529	4531		(12) "State" means the same as that term is defined in Section 75-1-201.
4530	4532		2231
4531	4533		(13) "Trust" means, except as provided in Section 75A-5-102, the same as that term is
4532	4534		2232
4533	4535		defined in Section 75B-1-101.
4534	4536		2233
4535	4537		(14) "Will" means the same as that term is defined in Section 75-1-201.
4536	4538		2234
4537	4539		Section 54. Section 75A-1-201 is amended to read:
4538	4540		2235
4539	4541		75A-1-201 . Definitions for part.
4540	4542		2236
4541	4543		As used in this part:
4542	4544		2237
4543	4545		(1) "Fiduciary" means:
4544		-	- 66 - Enrolled Copy S.B. 100
4545	4546		2238
4546	4547		(a) a trustee under any trust, expressed, implied, resulting or constructive;
	4548	+	- 66 - 02-07 14:26 1st Sub. (Green) S.B. 100
4547	4549		2239
4548	4550		(b) an executor;
4549	4551		2240
4550	4552		(c) an administrator;
4551	4553		2241
4552	4554		(d) a guardian;
4553	4555		2242
4554	4556		(e) a conservator;
4555	4557		2243
4556	4558		(f) a curator;
4557	4559		2244
4558	4560		(g) a receiver;
4559	4561		2245
4560	4562		(h) a trustee in bankruptcy;
4561	4563		2246
4562	4564		(i) an assignee for the benefit of creditors;
4563	4565		2247
4564	4566		(j) a partner;
4565	4567		2248
4566	4568		(k) an agent;
4567	4569		2249
4568	4570		(l) an officer of a corporation, public or private;
4569	4571		2250
4570	4572		(m) a public officer; or
4571	4573		2251
4572	4574		[(nn)] (n) any other person acting in a fiduciary capacity for any person, trust, or estate.
4573	4575		2252
4574	4576		[(2) "Good faith" means something is in fact done honestly regardless of whether it is done
4575	4577		2253
4576	4578		negligently or not.]
4577	4579		2254
4578	4580		[(3)] (2) "Principal" means a person to whom a fiduciary owes an obligation.
4579	4581		2255
4580	4582		Section 55. Section 75A-2-102 is amended to read:
4581	4583		2256
4582	4584		75A-2-102 . Definitions for chapter.
4583	4585		2257
4584	4586		As used in this chapter:
4585	4587		2258
4586	4588		(1)(a) "Agent" means a person granted authority to act for a principal under a power of
4587	4589		2259
4588	4590		attorney, whether denominated an agent, attorney-in-fact, or otherwise.
4589	4591		2260
4590	4592		(b) "Agent" includes an original agent, coagent, successor agent, and person to which an
4591	4593		2261
4592	4594		agent's authority is delegated.
4593	4595		2262
4594	4596		(2) "Beneficiary" means the same as that term is defined in Section 75-1-201.
4595	4597		2263
4596	4598		(3) "Beneficiary designation" means the same as that term is defined in Section 75-1-201.
4597	4599		2264
4598	4600		(4) "Child" means the same as that term is defined in Section 75-1-201.
4599	4601		2265
4600	4602		(5) "Claims" means the same as that term is defined in Section 75-1-201.
4601	4603		2266
4602	4604		[(6) "Conservator" means the same as that term is defined in Section 75-1-201.]
4603	4605		2267
4604	4606		[(7) "Descendant" means the same as that term is defined in Section 75-1-201.]
4605	4607		2268
4606	4608		[(8)] (6) "Durable," with respect to a power of attorney, means not terminated by the
4607	4609		2269
4608	4610		principal's incapacity.
4609	4611		2270
4610	4612		[(9) "Electronic" means relating to technology having electrical, digital, magnetic, wireless,
4611	4613		2271
4612	4614		optical, electromagnetic, or similar capabilities.]
4613		-	- 67 - S.B. 100 Enrolled Copy
4614	4615		2272
4615	4616		[(10) "Estate" means the same as that term is defined in Section 75-1-201.]
	4617	+	- 67 - 1st Sub. (Green) S.B. 100 02-07 14:26
4616	4618		2273
4617	4619		[(11)] (7) "Fiduciary" means the same as that term is defined in Section 75-1-201.
4618	4620		2274
4619	4621		[(12) "Good faith" means honesty in fact.]
4620	4622		2275
4621	4623		[(13) "Guardian" means the same as that term is defined in Section 75-1-201.]
4622	4624		2276
4623	4625		[(14)] (8) "Incapacity" means the inability of an individual to manage property or business
4624	4626		2277
4625	4627		affairs because the individual:
4626	4628		2278
4627	4629		(a) has an impairment in the ability to receive and evaluate information or make or
4628	4630		2279
4629	4631		communicate decisions even with the use of technological assistance; or
4630	4632		2280
4631	4633		(b) is:
4632	4634		2281
4633	4635		(i) missing;
4634	4636		2282
4635	4637		(ii) detained, including incarcerated in a penal system; or
4636	4638		2283
4637	4639		(iii) outside the United States and unable to return.
4638	4640		2284
4639	4641		[(15)] (9) "Lease" means the same as that term is defined in Section 75-1-201.
4640	4642		2285
4641	4643		[(16)] (10) "Mortgage" means the same as that term is defined in Section 75-1-201.
4642	4644		2286
4643	4645		[(17)] (11) "Organization" means the same as that term is defined in Section 75-1-201.
4644	4646		2287
4645	4647		[(18) "Person" means an individual, corporation, business trust, estate, trust, partnership,
4646	4648		2288
4647	4649		limited liability company, association, joint venture, public corporation, government or
4648	4650		2289
4649	4651		governmental subdivision, agency, or instrumentality, or any other legal or commercial
4650	4652		2290
4651	4653		entity.]
4652	4654		2291
4653	4655		[(19) "Personal representative" means the same as that term is defined in Section 75-1-201.]
4654	4656		2292
4655	4657		[(20)] (12) "Power of attorney" means a writing or other record that grants authority to an
4656	4658		2293
4657	4659		agent to act in the place of the principal, whether or not the term power of attorney is
4658	4660		2294
4659	4661		used.
4660	4662		2295
4661	4663		[(21)] (13)(a) "Presently exercisable general power of appointment," with respect to
4662	4664		2296
4663	4665		property or a property interest subject to a power of appointment, means power
4664	4666		2297
4665	4667		exercisable at the time in question to vest absolute ownership in the principal
4666	4668		2298
4667	4669		individually, the principal's estate, the principal's creditors, or the creditors of the
4668	4670		2299
4669	4671		principal's estate.
4670	4672		2300
4671	4673		(b) "Presently exercisable general power of appointment" includes a power of
4672	4674		2301
4673	4675		appointment not exercisable until the occurrence of a specified event, the satisfaction
4674	4676		2302
4675	4677		of an ascertainable standard, or the passage of a specified period only after the
4676	4678		2303
4677	4679		occurrence of the specified event, the satisfaction of the ascertainable standard, or the
4678	4680		2304
4679	4681		passage of the specified period.
4680	4682		2305
4681	4683		(c) "Presently exercisable general power of appointment" does not include a power
4682		-	- 68 - Enrolled Copy S.B. 100
4683	4684		2306
4684	4685		exercisable in a fiduciary capacity or only by will.
	4686	+	- 68 - 02-07 14:26 1st Sub. (Green) S.B. 100
4685	4687		2307
4686	4688		[(22)] (14) "Principal" means an individual who grants authority to an agent in a power of
4687	4689		2308
4688	4690		attorney.
4689	4691		2309
4690	4692		[(23) "Property" means anything that may be the subject of ownership, whether real or
4691	4693		2310
4692	4694		personal, or legal or equitable, or any interest or right therein.]
4693	4695		2311
4694	4696		[(24) "Record" means information that is inscribed on a tangible medium or that is stored in
4695	4697		2312
4696	4698		an electronic or other medium and is retrievable in perceivable form.]
4697	4699		2313
4698	4700		[(25)] (15) "Security" means the same as that term is defined in Section 75-1-201.
4699	4701		2314
4700	4702		[(26) "Sign" means, with present intent to authenticate or adopt a record:]
4701	4703		2315
4702	4704		[(a) to execute or adopt a tangible symbol; or]
4703	4705		2316
4704	4706		[(b) to attach to or logically associate with the record an electronic sound, symbol, or
4705	4707		2317
4706	4708		process.]
4707	4709		2318
4708	4710		[(27) "State" means a state of the United States, the District of Columbia, Puerto Rico, the
4709	4711		2319
4710	4712		United States Virgin Islands, or any territory or insular possession subject to the
4711	4713		2320
4712	4714		jurisdiction of the United States.]
4713	4715		2321
4714	4716		[(28)] (16)(a) "Stocks and bonds" means stocks, bonds, mutual funds, and all other types
4715	4717		2322
4716	4718		of securities and financial instruments, whether held directly, indirectly, or in any
4717	4719		2323
4718	4720		other manner.
4719	4721		2324
4720	4722		(b) "Stocks and bonds" does not include commodity futures contracts and call or put
4721	4723		2325
4722	4724		options on stocks or stock indexes.
4723	4725		2326
4724	4726		[(29) "Trust" means the same as that term is defined in Section 75-1-201.]
4725	4727		2327
4726	4728		[(30)] (17) "Trustee" means the same as that term is defined in Section [75-1-201] 75B-1-101.
4727	4729		2328
4728	4730		[(31) "Will" means the same as that term is defined in Section 75-1-201.]
4729	4731		2329
4730	4732		Section 56. Section 75A-2-120 is amended to read:
4731	4733		2330
4732	4734		75A-2-120 . Liability for refusal to accept acknowledged power of attorney.
4733	4735		2331
4734	4736		(1) As used in this section, "acknowledged" means the same as that term is defined in
4735	4737		2332
4736	4738		Section 75A-2-119.
4737	4739		2333
4738	4740		(2) Except as otherwise provided in Subsection (3):
4739	4741		2334
4740	4742		(a) a person shall either accept an acknowledged power of attorney or request a
4741	4743		2335
4742	4744		certification, a translation, or an opinion of counsel under Subsection 75A-2-119(4)
4743	4745		2336
4744	4746		no later than seven business days after presentation of the power of attorney for
4745	4747		2337
4746	4748		acceptance;
4747	4749		2338
4748	4750		(b) if a person requests a certification, a translation, or an opinion of counsel under
4749	4751		2339
4750	4752		Subsection 75A-2-119(4), the person shall accept the power of attorney no later than
4751		-	- 69 - S.B. 100 Enrolled Copy
4752	4753		2340
4753	4754		five business days after receipt of the certification, translation, or opinion of counsel;
	4755	+	- 69 - 1st Sub. (Green) S.B. 100 02-07 14:26
4754	4756		2341
4755	4757		and
4756	4758		2342
4757	4759		(c) a person may not require an additional or different form of power of attorney for
4758	4760		2343
4759	4761		authority granted in the power of attorney presented.
4760	4762		2344
4761	4763		(3) A person is not required to accept an acknowledged power of attorney if:
4762	4764		2345
4763	4765		(a) the person is not otherwise required to engage in a transaction with the principal in
4764	4766		2346
4765	4767		the same circumstances;
4766	4768		2347
4767	4769		(b) engaging in a transaction with the agent or the principal in the same circumstances
4768	4770		2348
4769	4771		would be inconsistent with federal law;
4770	4772		2349
4771	4773		(c) the person has actual knowledge of the termination of the agent's authority or of the
4772	4774		2350
4773	4775		power of attorney before exercise of the power;
4774	4776		2351
4775	4777		(d) a request for a certification, a translation, or an opinion of counsel under Subsection
4776	4778		2352
4777	4779		75A-2-119(4) is refused;
4778	4780		2353
4779	4781		(e) the person in good faith believes that the power is not valid or that the agent does not
4780	4782		2354
4781	4783		have the authority to perform the act requested, whether or not a certification, a
4782	4784		2355
4783	4785		translation, or an opinion of counsel under Subsection 75A-2-119(4) has been
4784	4786		2356
4785	4787		requested or provided; or
4786	4788		2357
4787	4789		(f) the person makes, or has actual knowledge that another person has made, a report to
4788	4790		2358
4789	4791		the Division of Aging and Adult Services stating a good faith belief that the principal
4790	4792		2359
4791	4793		may be subject to physical or financial abuse, neglect, exploitation, or abandonment
4792	4794		2360
4793	4795		by the agent or a person acting for or with the agent.
4794	4796		2361
4795	4797		(4) A person that refuses in violation of this section to accept an acknowledged power of
4796	4798		2362
4797	4799		attorney is subject to:
4798	4800		2363
4799	4801		(a) a court order mandating acceptance of the power of attorney; and
4800	4802		2364
4801	4803		(b) liability for reasonable attorney fees and costs incurred in any action or proceeding
4802	4804		2365
4803	4805		that confirms the validity of the power of attorney or mandates acceptance of the
4804	4806		2366
4805	4807		power of attorney.
4806	4808		2367
4807	4809		(5) Court proceedings under this section shall be conducted [pursuant to the terms in the
4808	4810		2368
4809	4811		Uniform Probate Code] in accordance with the provisions of Title 75, Utah Uniform
4810	4812		2369
4811	4813		Probate Code, governing venue and procedures.
4812	4814		2370
4813	4815		Section 57. Section 75A-3-101 is amended to read:
4814	4816		2371
4815	4817		75A-3-101 . Definitions for chapter.
4816	4818		2372
4817	4819		As used in this chapter:
4818	4820		2373
4819	4821		(1) "Adult" means an individual who is:
4820		-	- 70 - Enrolled Copy S.B. 100
4821	4822		2374
4822	4823		(a) at least 18 years old; or
	4824	+	- 70 - 02-07 14:26 1st Sub. (Green) S.B. 100
4823	4825		2375
4824	4826		(b) an emancipated minor.
4825	4827		2376
4826	4828		(2) "Advance health care directive":
4827	4829		2377
4828	4830		(a) includes:
4829	4831		2378
4830	4832		(i) a designation of an agent to make health care decisions for an adult when the adult
4831	4833		2379
4832	4834		cannot make or communicate health care decisions; or
4833	4835		2380
4834	4836		(ii) an expression of preferences about health care decisions;
4835	4837		2381
4836	4838		(b) may take one of the following forms:
4837	4839		2382
4838	4840		(i) a written document, voluntarily executed by an adult in accordance with the
4839	4841		2383
4840	4842		requirements of this chapter; or
4841	4843		2384
4842	4844		(ii) a witnessed oral statement, made in accordance with the requirements of this
4843	4845		2385
4844	4846		chapter; and
4845	4847		2386
4846	4848		(c) does not include an order for life sustaining treatment.
4847	4849		2387
4848	4850		(3) "Agent" means an adult designated in an advance health care directive to make health
4849	4851		2388
4850	4852		care decisions for the declarant.
4851	4853		2389
4852	4854		(4) "APRN" means an individual who is:
4853	4855		2390
4854	4856		(a) certified or licensed as an advance practice registered nurse under Subsection
4855	4857		2391
4856	4858		58-31b-301(2)(e);
4857	4859		2392
4858	4860		(b) an independent practitioner; and
4859	4861		2393
4860	4862		(c) acting within the scope of practice for that individual, as provided by law, rule, and
4861	4863		2394
4862	4864		specialized certification and training in that individual's area of practice.
4863	4865		2395
4864	4866		(5) "Best interest" means that the benefits to the individual resulting from a treatment
4865	4867		2396
4866	4868		outweigh the burdens to the individual resulting from the treatment, taking into account:
4867	4869		2397
4868	4870		(a) the effect of the treatment on the physical, emotional, and cognitive functions of the
4869	4871		2398
4870	4872		individual;
4871	4873		2399
4872	4874		(b) the degree of physical pain or discomfort caused to the individual by the treatment or
4873	4875		2400
4874	4876		the withholding or withdrawal of treatment;
4875	4877		2401
4876	4878		(c) the degree to which the individual's medical condition, the treatment, or the
4877	4879		2402
4878	4880		withholding or withdrawal of treatment, result in a severe and continuing impairment
4879	4881		2403
4880	4882		of the dignity of the individual by subjecting the individual to humiliation and
4881	4883		2404
4882	4884		dependency;
4883	4885		2405
4884	4886		(d) the effect of the treatment on the life expectancy of the individual;
4885	4887		2406
4886	4888		(e) the prognosis of the individual for recovery with and without the treatment;
4887	4889		2407
4888	4890		(f) the risks, side effects, and benefits of the treatment, or the withholding or withdrawal
4889		-	- 71 - S.B. 100 Enrolled Copy
4890	4891		2408
4891	4892		of treatment; and
	4893	+	- 71 - 1st Sub. (Green) S.B. 100 02-07 14:26
4892	4894		2409
4893	4895		(g) the religious beliefs and basic values of the individual receiving treatment, to the
4894	4896		2410
4895	4897		extent these may assist the decision maker in determining the best interest.
4896	4898		2411
4897	4899		(6) "Capacity to appoint an agent" means that the adult understands the consequences of
4898	4900		2412
4899	4901		appointing a particular individual as agent.
4900	4902		2413
4901	4903		[(7) "Child" means the same as that term is defined in Section 75-1-201.]
4902	4904		2414
4903	4905		[(8)] (7) "Declarant" means an adult who has completed and signed or directed the signing
4904	4906		2415
4905	4907		of an advance health care directive.
4906	4908		2416
4907	4909		[(9)] (8) "Default surrogate" means the adult who may make decisions for an individual
4908	4910		2417
4909	4911		when either:
4910	4912		2418
4911	4913		(a) an agent or guardian has not been appointed; or
4912	4914		2419
4913	4915		(b) an agent is not able, available, or willing to make decisions for an adult.
4914	4916		2420
4915	4917		[(10)] (9) "Emergency medical services provider" means a person that is licensed,
4916	4918		2421
4917	4919		designated, or certified under Title 53, Chapter 2d, Emergency Medical Services Act.
4918	4920		2422
4919	4921		[(11) "Estate" means the same as that term is defined in Section 75-1-201.]
4920	4922		2423
4921	4923		[(12)] (10) "Generally accepted health care standards":
4922	4924		2424
4923	4925		(a) is defined only for the purpose of:
4924	4926		2425
4925	4927		(i) this chapter and does not define the standard of care for any other purpose under
4926	4928		2426
4927	4929		Utah law; and
4928	4930		2427
4929	4931		(ii) enabling health care providers to interpret the statutory form set forth in Section
4930	4932		2428
4931	4933		75A-3-303; and
4932	4934		2429
4933	4935		(b) means the standard of care that justifies a provider in declining to provide life
4934	4936		2430
4935	4937		sustaining care because the proposed life sustaining care:
4936	4938		2431
4937	4939		(i) will not prevent or reduce the deterioration in the health or functional status of an
4938	4940		2432
4939	4941		individual;
4940	4942		2433
4941	4943		(ii) will not prevent the impending death of an individual; or
4942	4944		2434
4943	4945		(iii) will impose more burden on the individual than any expected benefit to the
4944	4946		2435
4945	4947		individual.
4946	4948		2436
4947	4949		[(13) "Guardian" means the same as that term is defined in Section 75-1-201.]
4948	4950		2437
4949	4951		[(14)] (11) "Health care" means any care, treatment, service, or procedure to improve,
4950	4952		2438
4951	4953		maintain, diagnose, or otherwise affect an individual's physical or mental condition.
4952	4954		2439
4953	4955		[(15)] (12)(a) "Health care decision"[:]
4954	4956		2440
4955	4957		[(a)] means a decision about an adult's health care made by, or on behalf of, an adult,
4956	4958		2441
4957	4959		that is communicated to a health care provider[;] .
4958		-	- 72 - Enrolled Copy S.B. 100
4959	4960		2442
4960	4961		(b) "Health care decision" includes:
	4962	+	- 72 - 02-07 14:26 1st Sub. (Green) S.B. 100
4961	4963		2443
4962	4964		(i) selection and discharge of a health care provider and a health care facility;
4963	4965		2444
4964	4966		(ii) approval or disapproval of diagnostic tests, procedures, programs of medication,
4965	4967		2445
4966	4968		and orders not to resuscitate; and
4967	4969		2446
4968	4970		(iii) directions to provide, withhold, or withdraw artificial nutrition and hydration and
4969	4971		2447
4970	4972		all other forms of health care[; and] .
4971	4973		2448
4972	4974		(c) "Health care decision" does not include decisions about an adult's financial affairs or
4973	4975		2449
4974	4976		social interactions other than as indirectly affected by the health care decision.
4975	4977		2450
4976	4978		[(16)] (13) "Health care decision making capacity" means an adult's ability to make an
4977	4979		2451
4978	4980		informed decision about receiving or refusing health care, including:
4979	4981		2452
4980	4982		(a) the ability to understand the nature, extent, or probable consequences of health status
4981	4983		2453
4982	4984		and health care alternatives;
4983	4985		2454
4984	4986		(b) the ability to make a rational evaluation of the burdens, risks, benefits, and
4985	4987		2455
4986	4988		alternatives of accepting or rejecting health care; and
4987	4989		2456
4988	4990		(c) the ability to communicate a decision.
4989	4991		2457
4990	4992		[(17)] (14) "Health care facility" means:
4991	4993		2458
4992	4994		(a) a health care facility as defined in Title 26B, Chapter 2, Part 2, Health Care Facility
4993	4995		2459
4994	4996		Licensing and Inspection; and
4995	4997		2460
4996	4998		(b) private offices of physicians, dentists, and other health care providers licensed to
4997	4999		2461
4998	5000		provide health care under Title 58, Occupations and Professions.
4999	5001		2462
5000	5002		[(18)] (15) "Health care provider" means the same as that term is defined in Section
5001	5003		2463
5002	5004		78B-3-403, except that "health care provider" does not include an emergency medical
5003	5005		2464
5004	5006		services provider.
5005	5007		2465
5006	5008		[(19)] (16) "Incapacitated" means the same as that term is defined in Section 75-1-201.
5007	5009		2466
5008	5010		[(20)] (17) "Incapacity" means the same as that term is defined in Section 75-1-201.
5009	5011		2467
5010	5012		[(21)] (18)(a) "Life sustaining care" means any medical intervention, including
5011	5013		2468
5012	5014		procedures, administration of medication, or use of a medical device, that maintains
5013	5015		2469
5014	5016		life by sustaining, restoring, or supplanting a vital function.
5015	5017		2470
5016	5018		(b) "Life sustaining care" does not include care provided for the purpose of keeping an
5017	5019		2471
5018	5020		individual comfortable.
5019	5021		2472
5020	5022		[(22)] (19) "Minor" means an individual who:
5021	5023		2473
5022	5024		(a) is under 18 years old; and
5023	5025		2474
5024	5026		(b) is not an emancipated minor.
5025	5027		2475
5026	5028		[(23)] (20) "Order for life sustaining treatment" means an order related to life sustaining
5027		-	- 73 - S.B. 100 Enrolled Copy
5028	5029		2476
5029	5030		treatment, on a form designated by the Department of Health and Human Services under
	5031	+	- 73 - 1st Sub. (Green) S.B. 100 02-07 14:26
5030	5032		2477
5031	5033		Section [75-3-106] 75A-3-106, that gives direction to health care providers, health care
5032	5034		2478
5033	5035		facilities, and emergency medical services providers regarding the specific health care
5034	5036		2479
5035	5037		decisions of the individual to whom the order relates.
5036	5038		2480
5037	5039		[(24)] (21) "Parent" means the same as that term is defined in Section 75-1-201.
5038	5040		2481
5039	5041		[(25) "Personal representative" means the same as that term is defined in Section 75-1-201.]
5040	5042		2482
5041	5043		[(26)] (22) "Physician" means a physician and surgeon or osteopathic surgeon licensed
5042	5044		2483
5043	5045		under Title 58, Chapter 67, Utah Medical Practice Act or Chapter 68, Utah Osteopathic
5044	5046		2484
5045	5047		Medical Practice Act.
5046	5048		2485
5047	5049		[(27)] (23) "Physician assistant" means an individual licensed as a physician assistant under
5048	5050		2486
5049	5051		Title 58, Chapter 70a, Utah Physician Assistant Act.
5050	5052		2487
5051	5053		[(28)] (24) "Reasonably available" means:
5052	5054		2488
5053	5055		(a) readily able to be contacted without undue effort; and
5054	5056		2489
5055	5057		(b) willing and able to act in a timely manner considering the urgency of the
5056	5058		2490
5057	5059		circumstances.
5058	5060		2491
5059	5061		[(29) "State" means the same as that term is defined in Section 75-1-201.]
5060	5062		2492
5061	5063		[(30)] (25) "Substituted judgment" means the standard to be applied by a surrogate when
5062	5064		2493
5063	5065		making a health care decision for an adult who previously had the capacity to make
5064	5066		2494
5065	5067		health care decisions, which requires the surrogate to consider:
5066	5068		2495
5067	5069		(a) specific preferences expressed by the adult:
5068	5070		2496
5069	5071		(i) when the adult had the capacity to make health care decisions; and
5070	5072		2497
5071	5073		(ii) at the time the decision is being made;
5072	5074		2498
5073	5075		(b) the surrogate's understanding of the adult's health care preferences;
5074	5076		2499
5075	5077		(c) the surrogate's understanding of what the adult would have wanted under the
5076	5078		2500
5077	5079		circumstances; and
5078	5080		2501
5079		-	(d) to the extent that the preferences described in Subsections [(30)(a)] (25)(a) through ~~(c)~~
	5081	+	(d) to the extent that the preferences described in Subsections [(30)(a)] (25)(a) through
5080	5082		2502
5081		-	are unknown, the best interest of the adult.
	5083	+	(c) are unknown, the best interest of the adult.
5082	5084		2503
5083	5085		[(31)] (26) "Surrogate" means a health care decision maker who is:
5084	5086		2504
5085	5087		(a) an appointed agent;
5086	5088		2505
5087	5089		(b) a default surrogate under the provisions of Section 75A-3-203; or
5088	5090		2506
5089	5091		(c) a guardian.
5090	5092		2507
5091	5093		[(32) "Trust" means the same as that term is defined in Section 75-1-201.]
5092	5094		2508
5093	5095		[(33) "Will" means the same as that term is defined in Section 75-1-201.]
5094	5096		2509
5095	5097		Section 58. Section 75A-4-102 is amended to read:
5096		-	- 74 - Enrolled Copy S.B. 100
5097	5098		2510
5098	5099		75A-4-102 . Definitions for chapter.
	5100	+	- 74 - 02-07 14:26 1st Sub. (Green) S.B. 100
5099	5101		2511
5100	5102		As used in this chapter:
5101	5103		2512
5102	5104		(1) "Appointee" means a person to which a powerholder makes an appointment of
5103	5105		2513
5104	5106		appointive property.
5105	5107		2514
5106	5108		(2) "Appointive property" means the property or property interest subject to a power of
5107	5109		2515
5108	5110		appointment.
5109	5111		2516
5110	5112		(3)(a) "Blanket-exercise clause" means a clause in an instrument that exercises a power
5111	5113		2517
5112	5114		of appointment and is not a specific-exercise clause.
5113	5115		2518
5114	5116		(b) "Blanket-exercise clause" includes a clause that:
5115	5117		2519
5116	5118		(i) expressly uses the words "any power" in exercising any power of appointment the
5117	5119		2520
5118	5120		powerholder has;
5119	5121		2521
5120	5122		(ii) expressly uses the words "any property" in appointing any property over which
5121	5123		2522
5122	5124		the powerholder has a power of appointment; or
5123	5125		2523
5124	5126		(iii) disposes of all property subject to disposition by the powerholder.
5125	5127		2524
5126	5128		[(4) "Descendant" means the same as that term is defined in Section 75-1-201.]
5127	5129		2525
5128	5130		[(5)] (4) "Donor" means a person that creates a power of appointment.
5129	5131		2526
5130	5132		[(6) "Estate" means the same as that term is defined in Section 75-1-201.]
5131	5133		2527
5132	5134		[(7)] (5) "Exclusionary power of appointment" means a power of appointment exercisable in
5133	5135		2528
5134	5136		favor of any one or more of the permissible appointees to the exclusion of the other
5135	5137		2529
5136	5138		permissible appointees.
5137	5139		2530
5138	5140		[(8)] (6) "General power of appointment" means a power of appointment exercisable in
5139	5141		2531
5140	5142		favor of the powerholder, the powerholder's estate, a creditor of the powerholder, or a
5141	5143		2532
5142	5144		creditor of the powerholder's estate.
5143	5145		2533
5144	5146		[(9)] (7) "Gift-in-default clause" means a clause identifying a taker in default of appointment.
5145	5147		2534
5146	5148		[(10)] (8) "Impermissible appointee" means a person that is not a permissible appointee.
5147	5149		2535
5148	5150		[(11)] (9) "Instrument" means a record.
5149	5151		2536
5150	5152		[(12)] (10)(a) "Nongeneral power of appointment" means a power of appointment that is
5151	5153		2537
5152	5154		not a general power of appointment.
5153	5155		2538
5154	5156		(b) "Nongeneral power of appointment" includes a special power of appointment, a
5155	5157		2539
5156	5158		limited power of appointment, or similar terminology that is used in an instrument
5157	5159		2540
5158	5160		creating a power that does not grant powers making it a general power of
5159	5161		2541
5160	5162		appointment.
5161	5163		2542
5162	5164		[(13)] (11) "Permissible appointee" means a person in whose favor a powerholder may
5163	5165		2543
5164	5166		exercise a power of appointment.
5165		-	- 75 - S.B. 100 Enrolled Copy
5166	5167		2544
5167	5168		[(14) "Person" means an individual, estate, trust, business or nonprofit entity, public
	5169	+	- 75 - 1st Sub. (Green) S.B. 100 02-07 14:26
5168	5170		2545
5169	5171		corporation, government or governmental subdivision, agency, instrumentality, or other
5170	5172		2546
5171	5173		legal entity.]
5172	5174		2547
5173	5175		[(15)] (12) "Powerholder" means a person in whom a donor creates a power of appointment.
5174	5176		2548
5175	5177		[(16)] (13)(a) "Power of appointment" means a power that enables a powerholder acting
5176	5178		2549
5177	5179		in a nonfiduciary capacity to designate a recipient of an interest in, or another power
5178	5180		2550
5179	5181		of appointment over, the appointive property.
5180	5182		2551
5181	5183		(b) "Power of appointment" does not include a power of attorney.
5182	5184		2552
5183	5185		[(17)] (14)(a) "Presently exercisable power of appointment" means a power of
5184	5186		2553
5185	5187		appointment exercisable by the powerholder at a relevant time.
5186	5188		2554
5187	5189		(b) "Presently exercisable power of appointment" includes a power of appointment not
5188	5190		2555
5189	5191		exercisable until the occurrence of a specified event, the satisfaction of an
5190	5192		2556
5191	5193		ascertainable standard, or the passage of a specified time only after:
5192	5194		2557
5193	5195		(i) the occurrence of the specified event;
5194	5196		2558
5195	5197		(ii) the satisfaction of the ascertainable standard; or
5196	5198		2559
5197	5199		(iii) the passage of the specified time.
5198	5200		2560
5199	5201		(c) "Presently exercisable power of appointment" does not include a power exercisable
5200	5202		2561
5201	5203		only at the powerholder's death.
5202	5204		2562
5203	5205		[(18) "Property" means the same as that term is defined in Section 75-1-201.]
5204	5206		2563
5205	5207		[(19) "Record" means information that is inscribed on a tangible medium or that is stored in
5206	5208		2564
5207	5209		an electronic or other medium and is retrievable in perceivable form.]
5208	5210		2565
5209	5211		[(20)] (15) "Specific-exercise clause" means a clause in an instrument that specifically refers
5210	5212		2566
5211	5213		to and exercises a particular power of appointment.
5212	5214		2567
5213	5215		[(21)] (16) "Taker in default of appointment" means a person that takes all or part of the
5214	5216		2568
5215	5217		appointive property to the extent the powerholder does not effectively exercise the
5216	5218		2569
5217	5219		power of appointment.
5218	5220		2570
5219	5221		[(22)] (17) "Terms of the instrument" means the manifestation of the intent of the maker of
5220	5222		2571
5221	5223		the instrument regarding the instrument's provisions as expressed in the instrument or as
5222	5224		2572
5223	5225		may be established by other evidence that would be admissible in a legal proceeding.
5224	5226		2573
5225	5227		[(23) "Trust" means the same as that term is defined in Section 75-1-201.]
5226	5228		2574
5227	5229		[(24) "Will" means the same as that term is defined in Section 75-1-201.]
5228	5230		2575
5229	5231		Section 59. Section 75A-4-302 is amended to read:
5230	5232		2576
5231	5233		75A-4-302 . Intent to exercise -- Determining intent from residuary clause.
5232	5234		2577
5233	5235		(1) As used in this section[:] ,
5234		-	- 76 - Enrolled Copy S.B. 100
5235	5236		2578
5236	5237		[(a) "Residuary ] "residuary clause" does not include a residuary clause containing a
	5238	+	- 76 - 02-07 14:26 1st Sub. (Green) S.B. 100
5237	5239		2579
5238	5240		blanket-exercise clause or a specific-exercise clause.
5239	5241		2580
5240	5242		[(b) "Will" includes a codicil and a testamentary instrument that revises another will.]
5241	5243		2581
5242	5244		(2) A residuary clause in a powerholder's will, or a comparable clause in the powerholder's
5243	5245		2582
5244	5246		revocable trust, manifests the powerholder's intent to exercise a power of appointment
5245	5247		2583
5246	5248		only if:
5247	5249		2584
5248	5250		(a) the terms of the instrument containing the residuary clause do not manifest a contrary
5249	5251		2585
5250	5252		intent;
5251	5253		2586
5252	5254		(b) the power is a general power exercisable in favor of the powerholder's estate;
5253	5255		2587
5254	5256		(c) there is no gift-in-default clause or the clause is ineffective; and
5255	5257		2588
5256	5258		(d) the powerholder did not release the power.
5257	5259		2589
5258	5260		Section 60. Section 75A-5-102 is amended to read:
5259	5261		2590
5260	5262		75A-5-102 . Definitions for chapter.
5261	5263		2591
5262	5264		As used in this chapter:
5263	5265		2592
5264	5266		(1)(a) "Accounting period" means a calendar year, unless a fiduciary selects another
5265	5267		2593
5266	5268		period of 12 calendar months or approximately 12 calendar months.
5267	5269		2594
5268	5270		(b) "Accounting period" includes a part of a calendar year or another period of 12
5269	5271		2595
5270	5272		calendar months or approximately 12 calendar months that begins when an income
5271	5273		2596
5272	5274		interest begins or ends when an income interest ends.
5273	5275		2597
5274	5276		(2)(a) "Asset-backed security" means a security that is serviced primarily by the cash
5275	5277		2598
5276	5278		flows of a discrete pool of fixed or revolving receivables or other financial assets that
5277	5279		2599
5278	5280		by the financial assets' terms convert into cash within a finite time.
5279	5281		2600
5280	5282		(b) "Asset-backed security" includes rights or other assets that ensure the servicing or
5281	5283		2601
5282	5284		timely distribution of proceeds to the holder of the asset-backed security.
5283	5285		2602
5284	5286		(c) "Asset-backed security" does not include an asset to which Section 75A-5-401,
5285	5287		2603
5286	5288		75A-5-409, or 75A-5-414 applies.
5287	5289		2604
5288	5290		(3) "Beneficiary" includes:
5289	5291		2605
5290	5292		(a) for a trust:
5291	5293		2606
5292	5294		(i) a current beneficiary, including a current income beneficiary and a beneficiary that
5293	5295		2607
5294	5296		may receive only principal;
5295	5297		2608
5296	5298		(ii) a remainder beneficiary; and
5297	5299		2609
5298	5300		(iii) any other successor beneficiary;
5299	5301		2610
5300	5302		(b) for an estate, an heir and devisee; and
5301	5303		2611
5302	5304		(c) for a life estate or term interest, a person that holds a life estate, term interest, or
5303		-	- 77 - S.B. 100 Enrolled Copy
5304	5305		2612
5305	5306		remainder, or other interest following a life estate or term interest.
	5307	+	- 77 - 1st Sub. (Green) S.B. 100 02-07 14:26
5306	5308		2613
5307	5309		(4) "Court" means a court in this state with jurisdiction over a trust or estate, or a life estate
5308	5310		2614
5309	5311		or other term interest described in Subsection 75A-5-103(2).
5310	5312		2615
5311	5313		(5) "Current income beneficiary" means a beneficiary to which a fiduciary may distribute
5312	5314		2616
5313	5315		net income, even if the fiduciary also may distribute principal to the beneficiary.
5314	5316		2617
5315	5317		(6)(a) "Distribution" means a payment or transfer by a fiduciary to a beneficiary in the
5316	5318		2618
5317	5319		beneficiary's capacity as a beneficiary, made under the terms of the trust, without
5318	5320		2619
5319	5321		consideration other than the beneficiary's right to receive the payment or transfer
5320	5322		2620
5321	5323		under the terms of the trust.
5322	5324		2621
5323	5325		(b) "Distribute," "distributed," and "distributee" have corresponding meanings.
5324	5326		2622
5325	5327		(7)(a) "Estate" means a decedent's estate.
5326	5328		2623
5327	5329		(b) "Estate" includes the property of the decedent as the estate is originally constituted
5328	5330		2624
5329	5331		and the property of the estate as it exists at any time during administration.
5330	5332		2625
5331	5333		(8) "Fiduciary" includes:
5332	5334		2626
5333	5335		(a) a trustee, trust director as defined in Section [75-12-102] 75B-3-102, personal
5334	5336		2627
5335	5337		representative, life tenant, holder of a term interest, and person acting under a
5336	5338		2628
5337	5339		delegation from a fiduciary;
5338	5340		2629
5339	5341		(b) a person that holds property for a successor beneficiary whose interest may be
5340	5342		2630
5341	5343		affected by an allocation of receipts and expenditures between income and principal;
5342	5344		2631
5343	5345		and
5344	5346		2632
5345	5347		(c) if there are two or more co-fiduciaries, all co-fiduciaries acting under the terms of the
5346	5348		2633
5347	5349		trust and applicable law.
5348	5350		2634
5349	5351		(9)(a) "Income" means money or other property a fiduciary receives as current return
5350	5352		2635
5351	5353		from principal.
5352	5354		2636
5353	5355		(b) "Income" includes a part of receipts from a sale, exchange, or liquidation of a
5354	5356		2637
5355	5357		principal asset to the extent provided in Part 4, Allocation of Receipts.
5356	5358		2638
5357	5359		(10)(a) "Income interest" means the right of a current income beneficiary to receive all
5358	5360		2639
5359	5361		or part of net income, whether the terms of the trust require the net income to be
5360	5362		2640
5361	5363		distributed or authorize the net income to be distributed in the fiduciary's discretion.
5362	5364		2641
5363	5365		(b) "Income interest" includes the right of a current beneficiary to use property held by a
5364	5366		2642
5365	5367		fiduciary.
5366	5368		2643
5367	5369		(11) "Independent person" means a person that is not:
5368	5370		2644
5369	5371		(a) for a trust:
5370	5372		2645
5371	5373		(i) a qualified beneficiary as determined under Section [75-7-103] 75B-2-103;
5372		-	- 78 - Enrolled Copy S.B. 100
5373	5374		2646
5374	5375		(ii) a settlor of the trust; or
	5376	+	- 78 - 02-07 14:26 1st Sub. (Green) S.B. 100
5375	5377		2647
5376	5378		(iii) an individual whose legal obligation to support a beneficiary may be satisfied by
5377	5379		2648
5378	5380		a distribution from the trust;
5379	5381		2649
5380	5382		(b) for an estate, a beneficiary;
5381	5383		2650
5382	5384		(c) a spouse, parent, brother, sister, or issue of an individual described in Subsection
5383	5385		2651
5384	5386		(11)(a) or (b);
5385	5387		2652
5386	5388		(d) a corporation, partnership, limited liability company, or other entity in which persons
5387	5389		2653
5388	5390		described in Subsections (11)(a) through (c), in the aggregate, have voting control; or
5389	5391		2654
5390	5392		(e) an employee of a person described in Subsection (11)(a), (b), (c), or (d).
5391	5393		2655
5392	5394		(12) "Mandatory income interest" means the right of a current income beneficiary to
5393	5395		2656
5394	5396		receive net income that the terms of the trust require the fiduciary to distribute.
5395	5397		2657
5396	5398		(13)(a) "Net income" means:
5397	5399		2658
5398	5400		(i) the total allocations during an accounting period to income under the terms of a
5399	5401		2659
5400	5402		trust and this chapter minus the disbursements during the accounting period, other
5401	5403		2660
5402	5404		than distributions, allocated to income under the terms of the trust and this
5403	5405		2661
5404	5406		chapter; and
5405	5407		2662
5406	5408		(ii) to the extent the trust is a unitrust under Part 3, Unitrust, the unitrust amount
5407	5409		2663
5408	5410		determined under Part 3, Unitrust.
5409	5411		2664
5410	5412		(b) "Net income" includes an adjustment from principal to income under Section
5411	5413		2665
5412	5414		75A-5-203.
5413	5415		2666
5414	5416		(c) "Net income" does not include an adjustment from income to principal under Section
5415	5417		2667
5416	5418		75A-5-203.
5417	5419		2668
5418	5420		[(14) "Person" means:]
5419	5421		2669
5420	5422		[(a) an individual;]
5421	5423		2670
5422	5424		[(b) an estate;]
5423	5425		2671
5424	5426		[(c) a trust;]
5425	5427		2672
5426	5428		[(d) a business or nonprofit entity;]
5427	5429		2673
5428	5430		[(e) a public corporation, government or governmental subdivision, agency, or
5429	5431		2674
5430	5432		instrumentality; or]
5431	5433		2675
5432	5434		[(f) any other legal entity.]
5433	5435		2676
5434	5436		[(15) "Personal representative" means an executor, administrator, successor personal
5435	5437		2677
5436	5438		representative, special administrator, or person that performs substantially the same
5437	5439		2678
5438	5440		function with respect to an estate under the law governing the person's status.]
5439	5441		2679
5440	5442		[(16)] (14) "Principal" means property held in trust for distribution to, production of income
5441		-	- 79 - S.B. 100 Enrolled Copy
5442	5443		2680
5443	5444		for, or use by a current or successor beneficiary.
	5445	+	- 79 - 1st Sub. (Green) S.B. 100 02-07 14:26
5444	5446		2681
5445	5447		[(17) "Record" means information that is inscribed on a tangible medium or that is stored in
5446	5448		2682
5447	5449		an electronic or other medium and is retrievable in perceivable form.]
5448	5450		2683
5449	5451		[(18)] (15) "Settlor" means the same as that term is defined in Section [75-7-103] 75B-1-101.
5450	5452		2684
5451	5453		[(19)] (16) "Special tax benefit" means:
5452	5454		2685
5453	5455		(a) exclusion of a transfer to a trust from gifts described in Section 2503(b) of the
5454	5456		2686
5455	5457		Internal Revenue Code because of the qualification of an income interest in the trust
5456	5458		2687
5457	5459		as a present interest in property;
5458	5460		2688
5459	5461		(b) status as a qualified subchapter S trust described in Section 1361(d)(3) of the Internal
5460	5462		2689
5461	5463		Revenue Code at a time the trust holds stock of an S corporation described in Section
5462	5464		2690
5463	5465		1361(a)(1) of the Internal Revenue Code;
5464	5466		2691
5465	5467		(c) an estate or gift tax marital deduction for a transfer to a trust under Section 2056 or
5466	5468		2692
5467	5469		2523 of the Internal Revenue Code that depends or depended in whole or in part on
5468	5470		2693
5469	5471		the right of the settlor's spouse to receive the net income of the trust;
5470	5472		2694
5471	5473		(d) exemption in whole or in part of a trust from the federal generation-skipping transfer
5472	5474		2695
5473	5475		tax imposed by Section 2601 of the Internal Revenue Code because the trust was
5474	5476		2696
5475	5477		irrevocable on September 25, 1985, if there is any possibility that:
5476	5478		2697
5477	5479		(i) a taxable distribution, as defined in Section 2612(b) of the Internal Revenue Code,
5478	5480		2698
5479	5481		could be made from the trust; or
5480	5482		2699
5481	5483		(ii) a taxable termination, as defined in Section 2612(a) of the Internal Revenue
5482	5484		2700
5483	5485		Code, could occur with respect to the trust; or
5484	5486		2701
5485	5487		(e) an inclusion ratio, as defined in Section 2642(a) of the Internal Revenue Code, of the
5486	5488		2702
5487	5489		trust which is less than one, if there is any possibility that:
5488	5490		2703
5489	5491		(i) a taxable distribution, as defined in Section 2612(b) of the Internal Revenue Code,
5490	5492		2704
5491	5493		could be made from the trust; or
5492	5494		2705
5493	5495		(ii) a taxable termination, as defined in Section 2612(a) of the Internal Revenue
5494	5496		2706
5495	5497		Code, could occur with respect to the trust.
5496	5498		2707
5497	5499		[(20)] (17) "Successive interest" means the interest of a successor beneficiary.
5498	5500		2708
5499	5501		[(21)] (18) "Successor beneficiary" means a person entitled to receive income or principal or
5500	5502		2709
5501	5503		to use property when an income interest or other current interest ends.
5502	5504		2710
5503	5505		[(22)] (19) "Terms of a trust" means:
5504	5506		2711
5505	5507		(a) except as otherwise provided in Subsection [(22)(b),] (19)(b), the manifestation of the
5506	5508		2712
5507	5509		settlor's intent regarding a trust's provisions as:
5508	5510		2713
5509	5511		(i) expressed in the trust instrument; or
5510		-	- 80 - Enrolled Copy S.B. 100
5511	5512		2714
5512	5513		(ii) established by other evidence that would be admissible in a judicial proceeding;
	5514	+	- 80 - 02-07 14:26 1st Sub. (Green) S.B. 100
5513	5515		2715
5514	5516		(b) the trust's provisions as established, determined, or amended by:
5515	5517		2716
5516	5518		(i) a trustee or trust director in accordance with applicable law;
5517	5519		2717
5518	5520		(ii) a court order; or
5519	5521		2718
5520	5522		(iii) a nonjudicial settlement agreement under Section [75-7-110] 75B-2-110;
5521	5523		2719
5522	5524		(c) for an estate, a will; or
5523	5525		2720
5524	5526		(d) for a life estate or term interest, the corresponding manifestation of the rights of the
5525	5527		2721
5526	5528		beneficiaries.
5527	5529		2722
5528	5530		[(23)] (20)(a) "Trust" includes:
5529	5531		2723
5530	5532		(i) an express trust, private or charitable, with additions to the trust, wherever and
5531	5533		2724
5532	5534		however created; and
5533	5535		2725
5534	5536		(ii) a trust created or determined by judgment or decree under which the trust is to be
5535	5537		2726
5536	5538		administered in the manner of an express trust.
5537	5539		2727
5538	5540		(b) "Trust" does not include:
5539	5541		2728
5540	5542		(i) a constructive trust;
5541	5543		2729
5542	5544		(ii) a resulting trust, conservatorship, guardianship, multi-party account, custodial
5543	5545		2730
5544	5546		arrangement for a minor, business trust, voting trust, security arrangement,
5545	5547		2731
5546	5548		liquidation trust, or trust for the primary purpose of paying debts, dividends,
5547	5549		2732
5548	5550		interest, salaries, wages, profits, pensions, retirement benefits, or employee
5549	5551		2733
5550	5552		benefits of any kind; or
5551	5553		2734
5552	5554		(iii) an arrangement under which a person is a nominee, escrowee, or agent for
5553	5555		2735
5554	5556		another.
5555	5557		2736
5556	5558		[(24)] (21)(a) "Trustee" means a person, other than a personal representative, that owns
5557	5559		2737
5558	5560		or holds property for the benefit of a beneficiary.
5559	5561		2738
5560	5562		(b) "Trustee" includes an original, additional, or successor trustee, whether appointed or
5561	5563		2739
5562	5564		confirmed by a court.
5563	5565		2740
5564	5566		[(25)(a) "Will" means any testamentary instrument recognized by applicable law that
5565	5567		2741
5566	5568		makes a legally effective disposition of an individual's property effective at the
5567	5569		2742
5568	5570		individual's death.]
5569	5571		2743
5570	5572		[(b) "Will" includes a codicil or other amendment to a testamentary instrument.]
5571	5573		2744
5572	5574		Section 61. Section 75A-5-202 is amended to read:
5573	5575		2745
5574	5576		75A-5-202 . Judicial review of exercise of discretionary power -- Request for
5575	5577		2746
5576	5578		instruction.
5577	5579		2747
5578	5580		(1) In this section, "fiduciary decision" means:
5579		-	- 81 - S.B. 100 Enrolled Copy
5580	5581		2748
5581	5582		(a) a fiduciary's allocation between income and principal or other determination
	5583	+	- 81 - 1st Sub. (Green) S.B. 100 02-07 14:26
5582	5584		2749
5583	5585		regarding income and principal required or authorized by the terms of the trust or this
5584	5586		2750
5585	5587		chapter;
5586	5588		2751
5587	5589		(b) the fiduciary's exercise or nonexercise of a discretionary power regarding income
5588	5590		2752
5589	5591		and principal granted by the terms of the trust or this chapter, including the power to:
5590	5592		2753
5591	5593		(i) adjust under Section 75A-5-203;
5592	5594		2754
5593	5595		(ii) convert an income trust to a unitrust under Subsection 75A-5-303(1)(a);
5594	5596		2755
5595	5597		(iii) change the percentage or method used to calculate a unitrust amount under
5596	5598		2756
5597	5599		Subsection 75A-5-303(1)(b); or
5598	5600		2757
5599	5601		(iv) convert a unitrust to an income trust under Subsection 75A-5-303(1)(c); or
5600	5602		2758
5601	5603		(c) the fiduciary's implementation of a decision described in Subsection (1)(a) or (b).
5602	5604		2759
5603	5605		(2) The court may not order a fiduciary to change a fiduciary decision, unless the court
5604	5606		2760
5605	5607		determines that the fiduciary decision was an abuse of the fiduciary's discretion.
5606	5608		2761
5607	5609		(3)(a) If the court determines that a fiduciary decision was an abuse of the fiduciary's
5608	5610		2762
5609	5611		discretion, the court may order a remedy authorized by law, including a remedy
5610	5612		2763
5611	5613		authorized in Section [75-7-1001] 75B-2-1001.
5612	5614		2764
5613	5615		(b) To place the beneficiaries in the positions that the beneficiaries would have occupied
5614	5616		2765
5615	5617		if there had not been an abuse of the fiduciary's discretion, the court may order:
5616	5618		2766
5617	5619		(i) the fiduciary to exercise or refrain from exercising the power to adjust under
5618	5620		2767
5619	5621		Section 75A-5-203;
5620	5622		2768
5621	5623		(ii) the fiduciary to exercise or refrain from exercising the power to:
5622	5624		2769
5623	5625		(A) convert an income trust to a unitrust under Subsection 75A-5-303(1)(a);
5624	5626		2770
5625	5627		(B) change the percentage or method used to calculate a unitrust amount under
5626	5628		2771
5627	5629		Subsection 75A-5-303(1)(b); or
5628	5630		2772
5629	5631		(C) convert a unitrust to an income trust under Subsection 75A-5-303(1)(c);
5630	5632		2773
5631	5633		(iii) the fiduciary to distribute an amount to a beneficiary;
5632	5634		2774
5633	5635		(iv) a beneficiary to return some or all of a distribution; or
5634	5636		2775
5635	5637		(v) the fiduciary to withhold an amount from one or more future distributions to a
5636	5638		2776
5637	5639		beneficiary.
5638	5640		2777
5639	5641		(4)(a) On petition by a fiduciary for instruction, the court may determine whether a
5640	5642		2778
5641	5643		proposed fiduciary decision will result in an abuse of the fiduciary's discretion.
5642	5644		2779
5643	5645		(b) A beneficiary that opposes the proposed decision has the burden to establish that the
5644	5646		2780
5645	5647		proposed decision will result in an abuse of the fiduciary's discretion if the petition:
5646	5648		2781
5647	5649		(i) describes the proposed decision;
5648		-	- 82 - Enrolled Copy S.B. 100
5649	5650		2782
5650	5651		(ii) contains sufficient information to inform the beneficiary of the reasons for
	5652	+	- 82 - 02-07 14:26 1st Sub. (Green) S.B. 100
5651	5653		2783
5652	5654		making the proposed decision and the facts on which the fiduciary relies; and
5653	5655		2784
5654	5656		(iii) explains how the beneficiary will be affected by the proposed decision.
5655	5657		2785
5656	5658		Section 62. Section 75A-5-203 is amended to read:
5657	5659		2786
5658	5660		75A-5-203 . Fiduciary's power to adjust.
5659	5661		2787
5660	5662		(1) Except as otherwise provided in the terms of a trust or this section, a fiduciary, in a
5661	5663		2788
5662	5664		record, without court approval, may adjust between income and principal if the fiduciary
5663	5665		2789
5664	5666		determines the exercise of the power to adjust will assist the fiduciary to administer the
5665	5667		2790
5666	5668		trust or estate impartially.
5667	5669		2791
5668	5670		(2) This section does not create a duty to exercise or consider the power to adjust under
5669	5671		2792
5670	5672		Subsection (1) or to inform a beneficiary about the applicability of this section.
5671	5673		2793
5672	5674		(3) A fiduciary that in good faith exercises or fails to exercise the power to adjust under
5673	5675		2794
5674	5676		Subsection (1) is not liable to a person affected by the exercise or failure to exercise.
5675	5677		2795
5676	5678		(4) In deciding whether and to what extent to exercise the power to adjust under Subsection
5677	5679		2796
5678	5680		(1), a fiduciary shall consider all factors the fiduciary considers relevant, including the
5679	5681		2797
5680	5682		relevant factors in Subsection 75A-5-201(5) and the application of Subsection
5681	5683		2798
5682	5684		75A-5-401(9), Section 75A-5-408, and Section 75A-5-413.
5683	5685		2799
5684	5686		(5) A fiduciary may not exercise the power to make an adjustment under Subsection (1) or
5685	5687		2800
5686	5688		the power to make a determination that an allocation is insubstantial under Section
5687	5689		2801
5688	5690		75A-5-408 if:
5689	5691		2802
5690	5692		(a) the adjustment or determination would reduce the amount payable to a current
5691	5693		2803
5692	5694		income beneficiary from a trust that qualifies for a special tax benefit, except to the
5693	5695		2804
5694	5696		extent the adjustment is made to provide for a reasonable apportionment of the total
5695	5697		2805
5696	5698		return of the trust between the current income beneficiary and successor beneficiaries;
5697	5699		2806
5698	5700		(b) the adjustment or determination would change the amount payable to a beneficiary,
5699	5701		2807
5700	5702		as a fixed annuity or a fixed fraction of the value of the trust assets, under the terms
5701	5703		2808
5702	5704		of the trust;
5703	5705		2809
5704	5706		(c) the adjustment or determination would reduce an amount that is permanently set
5705	5707		2810
5706	5708		aside for a charitable purpose under the terms of the trust, unless both income and
5707	5709		2811
5708	5710		principal are set aside for the charitable purpose;
5709	5711		2812
5710	5712		(d) possessing or exercising the power would cause a person to be treated as the owner
5711	5713		2813
5712	5714		of all or part of the trust for federal income tax purposes;
5713	5715		2814
5714	5716		(e) possessing or exercising the power would cause all or part of the value of the trust
5715	5717		2815
5716	5718		assets to be included in the gross estate of an individual for federal estate tax
5717		-	- 83 - S.B. 100 Enrolled Copy
5718	5719		2816
5719	5720		purposes;
	5721	+	- 83 - 1st Sub. (Green) S.B. 100 02-07 14:26
5720	5722		2817
5721	5723		(f) possessing or exercising the power would cause an individual to be treated as making
5722	5724		2818
5723	5725		a gift for federal gift tax purposes;
5724	5726		2819
5725	5727		(g) the fiduciary is not an independent person;
5726	5728		2820
5727	5729		(h) the trust is irrevocable and provides for income to be paid to the settlor and
5728	5730		2821
5729	5731		possessing or exercising the power would cause the adjusted principal or income to
5730	5732		2822
5731	5733		be considered an available resource or available income under a public-benefit
5732	5734		2823
5733	5735		program; or
5734	5736		2824
5735	5737		(i) the trust is a unitrust under Part 3, Unitrust.
5736	5738		2825
5737	5739		(6) If Subsection (5)(d), (e), (f), or (g) applies to a fiduciary:
5738	5740		2826
5739	5741		(a) a co-fiduciary to which Subsections (5)(d) through (g) do not apply may exercise the
5740	5742		2827
5741	5743		power to adjust, unless the exercise of the power to adjust by the remaining
5742	5744		2828
5743	5745		co-fiduciary or co-fiduciaries is not permitted by the terms of the trust or law other
5744	5746		2829
5745	5747		than this chapter; or
5746	5748		2830
5747	5749		(b)(i) if there is no co-fiduciary to which Subsections (5)(d) through (g) do not apply:
5748	5750		2831
5749	5751		(A) except as otherwise provided in Subsection (6)(b)(ii)(A), the fiduciary may
5750	5752		2832
5751	5753		appoint a co-fiduciary to which Subsections (5)(d) through (g) do not apply;
5752	5754		2833
5753	5755		(B) except as otherwise provided in Subsection (6)(b)(ii)(B), the appointed
5754	5756		2834
5755	5757		co-fiduciary may exercise the power to adjust under Subsection (1); and
5756	5758		2835
5757	5759		(C) the appointed co-fiduciary may be a special fiduciary with limited powers.
5758	5760		2836
5759	5761		(ii)(A) If the appointment of a co-fiduciary is not permitted by the terms of the
5760	5762		2837
5761	5763		trust or by a provision of law outside this chapter, a fiduciary may not appoint
5762	5764		2838
5763	5765		a co-fiduciary.
5764	5766		2839
5765	5767		(B) If the exercise of the power to adjust by a co-fiduciary is not permitted by the
5766	5768		2840
5767	5769		terms of the trust or by a provision of law outside this chapter, the co-fiduciary
5768	5770		2841
5769	5771		may not exercise the power to adjust under Subsection (1).
5770	5772		2842
5771	5773		(7) A fiduciary may release or delegate to a co-fiduciary the power to adjust under
5772	5774		2843
5773	5775		Subsection (1) if the fiduciary determines that the fiduciary's possession or exercise of
5774	5776		2844
5775	5777		the power to adjust will or may:
5776	5778		2845
5777	5779		(a) cause a result described in Subsections (5)(a) through (f) or (h); or
5778	5780		2846
5779	5781		(b) deprive the trust of a tax benefit or impose a tax burden not described in Subsections
5780	5782		2847
5781	5783		(5)(a) through (f).
5782	5784		2848
5783	5785		(8) A fiduciary's release or delegation to a co-fiduciary under Subsection (7) of the power to
5784	5786		2849
5785	5787		adjust under Subsection (1):
5786		-	- 84 - Enrolled Copy S.B. 100
5787	5788		2850
5788	5789		(a) must be in a record;
	5790	+	- 84 - 02-07 14:26 1st Sub. (Green) S.B. 100
5789	5791		2851
5790	5792		(b) applies to the entire power to adjust, unless the release or delegation provides a
5791	5793		2852
5792	5794		limitation, which may be a limitation to the power to adjust:
5793	5795		2853
5794	5796		(i) from income to principal;
5795	5797		2854
5796	5798		(ii) from principal to income;
5797	5799		2855
5798	5800		(iii) for specified property; or
5799	5801		2856
5800	5802		(iv) in specified circumstances;
5801	5803		2857
5802	5804		(c) for a delegation, may be modified by a redelegation under this subsection by the
5803	5805		2858
5804	5806		co-fiduciary to which the delegation is made; and
5805	5807		2859
5806	5808		(d) subject to Subsection (8)(c), is permanent, unless the release or delegation provides a
5807	5809		2860
5808	5810		specified period, including a period measured by the life of an individual or the lives
5809	5811		2861
5810	5812		of more than one individual.
5811	5813		2862
5812	5814		(9) Terms of a trust that deny or limit the power to adjust between income and principal do
5813	5815		2863
5814	5816		not affect the application of this section, unless the terms of the trust expressly deny or
5815	5817		2864
5816	5818		limit the power to adjust under Subsection (1).
5817	5819		2865
5818	5820		(10) The exercise of the power to adjust under Subsection (1) in any accounting period may
5819	5821		2866
5820	5822		apply to the current accounting period, the immediately preceding accounting period,
5821	5823		2867
5822	5824		and one or more subsequent accounting periods.
5823	5825		2868
5824	5826		(11) A description of the exercise of the power to adjust under Subsection (1) shall be:
5825	5827		2869
5826	5828		(a) included in a report, if any, sent to beneficiaries under Subsection [75-7-811(3)]
5827	5829		2870
5828	5830		75B-2-811(3); or
5829	5831		2871
5830	5832		(b) communicated at least annually to the qualified beneficiaries determined under
5831	5833		2872
5832	5834		Subsection [75-7-103(1)(h)] 75B-2-103(8).
5833	5835		2873
5834	5836		Section 63. Section 75A-5-303 is amended to read:
5835	5837		2874
5836	5838		75A-5-303 . Authority of fiduciary.
5837	5839		2875
5838	5840		(1) A fiduciary, without court approval, by complying with Subsections (2) and (6), may:
5839	5841		2876
5840	5842		(a) convert an income trust to a unitrust if the fiduciary adopts, in a record, a unitrust
5841	5843		2877
5842	5844		policy for the trust providing:
5843	5845		2878
5844	5846		(i) that, in administering the trust, the net income of the trust will be a unitrust
5845	5847		2879
5846	5848		amount rather than net income determined without regard to this part; and
5847	5849		2880
5848	5850		(ii) the percentage and method used to calculate the unitrust amount;
5849	5851		2881
5850	5852		(b) change the percentage or method used to calculate a unitrust amount for a unitrust if
5851	5853		2882
5852	5854		the fiduciary adopts in a record a unitrust policy or an amendment or replacement of
5853	5855		2883
5854	5856		a unitrust policy providing changes in the percentage or method used to calculate the
5855		-	- 85 - S.B. 100 Enrolled Copy
5856	5857		2884
5857	5858		unitrust amount; or
	5859	+	- 85 - 1st Sub. (Green) S.B. 100 02-07 14:26
5858	5860		2885
5859	5861		(c) convert a unitrust to an income trust if the fiduciary adopts, in a record, a
5860	5862		2886
5861	5863		determination that, in administering the trust, the net income of the trust will be net
5862	5864		2887
5863	5865		income determined without regard to this part rather than a unitrust amount.
5864	5866		2888
5865	5867		(2) A fiduciary may take an action under Subsection (1) if:
5866	5868		2889
5867	5869		(a) the fiduciary determines that the action will assist the fiduciary to administer a trust
5868	5870		2890
5869	5871		impartially;
5870	5872		2891
5871	5873		(b) the fiduciary sends a notice in a record, in the manner required by Section 75A-5-304,
5872	5874		2892
5873	5875		describing and proposing to take the action;
5874	5876		2893
5875	5877		(c) the fiduciary sends a copy of the notice under Subsection (2)(b) to each settlor of the
5876	5878		2894
5877	5879		trust which is:
5878	5880		2895
5879	5881		(i) if an individual, living; or
5880	5882		2896
5881	5883		(ii) if not an individual, in existence;
5882	5884		2897
5883	5885		(d) at least one member of each class of the qualified beneficiaries determined under
5884	5886		2898
5885	5887		Subsection [75-7-103(1)(h)] 75B-2-103(8) receiving the notice under Subsection
5886	5888		2899
5887	5889		(2)(b) is:
5888	5890		2900
5889	5891		(i) if an individual, legally competent;
5890	5892		2901
5891	5893		(ii) if not an individual, in existence; or
5892	5894		2902
5893	5895		(iii) represented in the manner provided in Subsection 75A-5-304(2); and
5894	5896		2903
5895	5897		(e) the fiduciary does not receive, by the date specified in the notice under Subsection
5896	5898		2904
5897	5899		75A-5-304(4)(e), an objection in a record to the action proposed under Subsection
5898	5900		2905
5899	5901		(2)(b) from a person to which the notice under Subsection (2)(b) is sent.
5900	5902		2906
5901	5903		(3)(a) If a fiduciary receives, not later than the date stated in the notice under Subsection
5902	5904		2907
5903	5905		75A-5-304(4)(e), an objection in a record described in Subsection 75A-5-304(4)(d) to
5904	5906		2908
5905	5907		a proposed action, the fiduciary or a beneficiary may request that the court:
5906	5908		2909
5907	5909		(i) require the fiduciary to take the proposed action;
5908	5910		2910
5909	5911		(ii) require the fiduciary to take the proposed action with modifications; or
5910	5912		2911
5911	5913		(iii) prevent the proposed action.
5912	5914		2912
5913	5915		(b) A person described in Subsection 75A-5-304(1) may oppose the proposed action in
5914	5916		2913
5915	5917		the proceeding under Subsection (3)(a), regardless of whether the person:
5916	5918		2914
5917	5919		(i) consented under Subsection 75A-5-304(3); or
5918	5920		2915
5919	5921		(ii) objected under Subsection 75A-5-304(4)(d).
5920	5922		2916
5921	5923		(4) If, after sending a notice under Subsection (2)(b), a fiduciary decides not to take the
5922	5924		2917
5923	5925		action proposed in the notice, the fiduciary shall notify each person described in
5924		-	- 86 - Enrolled Copy S.B. 100
5925	5926		2918
5926	5927		Subsection 75A-5-304(1) in a record of the decision not to take the action and the
	5928	+	- 86 - 02-07 14:26 1st Sub. (Green) S.B. 100
5927	5929		2919
5928	5930		reasons for the decision.
5929	5931		2920
5930	5932		(5) If a beneficiary requests in a record that a fiduciary take an action described in
5931	5933		2921
5932	5934		Subsection (1) and the fiduciary declines to act or does not act within 90 days after
5933	5935		2922
5934	5936		receiving the request, the beneficiary may request the court to direct the fiduciary to take
5935	5937		2923
5936	5938		the action requested.
5937	5939		2924
5938	5940		(6) In deciding whether and how to take an action authorized by Subsection (1), or whether
5939	5941		2925
5940	5942		and how to respond to a request by a beneficiary under Subsection (5), a fiduciary shall
5941	5943		2926
5942	5944		consider all factors relevant to the trust and the beneficiaries, including the relevant
5943	5945		2927
5944	5946		factors in Subsection 75A-5-201(5).
5945	5947		2928
5946	5948		(7) For a reason described in Subsection 75A-5-203(7), and in the manner described in
5947	5949		2929
5948	5950		Subsection 75A-5-203(8), a fiduciary may:
5949	5951		2930
5950	5952		(a) release or delegate the power to convert an income trust to a unitrust under
5951	5953		2931
5952	5954		Subsection (1)(a);
5953	5955		2932
5954	5956		(b) change the percentage or method used to calculate a unitrust amount under
5955	5957		2933
5956	5958		Subsection (1)(b); or
5957	5959		2934
5958	5960		(c) convert a unitrust to an income trust under Subsection (1)(c).
5959	5961		2935
5960	5962		Section 64. Section 75A-5-304 is amended to read:
5961	5963		2936
5962	5964		75A-5-304 . Notice.
5963	5965		2937
5964	5966		(1) A fiduciary shall send a notice required by Subsection 75A-5-303(2)(b) in a manner
5965	5967		2938
5966	5968		authorized under Section [75-7-109] 75B-2-109 to:
5967	5969		2939
5968	5970		(a) the qualified beneficiaries determined under Subsection [75-7-103(1)(h)]
5969	5971		2940
5970	5972		75B-2-103(8);
5971	5973		2941
5972	5974		(b) each person acting, in accordance with Title 75, Chapter 12, Uniform Directed Trust
5973	5975		2942
5974	5976		Act, as trust director of the trust; and
5975	5977		2943
5976	5978		(c) each person that is granted a power by the terms of the trust to appoint or remove a
5977	5979		2944
5978	5980		trustee or person described in Subsection (1)(b), to the extent the power is exercisable
5979	5981		2945
5980	5982		when the person that exercises the power is not then serving as trustee or is a person
5981	5983		2946
5982	5984		described in Subsection (1)(b).
5983	5985		2947
5984	5986		(2) The representation provisions of [Sections 75-7-301 through 75-7-305] Title 75B,
5985	5987		2948
5986	5988		Chapter 2, Part 3, Representation, apply to notice under this section.
5987	5989		2949
5988	5990		(3)(a) A person may consent in a record at any time to action proposed under Subsection
5989	5991		2950
5990	5992		75A-5-303(2)(b).
5991	5993		2951
5992	5994		(b) If a person required to receive a notice under Subsection (1) consents under
5993		-	- 87 - S.B. 100 Enrolled Copy
5994	5995		2952
5995	5996		Subsection (3)(a) to not receive the notice, the fiduciary is not required to send the
	5997	+	- 87 - 1st Sub. (Green) S.B. 100 02-07 14:26
5996	5998		2953
5997	5999		person the notice.
5998	6000		2954
5999	6001		(4) A notice required by Subsection 75A-5-303(2)(b) shall include:
6000	6002		2955
6001	6003		(a) the action proposed under Subsection 75A-5-303(2)(b);
6002	6004		2956
6003	6005		(b) for a conversion of an income trust to a unitrust, a copy of the unitrust policy adopted
6004	6006		2957
6005	6007		under Subsection 75A-5-303(1)(a);
6006	6008		2958
6007	6009		(c) for a change in the percentage or method used to calculate the unitrust amount, a
6008	6010		2959
6009	6011		copy of the unitrust policy or amendment or replacement of the unitrust policy
6010	6012		2960
6011	6013		adopted under Subsection 75A-5-303(1)(b);
6012	6014		2961
6013	6015		(d) a statement that the person to which the notice is sent may object to the proposed
6014	6016		2962
6015	6017		action by stating in a record the basis for the objection and sending or delivering the
6016	6018		2963
6017	6019		record to the fiduciary;
6018	6020		2964
6019	6021		(e) the date by which the fiduciary shall receive an objection under Subsection (4)(d),
6020	6022		2965
6021	6023		which shall be at least 30 days after the date the notice is sent;
6022	6024		2966
6023	6025		(f) the date on which the action is proposed to be taken and the date on which the action
6024	6026		2967
6025	6027		is proposed to take effect;
6026	6028		2968
6027	6029		(g) the name and contact information of the fiduciary; and
6028	6030		2969
6029	6031		(h) the name and contact information of a person that may be contacted for additional
6030	6032		2970
6031	6033		information.
6032	6034		2971
6033	6035		Section 65. Section 75A-6-102 is amended to read:
6034	6036		2972
6035	6037		75A-6-102 . Definitions for chapter.
6036	6038		2973
6037	6039		As used in this chapter:
6038	6040		2974
6039	6041		(1) "Account" means an arrangement under a terms of service agreement in which a
6040	6042		2975
6041	6043		custodian carries, maintains, processes, receives, or stores a digital asset of the user or
6042	6044		2976
6043	6045		provides goods or services to the user.
6044	6046		2977
6045	6047		[(2) "Agent" means an attorney in fact granted authority under a durable or nondurable
6046	6048		2978
6047	6049		power of attorney.]
6048	6050		2979
6049	6051		(2) "Agent" means the same as that term is defined in Section 75A-2-102.
6050	6052		2980
6051	6053		(3) "Carries" means engages in the transmission of an electronic communication.
6052	6054		2981
6053	6055		(4) "Catalogue of electronic communications" means information that identifies each
6054	6056		2982
6055	6057		person with which a user has had an electronic communication, the time and date of the
6056	6058		2983
6057	6059		communication, and the electronic address of the person.
6058	6060		2984
6059	6061		[(5)(a) "Conservator" means a person appointed by a court to manage the estate of a
6060	6062		2985
6061	6063		living individual.]
6062		-	- 88 - Enrolled Copy S.B. 100
6063	6064		2986
6064	6065		[(b) "Conservator" includes a limited conservator.]
	6066	+	- 88 - 02-07 14:26 1st Sub. (Green) S.B. 100
6065	6067		2987
6066	6068		[(6)] (5) "Content of an electronic communication" means information concerning the
6067	6069		2988
6068	6070		substance or meaning of the communication that:
6069	6071		2989
6070	6072		(a) has been sent or received by a user;
6071	6073		2990
6072	6074		(b) is in electronic storage by a custodian providing an electronic communication service
6073	6075		2991
6074	6076		to the public or is carried or maintained by a custodian providing a remote computing
6075	6077		2992
6076	6078		service to the public; and
6077	6079		2993
6078	6080		(c) is not readily accessible to the public.
6079	6081		2994
6080	6082		[(7)] (6) "Court" means a court with jurisdiction under Title 78A, Judiciary and Judicial
6081	6083		2995
6082	6084		Administration.
6083	6085		2996
6084	6086		[(8)] (7) "Custodian" means a person that carries, maintains, processes, receives, or stores a
6085	6087		2997
6086	6088		digital asset of a user.
6087	6089		2998
6088	6090		[(9)] (8) "Designated recipient" means a person chosen by a user using an online tool to
6089	6091		2999
6090	6092		administer digital assets of the user.
6091	6093		3000
6092	6094		[(10)] (9)(a) "Digital asset" means an electronic record in which an individual has a right
6093	6095		3001
6094	6096		or interest.
6095	6097		3002
6096	6098		(b) "Digital asset" does not include an underlying asset or liability unless the asset or
6097	6099		3003
6098	6100		liability is itself an electronic record.
6099	6101		3004
6100	6102		[(11) "Electronic" means relating to technology having electrical, digital, magnetic,
6101	6103		3005
6102	6104		wireless, optical, electromagnetic, or similar capabilities.]
6103	6105		3006
6104	6106		[(12)] (10) "Electronic communication" has the same meaning as the definition in 18 U.S.C.
6105	6107		3007
6106	6108		Sec. 2510(12).
6107	6109		3008
6108	6110		[(13)] (11) "Electronic communication service" means a custodian that provides to a user the
6109	6111		3009
6110	6112		ability to send or receive an electronic communication.
6111	6113		3010
6112	6114		[(14) "Estate" means the same as that term is defined in Section 75-1-201.]
6113	6115		3011
6114	6116		[(15)] (12) "Fiduciary" means an original, additional, or successor personal representative,
6115	6117		3012
6116	6118		conservator, guardian, agent, or trustee.
6117	6119		3013
6118	6120		[(16)(a) "Guardian" means a person appointed by a court to manage the affairs of a
6119	6121		3014
6120	6122		living individual.]
6121	6123		3015
6122	6124		[(b) "Guardian" includes a limited guardian.]
6123	6125		3016
6124	6126		[(17)] (13) "Information" means data, text, images, videos, sounds, codes, computer
6125	6127		3017
6126	6128		programs, software, databases, or the like.
6127	6129		3018
6128	6130		[(18)] (14) "Online tool" means an electronic service provided by a custodian that allows the
6129	6131		3019
6130	6132		user, in an agreement distinct from the terms of service agreement between the custodian
6131		-	- 89 - S.B. 100 Enrolled Copy
6132	6133		3020
6133	6134		and user, to provide directions for disclosure or nondisclosure of digital assets to a third
	6135	+	- 89 - 1st Sub. (Green) S.B. 100 02-07 14:26
6134	6136		3021
6135	6137		person.
6136	6138		3022
6137	6139		[(19) "Person" means an individual, estate, business or nonprofit entity, public corporation,
6138	6140		3023
6139	6141		government or governmental subdivision, agency, instrumentality, or other legal entity.]
6140	6142		3024
6141	6143		[(20) "Personal representative" means an executor, administrator, special administrator as
6142	6144		3025
6143	6145		defined in Section 75-1-201, or person that performs substantially the same function
6144	6146		3026
6145	6147		under the law of this state other than this chapter.]
6146	6148		3027
6147	6149		[(21) "Power of attorney" means a record that grants an agent authority to act in the place of
6148	6150		3028
6149	6151		a principal.]
6150	6152		3029
6151	6153		[(22) "Principal" means an individual who grants authority to an agent in a power of
6152	6154		3030
6153	6155		attorney.]
6154	6156		3031
6155	6157		(15) "Power of attorney" means the same as that term is defined in Section 75A-2-102.
6156	6158		3032
6157	6159		(16) "Principal" means the same as that term is defined in Section 75A-2-102.
6158	6160		3033
6159	6161		[(23)] (17)(a) "Protected person" means an individual for whom a conservator or
6160	6162		3034
6161	6163		guardian has been appointed.
6162	6164		3035
6163	6165		(b) "Protected person" includes an individual for whom an application for the
6164	6166		3036
6165	6167		appointment of a conservator or guardian is pending.
6166	6168		3037
6167	6169		[(24) "Record" means information that is inscribed on a tangible medium or that is stored in
6168	6170		3038
6169	6171		an electronic or other medium and is retrievable in perceivable form.]
6170	6172		3039
6171	6173		[(25)] (18) "Remote computing service" means a custodian that provides to a user computer
6172	6174		3040
6173	6175		processing services or the storage of digital assets by means of an electronic
6174	6176		3041
6175	6177		communications system, as defined in 18 U.S.C. Sec. 2510(14).
6176	6178		3042
6177	6179		[(26)] (19) "Successor personal representative" means the same as that term is defined in
6178	6180		3043
6179	6181		Section 75-1-201.
6180	6182		3044
6181	6183		[(27)] (20) "Terms of service agreement" means an agreement that controls the relationship
6182	6184		3045
6183	6185		between a user and a custodian.
6184	6186		3046
6185	6187		[(28) "Trust" means the same as that term is defined in Section 75-1-201.]
6186	6188		3047
6187	6189		[(29)] (21)(a) "Trustee" means a fiduciary with legal title to property pursuant to an
6188	6190		3048
6189	6191		agreement or declaration that creates a beneficial interest in another.
6190	6192		3049
6191	6193		(b) "Trustee" includes a successor trustee.
6192	6194		3050
6193	6195		[(30)] (22) "User" means a person that has an account with a custodian.
6194	6196		3051
6195	6197		[(31) "Will" includes a codicil, a testamentary instrument that only appoints an executor,
6196	6198		3052
6197	6199		and an instrument that revokes or revises a testamentary instrument.]
6198	6200		3053
6199	6201		Section 66. Section 75A-6-112 is amended to read:
6200		-	- 90 - Enrolled Copy S.B. 100
6201	6202		3054
6202	6203		75A-6-112 . Disclosure of contents of electronic communications held in trust
	6204	+	- 90 - 02-07 14:26 1st Sub. (Green) S.B. 100
6203	6205		3055
6204	6206		when trustee not original user.
6205	6207		3056
6206	6208		Unless otherwise ordered by the court, directed by the user, or provided in a trust, a
6207	6209		3057
6208	6210		custodian shall disclose to a trustee that is not an original user of an account the content of an
6209	6211		3058
6210	6212		electronic communication sent or received by an original or successor user and carried,
6211	6213		3059
6212	6214		maintained, processed, received, or stored by the custodian in the account of the trust if the
6213	6215		3060
6214	6216		trustee gives the custodian:
6215	6217		3061
6216	6218		(1) a written request for disclosure in physical or electronic form;
6217	6219		3062
6218	6220		(2) a certified copy of the trust instrument or a certification of the trust under Section [
6219	6221		3063
6220	6222		75-7-1013] 75B-2-1013 that includes consent to disclosure of the content of electronic
6221	6223		3064
6222	6224		communications to the trustee;
6223	6225		3065
6224	6226		(3) a certification by the trustee, under penalty of perjury, that the trust exists and the
6225	6227		3066
6226	6228		trustee is a currently acting trustee of the trust; and
6227	6229		3067
6228	6230		(4) if requested by the custodian:
6229	6231		3068
6230	6232		(a) a number, username, address, or other unique subscriber or account identifier
6231	6233		3069
6232	6234		assigned by the custodian to identify the trust's account; or
6233	6235		3070
6234	6236		(b) evidence linking the account to the trust.
6235	6237		3071
6236	6238		Section 67. Section 75A-6-113 is amended to read:
6237	6239		3072
6238	6240		75A-6-113 . Disclosure of other digital assets held in trust when trustee not
6239	6241		3073
6240	6242		original user.
6241	6243		3074
6242	6244		Unless otherwise ordered by the court, directed by the user, or provided in a trust, a
6243	6245		3075
6244	6246		custodian shall disclose, to a trustee that is not an original user of an account, a catalogue of
6245	6247		3076
6246	6248		electronic communications sent or received by an original or successor user and stored,
6247	6249		3077
6248	6250		carried, or maintained by the custodian in an account of the trust and any digital assets, other
6249	6251		3078
6250	6252		than the content of electronic communications, in which the trust has a right or interest if the
6251	6253		3079
6252	6254		trustee gives the custodian:
6253	6255		3080
6254	6256		(1) a written request for disclosure in physical or electronic form;
6255	6257		3081
6256	6258		(2) a certified copy of the trust instrument or a certification of the trust under Section [
6257	6259		3082
6258	6260		75-7-1013] 75B-2-1013;
6259	6261		3083
6260	6262		(3) a certification by the trustee, under penalty of perjury, that the trust exists and the
6261	6263		3084
6262	6264		trustee is a currently acting trustee of the trust; and
6263	6265		3085
6264	6266		(4) if requested by the custodian:
6265	6267		3086
6266	6268		(a) a number, username, address, or other unique subscriber or account identifier
6267	6269		3087
6268	6270		assigned by the custodian to identify the trust's account; or
6269		-	- 91 - S.B. 100 Enrolled Copy
6270	6271		3088
6271	6272		(b) evidence linking the account to the trust.
	6273	+	- 91 - 1st Sub. (Green) S.B. 100 02-07 14:26
6272	6274		3089
6273	6275		Section 68. Section 75A-7-102 is amended to read:
6274	6276		3090
6275	6277		75A-7-102 . Definitions for chapter.
6276	6278		3091
6277	6279		As used in this chapter:
6278	6280		3092
6279	6281		(1) "Assignment" includes any written stock power, bond power, bill of sale, deed,
6280	6282		3093
6281	6283		declaration of trust or other instrument of transfer.
6282	6284		3094
6283	6285		(2) "Claim of beneficial interest" includes:
6284	6286		3095
6285	6287		(a) a claim of any interest by a decedent's legatee, distributee, heir or creditor, a
6286	6288		3096
6287	6289		beneficiary under a trust, a ward, a beneficial owner of a security registered in the
6288	6290		3097
6289	6291		name of a nominee, or a minor owner of a security registered in the name of a
6290	6292		3098
6291	6293		custodian, or a claim of any similar interest, whether the claim is asserted by the
6292	6294		3099
6293	6295		claimant or by a fiduciary or by any other authorized person in his behalf; and
6294	6296		3100
6295	6297		(b) a claim that the transfer would be in breach of fiduciary duties.
6296	6298		3101
6297	6299		(3) "Corporation" means a private or public corporation, association or trust issuing a
6298	6300		3102
6299	6301		security.
6300	6302		3103
6301	6303		(4) "Fiduciary" means an executor, administrator, trustee, guardian, committee,
6302	6304		3104
6303	6305		conservator, curator, tutor, custodian or nominee.
6304	6306		3105
6305	6307		[(5) "Person" includes an individual, a corporation, government or governmental
6306	6308		3106
6307	6309		subdivision or agency, business trust, estate, trust, partnership or association, two or
6308	6310		3107
6309	6311		more persons having a joint or common interest, or any other legal or commercial entity.]
6310	6312		3108
6311	6313		[(6)] (5) "Security" includes any share of stock, bond, debenture, note or other security
6312	6314		3109
6313	6315		issued by a corporation which is registered as to ownership on the books of the
6314	6316		3110
6315	6317		corporation.
6316	6318		3111
6317	6319		[(7)] (6) "Transfer" means a change on the books of a corporation in the registered
6318	6320		3112
6319	6321		ownership of a security.
6320	6322		3113
6321	6323		[(8)] (7) "Transfer agent" means a person employed or authorized by a corporation to
6322	6324		3114
6323	6325		transfer securities issued by the corporation.
6324	6326		3115
6325	6327		Section 69. Section 75A-8-102 is amended to read:
6326	6328		3116
6327	6329
6328	6330		CHAPTER 8. UNIFORM TRANSFERS TO MINORS ACT
6329	6331		3117
6330	6332		75A-8-102 . Definitions for chapter.
6331	6333		3118
6332	6334		As used in this chapter:
6333	6335		3119
6334	6336		(1) "Adult" means an individual who is 21 years old or older.
6335	6337		3120
6336	6338		(2) "Beneficiary" means the same as that term is defined in Section 75-1-201.
6337	6339		3121
6338	6340		(3) "Benefit plan" means an employer's plan for the benefit of an employee or partner.
6339		-	- 92 - Enrolled Copy S.B. 100
6340	6341		3122
6341	6342		(4) "Broker" means a person lawfully engaged in the business of effecting transactions in
	6343	+	- 92 - 02-07 14:26 1st Sub. (Green) S.B. 100
6342	6344		3123
6343	6345		securities or commodities for the person's own account or for the accounts of others.
6344	6346		3124
6345	6347		[(5) "Conservator" means a person appointed or qualified by a court to act as general,
6346	6348		3125
6347	6349		limited, or temporary guardian of a minor's property or a person legally authorized to
6348	6350		3126
6349	6351		perform substantially the same functions.]
6350	6352		3127
6351	6353		[(6)] (5) "Court" means a court with jurisdiction under Title 78A, Judiciary and Judicial
6352	6354		3128
6353	6355		Administration.
6354	6356		3129
6355	6357		[(7)] (6) "Custodial property" means:
6356	6358		3130
6357	6359		(a) any interest in property transferred to a custodian under this chapter; and
6358	6360		3131
6359	6361		(b) the income from and proceeds of that interest in property.
6360	6362		3132
6361	6363		[(8)] (7) "Custodian" means a person so designated under Section 75A-8-110 or a successor
6362	6364		3133
6363	6365		or substitute custodian designated under Section 75A-8-119.
6364	6366		3134
6365	6367		[(9) "Estate" means the same as that term is defined in Section 75-1-201.]
6366	6368		3135
6367	6369		[(10)] (8) "Fiduciary" means the same as that term is defined in Section 75-1-201.
6368	6370		3136
6369	6371		[(11)] (9) "Financial institution" means a bank, trust company, savings institution, or credit
6370	6372		3137
6371	6373		union, chartered and supervised under state or federal law.
6372	6374		3138
6373	6375		[(12) "Guardian" means the same as that term is defined in Section 75-1-201.]
6374	6376		3139
6375	6377		[(13)] (10) "Incapacitated" means the same as that term is defined in Section 75-1-201.
6376	6378		3140
6377	6379		[(14)] (11) "Incapacity" means the same as that term is defined in Section 75-1-201.
6378	6380		3141
6379	6381		[(15)] (12) "Interested person" means the same as that term is defined in Section 75-1-201.
6380	6382		3142
6381	6383		[(16)] (13) "Legal representative" means an individual's personal representative or
6382	6384		3143
6383	6385		conservator.
6384	6386		3144
6385	6387		[(17)] (14) "Member of the minor's family" means the minor's parent, stepparent, spouse,
6386	6388		3145
6387	6389		grandparent, brother, sister, uncle, or aunt, whether of the whole or half blood or by
6388	6390		3146
6389	6391		adoption.
6390	6392		3147
6391	6393		[(18)] (15) "Minor" means an individual who is under 21 years old.
6392	6394		3148
6393	6395		[(19)] (16) "Parent" means the same as that term is defined in Section 75-1-201.
6394	6396		3149
6395	6397		[(20)] (17) "Payor" means the same as that term is defined in Section 75-1-201.
6396	6398		3150
6397	6399		[(21) "Person" means an individual, corporation, organization as defined in Section
6398	6400		3151
6399	6401		75-1-201, or other legal entity.]
6400	6402		3152
6401	6403		[(22) "Personal representative" means an executor, administrator, successor personal
6402	6404		3153
6403	6405		representative as defined in Section 75-1-201, or special administrator as defined in
6404	6406		3154
6405	6407		Section 75-1-201, of a decedent's estate or a person legally authorized to perform
6406	6408		3155
6407	6409		substantially the same functions.]
6408		-	- 93 - S.B. 100 Enrolled Copy
6409	6410		3156
6410	6411		[(23)] (18) "Petition" means the same as that term is defined in Section 75-1-201.
	6412	+	- 93 - 1st Sub. (Green) S.B. 100 02-07 14:26
6411	6413		3157
6412	6414		[(24) "Property" means the same as that term is defined in Section 75-1-201.]
6413	6415		3158
6414	6416		[(25) "Record" means the same as that term is defined in Section 75-1-201.]
6415	6417		3159
6416	6418		[(26)] (19) "Security" means the same as that term is defined in Section 75-1-201.
6417	6419		3160
6418	6420		[(27) "State" includes any state of the United States, the district of Columbia, the
6419	6421		3161
6420	6422		Commonwealth of Puerto Rico, and any territory or possession subject to the legislative
6421	6423		3162
6422	6424		authority of the United States.]
6423	6425		3163
6424	6426		[(28)] (20) "Testator" means the same as that term is defined in Section 75-1-201.
6425	6427		3164
6426	6428		[(29)] (21) "Transfer" means a transaction that creates custodial property under Section [
6427	6429		3165
6428	6430		75A-8-109] 75A-8-110.
6429	6431		3166
6430	6432		[(30)] (22) "Transferor" means a person who makes a transfer under this chapter.
6431	6433		3167
6432	6434		[(31) "Trust" means the same as that term is defined in Section 75-1-201.]
6433	6435		3168
6434	6436		[(32)] (23) "Trust company" means a financial institution, corporation, or other legal entity,
6435	6437		3169
6436	6438		authorized to exercise general trust powers.
6437	6439		3170
6438	6440		[(33)] (24) "Trustee" means the same as that term is defined in Section 75-1-201.
6439	6441		3171
6440	6442		[(34) "Will" means the same as that term is defined in Section 75-1-201.]
6441	6443		3172
6442	6444		Section 70. Section 75B-1-101 is amended to read:
6443	6445		3173
6444	6446		75B-1-101 . Definitions for title.
6445	6447		3174
6446	6448		[Reserved.] As used in this title:
6447	6449		3175
6448	6450		(1) "Agent" means the same as that term is defined in Section 75-1-201.
6449	6451		3176
6450	6452		(2) "Beneficiary" means a person that:
6451	6453		3177
6452	6454		(a) has a present or future beneficial interest in a trust, vested or contingent; or
6453	6455		3178
6454	6456		(b) in a capacity other than that of trustee, holds a power of appointment over trust
6455	6457		3179
6456	6458		property.
6457	6459		3180
6458	6460		(3) "Charitable trust" means a trust, or portion of a trust, created for a charitable purpose
6459	6461		3181
6460	6462		described in Subsection 75B-2-405(1).
6461	6463		3182
6462	6464		(4) "Child" means, except as provided in Sections 75B-2-503 and 75B-2-504, the same as
6463	6465		3183
6464	6466		that term is defined in Section 75-1-201.
6465	6467		3184
6466	6468		(5) "Claims" means the same as that term is defined in Section 75-1-201.
6467	6469		3185
6468	6470		(6) "Conservator" means the same as that term is defined in Section 75-1-201.
6469	6471		3186
6470	6472		(7) "Court" means a court with jurisdiction under Title 78A, Judiciary and Judicial
6471	6473		3187
6472	6474		Administration.
6473	6475		3188
6474	6476		(8) "Descendant" means the same as that term is defined in Section 75-1-201.
6475	6477		3189
6476	6478		(9) "Devise" means the same as that term is defined in Section 75-1-201.
6477		-	- 94 - Enrolled Copy S.B. 100
6478	6479		3190
6479	6480		(10) "Distributee" means the same as that term is defined in Section 75-1-201.
	6481	+	- 94 - 02-07 14:26 1st Sub. (Green) S.B. 100
6480	6482		3191
6481	6483		(11) "Estate" means the same as that term is defined in Section 75-1-201.
6482	6484		3192
6483	6485		(12) "Fiduciary" means the same as that term is defined in Section 75-1-201.
6484	6486		3193
6485	6487		(13) "Governing instrument" means the same as that term is defined in Section 75-1-201.
6486	6488		3194
6487	6489		(14) "Guardian" means the same as that term is defined in Section 75-1-201.
6488	6490		3195
6489	6491		(15) "Incapacitated" means the same as that term is defined in Section 75-1-201.
6490	6492		3196
6491	6493		(16) "Income" means the same as that term is defined in Section 75A-5-102.
6492	6494		3197
6493	6495		(17) "Interested person" means, except as provided in Section 75B-2-110, the same as that
6494	6496		3198
6495	6497		term is defined in Section 75-1-102.
6496	6498		3199
6497	6499		(18) "Lease" means the same as that term is defined in Section 75-1-201.
6498	6500		3200
6499	6501		(19) "Minor" means an individual who is younger than 18 years old.
6500	6502		3201
6501	6503		(20) "Mortgage" means the same as that term is defined in Section 75-1-201.
6502	6504		3202
6503	6505		(21) "Organization" means the same as that term is defined in Section 75-1-201.
6504	6506		3203
6505	6507		(22) "Parent" means the same as that term is defined in Section 75-1-201.
6506	6508		3204
6507	6509		(23) "Person" means the same as that term is defined in Section 75-1-201.
6508	6510		3205
6509	6511		(24) "Personal representative" means the same as that term is defined in Section 75-1-201.
6510	6512		3206
6511	6513		(25) "Petition" means the same as that term is defined in Section 75-1-201.
6512	6514		3207
6513	6515		(26) "Power of appointment" means the same as that term is defined in Section 75A-4-102.
6514	6516		3208
6515	6517		(27) "Principal" means the same as that term is defined in Section 75A-5-102.
6516	6518		3209
6517	6519		(28) "Property" means the same as that term is defined in Section 75-1-201.
6518	6520		3210
6519	6521		(29) "Protected person" means the same as that term is defined in Section 75-1-201.
6520	6522		3211
6521	6523		(30) "Record" means the same as that term is defined in Section 75-1-201.
6522	6524		3212
6523	6525		(31) "Security" means the same as that term is defined in Section 75-1-201.
6524	6526		3213
6525	6527		(32)(a) "Settlor" means a person, including a testator, who creates, or contributes
6526	6528		3214
6527	6529		property to, a trust.
6528	6530		3215
6529	6531		(b) If more than one person creates or contributes property to a trust, each person is a
6530	6532		3216
6531	6533		settlor of the portion of the trust property attributable to that person's contribution
6532	6534		3217
6533	6535		except to the extent another person has the power to revoke or withdraw that portion.
6534	6536		3218
6535	6537		(33) "Sign" means the same as that term is defined in Section 75-1-201.
6536	6538		3219
6537	6539		(34) "State" means the same as that term is defined in Section 75-1-201.
6538	6540		3220
6539	6541		(35) "Successor" means a person, other than a creditor, that is entitled to property of a
6540	6542		3221
6541	6543		decedent under the decedent's will or Title 75, Utah Uniform Probate Code.
6542	6544		3222
6543	6545		(36) "Testator" means the same as that term is defined in Section 75-1-201.
6544	6546		3223
6545	6547		(37)(a) "Trust" means:
6546		-	- 95 - S.B. 100 Enrolled Copy
6547	6548		3224
6548	6549		(i) a health savings account, as defined in Section 223 of the Internal Revenue Code;
	6550	+	- 95 - 1st Sub. (Green) S.B. 100 02-07 14:26
6549	6551		3225
6550	6552		(ii) an express trust, private or charitable, with additions thereto, wherever and
6551	6553		3226
6552	6554		however created; or
6553	6555		3227
6554	6556		(iii) a trust created or determined by judgment or decree under which the trust is to be
6555	6557		3228
6556	6558		administered in the manner of an express trust.
6557	6559		3229
6558	6560		(b) "Trust" does not include:
6559	6561		3230
6560	6562		(i) a constructive trust;
6561	6563		3231
6562	6564		(ii) a resulting trust;
6563	6565		3232
6564	6566		(iii) a conservatorship;
6565	6567		3233
6566	6568		(iv) a personal representative;
6567	6569		3234
6568	6570		(v) a trust account as defined in Title 75, Chapter 6, Nonprobate Transfers;
6569	6571		3235
6570	6572		(vi) a custodial arrangement under Title 75A, Chapter 8, Uniform Transfers To
6571	6573		3236
6572	6574		Minors Act;
6573	6575		3237
6574	6576		(vii) a business trust providing for certificates to be issued to beneficiaries;
6575	6577		3238
6576	6578		(viii) a common trust fund;
6577	6579		3239
6578	6580		(ix) a voting trust;
6579	6581		3240
6580	6582		(x) a preneed funeral plan under Title 58, Chapter 9, Funeral Services Licensing Act;
6581	6583		3241
6582	6584		(xi) a security arrangement;
6583	6585		3242
6584	6586		(xii) a liquidation trust;
6585	6587		3243
6586	6588		(xiii) a trust for the primary purpose of paying debts, dividends, interest, salaries,
6587	6589		3244
6588	6590		wages, profits, pensions, or employee benefits of any kind; or
6589	6591		3245
6590	6592		(xiv) any arrangement under which a person is nominee or escrowee for another
6591	6593		3246
6592	6594		person.
6593	6595		3247
6594	6596		(38) "Trustee" means an original, additional, and successor trustee, and cotrustee, whether
6595	6597		3248
6596	6598		or not appointed or confirmed by the court.
6597	6599		3249
6598	6600		(39) "Trust instrument" means an instrument executed by the settlor that contains terms of
6599	6601		3250
6600	6602		the trust, including any amendments thereto.
6601	6603		3251
6602	6604		(40) "Ward" means the same as that term is defined in Section 75-1-201.
6603	6605		3252
6604	6606		(41) "Will" means the same as that term is defined in Section 75-1-201.
6605	6607		3253
6606	6608		Section 71. Section 75B-1-201 is amended to read:
6607	6609		3254
6608	6610		75B-1-201 . Definitions for part.
6609	6611		3255
6610	6612		As used in this part[:] ,
6611	6613		3256
6612	6614		[(1) "Income" means the same as that term is defined in Section 75A-5-101.]
6613	6615		3257
6614	6616		[(2) "Principal" means the same as that term is defined in Section 75A-5-101.]
6615		-	- 96 - Enrolled Copy S.B. 100
6616	6617		3258
6617	6618		[(3) "Retirement] "retirement trust" means a trust:
	6619	+	- 96 - 02-07 14:26 1st Sub. (Green) S.B. 100
6618	6620		3259
6619	6621		[(a)] (1) created by an employer as part of a pension, stock bonus, disability, death benefit,
6620	6622		3260
6621	6623		profit sharing, retirement, or similar plan primarily for the benefit of an employee or the
6622	6624		3261
6623	6625		employee's family, appointee, or beneficiary;
6624	6626		3262
6625	6627		[(b)] (2) to which contributions are made by the employer or employee; and
6626	6628		3263
6627	6629		[(c)] (3) that is created for the purpose of distributing principal or income to the employee or
6628	6630		3264
6629	6631		the employee's family, appointee, or beneficiary.
6630	6632		3265
6631	6633		Section 72. Section 75B-1-301 is amended to read:
6632	6634		3266
6633	6635		75B-1-301 . Definitions for part.
6634	6636		3267
6635	6637		As used in this part:
6636	6638		3268
6637	6639		(1) "Creditor" means:
6638	6640		3269
6639	6641		(a) a creditor or other claimant of the settlor existing when the trust is created; or
6640	6642		3270
6641	6643		(b) a person who subsequently becomes a creditor, including whether or not reduced to
6642	6644		3271
6643	6645		judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed,
6644	6646		3272
6645	6647		undisputed, legal, equitable, secured, or unsecured:
6646	6648		3273
6647	6649		(i) holding or seeking to enforce a judgment entered by a court or other body having
6648	6650		3274
6649	6651		adjudicative authority; or
6650	6652		3275
6651	6653		(ii) with a right to payment.
6652	6654		3276
6653	6655		(2) "Domestic support obligation" means:
6654	6656		3277
6655	6657		(a) a child support judgment or order;
6656	6658		3278
6657	6659		(b) a spousal support judgment or order; or
6658	6660		3279
6659	6661		(c) an unsatisfied claim arising from a property division in a divorce proceeding.
6660	6662		3280
6661	6663		(3) "Insolvent" means:
6662	6664		3281
6663	6665		(a) having generally ceased to pay debts in the ordinary course of business other than as
6664	6666		3282
6665	6667		a result of a bona fide dispute;
6666	6668		3283
6667	6669		(b) being unable to pay debts as they become due; or
6668	6670		3284
6669	6671		(c) being insolvent within the meaning of federal bankruptcy law.
6670	6672		3285
6671	6673		(4) "Paid and delivered" does not include the settlor's use or occupancy of real property or
6672	6674		3286
6673	6675		personal property owned by the trust if the use or occupancy is in accordance with the
6674	6676		3287
6675	6677		trustee's discretionary authority under the trust instrument.
6676	6678		3288
6677	6679		(5) "Personal property" includes intangible and tangible personal property.
6678	6680		3289
6679	6681		[(6) "Property" means real property, personal property, and interests in real or personal
6680	6682		3290
6681	6683		property.]
6682	6684		3291
6683	6685		[(7) "Settlor" means a person who transfers property in trust.]
6684		-	- 97 - S.B. 100 Enrolled Copy
6685	6686		3292
6686	6687		[(8)] (6) "Transfer" means any form of transfer of property, including gratuitous transfers,
	6688	+	- 97 - 1st Sub. (Green) S.B. 100 02-07 14:26
6687	6689		3293
6688	6690		whether by deed, conveyance, or assignment.
6689	6691		3294
6690	6692		[(9) "Trust" means the same as that term is defined in Section 75-1-201.]
6691	6693		3295
6692	6694		Section 73. Section 75B-1-302 is amended to read:
6693	6695		3296
6694	6696		75B-1-302 . Asset protection trust.
6695	6697		3297
6696	6698		(1) If the settlor of an irrevocable trust is also a beneficiary of the trust, and if the
6697	6699		3298
6698	6700		requirements of Subsection (3) are satisfied, a creditor of the settlor may not:
6699	6701		3299
6700	6702		(a) satisfy a claim or liability of the settlor in either law or equity out of the settlor's
6701	6703		3300
6702	6704		transfer to the trust or the settlor's beneficial interest in the trust;
6703	6705		3301
6704	6706		(b) force or require the trustee to make a distribution to the settlor, as beneficiary; or
6705	6707		3302
6706	6708		(c) require the trustee to pay any distribution directly to the creditor, or otherwise attach
6707	6709		3303
6708	6710		the distribution before it has been paid or delivered by the trustee to the settlor, as
6709	6711		3304
6710	6712		beneficiary.
6711	6713		3305
6712	6714		(2) Notwithstanding Subsection (1), nothing in this section:
6713	6715		3306
6714	6716		(a) prohibits a creditor from satisfying a claim or liability from the distribution once it
6715	6717		3307
6716	6718		has been paid or delivered by the trustee to the settlor, as beneficiary; or
6717	6719		3308
6718	6720		(b) nullifies or impairs a security interest that was granted by a settlor or a trustee with
6719	6721		3309
6720	6722		respect to property that is transferred to the trust.
6721	6723		3310
6722	6724		(3)(a) In order for Subsection (1) to apply, the conditions in this Subsection (3) shall be
6723	6725		3311
6724	6726		satisfied.
6725	6727		3312
6726	6728		(b) Where this Subsection (3) requires that a provision be included in the trust
6727	6729		3313
6728	6730		instrument, no particular language need be used in the trust instrument if the meaning
6729	6731		3314
6730	6732		of the trust provision otherwise complies with this Subsection (3).
6731	6733		3315
6732	6734		(c) An agreement or understanding, express or implied, between the settlor and the
6733	6735		3316
6734	6736		trustee that attempts to grant or permit the retention by the settlor of greater rights or
6735	6737		3317
6736	6738		authority than is stated in the trust instrument is void.
6737	6739		3318
6738	6740		(d) The trust instrument shall provide that the trust is governed by Utah law and is
6739	6741		3319
6740	6742		established pursuant to this section.
6741	6743		3320
6742	6744		(e) The trust instrument shall require that at all times at least one trustee shall be a Utah
6743	6745		3321
6744	6746		resident or Utah trust company, as the term "trust company" is defined in Section
6745	6747		3322
6746	6748		7-5-1.
6747	6749		3323
6748	6750		(f)(i) The trust instrument shall provide that neither the interest of the settlor, as
6749	6751		3324
6750	6752		beneficiary, nor the income or principal of the trust may be voluntarily or
6751	6753		3325
6752	6754		involuntarily transferred by the settlor, as beneficiary.
6753		-	- 98 - Enrolled Copy S.B. 100
6754	6755		3326
6755	6756		(ii) The provision shall be considered to be a restriction on the transfer of the settlor's
	6757	+	- 98 - 02-07 14:26 1st Sub. (Green) S.B. 100
6756	6758		3327
6757	6759		beneficial interest in the trust that is enforceable under applicable nonbankruptcy
6758	6760		3328
6759	6761		law within the meaning of 11 U.S.C. Sec. 541(c)(2).
6760	6762		3329
6761	6763		(g) The settlor may not have the ability under the trust instrument, without the consent of
6762	6764		3330
6763	6765		a person who has a substantial beneficial interest in the trust, which interest would be
6764	6766		3331
6765	6767		adversely affected by the exercise of the power held by the settlor:
6766	6768		3332
6767	6769		(i) to revoke, amend, or terminate all or any part of the trust; or
6768	6770		3333
6769	6771		(ii) to withdraw any property from the trust, except that the settlor, without the
6770	6772		3334
6771	6773		approval or consent of any person, may be given the power, under the trust
6772	6774		3335
6773	6775		agreement, to substitute assets of substantially equivalent value.
6774	6776		3336
6775	6777		(h) The trust instrument may not provide for any mandatory distributions of either
6776	6778		3337
6777	6779		income or principal to the settlor, as beneficiary, except as provided in Subsection
6778	6780		3338
6779	6781		(5)(g).
6780	6782		3339
6781	6783		(i)(i) The trust instrument shall require that, at least 30 days before paying and
6782	6784		3340
6783	6785		delivering any distribution to the settlor, as beneficiary, the trustee notify in
6784	6786		3341
6785	6787		writing every person who has a domestic support obligation against the settlor.
6786	6788		3342
6787	6789		(ii) The trust instrument shall require that the notice state the date the distribution will
6788	6790		3343
6789	6791		be paid and delivered and the amount of the distribution.
6790	6792		3344
6791	6793		(j) At the time that the settlor transfers any assets to the trust, the settlor may not be in
6792	6794		3345
6793	6795		default of making a payment due under a domestic support obligation.
6794	6796		3346
6795	6797		(k) A transfer of assets to the trust may not render the settlor insolvent.
6796	6798		3347
6797	6799		(l) At the time the settlor transfers any assets to the trust, the settlor may not intend to
6798	6800		3348
6799	6801		hinder, delay, or defraud a known creditor by transferring the assets to the trust. A
6800	6802		3349
6801	6803		settlor's expressed intention to protect trust assets from the settlor's potential future
6802	6804		3350
6803	6805		creditors is not evidence of an intent to hinder, delay, or defraud a known creditor.
6804	6806		3351
6805	6807		(m) Assets transferred to the trust may not be derived from unlawful activities.
6806	6808		3352
6807	6809		[(nn)] (n) With respect to each transfer of assets to the trust, the settlor shall sign a sworn
6808	6810		3353
6809	6811		affidavit stating that at the time of the transfer of the assets to the trust:
6810	6812		3354
6811	6813		(i) the settlor has full right, title, and authority to transfer the assets to the trust;
6812	6814		3355
6813	6815		(ii) the transfer of the assets to the trust will not render the settlor insolvent;
6814	6816		3356
6815	6817		(iii) the settlor does not intend to hinder, delay, or defraud a known creditor by
6816	6818		3357
6817	6819		transferring the assets to the trust;
6818	6820		3358
6819	6821		(iv) there is no pending or threatened court action against the settlor, except for a
6820	6822		3359
6821	6823		court action identified by the settlor on an attachment to the affidavit;
6822		-	- 99 - S.B. 100 Enrolled Copy
6823	6824		3360
6824	6825		(v) the settlor is not involved in an administrative proceeding that is reasonably
	6826	+	- 99 - 1st Sub. (Green) S.B. 100 02-07 14:26
6825	6827		3361
6826	6828		expected to have a material adverse effect on the financial condition of the settlor,
6827	6829		3362
6828	6830		except an administrative proceeding identified on an attachment to the affidavit;
6829	6831		3363
6830	6832		(vi) at the time of the transfer of the assets to the trust, the settlor is not in default of a
6831	6833		3364
6832	6834		domestic support obligation;
6833	6835		3365
6834	6836		(vii) the settlor does not contemplate filing for relief under the provisions of United
6835	6837		3366
6836	6838		States Code, Title 11, Bankruptcy; and
6837	6839		3367
6838	6840		(viii) the assets being transferred to the trust were not derived from unlawful
6839	6841		3368
6840	6842		activities.
6841	6843		3369
6842	6844		(4) Failure to satisfy the requirements of Subsection (3) shall result in the consequences
6843	6845		3370
6844	6846		described in this Subsection (4).
6845	6847		3371
6846	6848		(a) If any requirement of Subsections (3)(b) through (g) is not satisfied, none of the
6847	6849		3372
6848	6850		property held in the trust will at any time have the benefit of the protections described
6849	6851		3373
6850	6852		in Subsection (1).
6851	6853		3374
6852	6854		(b) If the trustee does not send the notice required under Subsection [(3)(g),] (3)(i) the
6853	6855		3375
6854	6856		court may authorize any person with a domestic support obligation against the settlor
6855	6857		3376
6856	6858		to whom notice was not sent to attach the distribution or future distributions, but the
6857	6859		3377
6858	6860		person may not:
6859	6861		3378
6860	6862		(i) satisfy a claim or liability in either law or equity out of the settlor's transfer to the
6861	6863		3379
6862	6864		trust or the settlor's beneficial interest in the trust; or
6863	6865		3380
6864	6866		(ii) force or require the trustee to make a distribution to the settlor, as beneficiary.
6865	6867		3381
6866	6868		(c) If any requirement described in Subsections (3)(i) through (l) is not satisfied, the
6867	6869		3382
6868	6870		property transferred to the trust that does not satisfy the requirement may not have
6869	6871		3383
6870	6872		the benefit of the protections described in Subsection (1).
6871	6873		3384
6872	6874		(d) If the requirement described in Subsection (3)(h) is not satisfied, the property
6873	6875		3385
6874	6876		transferred to the trust that does not satisfy the requirement does not have the benefit
6875	6877		3386
6876	6878		of the protections described in Subsection (1) with respect to any person with a
6877	6879		3387
6878	6880		domestic support obligation.
6879	6881		3388
6880	6882		(e) A creditor of the settlor has the burden of proving that the requirement in Subsection
6881	6883		3389
6882	6884		(3)(i) or (j) is not satisfied by clear and convincing evidence.
6883	6885		3390
6884	6886		(5) The provisions of Subsection (1) may apply to a trust even if:
6885	6887		3391
6886	6888		(a) the settlor serves as a cotrustee or as an advisor to the trustee, except that the settlor
6887	6889		3392
6888	6890		may not determine whether a discretionary distribution will be made;
6889	6891		3393
6890	6892		(b) the settlor participates in a determination regarding whether a discretionary
6891		-	- 100 - Enrolled Copy S.B. 100
6892	6893		3394
6893	6894		distribution is made to the settlor by:
	6895	+	- 100 - 02-07 14:26 1st Sub. (Green) S.B. 100
6894	6896		3395
6895	6897		(i) requesting a distribution from the trust;
6896	6898		3396
6897	6899		(ii) consulting with the trustees regarding whether a discretionary distribution will be
6898	6900		3397
6899	6901		made;
6900	6902		3398
6901	6903		(iii) exercising a right to consent to or veto the distribution under a power described
6902	6904		3399
6903	6905		in Subsection (5)(e);
6904	6906		3400
6905	6907		(iv) signing documentation in the settlor's capacity as a cotrustee that implements a
6906	6908		3401
6907	6909		distribution when the other trustees use discretionary power to independently
6908	6910		3402
6909	6911		authorize a distribution; or
6910	6912		3403
6911	6913		(v) participating in an action authorizing a distribution if the other trustees can
6912	6914		3404
6913	6915		authorize the distribution without the settlor's participation.
6914	6916		3405
6915	6917		(c) the settlor has the authority under the terms of the trust instrument to appoint a
6916	6918		3406
6917	6919		nonsubordinate advisor or a trust protector who can remove and appoint trustees and
6918	6920		3407
6919	6921		who can direct, consent to, or disapprove distributions;
6920	6922		3408
6921	6923		(d) the settlor has the power under the terms of the trust instrument to serve as an
6922	6924		3409
6923	6925		investment director or to appoint an investment director under Section 75-7-906;
6924	6926		3410
6925	6927		(e) the trust instrument gives the settlor the power to consent to or veto a distribution
6926	6928		3411
6927	6929		from the trust;
6928	6930		3412
6929	6931		(f) the trust instrument gives the settlor an inter vivos or a testamentary nongeneral
6930	6932		3413
6931	6933		power of appointment or similar power;
6932	6934		3414
6933	6935		(g) the trust instrument gives the settlor the right to receive the following types of
6934	6936		3415
6935	6937		distributions:
6936	6938		3416
6937	6939		(i) income, principal, or both in the discretion of a person, including a trustee, other
6938	6940		3417
6939	6941		than the settlor;
6940	6942		3418
6941	6943		(ii) principal, subject to an ascertainable standard set forth in the trust;
6942	6944		3419
6943	6945		(iii) income or principal from a charitable remainder annuity trust or charitable
6944	6946		3420
6945	6947		remainder unitrust, as defined in 26 U.S.C. Sec. 664;
6946	6948		3421
6947	6949		(iv) a percentage of the value of the trust each year as determined under the trust
6948	6950		3422
6949	6951		instrument, but not exceeding the amount that may be defined as income under 26
6950	6952		3423
6951	6953		U.S.C. Sec. 643(b);
6952	6954		3424
6953	6955		(v) the transferor's potential or actual use of real property held under a qualified
6954	6956		3425
6955	6957		personal residence trust, or potential or actual possession of a qualified annuity
6956	6958		3426
6957	6959		interest, within the meaning of 26 U.S.C. Sec. 2702 and the accompanying
6958	6960		3427
6959	6961		regulations;
6960		-	- 101 - S.B. 100 Enrolled Copy
6961	6962		3428
6962	6963		(vi) income or principal from a grantor retained annuity trust or grantor retained
	6964	+	- 101 - 1st Sub. (Green) S.B. 100 02-07 14:26
6963	6965		3429
6964	6966		unitrust that is allowed under 26 U.S.C. Sec. 2702; and
6965	6967		3430
6966	6968		(vii) income from a trust intended to qualify for the federal estate tax or gift tax
6967	6969		3431
6968	6970		marital deduction under 26 U.S.C. Sec. 2056(b)(7) or 2523(f);
6969	6971		3432
6970	6972		(h) the trust instrument authorizes the settlor to use real or personal property owned by
6971	6973		3433
6972	6974		the trust; or
6973	6975		3434
6974	6976		(i) with respect to the property held in the trust, the settlor may:
6975	6977		3435
6976	6978		(i) give a personal guarantee on a debt or obligation secured by the property;
6977	6979		3436
6978	6980		(ii) make payments, directly or indirectly, on a debt or obligation secured by the
6979	6981		3437
6980	6982		property;
6981	6983		3438
6982	6984		(iii) pay property taxes, casualty and liability insurance premiums, homeowner
6983	6985		3439
6984	6986		association dues, maintenance expenses, or other similar expenses on the property;
6985	6987		3440
6986	6988		or
6987	6989		3441
6988	6990		(iv) pay income tax on income attributable to the portion of property held in the trust,
6989	6991		3442
6990	6992		of which the settlor is considered to be the owner under 26 U.S.C. Secs. 671
6991	6993		3443
6992	6994		through 678, which payments will not be considered additional transfers to the
6993	6995		3444
6994	6996		trust for purposes of this section.
6995	6997		3445
6996	6998		(6)(a) If a trust instrument contains the provisions described in Subsections (3)(b)
6997	6999		3446
6998	7000		through (g), the transfer restrictions prevent a creditor or other person from asserting
6999	7001		3447
7000	7002		any cause of action or claim for relief against a trustee of the trust or against others
7001	7003		3448
7002	7004		involved in the counseling, drafting, preparation, execution, or funding of the trust
7003	7005		3449
7004	7006		for conspiracy to commit fraudulent conveyance or another voidable transfer, aiding
7005	7007		3450
7006	7008		and abetting a fraudulent conveyance or another voidable transfer, participation in the
7007	7009		3451
7008	7010		trust transaction, or similar cause of action or claim for relief.
7009	7011		3452
7010	7012		(b) For purposes of this Subsection (6), counseling, drafting, preparation, execution, or
7011	7013		3453
7012	7014		funding of the trust includes the preparation and funding of a limited partnership, a
7013	7015		3454
7014	7016		limited liability company, or other entity if interests in the entity are subsequently
7015	7017		3455
7016	7018		transferred to the trust.
7017	7019		3456
7018	7020		(c) The creditor and other person prevented from asserting a cause of action or claim for
7019	7021		3457
7020	7022		relief may assert a cause of action against, and are limited to recourse against, only:
7021	7023		3458
7022	7024		(i) the trust and the trust assets; and
7023	7025		3459
7024	7026		(ii) the settlor, to the extent otherwise allowed in this section.
7025	7027		3460
7026	7028		(7)(a) A cause of action or claim for relief under Subsection (3)(i) or (j) is a cause of
7027	7029		3461
7028	7030		action or claim for relief under Section 25-6-202 or 25-6-203.
7029		-	- 102 - Enrolled Copy S.B. 100
7030	7031		3462
7031	7032		(b) Except as provided in Subsection (7)(a), a cause of action or claim for relief under
	7033	+	- 102 - 02-07 14:26 1st Sub. (Green) S.B. 100
7032	7034		3463
7033	7035		this section is not a cause of action or claim for relief under Sections 25-6-101
7034	7036		3464
7035	7037		through 25-6-407.
7036	7038		3465
7037	7039		(c) Notwithstanding Section 25-6-305, a cause of action or claim for relief regarding a
7038	7040		3466
7039	7041		fraudulent conveyance or other voidable transfer of a settlor's assets under this
7040	7042		3467
7041	7043		section is extinguished unless the action is brought by a creditor of the settlor who
7042	7044		3468
7043	7045		was a creditor of the settlor before the assets in question were transferred to the trust
7044	7046		3469
7045	7047		and the action is brought within the earlier of:
7046	7048		3470
7047	7049		(i) the later of two years after the transfer is made, or one year after the transfer is or
7048	7050		3471
7049	7051		reasonably could have been discovered by the creditor if the creditor:
7050	7052		3472
7051	7053		(A) can demonstrate, by clear and convincing evidence, that the creditor asserted a
7052	7054		3473
7053	7055		specific claim against the settlor before the transfer; or
7054	7056		3474
7055	7057		(B) files another action, other than an action alleging a fraudulent conveyance or
7056	7058		3475
7057	7059		other voidable transfer against the settlor that asserts a claim based on an act or
7058	7060		3476
7059	7061		omission of the settlor that occurred before the transfer, and the action
7060	7062		3477
7061	7063		described in this Subsection (7)(c) is filed within two years after the transfer; or
7062	7064		3478
7063	7065		(ii)(A) with respect to a creditor known to the settlor, 120 days after the date on
7064	7066		3479
7065	7067		which notice of the transfer is mailed to the creditor, which notice shall state
7066	7068		3480
7067	7069		the name and address of the settlor or the settlor's representative, the name and
7068	7070		3481
7069	7071		address of the trustee or the trustee's representative, and also describe the assets
7070	7072		3482
7071	7073		that were transferred, but does not need to state the value of those assets if the
7072	7074		3483
7073	7075		assets are other than cash, and which shall inform the creditor that the creditor
7074	7076		3484
7075	7077		is required to bring the creditor's cause of action or claim for relief against the
7076	7078		3485
7077	7079		settlor and the trustee within 120 days from the mailing of the notice or be
7078	7080		3486
7079	7081		forever barred; or
7080	7082		3487
7081	7083		(B) with respect to a creditor not known to the settlor, 120 days after the date on
7082	7084		3488
7083	7085		which notice of the transfer is first published in a newspaper of general
7084	7086		3489
7085	7087		circulation in the county in which the settlor then resides, or is published on a
7086	7088		3490
7087	7089		public legal notice website as defined in Section 45-1-101, which notice shall
7088	7090		3491
7089	7091		state the name of the settlor or the settlor's representative, the address of the
7090	7092		3492
7091	7093		settlor or the settlor's representative, the name of the trustee or the trustee's
7092	7094		3493
7093	7095		representative, the address of the trustee or the trustee's representative, and also
7094	7096		3494
7095	7097		describe the assets that were transferred, but does not need to state the value of
7096	7098		3495
7097	7099		those assets.
7098		-	- 103 - S.B. 100 Enrolled Copy
7099	7100		3496
7100	7101		(8)(a) The notice required in Subsection (7)(c)(ii)(B) shall be published in accordance
	7102	+	- 103 - 1st Sub. (Green) S.B. 100 02-07 14:26
7101	7103		3497
7102	7104		with the provisions of Section 45-1-101 for three consecutive weeks and inform
7103	7105		3498
7104	7106		creditors that they are required to bring a cause of action or claim for relief within
7105	7107		3499
7106	7108		120 days from the first publication of the notice or be forever barred.
7107	7109		3500
7108	7110		(b) Failure to give the notice required in Subsection (7)(c)(ii) to a creditor does not
7109	7111		3501
7110	7112		prevent the shortening of the limitations period under Subsection (7)(c)(ii) with
7111	7113		3502
7112	7114		respect to another creditor who properly received notice by mail or publication.
7113	7115		3503
7114	7116		(9)(a) A trust is subject to this section if it is governed by Utah law, as provided in
7115	7117		3504
7116	7118		Section [75-7-107] 75B-2-107, and if it otherwise meets the requirements of this
7117	7119		3505
7118	7120		section.
7119	7121		3506
7120	7122		(b) A court of this state has exclusive jurisdiction over an action or claim for relief that
7121	7123		3507
7122	7124		is based on a transfer of property to a trust that is the subject of this section.
7123	7125		3508
7124	7126		(10)(a) With respect to a trust that is subject to this section, a claim brought by a creditor
7125	7127		3509
7126	7128		of a beneficiary who is not the settlor is subject to [Section 75-7-501 et. seq] Chapter
7127	7129		3510
7128	7130		2, Part 5, Spendthrift and Discretionary Trusts.
7129	7131		3511
7130	7132		(b) With respect to an irrevocable trust that is not subject to this section, a claim brought
7131	7133		3512
7132	7134		by a creditor of a beneficiary who is the settlor is subject to the provisions of
7133	7135		3513
7134	7136		Subsection [75-7-505(2)] 75B-2-505(2).
7135	7137		3514
7136	7138		(11) If a provision in this section conflicts with a provision in Sections 25-6-101 through
7137	7139		3515
7138	7140		25-6-407, the provision of this section shall supersede the conflicting provision in
7139	7141		3516
7140	7142		Sections 25-6-101 through 25-6-407.
7141	7143		3517
7142	7144		(12) Nothing in this section alters rights vested or created under this section before May 14,
7143	7145		3518
7144	7146		2019.
7145	7147		3519
7146	7148		Section 74. Section 75B-2-101 is enacted to read:
7147	7149		3520
7148	7150
7149	7151		CHAPTER 2. UNIFORM TRUST CODE
7150	7152		3521
7151	7153
7152	7154		Part 1. General Provisions
7153	7155		3522
7154	7156		75B-2-101 . Reserved.
7155	7157		3523
7156	7158		Reserved.
7157	7159		3524
7158	7160		Section 75. Section 75B-2-102, which is renumbered from Section 75-7-102 is renumbered
7159	7161		3525
7160	7162		and amended to read:
7161	7163		3526
7162	7164		[75-7-102] 75B-2-102 . Scope.
7163	7165		3527
7164	7166		This chapter applies to [trusts as defined in Section 75-1-201] a trust.
7165	7167		3528
7166	7168		Section 76. Section 75B-2-103, which is renumbered from Section 75-7-103 is renumbered
7167		-	- 104 - Enrolled Copy S.B. 100
7168	7169		3529
7169	7170		and amended to read:
	7171	+	- 104 - 02-07 14:26 1st Sub. (Green) S.B. 100
7170	7172		3530
7171		-	[75-7-103] 75B-2-103 . Definitions ~~for chapter~~.
	7173	+	[75-7-103] 75B-2-103 . Definitions.
7172	7174		3531
7173	7175		[(1) In] As used in this chapter:
7174	7176		3532
7175	7177		[(a)] (1) "Action," with respect to an act of a trustee, includes a failure to act.
7176	7178		3533
7177	7179		[(b) "Beneficiary" means a person that:]
7178	7180		3534
7179	7181		[(i) has a present or future beneficial interest in a trust, vested or contingent; or]
7180	7182		3535
7181	7183		[(ii) in a capacity other than that of trustee, holds a power of appointment over trust
7182	7184		3536
7183	7185		property.]
7184	7186		3537
7185	7187		[(c)] (2) "Charitable trust" means a trust, or portion of a trust, created for a charitable
7186	7188		3538
7187	7189		purpose described in Subsection [75-7-405(1)] 75B-2-405(1).
7188	7190		3539
7189	7191		[(d)] (3) "Environmental law" means a federal, state, or local law, rule, regulation, or
7190	7192		3540
7191	7193		ordinance relating to protection of the environment.
7192	7194		3541
7193	7195		[(e)] (4) "Interests of the beneficiaries" means the beneficial interests provided in the terms
7194	7196		3542
7195	7197		of the trust.
7196	7198		3543
7197	7199		[(f)] (5) "Jurisdiction," with respect to a geographic area, includes a state or country.
7198	7200		3544
7199	7201		[(g)] (6) "Power of withdrawal" means a presently exercisable general power of
7200	7202		3545
7201	7203		appointment other than a power exercisable only upon consent of the trustee or a person
7202	7204		3546
7203	7205		holding an adverse interest.
7204	7206		3547
7205	7207		(7) "Proceeding" means the same as that term is defined in Section 75-1-201.
7206	7208		3548
7207	7209		[(h)] (8) "Qualified beneficiary" means a beneficiary who, on the date the beneficiary's
7208	7210		3549
7209	7211		qualification is determined:
7210	7212		3550
7211	7213		[(i)] (a) is a current distributee or permissible distributee of trust income or principal; or
7212	7214		3551
7213	7215		[(ii)] (b) would be a distributee or permissible distributee of trust income or principal if
7214	7216		3552
7215	7217		the trust terminated on that date.
7216	7218		3553
7217	7219		[(i)] (9) "Resident estate" or "resident trust"means:
7218	7220		3554
7219	7221		[(i)] (a) an estate of a decedent who at death was domiciled in this state;
7220	7222		3555
7221	7223		[(ii)] (b) a trust, or a portion of a trust, consisting of property transferred by will of a
7222	7224		3556
7223	7225		decedent who at [his] the time of the decedent's death was domiciled in this state; or
7224	7226		3557
7225	7227		[(iii)] (c) a trust administered in this state.
7226	7228		3558
7227	7229		[(j)] (10) "Revocable," as applied to a trust, means revocable by the settlor without the
7228	7230		3559
7229	7231		consent of the trustee or a person holding an adverse interest.
7230	7232		3560
7231	7233		[(k) "Settlor" means a person, including a testator, who creates, or contributes property
7232	7234		3561
7233	7235		to, a trust. If more than one person creates or contributes property to a trust, each
7234	7236		3562
7235	7237		person is a settlor of the portion of the trust property attributable to that person's
7236		-	- 105 - S.B. 100 Enrolled Copy
7237	7238		3563
7238	7239		contribution except to the extent another person has the power to revoke or withdraw
	7240	+	- 105 - 1st Sub. (Green) S.B. 100 02-07 14:26
7239	7241		3564
7240	7242		that portion.]
7241	7243		3565
7242	7244		[(l)] (11) "Spendthrift provision" means a term of a trust which restrains both voluntary and
7243	7245		3566
7244	7246		involuntary transfer or encumbrance of a beneficiary's interest.
7245	7247		3567
7246	7248		[(m)] (12) "Terms of a trust" means:
7247	7249		3568
7248	7250		[(i)] (a) except as otherwise provided in Subsection [(1)(m)(ii)] (12)(b), the manifestation
7249	7251		3569
7250	7252		of the settlor's intent regarding a trust's provisions as:
7251	7253		3570
7252	7254		[(A)] (i) expressed in the trust instrument; or
7253	7255		3571
7254	7256		[(B)] (ii) established by other evidence that would be admissible in a judicial
7255	7257		3572
7256	7258		proceeding; or
7257	7259		3573
7258	7260		[(ii)] (b) the trust's provisions as established, determined, or amended by:
7259	7261		3574
7260	7262		[(A)] (i) a trustee or trust director in accordance with the applicable law;
7261	7263		3575
7262	7264		[(B)] (ii) court order; or
7263	7265		3576
7264	7266		[(C)] (iii) a nonjudicial settlement agreement under Section [75-7-110] 75B-2-110.
7265	7267		3577
7266	7268		[(n) "Trust instrument" means an instrument executed by the settlor that contains terms
7267	7269		3578
7268	7270		of the trust, including any amendments thereto.]
7269	7271		3579
7270	7272		[(2) Terms not specifically defined in this section have the meanings provided in Section
7271	7273		3580
7272	7274		75-1-201.]
7273	7275		3581
7274	7276		Section 77. Section 75B-2-104, which is renumbered from Section 75-7-104 is renumbered
7275	7277		3582
7276	7278		and amended to read:
7277	7279		3583
7278	7280		[75-7-104] 75B-2-104 . Knowledge.
7279	7281		3584
7280	7282		(1) Subject to Subsection (2), a person has knowledge of a fact if the person:
7281	7283		3585
7282	7284		(a) has actual knowledge of [it] the fact;
7283	7285		3586
7284	7286		(b) has received a notice or notification of [it] the fact; or
7285	7287		3587
7286	7288		(c) from all the facts and circumstances known to the person at the time in question, has
7287	7289		3588
7288	7290		reason to know [it] the fact.
7289	7291		3589
7290	7292		(2)(a) An organization that conducts activities through employees has notice or
7291	7293		3590
7292	7294		knowledge of a fact involving a trust only from the time the information was received
7293	7295		3591
7294	7296		by an employee having responsibility to act for the trust, or would have been brought
7295	7297		3592
7296	7298		to the employee's attention if the organization had exercised reasonable diligence.
7297	7299		3593
7298	7300		(b) An organization exercises reasonable diligence if [it] the organization maintains
7299	7301		3594
7300	7302		reasonable routines for communicating significant information to the employee
7301	7303		3595
7302	7304		having responsibility to act for the trust and there is reasonable compliance with the
7303	7305		3596
7304	7306		routines.
7305		-	- 106 - Enrolled Copy S.B. 100
7306	7307		3597
7307	7308		(c) Reasonable diligence does not require an employee of the organization to
	7309	+	- 106 - 02-07 14:26 1st Sub. (Green) S.B. 100
7308	7310		3598
7309	7311		communicate information unless the communication is part of the individual's regular
7310	7312		3599
7311	7313		duties or the individual knows a matter involving the trust would be materially
7312	7314		3600
7313	7315		affected by the information.
7314	7316		3601
7315	7317		Section 78. Section 75B-2-105, which is renumbered from Section 75-7-105 is renumbered
7316	7318		3602
7317	7319		and amended to read:
7318	7320		3603
7319	7321		[75-7-105] 75B-2-105 . Default and mandatory rules.
7320	7322		3604
7321	7323		(1) Except as otherwise provided in the terms of the trust, this chapter governs the duties
7322	7324		3605
7323	7325		and powers of a trustee, relations among trustees, and the rights and interests of a
7324	7326		3606
7325	7327		beneficiary.
7326	7328		3607
7327	7329		(2) Except as specifically provided in this chapter, the terms of a trust prevail over any
7328	7330		3608
7329	7331		provision of this chapter except:
7330	7332		3609
7331	7333		(a) the requirements for creating a trust;
7332	7334		3610
7333	7335		(b) subject to Sections [75-12-109, 75-12-111, and 75-12-112] 75B-3-109, 75B-3-111,
7334	7336		3611
7335	7337		and 75B-3-112, the duty of a trustee to act in good faith and in accordance with the
7336	7338		3612
7337	7339		purposes of the trust;
7338	7340		3613
7339	7341		(c) the requirement that a trust and the terms of the trust be for the benefit of the trust's
7340	7342		3614
7341	7343		beneficiaries;
7342	7344		3615
7343	7345		(d) the power of the court to modify or terminate a trust under Sections [75-7-410
7344	7346		3616
7345	7347		through 75-7-416] 75B-2-410 through 75B-2-416;
7346	7348		3617
7347	7349		(e) the effect of a spendthrift provision, [Section 75B-1-302] an asset protection trust
7348	7350		3618
7349	7351		described in Chapter 1, Part 3, Asset Protection Trust, and the rights of certain
7350	7352		3619
7351	7353		creditors and assignees to reach a trust as provided in Part 5, [Creditor's Claims - ]
7352	7354		3620
7353	7355		Spendthrift and Discretionary Trusts;
7354	7356		3621
7355	7357		(f) the power of the court under Section [75-7-702] 75B-2-702 to require, dispense with,
7356	7358		3622
7357	7359		or modify or terminate a bond;
7358	7360		3623
7359	7361		(g) the effect of an exculpatory term under Section [75-7-1008] 75B-2-1008;
7360	7362		3624
7361	7363		(h) the rights under Sections [75-7-1010 through 75-7-1013] 75B-2-1010 through
7362	7364		3625
7363	7365		75B-2-1013 of a person other than a trustee or beneficiary;
7364	7366		3626
7365	7367		(i) periods of limitation for commencing a judicial proceeding; and
7366	7368		3627
7367	7369		(j) the jurisdiction and venue requirements for an action involving a trust as described in
7368	7370		3628
7369	7371		Sections [75-7-203 and 75-7-205] 75B-2-203 and 75B-2-205.
7370	7372		3629
7371	7373		Section 79. Section 75B-2-106, which is renumbered from Section 75-7-106 is renumbered
7372	7374		3630
7373	7375		and amended to read:
7374		-	- 107 - S.B. 100 Enrolled Copy
7375	7376		3631
7376	7377		[75-7-106] 75B-2-106 . Common law of trusts -- Principles of equity.
	7378	+	- 107 - 1st Sub. (Green) S.B. 100 02-07 14:26
7377	7379		3632
7378	7380		The common law of trusts and principles of equity supplement this chapter, except to the
7379	7381		3633
7380	7382		extent modified by this chapter or laws of this state.
7381	7383		3634
7382	7384		Section 80. Section 75B-2-107, which is renumbered from Section 75-7-107 is renumbered
7383	7385		3635
7384	7386		and amended to read:
7385	7387		3636
7386	7388		[75-7-107] 75B-2-107 . Governing law.
7387	7389		3637
7388	7390		(1) As used in this section:
7389	7391		3638
7390	7392		(a) "Foreign trust" means a trust that is created in another state or country and valid in
7391	7393		3639
7392	7394		the state or country in which the trust is created.
7393	7395		3640
7394	7396		(b) "State law provision" means a provision that the laws of a named state govern the
7395	7397		3641
7396	7398		validity, construction, and administration of a trust.
7397	7399		3642
7398	7400		(2) If a trust has a state law provision specifying this state, the validity, construction, and
7399	7401		3643
7400	7402		administration of the trust are to be governed by the laws of this state if any
7401	7403		3644
7402	7404		administration of the trust is done in this state.
7403	7405		3645
7404	7406		(3) For all trusts created on or after December 31, 2003, if a trust does not have a state law
7405	7407		3646
7406	7408		provision, the validity, construction, and administration of the trust are to be governed
7407	7409		3647
7408	7410		by the laws of this state if the trust is administered in this state.
7409	7411		3648
7410	7412		(4) A trust shall be considered to be administered in this state if:
7411	7413		3649
7412	7414		(a) the trust states that this state is the place of administration, and any administration of
7413	7415		3650
7414	7416		the trust is done in this state; or
7415	7417		3651
7416	7418		(b) the place of business where the fiduciary transacts a major portion of [its] the
7417	7419		3652
7418	7420		fiduciary's administration of the trust is in this state.
7419	7421		3653
7420	7422		(5) If a foreign trust is administered in this state as provided in this section, the following
7421	7423		3654
7422	7424		provisions are effective and enforceable under the laws of this state:
7423	7425		3655
7424	7426		(a) a provision in the trust that restricts the transfer of trust assets in a manner similar to
7425	7427		3656
7426	7428		Section 75B-1-302;
7427	7429		3657
7428	7430		(b) a provision that allows the trust to be perpetual; or
7429	7431		3658
7430	7432		(c) a provision that is not expressly prohibited by the law of this state.
7431	7433		3659
7432	7434		(6) A foreign trust that moves [its] the foreign trust's administration to this state is valid
7433	7435		3660
7434	7436		whether or not the trust complied with the laws of this state at the time of the trust's
7435	7437		3661
7436	7438		creation or after the trust's creation.
7437	7439		3662
7438	7440		(7) Unless otherwise designated in the trust instrument, a trust is administered in this state if [
7439	7441		3663
7440	7442		it] the trust meets the requirements of Subsection (4).
7441	7443		3664
7442	7444		Section 81. Section 75B-2-108, which is renumbered from Section 75-7-108 is renumbered
7443		-	- 108 - Enrolled Copy S.B. 100
7444	7445		3665
7445	7446		and amended to read:
	7447	+	- 108 - 02-07 14:26 1st Sub. (Green) S.B. 100
7446	7448		3666
7447	7449		[75-7-108] 75B-2-108 . Principal place of administration.
7448	7450		3667
7449	7451		(1) Without precluding other means for establishing a sufficient connection with the
7450	7452		3668
7451	7453		designated jurisdiction, the terms of a trust designating the principal place of
7452	7454		3669
7453	7455		administration are valid and controlling if:
7454	7456		3670
7455	7457		(a) a trustee's principal place of business is located in or a trustee is a resident of the
7456	7458		3671
7457	7459		designated jurisdiction; or
7458	7460		3672
7459	7461		(b) all or part of the administration occurs in the designated jurisdiction.
7460	7462		3673
7461	7463		(2) A trustee is under a continuing duty to administer the trust at a place appropriate to [its]
7462	7464		3674
7463	7465		the trust's purposes, [its] the trust's administration, and the interests of the beneficiaries.
7464	7466		3675
7465	7467		(3) Without precluding the right of the court to order, approve, or disapprove a transfer, the
7466	7468		3676
7467	7469		trustee, in furtherance of the duty prescribed by Subsection (2), may transfer the trust's
7468	7470		3677
7469	7471		principal place of administration to another state or to a jurisdiction outside of the
7470	7472		3678
7471	7473		United States.
7472	7474		3679
7473	7475		(4)(a) The trustee shall notify the qualified beneficiaries of a proposed transfer of a
7474	7476		3680
7475	7477		trust's principal place of administration not less than 60 days before initiating the
7476	7478		3681
7477	7479		transfer.
7478	7480		3682
7479	7481		(b) The notice of proposed transfer must include:
7480	7482		3683
7481	7483		[(a)] (i) the name of the jurisdiction to which the principal place of administration is
7482	7484		3684
7483	7485		to be transferred;
7484	7486		3685
7485	7487		[(b)] (ii) the address and telephone number at the new location at which the trustee
7486	7488		3686
7487	7489		can be contacted;
7488	7490		3687
7489	7491		[(c)] (iii) an explanation of the reasons for the proposed transfer;
7490	7492		3688
7491	7493		[(d)] (iv) the date on which the proposed transfer is anticipated to occur; and
7492	7494		3689
7493	7495		[(e)] (v) the date, not less than 60 days after the giving of the notice, by which the
7494	7496		3690
7495	7497		qualified beneficiary must notify the trustee of an objection to the proposed
7496	7498		3691
7497	7499		transfer.
7498	7500		3692
7499	7501		(5) The authority of a trustee under this section to transfer a trust's principal place of
7500	7502		3693
7501	7503		administration terminates if a qualified beneficiary notifies the trustee of an objection to
7502	7504		3694
7503	7505		the proposed transfer on or before the date specified in the notice.
7504	7506		3695
7505	7507		(6) In connection with a transfer of the trust's principal place of administration, the trustee
7506	7508		3696
7507	7509		may transfer some or all of the trust property to a successor trustee designated in the
7508	7510		3697
7509	7511		terms of the trust or appointed [pursuant to Section 75-7-704] in accordance with Section
7510	7512		3698
7511	7513		75B-2-704.
7512		-	- 109 - S.B. 100 Enrolled Copy
7513	7514		3699
7514	7515		Section 82. Section 75B-2-109, which is renumbered from Section 75-7-109 is renumbered
	7516	+	- 109 - 1st Sub. (Green) S.B. 100 02-07 14:26
7515	7517		3700
7516	7518		and amended to read:
7517	7519		3701
7518	7520		[75-7-109] 75B-2-109 . Methods and waiver of notice.
7519	7521		3702
7520	7522		(1)(a) Notice to a person under this chapter or the sending of a document to a person
7521	7523		3703
7522	7524		under this chapter must be accomplished in a manner reasonably suitable under the
7523	7525		3704
7524	7526		circumstances and likely to result in receipt of the notice or document.
7525	7527		3705
7526	7528		(b) Permissible methods of notice or for sending a document include first-class mail,
7527	7529		3706
7528	7530		personal delivery, delivery to the person's last known place of residence or place of
7529	7531		3707
7530	7532		business, or a properly directed electronic message.
7531	7533		3708
7532	7534		(2) Notice under this chapter or the sending of a document under this chapter may be
7533	7535		3709
7534	7536		waived by the person to be notified or sent the document.
7535	7537		3710
7536	7538		(3) Notice of a judicial proceeding must be given [as provided in the applicable rules of
7537	7539		3711
7538	7540		civil procedure] in accordance with the Utah Rules of Civil Procedure.
7539	7541		3712
7540	7542		Section 83. Section 75B-2-110, which is renumbered from Section 75-7-110 is renumbered
7541	7543		3713
7542	7544		and amended to read:
7543	7545		3714
7544	7546		[75-7-110] 75B-2-110 . Nonjudicial settlement agreements.
7545	7547		3715
7546	7548		(1) [For purposes of ] As used in this section, ["interested persons" means persons]
7547	7549		3716
7548	7550		"interested person" means a person whose consent would be required in order to achieve
7549	7551		3717
7550	7552		a binding settlement were the settlement to be approved by the court.
7551	7553		3718
7552	7554		(2) Except as otherwise provided in Subsection (3), [interested persons] an interested person
7553	7555		3719
7554	7556		may enter into a binding nonjudicial settlement agreement with respect to any matter
7555	7557		3720
7556	7558		involving a trust.
7557	7559		3721
7558	7560		(3) A nonjudicial settlement agreement is valid only to the extent [it] that the nonjudicial
7559	7561		3722
7560	7562		settlement agreement does not violate a material purpose of the trust and includes terms
7561	7563		3723
7562	7564		and conditions that could be properly approved by the court under this chapter or other
7563	7565		3724
7564	7566		applicable law.
7565	7567		3725
7566	7568		(4) Matters that may be resolved by a nonjudicial settlement agreement include:
7567	7569		3726
7568	7570		(a) the interpretation or construction of the terms of the trust;
7569	7571		3727
7570	7572		(b) the approval of a trustee's report or accounting;
7571	7573		3728
7572	7574		(c) direction to a trustee to refrain from performing a particular act or the grant to a
7573	7575		3729
7574	7576		trustee of any necessary or desirable power;
7575	7577		3730
7576	7578		(d) the resignation or appointment of a trustee and the determination of a trustee's
7577	7579		3731
7578	7580		compensation;
7579	7581		3732
7580	7582		(e) transfer of a trust's principal place of administration; and
7581		-	- 110 - Enrolled Copy S.B. 100
7582	7583		3733
7583	7584		(f) liability of a trustee for an action relating to the trust.
	7585	+	- 110 - 02-07 14:26 1st Sub. (Green) S.B. 100
7584	7586		3734
7585	7587		(5) Any interested person may request the court to approve a nonjudicial settlement
7586	7588		3735
7587	7589		agreement, to determine whether the representation as provided in Part 3, Representation,
7588	7590		3736
7589	7591		was adequate, and to determine whether the agreement contains terms and conditions the
7590	7592		3737
7591	7593		court could have properly approved.
7592	7594		3738
7593	7595		Section 84. Section 75B-2-111, which is renumbered from Section 75-7-111 is renumbered
7594	7596		3739
7595	7597		and amended to read:
7596	7598		3740
7597	7599		[75-7-111] 75B-2-111 . Rules of construction.
7598	7600		3741
7599	7601		The rules of construction that apply to the interpretation of and disposition of property
7600	7602		3742
7601	7603		by will or other governing instrument[, as defined in Section 75-1-201,] also apply as
7602	7604		3743
7603	7605		appropriate to the interpretation of the terms of a trust and the disposition of the trust property.
7604	7606		3744
7605	7607		Section 85. Section 75B-2-112, which is renumbered from Section 75-7-112 is renumbered
7606	7608		3745
7607	7609		and amended to read:
7608	7610		3746
7609	7611		[75-7-112] 75B-2-112 . Penalty provisions.
7610	7612		3747
7611	7613		A provision in a trust instrument purporting to penalize a beneficiary by charging the
7612	7614		3748
7613	7615		beneficiary's interest in the trust, or to penalize the beneficiary in another manner, for
7614	7616		3749
7615	7617		instituting a proceeding to challenge the acts of the trustee or other fiduciary of a trust, or for
7616	7618		3750
7617	7619		instituting other proceedings relating to the trust is unenforceable if probable cause exists for
7618	7620		3751
7619	7621		instituting the proceedings.
7620	7622		3752
7621	7623		Section 86. Section 75B-2-113, which is renumbered from Section 75-7-1201 is renumbered
7622	7624		3753
7623	7625		and amended to read:
7624	7626		3754
7625	7627		[75-7-1201] 75B-2-113 . Foreign trustees.
7626	7628		3755
7627	7629		(1) A foreign corporate trustee is required to qualify as a foreign corporation doing business
7628	7630		3756
7629	7631		in this state if [it] the foreign corporate trustee maintains the principal place of
7630	7632		3757
7631	7633		administration of any trust within the state.
7632	7634		3758
7633	7635		(2) A foreign corporate cotrustee is not required to qualify in this state solely because [its]
7634	7636		3759
7635	7637		the other foreign corporate cotrustee maintains the principal place of administration in
7636	7638		3760
7637	7639		this state.
7638	7640		3761
7639	7641		(3) Unless otherwise doing business in this state, local qualification by a foreign corporate
7640	7642		3762
7641	7643		trustee is not required in order for the trustee to receive distribution from a local estate or
7642	7644		3763
7643	7645		to hold, invest in, manage, or acquire property located in this state, or maintain litigation
7644	7646		3764
7645	7647		if the state of the principal place of business of the foreign corporate trustee provides
7646	7648		3765
7647	7649		substantially similar provisions applicable to trustees from this state.
7648	7650		3766
7649	7651		(4) Local qualification by a foreign trustee other than a corporation is not required in order
7650		-	- 111 - S.B. 100 Enrolled Copy
7651	7652		3767
7652	7653		for the trustee to receive distribution from a local estate or to hold, invest in, manage, or
	7654	+	- 111 - 1st Sub. (Green) S.B. 100 02-07 14:26
7653	7655		3768
7654	7656		acquire property located in this state or maintain litigation.
7655	7657		3769
7656	7658		(5) Nothing in this section affects a determination of what other acts require qualification as
7657	7659		3770
7658	7660		doing business in this state.
7659	7661		3771
7660	7662		Section 87. Section 75B-2-201, which is renumbered from Section 75-7-201 is renumbered
7661	7663		3772
7662	7664		and amended to read:
7663	7665		3773
7664	7666
7665	7667		Part 2. Jurisdiction and Venue for Trusts
7666	7668		3774
7667	7669		[75-7-201] 75B-2-201 . Court -- Exclusive jurisdiction of trusts.
7668	7670		3775
7669	7671		(1)(a) The court has exclusive jurisdiction [of proceedings initiated by interested parties]
7670	7672		3776
7671	7673		over proceedings initiated by an interested party concerning the internal affairs of
7672	7674		3777
7673	7675		trusts.
7674	7676		3778
7675	7677		(b) [Proceedings which may be maintained under this section are those concerning] An
7676	7678		3779
7677	7679		interested party may bring proceedings under Subsection (1)(a) concerning:
7678	7680		3780
7679	7681		(i) the administration and distribution of trusts;
7680	7682		3781
7681	7683		(ii) the declaration of rights; and
7682	7684		3782
7683	7685		(iii) the determination of other matters involving trustees and beneficiaries of trusts.
7684	7686		3783
7685	7687		(c) [These include, but are not limited to proceedings] A proceeding under Subsection (1)
7686	7688		3784
7687	7689		includes a proceeding to:
7688	7690		3785
7689	7691		(i) appoint or remove a trustee;
7690	7692		3786
7691	7693		(ii) review a trustee's fees;
7692	7694		3787
7693	7695		(iii) review and settle interim or final accounts;
7694	7696		3788
7695	7697		(iv) ascertain beneficiaries;
7696	7698		3789
7697	7699		(v) determine any question arising in the administration or distribution of any trust,
7698	7700		3790
7699	7701		including questions of construction of trust instruments;
7700	7702		3791
7701	7703		(vi) instruct trustees;
7702	7704		3792
7703	7705		(vii) determine the existence or nonexistence of any immunity, power, privilege,
7704	7706		3793
7705	7707		duty, or right; [and] or
7706	7708		3794
7707	7709		(viii) order transfer of administration of the trust to another state upon appropriate
7708	7710		3795
7709	7711		conditions as may be determined by the court or accept transfer of administration
7710	7712		3796
7711	7713		of a trust from another state to this state upon such conditions as may be imposed
7712	7714		3797
7713	7715		by the supervising court of the other state, unless the court in this state determines
7714	7716		3798
7715	7717		that these conditions are incompatible with its own rules and procedures.
7716	7718		3799
7717	7719		(2)(a) A proceeding under this section does not result in continuing supervision by the
7718	7720		3800
7719	7721		court over the administration of the trust.
7720		-	- 112 - Enrolled Copy S.B. 100
7721	7722		3801
7722	7723		(b) The management and distribution of a trust estate, submission of accounts and
	7724	+	- 112 - 02-07 14:26 1st Sub. (Green) S.B. 100
7723	7725		3802
7724	7726		reports to beneficiaries, payment of trustee's fees and other obligations of a trust,
7725	7727		3803
7726	7728		acceptance and change of trusteeship, and other aspects of the administration of a
7727	7729		3804
7728	7730		trust shall proceed expeditiously consistent with the terms of the trust, free of judicial
7729	7731		3805
7730	7732		intervention and without order, approval or other action of any court, subject to the
7731	7733		3806
7732	7734		jurisdiction of the court as invoked by interested parties or as otherwise exercised as
7733	7735		3807
7734	7736		provided by law.
7735	7737		3808
7736	7738		Section 88. Section 75B-2-202, which is renumbered from Section 75-7-202 is renumbered
7737	7739		3809
7738	7740		and amended to read:
7739	7741		3810
7740	7742		[75-7-202] 75B-2-202 . Effect of administration in this state -- Consent to
7741	7743		3811
7742	7744		jurisdiction.
7743	7745		3812
7744	7746		(1) The trustee submits personally to the jurisdiction of the courts of this state regarding any
7745	7747		3813
7746	7748		matter involving the trust if [ ]the trustee acts as trustee of a trust administered in this
7747	7749		3814
7748	7750		state.
7749	7751		3815
7750	7752		(2)(a) To the extent of the beneficial interests in a trust administered in this state, the
7751	7753		3816
7752	7754		beneficiaries of the trust are subject to the jurisdiction of the courts of this state
7753	7755		3817
7754	7756		regarding any matter involving the trust.
7755	7757		3818
7756	7758		(b) By accepting a distribution from such a trust, the recipient submits personally to the
7757	7759		3819
7758	7760		jurisdiction of the courts of this state regarding any matter involving the trust.
7759	7761		3820
7760	7762		(3) By accepting the delegation of a trust function from the trustee of a trust administered in
7761	7763		3821
7762	7764		this state, the agent submits to the jurisdiction of the courts of this state regarding any
7763	7765		3822
7764	7766		matter involving the trust.
7765	7767		3823
7766	7768		(4) Unless otherwise designated in the trust instrument, a trust is administered in this state if
7767	7769		3824
7768	7770		it meets the requirements of Subsection [75-7-107(4)] 75B-2-107(4).
7769	7771		3825
7770	7772		Section 89. Section 75B-2-203, which is renumbered from Section 75-7-203 is renumbered
7771	7773		3826
7772	7774		and amended to read:
7773	7775		3827
7774	7776		[75-7-203] 75B-2-203 . Jurisdiction over an action involving a trust.
7775	7777		3828
7776	7778		(1) A court of this state has jurisdiction as described in Title 78A, Judiciary and Judicial
7777	7779		3829
7778	7780		Administration, over an action involving a trust.
7779	7781		3830
7780	7782		(2) This section does not preclude judicial or nonjudicial alternative dispute resolution.
7781	7783		3831
7782	7784		Section 90. Section 75B-2-204, which is renumbered from Section 75-7-204 is renumbered
7783	7785		3832
7784	7786		and amended to read:
7785	7787		3833
7786	7788		[75-7-204] 75B-2-204 . Trust proceedings -- Dismissal of matters relating to
7787	7789		3834
7788	7790		foreign trusts.
7789		-	- 113 - S.B. 100 Enrolled Copy
7790	7791		3835
7791	7792		(1) The court may not, over the objection of a party, entertain proceedings under Section [
	7793	+	- 113 - 1st Sub. (Green) S.B. 100 02-07 14:26
7792	7794		3836
7793	7795		75-7-201] 75B-2-201 involving a trust [which] that:
7794	7796		3837
7795	7797		(a) is under the continuing supervision of a foreign court;
7796	7798		3838
7797	7799		(b) is registered in another state; or
7798	7800		3839
7799	7801		(c) has a fiduciary which transacts a major portion of its trust administration in another
7800	7802		3840
7801	7803		state.
7802	7804		3841
7803	7805		(2) Notwithstanding Subsection (1), the court may entertain a proceeding regarding any
7804	7806		3842
7805	7807		matter involving a trust if:
7806	7808		3843
7807	7809		(a) all appropriate parties could not be bound by litigation in the courts of the other state;
7808	7810		3844
7809	7811		or
7810	7812		3845
7811	7813		(b) the interests of justice would be seriously impaired.
7812	7814		3846
7813	7815		(3) The court may condition a stay or dismissal of a proceeding on the consent of any party
7814	7816		3847
7815	7817		to the jurisdiction of the courts of another state, or the court may grant a continuance or
7816	7818		3848
7817	7819		enter any other appropriate order.
7818	7820		3849
7819	7821		Section 91. Section 75B-2-205, which is renumbered from Section 75-7-205 is renumbered
7820	7822		3850
7821	7823		and amended to read:
7822	7824		3851
7823	7825		[75-7-205] 75B-2-205 . Venue for an action involving a trust.
7824	7826		3852
7825	7827		(1) Notwithstanding Title 78B, Chapter 3a, Venue for Civil Actions, and except as provided
7826	7828		3853
7827	7829		in Subsection (2), a person shall bring an action involving a trust[, if the action is
7828	7830		3854
7829	7831		brought in the district court,] in:
7830	7832		3855
7831	7833		(a) the county in which the trust's principal place of administration is or will be located;
7832	7834		3856
7833	7835		or
7834	7836		3857
7835	7837		(b) if the trust is created by a will and the estate is not yet closed, the county in which
7836	7838		3858
7837	7839		the decedent's estate is being administered.
7838	7840		3859
7839	7841		(2) Notwithstanding Title 78B, Chapter 3a, Venue for Civil Actions, and if a trust has no
7840	7842		3860
7841	7843		trustee, a person shall bring an action for the appointment of a trustee[, if the action is
7842	7844		3861
7843	7845		brought in the district court,] in:
7844	7846		3862
7845	7847		(a) a county of this state in which a beneficiary resides;
7846	7848		3863
7847	7849		(b) a county in which any trust property is located; or
7848	7850		3864
7849	7851		(c) if the trust is created by a will, the county in which the decedent's estate was or is
7850	7852		3865
7851	7853		being administered.
7852	7854		3866
7853	7855		(3) This section does not apply to an action brought in the Business and Chancery Court.
7854	7856		3867
7855	7857		Section 92. Section 75B-2-301, which is renumbered from Section 75-7-301 is renumbered
7856	7858		3868
7857	7859		and amended to read:
7858		-	- 114 - Enrolled Copy S.B. 100
7859	7860		3869
7860	7861
7861	7862		Part 3. Representation
	7863	+	- 114 - 02-07 14:26 1st Sub. (Green) S.B. 100
7862	7864		3870
7863	7865		[75-7-301] 75B-2-301 . Basic effect.
7864	7866		3871
7865	7867		(1) Notice to a person who may represent and bind another person under this part has the
7866	7868		3872
7867	7869		same effect as if notice were given directly to the other person.
7868	7870		3873
7869	7871		(2) The consent of a person who may represent and bind another person under this part is
7870	7872		3874
7871	7873		binding on the person represented unless the person represented objects to the
7872	7874		3875
7873	7875		representation before the consent would otherwise have become effective.
7874	7876		3876
7875	7877		(3) Except as otherwise provided in [Sections 75-7-411 and 75B-1-302] Section 75B-2-411
7876	7878		3877
7877	7879		and Chapter 1, Part 3, Asset Protection Trust, a person who under this part may
7878	7880		3878
7879	7881		represent a settlor who lacks capacity may receive notice and give a binding consent on
7880	7882		3879
7881	7883		the settlor's behalf.
7882	7884		3880
7883	7885		Section 93. Section 75B-2-302, which is renumbered from Section 75-7-302 is renumbered
7884	7886		3881
7885	7887		and amended to read:
7886	7888		3882
7887	7889		[75-7-302] 75B-2-302 . Representation by holder of general testamentary power
7888	7890		3883
7889	7891		of appointment.
7890	7892		3884
7891	7893		To the extent there is no conflict of interest between the holder of a general testamentary
7892	7894		3885
7893	7895		power of appointment and the persons represented with respect to the particular question or
7894	7896		3886
7895	7897		dispute, the holder may represent and bind persons whose interests, as permissible appointees,
7896	7898		3887
7897	7899		takers in default, or otherwise, are subject to the power.
7898	7900		3888
7899	7901		Section 94. Section 75B-2-303, which is renumbered from Section 75-7-303 is renumbered
7900	7902		3889
7901	7903		and amended to read:
7902	7904		3890
7903	7905		[75-7-303] 75B-2-303 . Representation by fiduciaries and parents.
7904	7906		3891
7905	7907		To the extent there is no conflict of interest between the representative and the person
7906	7908		3892
7907	7909		represented or among those being represented with respect to a particular question or dispute:
7908	7910		3893
7909	7911		(1) a conservator may represent and bind the protected person whose estate the conservator
7910	7912		3894
7911	7913		controls;
7912	7914		3895
7913	7915		(2) a guardian may represent and bind the ward if a conservator of the ward's estate has not
7914	7916		3896
7915	7917		been appointed;
7916	7918		3897
7917	7919		(3) an agent having authority to act with respect to the particular question or dispute may
7918	7920		3898
7919	7921		represent and bind the principal;
7920	7922		3899
7921	7923		(4) a trustee may represent and bind the beneficiaries of the trust;
7922	7924		3900
7923	7925		(5) a personal representative of a decedent's estate may represent and bind persons
7924	7926		3901
7925	7927		interested in the estate; and
7926	7928		3902
7927	7929		(6) a parent may represent and bind the parent's minor or unborn child if a conservator or
7928		-	- 115 - S.B. 100 Enrolled Copy
7929	7930		3903
7930	7931		guardian for the child has not been appointed.
	7932	+	- 115 - 1st Sub. (Green) S.B. 100 02-07 14:26
7931	7933		3904
7932	7934		Section 95. Section 75B-2-304, which is renumbered from Section 75-7-304 is renumbered
7933	7935		3905
7934	7936		and amended to read:
7935	7937		3906
7936	7938		[75-7-304] 75B-2-304 . Representation by person having substantially identical
7937	7939		3907
7938	7940		interest.
7939	7941		3908
7940	7942		Unless otherwise represented, a minor, incapacitated, or unborn individual, or a person
7941	7943		3909
7942	7944		whose identity or location is unknown and not reasonably ascertainable, may be represented by
7943	7945		3910
7944	7946		and bound by another having a substantially identical interest with respect to the particular
7945	7947		3911
7946	7948		question or dispute, but only to the extent there is no conflict of interest between the
7947	7949		3912
7948	7950		representative and the person represented.
7949	7951		3913
7950	7952		Section 96. Section 75B-2-305, which is renumbered from Section 75-7-305 is renumbered
7951	7953		3914
7952	7954		and amended to read:
7953	7955		3915
7954	7956		[75-7-305] 75B-2-305 . Appointment of guardian ad litem or other representative.
7955	7957		3916
7956	7958		(1)(a) If the court determines that an interest is not represented under this part, or that
7957	7959		3917
7958	7960		the otherwise available representation might be inadequate, the court may appoint a
7959	7961		3918
7960	7962		guardian ad litem or other representative to receive notice, give consent, and
7961	7963		3919
7962	7964		otherwise represent, bind, and act on behalf of a minor, incapacitated or protected
7963	7965		3920
7964	7966		person, or unborn individual, or a person whose identity or location is unknown.
7965	7967		3921
7966	7968		(b) A guardian ad litem or other representative may be appointed to represent several
7967	7969		3922
7968	7970		persons or interests.
7969	7971		3923
7970	7972		(2) A guardian ad litem or other representative may act on behalf of the individual
7971	7973		3924
7972	7974		represented with respect to any matter arising under this chapter, whether or not a
7973	7975		3925
7974	7976		judicial proceeding concerning the trust is pending.
7975	7977		3926
7976	7978		(3) In making decisions, a guardian ad litem or other representative may consider general
7977	7979		3927
7978	7980		benefit accruing to the living members of the individual's family.
7979	7981		3928
7980	7982		Section 97. Section 75B-2-401, which is renumbered from Section 75-7-401 is renumbered
7981	7983		3929
7982	7984		and amended to read:
7983	7985		3930
7984	7986
7985	7987		Part 4. Creation, Validity, Modification, and Termination of a Trust
7986	7988		3931
7987	7989		[75-7-401] 75B-2-401 . Methods of creating trust.
7988	7990		3932
7989	7991		(1) A trust may be created by:
7990	7992		3933
7991	7993		(a) transfer of property to another person as trustee during the settlor's lifetime or by will
7992	7994		3934
7993	7995		or other disposition taking effect upon the settlor's death;
7994	7996		3935
7995	7997		(b) declaration by the owner of property that the owner holds identifiable property as
7996	7998		3936
7997	7999		trustee; or
7998		-	- 116 - Enrolled Copy S.B. 100
7999	8000		3937
8000	8001		(c) exercise of a power of appointment in favor of a trustee.
	8002	+	- 116 - 02-07 14:26 1st Sub. (Green) S.B. 100
8001	8003		3938
8002	8004		(2)(a) A health savings account is established on the first day an individual is covered by
8003	8005		3939
8004	8006		a high deductible health plan, as defined in Section 223 of the Internal Revenue
8005	8007		3940
8006	8008		Code.
8007	8009		3941
8008	8010		(b) The health savings account shall be opened with a trustee or custodian within the
8009	8011		3942
8010	8012		time prescribed by law, without extensions, for filing a federal income tax return for
8011	8013		3943
8012	8014		that year.
8013	8015		3944
8014	8016		(c) A health savings account is established regardless of a transfer of cash or other
8015	8017		3945
8016	8018		property to the account and, unless required by the trustee or custodian, it is not
8017	8019		3946
8018	8020		necessary for any party to sign a health savings account trust or custodial agreement
8019	8021		3947
8020	8022		regarding the health savings account.
8021	8023		3948
8022	8024		Section 98. Section 75B-2-402, which is renumbered from Section 75-7-402 is renumbered
8023	8025		3949
8024	8026		and amended to read:
8025	8027		3950
8026	8028		[75-7-402] 75B-2-402 . Requirements for creation.
8027	8029		3951
8028	8030		(1) A trust is created only if:
8029	8031		3952
8030	8032		(a) the settlor has capacity to create a trust, which standard of capacity shall be the same
8031	8033		3953
8032	8034		as for a person to create a will;
8033	8035		3954
8034	8036		(b) the settlor indicates an intention to create the trust or a statute, judgment, or decree
8035	8037		3955
8036	8038		authorizes the creation of a trust;
8037	8039		3956
8038	8040		(c) the trust has a definite beneficiary or is:
8039	8041		3957
8040	8042		(i) a charitable trust;
8041	8043		3958
8042	8044		(ii) a trust for the care of an animal, as provided in Section 75-2-1001; or
8043	8045		3959
8044	8046		(iii) a trust for a noncharitable purpose, as provided in Section 75-2-1001;
8045	8047		3960
8046	8048		(d) the trustee has duties to perform; and
8047	8049		3961
8048	8050		(e) the same person is not the sole trustee and sole beneficiary.
8049	8051		3962
8050	8052		(2) A beneficiary is definite if the beneficiary can be ascertained now or in the future,
8051	8053		3963
8052	8054		subject to any applicable rule against perpetuities.
8053	8055		3964
8054	8056		(3) A power in a trustee to select a beneficiary from an indefinite class is valid. If the
8055	8057		3965
8056	8058		power is not exercised within a reasonable time, the power fails and the property subject
8057	8059		3966
8058	8060		to the power passes to the persons who would have taken the property had the power not
8059	8061		3967
8060	8062		been conferred.
8061	8063		3968
8062	8064		Section 99. Section 75B-2-403, which is renumbered from Section 75-7-403 is renumbered
8063	8065		3969
8064	8066		and amended to read:
8065	8067		3970
8066	8068		[75-7-403] 75B-2-403 . Trusts created in other jurisdictions.
8067		-	- 117 - S.B. 100 Enrolled Copy
8068	8069		3971
8069	8070		A trust not created by will is validly created if its creation complies with the law of the
	8071	+	- 117 - 1st Sub. (Green) S.B. 100 02-07 14:26
8070	8072		3972
8071	8073		jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which,
8072	8074		3973
8073	8075		at the time of creation:
8074	8076		3974
8075	8077		(1) the settlor was domiciled, had a place of abode, or was a national;
8076	8078		3975
8077	8079		(2) a trustee was domiciled or had a place of business; or
8078	8080		3976
8079	8081		(3) any trust property was located.
8080	8082		3977
8081	8083		Section 100. Section 75B-2-404, which is renumbered from Section 75-7-404 is renumbered
8082	8084		3978
8083	8085		and amended to read:
8084	8086		3979
8085	8087		[75-7-404] 75B-2-404 . Trust purposes.
8086	8088		3980
8087	8089		(1) A trust may be created only to the extent [its] the trust's purposes are lawful, not
8088	8090		3981
8089	8091		contrary to public policy, and possible to achieve.
8090	8092		3982
8091	8093		(2) A trust and [its] the trust's terms must be for the benefit of [its] the trust's beneficiaries.
8092	8094		3983
8093	8095		Section 101. Section 75B-2-405, which is renumbered from Section 75-7-405 is renumbered
8094	8096		3984
8095	8097		and amended to read:
8096	8098		3985
8097	8099		[75-7-405] 75B-2-405 . Charitable purposes -- Enforcement.
8098	8100		3986
8099	8101		(1) A charitable trust may be created for the relief of poverty, the advancement of education
8100	8102		3987
8101	8103		or religion, the promotion of health, governmental or municipal purposes, or other
8102	8104		3988
8103	8105		purposes the achievement of which is beneficial to the community.
8104	8106		3989
8105	8107		(2)(a) If the terms of a charitable trust do not indicate a particular charitable purpose or
8106	8108		3990
8107	8109		beneficiary, the trustee, if authorized by the terms of the trust, or if not, the court may
8108	8110		3991
8109	8111		select one or more charitable purposes or beneficiaries.
8110	8112		3992
8111	8113		(b) The selection must be consistent with the settlor's intention to the extent [it] intent can
8112	8114		3993
8113	8115		be ascertained.
8114	8116		3994
8115	8117		(3) The settlor of a charitable trust, among others, may maintain a proceeding to enforce the
8116	8118		3995
8117	8119		trust.
8118	8120		3996
8119	8121		Section 102. Section 75B-2-406, which is renumbered from Section 75-7-406 is renumbered
8120	8122		3997
8121	8123		and amended to read:
8122	8124		3998
8123	8125		[75-7-406] 75B-2-406 . Creation of trust induced by fraud, duress, or undue
8124	8126		3999
8125	8127		influence.
8126	8128		4000
8127	8129		A trust is void to the extent [its] the trust's creation was induced by fraud, duress, or
8128	8130		4001
8129	8131		undue influence.
8130	8132		4002
8131	8133		Section 103. Section 75B-2-407, which is renumbered from Section 75-7-407 is renumbered
8132	8134		4003
8133	8135		and amended to read:
8134	8136		4004
8135	8137		[75-7-407] 75B-2-407 . Evidence of oral trust.
8136		-	- 118 - Enrolled Copy S.B. 100
8137	8138		4005
8138	8139		Except as required by a statute other than this chapter, a trust need not be evidenced by a
	8140	+	- 118 - 02-07 14:26 1st Sub. (Green) S.B. 100
8139	8141		4006
8140	8142		trust instrument, but the creation of an oral trust and [its] the trust's terms may be established
8141	8143		4007
8142	8144		only by clear and convincing evidence.
8143	8145		4008
8144	8146		Section 104. Section 75B-2-408, which is renumbered from Section 75-7-408 is renumbered
8145	8147		4009
8146	8148		and amended to read:
8147	8149		4010
8148	8150		[75-7-408] 75B-2-408 . Trust for care of animal.
8149	8151		4011
8150	8152		A trust may be created to provide for the care of a pet or animal as provided in Section
8151	8153		4012
8152	8154		75-2-1001.
8153	8155		4013
8154	8156		Section 105. Section 75B-2-409, which is renumbered from Section 75-7-409 is renumbered
8155	8157		4014
8156	8158		and amended to read:
8157	8159		4015
8158	8160		[75-7-409] 75B-2-409 . Noncharitable trust without ascertainable beneficiary.
8159	8161		4016
8160	8162		A trust may be created for a noncharitable purpose without a definite or definitely
8161	8163		4017
8162	8164		ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by
8163	8165		4018
8164	8166		the trustee as provided in Section 75-2-1001.
8165	8167		4019
8166	8168		Section 106. Section 75B-2-410, which is renumbered from Section 75-7-410 is renumbered
8167	8169		4020
8168	8170		and amended to read:
8169	8171		4021
8170	8172		[75-7-410] 75B-2-410 . Modification or termination of trust -- Proceedings for
8171	8173		4022
8172	8174		approval or disapproval.
8173	8175		4023
8174	8176		(1) In addition to the methods of termination prescribed by Sections [75-7-411 through
8175	8177		4024
8176	8178		75-7-414] 75B-2-411 through 78B-2-414, a trust terminates to the extent the trust is
8177	8179		4025
8178	8180		revoked or expires pursuant to [its] the trust's terms, no purpose of the trust remains to be
8179	8181		4026
8180	8182		achieved, or the purposes of the trust have become unlawful, contrary to public policy,
8181	8183		4027
8182	8184		or impossible to achieve.
8183	8185		4028
8184	8186		(2)(a) A proceeding to approve or disapprove a proposed modification or termination
8185	8187		4029
8186	8188		under Sections [75-7-411 through 75-7-416] 75B-2-411 through 78B-2-416, or trust
8187	8189		4030
8188	8190		combination or division under Section [75-7-417] 75B-2-417, may be commenced by
8189	8191		4031
8190	8192		a trustee or qualified beneficiary, and a proceeding to approve or disapprove a
8191	8193		4032
8192	8194		proposed modification or termination under Section [75-7-411] 75B-2-411 may be
8193	8195		4033
8194	8196		commenced by the settlor.
8195	8197		4034
8196	8198		(b) The settlor of a charitable trust may maintain a proceeding to modify the trust under
8197	8199		4035
8198	8200		Section [75-7-413] 75B-2-413.
8199	8201		4036
8200	8202		Section 107. Section 75B-2-411, which is renumbered from Section 75-7-411 is renumbered
8201	8203		4037
8202	8204		and amended to read:
8203	8205		4038
8204	8206		[75-7-411] 75B-2-411 . Modification or termination of noncharitable irrevocable
8205		-	- 119 - S.B. 100 Enrolled Copy
8206	8207		4039
8207	8208		trust by consent.
	8209	+	- 119 - 1st Sub. (Green) S.B. 100 02-07 14:26
8208	8210		4040
8209	8211		(1)(a) A noncharitable, irrevocable trust may be modified or terminated upon consent of
8210	8212		4041
8211	8213		the settlor and all beneficiaries, even if the modification or termination is inconsistent
8212	8214		4042
8213	8215		with a material purpose of the trust.
8214	8216		4043
8215	8217		(b) A settlor's power to consent to a trust's termination may be exercised by an agent
8216	8218		4044
8217	8219		under a power of attorney only to the extent expressly authorized by the power of
8218	8220		4045
8219	8221		attorney or the terms of the trust, by the settlor's conservator with the approval of the
8220	8222		4046
8221	8223		court supervising the conservatorship if an agent is not so authorized, or by the
8222	8224		4047
8223	8225		settlor's guardian with the approval of the court supervising the guardianship if an
8224	8226		4048
8225	8227		agent is not so authorized and a conservator has not been appointed.
8226	8228		4049
8227	8229		(2)(a) A noncharitable, irrevocable trust may be terminated upon consent of all of the
8228	8230		4050
8229	8231		beneficiaries if the court concludes that continuance of the trust is not necessary to
8230	8232		4051
8231	8233		achieve any material purpose of the trust.
8232	8234		4052
8233	8235		(b) A noncharitable, irrevocable trust may be modified upon consent of all of the
8234	8236		4053
8235	8237		beneficiaries if the court concludes that modification is not inconsistent with a
8236	8238		4054
8237	8239		material purpose of the trust.
8238	8240		4055
8239	8241		(3) A spendthrift provision in the terms of the trust is not presumed to constitute a material
8240	8242		4056
8241	8243		purpose of the trust.
8242	8244		4057
8243	8245		(4) Upon termination of a trust under Subsection (1) or (2), the trustee shall distribute the
8244	8246		4058
8245	8247		trust property as agreed by the beneficiaries.
8246	8248		4059
8247	8249		(5) If not all of the beneficiaries consent to a proposed modification or termination of the
8248	8250		4060
8249	8251		trust under Subsection (1) or (2), the modification or termination may be approved by
8250	8252		4061
8251	8253		the court if the court is satisfied that:
8252	8254		4062
8253	8255		(a) if all of the beneficiaries had consented, the trust could have been modified or
8254	8256		4063
8255	8257		terminated under this section; and
8256	8258		4064
8257	8259		(b) the interests of a beneficiary who does not consent will be adequately protected.
8258	8260		4065
8259	8261		Section 108. Section 75B-2-412, which is renumbered from Section 75-7-412 is renumbered
8260	8262		4066
8261	8263		and amended to read:
8262	8264		4067
8263	8265		[75-7-412] 75B-2-412 . Modification or termination because of unanticipated
8264	8266		4068
8265	8267		circumstances or inability to administer trust effectively.
8266	8268		4069
8267	8269		(1)(a) The court may modify the administrative or dispositive terms of a trust or
8268	8270		4070
8269	8271		terminate the trust if, because of circumstances not anticipated by the settlor,
8270	8272		4071
8271	8273		modification or termination will further the purposes of the trust.
8272	8274		4072
8273	8275		(b) To the extent practicable, the modification must be made in accordance with the
8274		-	- 120 - Enrolled Copy S.B. 100
8275	8276		4073
8276	8277		settlor's probable intention.
	8278	+	- 120 - 02-07 14:26 1st Sub. (Green) S.B. 100
8277	8279		4074
8278	8280		(2) The court may modify the administrative terms of a trust if continuation of the trust on [
8279	8281		4075
8280	8282		its] the trust's existing terms would be impracticable or wasteful or impair the trust's
8281	8283		4076
8282	8284		administration.
8283	8285		4077
8284	8286		(3) Upon termination of a trust under this section, the trustee shall distribute the trust
8285	8287		4078
8286	8288		property as directed by the court or otherwise in a manner consistent with the purposes
8287	8289		4079
8288	8290		of the trust.
8289	8291		4080
8290	8292		Section 109. Section 75B-2-413, which is renumbered from Section 75-7-413 is renumbered
8291	8293		4081
8292	8294		and amended to read:
8293	8295		4082
8294	8296		[75-7-413] 75B-2-413 . Cy pres.
8295	8297		4083
8296	8298		(1) Except as otherwise provided in Subsection (2), if a particular charitable purpose
8297	8299		4084
8298	8300		becomes unlawful, impracticable, impossible to achieve, or wasteful:
8299	8301		4085
8300	8302		(a) the trust does not fail, in whole or in part;
8301	8303		4086
8302	8304		(b) the trust property does not revert to the settlor or the settlor's successors in interest;
8303	8305		4087
8304	8306		and
8305	8307		4088
8306	8308		(c) the court may apply cy pres to modify or terminate the trust by directing that the trust
8307	8309		4089
8308	8310		property be applied or distributed, in whole or in part, in a manner consistent with the
8309	8311		4090
8310	8312		settlor's charitable purposes.
8311	8313		4091
8312	8314		(2) A provision in the terms of a charitable trust that would result in distribution of the trust
8313	8315		4092
8314	8316		property to a noncharitable beneficiary prevails over the power of the court under
8315	8317		4093
8316	8318		Subsection (1) to apply cy pres to modify or terminate the trust only if, when the
8317	8319		4094
8318	8320		provision takes effect:
8319	8321		4095
8320	8322		(a) the trust property is to revert to the settlor and the settlor is still living; or
8321	8323		4096
8322	8324		(b) fewer than 21 years have elapsed since the date of the trust's creation.
8323	8325		4097
8324	8326		Section 110. Section 75B-2-414, which is renumbered from Section 75-7-414 is renumbered
8325	8327		4098
8326	8328		and amended to read:
8327	8329		4099
8328	8330		[75-7-414] 75B-2-414 . Modification or termination of uneconomic trust.
8329	8331		4100
8330	8332		(1) After notice to the qualified beneficiaries, the trustee of a trust consisting of trust
8331	8333		4101
8332	8334		property having a total value less than $100,000 may terminate the trust if the trustee
8333	8335		4102
8334	8336		concludes that the value of the trust property is insufficient to justify the cost of
8335	8337		4103
8336	8338		administration.
8337	8339		4104
8338	8340		(2) The court may modify or terminate a trust or remove the trustee and appoint a different
8339	8341		4105
8340	8342		trustee if it determines that the value of the trust property is insufficient to justify the
8341	8343		4106
8342	8344		cost of administration.
8343		-	- 121 - S.B. 100 Enrolled Copy
8344	8345		4107
8345	8346		(3) Upon termination of a trust under this section, the trustee shall distribute the trust
	8347	+	- 121 - 1st Sub. (Green) S.B. 100 02-07 14:26
8346	8348		4108
8347	8349		property in a manner consistent with the purposes of the trust.
8348	8350		4109
8349	8351		(4) This section does not apply to an easement for conservation or preservation.
8350	8352		4110
8351	8353		Section 111. Section 75B-2-415, which is renumbered from Section 75-7-415 is renumbered
8352	8354		4111
8353	8355		and amended to read:
8354	8356		4112
8355	8357		[75-7-415] 75B-2-415 . Reformation to correct mistakes.
8356	8358		4113
8357	8359		The court may reform the terms of a trust, even if unambiguous, to conform the terms to
8358	8360		4114
8359	8361		the settlor's intention if it is proved by clear and convincing evidence that both the settlor's
8360	8362		4115
8361	8363		intent and the terms of the trust were affected by a mistake of fact or law, whether in
8362	8364		4116
8363	8365		expression or inducement.
8364	8366		4117
8365	8367		Section 112. Section 75B-2-416, which is renumbered from Section 75-7-416 is renumbered
8366	8368		4118
8367	8369		and amended to read:
8368	8370		4119
8369	8371		[75-7-416] 75B-2-416 . Modification to achieve settlor's tax objectives.
8370	8372		4120
8371	8373		(1) To achieve the settlor's tax objectives, the court may modify the terms of a trust in
8372	8374		4121
8373	8375		order to achieve the settlor's tax objectives.
8374	8376		4122
8375	8377		(2) The court may provide that the modification has retroactive effect.
8376	8378		4123
8377	8379		Section 113. Section 75B-2-417, which is renumbered from Section 75-7-417 is renumbered
8378	8380		4124
8379	8381		and amended to read:
8380	8382		4125
8381	8383		[75-7-417] 75B-2-417 . Combination and division of trusts.
8382	8384		4126
8383	8385		After notice to the qualified beneficiaries, a trustee may combine two or more trusts into
8384	8386		4127
8385	8387		a single trust or divide a trust into two or more separate trusts[,] if the result does not impair
8386	8388		4128
8387	8389		rights of any beneficiary or adversely affect achievement of the purposes of the trust.
8388	8390		4129
8389	8391		Section 114. Section 75B-2-501, which is renumbered from Section 75-7-501 is renumbered
8390	8392		4130
8391	8393		and amended to read:
8392	8394		4131
8393	8395
8394	8396		Part 5. Spendthrift and Discretionary Trusts
8395	8397		4132
8396	8398		[75-7-501] 75B-2-501 . Rights of beneficiary's creditor or assignee.
8397	8399		4133
8398	8400		(1) To the extent a beneficiary's interest is not protected by a spendthrift provision or
8399	8401		4134
8400	8402		Section 75B-1-302, the court may authorize a creditor or assignee of the beneficiary to
8401	8403		4135
8402	8404		reach the beneficiary's interest by attachment of present or future distributions to or for
8403	8405		4136
8404	8406		the benefit of the beneficiary or other means.
8405	8407		4137
8406	8408		(2) The court may limit the award to relief as is appropriate under the circumstances.
8407	8409		4138
8408	8410		Section 115. Section 75B-2-502, which is renumbered from Section 75-7-502 is renumbered
8409	8411		4139
8410	8412		and amended to read:
8411	8413		4140
8412	8414		[75-7-502] 75B-2-502 . Spendthrift provisions for beneficiaries other than the
8413		-	- 122 - Enrolled Copy S.B. 100
8414	8415		4141
8415	8416		settlor.
	8417	+	- 122 - 02-07 14:26 1st Sub. (Green) S.B. 100
8416	8418		4142
8417	8419		(1) A spendthrift provision for a beneficiary other than the settlor is valid only if [it] the
8418	8420		4143
8419	8421		spendthrift provision restrains both voluntary and involuntary transfer of a beneficiary's
8420	8422		4144
8421	8423		interest, even if the beneficiary is the trustee or cotrustee of the trust.
8422	8424		4145
8423	8425		(2) A term of a trust providing that the interest of a beneficiary other than the settlor is held
8424	8426		4146
8425	8427		subject to a "spendthrift trust," or words of similar import, is sufficient to restrain both
8426	8428		4147
8427	8429		voluntary and involuntary transfer of the beneficiary's interest.
8428	8430		4148
8429	8431		(3) A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift
8430	8432		4149
8431	8433		provision and, except as otherwise provided in this part, a creditor or assignee of the
8432	8434		4150
8433	8435		beneficiary may not reach the interest or a distribution by the trustee before its receipt by
8434	8436		4151
8435	8437		the beneficiary.
8436	8438		4152
8437	8439		Section 116. Section 75B-2-503, which is renumbered from Section 75-7-503 is renumbered
8438	8440		4153
8439	8441		and amended to read:
8440	8442		4154
8441	8443		[75-7-503] 75B-2-503 . Exceptions to spendthrift provision.
8442	8444		4155
8443	8445		(1) As used in this section:
8444	8446		4156
8445	8447		(a) "Child" includes any person for whom an order or judgment for child support has
8446	8448		4157
8447	8449		been entered in this or another state.
8448	8450		4158
8449	8451		(b) "Civil accounts receivable" means the same as that term is defined in Section
8450	8452		4159
8451	8453		77-32b-102.
8452	8454		4160
8453	8455		(c) ["Civil restitution of judgment"] "Civil judgment of restitution" means the same as
8454	8456		4161
8455	8457		that term is defined in Section 77-32b-102.
8456	8458		4162
8457	8459		(d) "Restitution" means the same as that term is defined in Section 77-38b-102.
8458	8460		4163
8459	8461		(e) "Victim" means the same as that term is defined in Section 77-38b-102.
8460	8462		4164
8461	8463		(2) Even if a trust contains a spendthrift provision, the following persons may obtain an
8462	8464		4165
8463	8465		order from a court that attaches present or future distributions to the beneficiary:
8464	8466		4166
8465	8467		(a) a beneficiary's child who has a judgment or court order against the beneficiary for
8466	8468		4167
8467	8469		support or maintenance;
8468	8470		4168
8469	8471		(b) a judgment creditor who has provided services for the protection of a beneficiary's
8470	8472		4169
8471	8473		interest in the trust;
8472	8474		4170
8473	8475		(c) a victim who has a judgment requiring the beneficiary to pay restitution in
8474	8476		4171
8475	8477		accordance with Title 77, Chapter 38b, Crime Victims Restitution Act, or similar
8476	8478		4172
8477	8479		provision in another state; or
8478	8480		4173
8479	8481		(d) the Office of State Debt Collection, created in Section 63A-3-502, for collecting
8480	8482		4174
8481	8483		payment on a civil accounts receivable or a civil judgment of restitution.
8482		-	- 123 - S.B. 100 Enrolled Copy
8483	8484		4175
8484	8485		(3) A spendthrift provision is unenforceable against a claim of this state or the United States
	8486	+	- 123 - 1st Sub. (Green) S.B. 100 02-07 14:26
8485	8487		4176
8486	8488		to the extent a statute of this state or federal law so provides.
8487	8489		4177
8488	8490		Section 117. Section 75B-2-504, which is renumbered from Section 75-7-504 is renumbered
8489	8491		4178
8490	8492		and amended to read:
8491	8493		4179
8492	8494		[75-7-504] 75B-2-504 . Discretionary trusts -- Effect of standard.
8493	8495		4180
8494	8496		(1) [In] As used in this section, "child" includes any person for whom an order or judgment
8495	8497		4181
8496	8498		for child support has been entered in this or another state.
8497	8499		4182
8498	8500		(2) Except as otherwise provided in Subsection (3), whether or not a trust contains a
8499	8501		4183
8500	8502		spendthrift provision, a creditor of a beneficiary may not compel a distribution that is
8501	8503		4184
8502	8504		subject to the trustee's discretion, even if:
8503	8505		4185
8504	8506		(a) the discretion is expressed in the form of a standard of distribution; or
8505	8507		4186
8506	8508		(b) the trustee has abused the discretion.
8507	8509		4187
8508	8510		(3) To the extent a trustee has not complied with a standard of distribution or has abused a
8509	8511		4188
8510	8512		discretion:
8511	8513		4189
8512	8514		(a) a distribution may be ordered by the court to satisfy a judgment or court order against
8513	8515		4190
8514	8516		the beneficiary for support or maintenance of the beneficiary's child, spouse, or
8515	8517		4191
8516	8518		former spouse; and
8517	8519		4192
8518	8520		(b) the court shall direct the trustee to pay to the child, spouse, or former spouse such
8519	8521		4193
8520	8522		amount as is equitable under the circumstances but not more than the amount the
8521	8523		4194
8522	8524		trustee would have been required to distribute to or for the benefit of the beneficiary
8523	8525		4195
8524	8526		had the trustee complied with the standard or not abused the discretion.
8525	8527		4196
8526	8528		(4) This section does not limit the right of a beneficiary to maintain a judicial proceeding
8527	8529		4197
8528	8530		against a trustee for an abuse of discretion or failure to comply with a standard for
8529	8531		4198
8530	8532		distribution.
8531	8533		4199
8532	8534		Section 118. Section 75B-2-505, which is renumbered from Section 75-7-505 is renumbered
8533	8535		4200
8534	8536		and amended to read:
8535	8537		4201
8536	8538		[75-7-505] 75B-2-505 . Creditor's claim against settlor.
8537	8539		4202
8538	8540		Regardless of whether the terms of a trust contain a spendthrift provision, the following
8539	8541		4203
8540	8542		rules apply:
8541	8543		4204
8542	8544		(1)(a) During the lifetime of the settlor, the property of a revocable trust is subject to the
8543	8545		4205
8544	8546		claims of the settlor's creditors.
8545	8547		4206
8546	8548		(b) If a revocable trust has more than one settlor, the amount the creditor or assignee of a
8547	8549		4207
8548	8550		particular settlor may reach may not exceed the settlor's interest in the portion of the
8549	8551		4208
8550	8552		trust attributable to that settlor's contribution.
8551		-	- 124 - Enrolled Copy S.B. 100
8552	8553		4209
8553	8554		(2)(a) With respect to an irrevocable trust other than an irrevocable trust that meets the
	8555	+	- 124 - 02-07 14:26 1st Sub. (Green) S.B. 100
8554	8556		4210
8555	8557		requirements of [Section 75B-1-302] Chapter 1, Part 3, Asset Protection Trust, a
8556	8558		4211
8557	8559		creditor or assignee of the settlor may reach the maximum amount that can be
8558	8560		4212
8559	8561		distributed to or for the settlor's benefit.
8560	8562		4213
8561	8563		(b) With respect to an irrevocable trust that has more than one settlor, other than an
8562	8564		4214
8563	8565		irrevocable trust that meets the requirements of [Section 75B-1-302] Chapter 1, Part
8564	8566		4215
8565	8567		3, Asset Protection Trust, the amount a creditor or assignee of a particular settlor may
8566	8568		4216
8567	8569		reach may not exceed the settlor's interest in the portion of the trust attributable to
8568	8570		4217
8569	8571		that settlor's contribution.
8570	8572		4218
8571	8573		(c) Notwithstanding Subsections (2)(a) and (b), a creditor of a settlor may not satisfy the
8572	8574		4219
8573	8575		creditor's claim from an irrevocable trust solely because the trustee may make a
8574	8576		4220
8575	8577		discretionary distribution reimbursing the settlor for income tax liability of the settlor
8576	8578		4221
8577	8579		attributable to the income of the irrevocable trust, when the distribution is:
8578	8580		4222
8579	8581		(i) subject to the discretion of a trustee who is not the settlor;
8580	8582		4223
8581	8583		(ii) subject to the consent of an advisor who is not the settlor; or
8582	8584		4224
8583	8585		(iii) at the direction of an advisor who is not the settlor.
8584	8586		4225
8585	8587		(3) After the death of a settlor, and subject to the settlor's right to direct the source from
8586	8588		4226
8587	8589		which liabilities will be paid, the property of a trust that was revocable at the settlor's
8588	8590		4227
8589	8591		death, but not property received by the trust as a result of the death of the settlor which
8590	8592		4228
8591	8593		is otherwise exempt from the claims of the settlor's creditors, is subject to claims of the
8592	8594		4229
8593	8595		settlor's creditors, costs of administration of the settlor's estate, the expenses of the
8594	8596		4230
8595	8597		settlor's funeral and disposal of remains, and statutory allowances to a surviving spouse
8596	8598		4231
8597	8599		and children to the extent the settlor's probate estate is inadequate to satisfy those claims,
8598	8600		4232
8599	8601		costs, expenses, and allowances.
8600	8602		4233
8601	8603		Section 119. Section 75B-2-506, which is renumbered from Section 75-7-506 is renumbered
8602	8604		4234
8603	8605		and amended to read:
8604	8606		4235
8605	8607		[75-7-506] 75B-2-506 . Overdue distribution.
8606	8608		4236
8607	8609		Whether or not a trust contains a spendthrift provision, a creditor or assignee of a
8608	8610		4237
8609	8611		beneficiary may reach a mandatory distribution of income or principal, including a distribution
8610	8612		4238
8611	8613		upon termination of the trust, if the trustee has not made the distribution to the beneficiary
8612	8614		4239
8613	8615		within a reasonable time after the required distribution date.
8614	8616		4240
8615	8617		Section 120. Section 75B-2-507, which is renumbered from Section 75-7-507 is renumbered
8616	8618		4241
8617	8619		and amended to read:
8618	8620		4242
8619	8621		[75-7-507] 75B-2-507 . Personal obligations of trustee.
8620		-	- 125 - S.B. 100 Enrolled Copy
8621	8622		4243
8622	8623		Trust property is not subject to personal obligations of the trustee, even if the trustee
	8624	+	- 125 - 1st Sub. (Green) S.B. 100 02-07 14:26
8623	8625		4244
8624	8626		becomes insolvent or bankrupt.
8625	8627		4245
8626	8628		Section 121. Section 75B-2-508, which is renumbered from Section 75-7-508 is renumbered
8627	8629		4246
8628	8630		and amended to read:
8629	8631		4247
8630	8632		[75-7-508] 75B-2-508 . Notice to creditors.
8631	8633		4248
8632	8634		(1)(a) A trustee for an inter vivos revocable trust, upon the death of the settlor, may
8633	8635		4249
8634	8636		publish a notice to creditors:
8635	8637		4250
8636	8638		(i) once a week for three successive weeks in a newspaper of general circulation in
8637	8639		4251
8638	8640		the county where the settlor resided at the time of death; and
8639	8641		4252
8640	8642		(ii) in accordance with Section 45-1-101 for three weeks.
8641	8643		4253
8642	8644		(b) The notice required by Subsection (1)(a) shall:
8643	8645		4254
8644	8646		(i) provide the trustee's name and address; and
8645	8647		4255
8646	8648		(ii) notify creditors:
8647	8649		4256
8648	8650		(A) of the deceased settlor; and
8649	8651		4257
8650	8652		(B) to present their claims within three months after the date of the first
8651	8653		4258
8652	8654		publication of the notice or be forever barred from presenting the claim.
8653	8655		4259
8654	8656		(2)(a) A trustee shall give written notice by mail or other delivery to any known creditor
8655	8657		4260
8656	8658		of the deceased settlor, notifying the creditor to present the creditor's claim within 90
8657	8659		4261
8658	8660		days from the published notice if given as provided in Subsection (1) or within 60
8659	8661		4262
8660	8662		days from the mailing or other delivery of the notice, whichever is later, or be forever
8661	8663		4263
8662	8664		barred.
8663	8665		4264
8664	8666		(b) Written notice shall be the notice described in Subsection (1) or a similar notice.
8665	8667		4265
8666	8668		(3)(a) If the deceased settlor received medical assistance, as defined in Section
8667	8669		4266
8668	8670		26B-3-1001, at any time after the age of 55, the trustee for an inter vivos revocable
8669	8671		4267
8670	8672		trust, upon the death of the settlor, shall mail or deliver written notice to the Director
8671	8673		4268
8672	8674		of the Office of Recovery Services, on behalf of the Department of Health and
8673	8675		4269
8674	8676		Human Services, to present any claim under Section 26B-3-1013 within 60 days from
8675	8677		4270
8676	8678		the mailing or other delivery of notice, whichever is later, or be forever barred.
8677	8679		4271
8678	8680		(b) If the trustee does not mail notice to the director of the Office of Recovery Services
8679	8681		4272
8680	8682		on behalf of the [department] Department of Health and Human Services in
8681	8683		4273
8682	8684		accordance with Subsection (3)(a), the [department] Department of Health and
8683	8685		4274
8684	8686		Human Services shall have one year from the death of the settlor to present [its] the
8685	8687		4275
8686	8688		Department of Health and Human Services' claim.
8687	8689		4276
8688	8690		(4) The trustee is not liable to any creditor or to any successor of the deceased settlor for
8689		-	- 126 - Enrolled Copy S.B. 100
8690	8691		4277
8691	8692		giving or failing to give notice under this section.
	8693	+	- 126 - 02-07 14:26 1st Sub. (Green) S.B. 100
8692	8694		4278
8693	8695		(5) The notice to creditors shall be valid against any creditor of the trust and also against
8694	8696		4279
8695	8697		any creditor of the estate of the deceased settlor.
8696	8698		4280
8697	8699		Section 122. Section 75B-2-509, which is renumbered from Section 75-7-509 is renumbered
8698	8700		4281
8699	8701		and amended to read:
8700	8702		4282
8701	8703		[75-7-509] 75B-2-509 . Limitations on presentation of claims.
8702	8704		4283
8703	8705		(1) All claims against a deceased settlor which arose before the death of the deceased
8704	8706		4284
8705	8707		settlor, whether due or to become due, absolute or contingent, liquidated or unliquidated,
8706	8708		4285
8707	8709		founded on contract, tort, or other legal basis, if not barred earlier by other statute of
8708	8710		4286
8709	8711		limitations, are barred against the deceased settlor's estate, the trustee, the trust estate,
8710	8712		4287
8711	8713		and the beneficiaries of the deceased settlor's trust, unless presented within the earlier of
8712	8714		4288
8713	8715		the following:
8714	8716		4289
8715	8717		(a) one year after the settlor's death; or
8716	8718		4290
8717	8719		(b) the time provided by Subsection [75-7-508(2)] 75B-2-508(2) or (3) for creditors who
8718	8720		4291
8719	8721		are given actual notice, and where notice is published, within the time provided in
8720	8722		4292
8721	8723		Subsection [75-7-508(1)] 75B-2-508(1) for all claims barred by publication.
8722	8724		4293
8723	8725		(2) In all events, claims barred by the nonclaim statute at the deceased settlor's domicile are
8724	8726		4294
8725	8727		also barred in this state.
8726	8728		4295
8727	8729		(3) All claims against a deceased settlor's estate or trust estate which arise at or after the
8728	8730		4296
8729	8731		death of the settlor, whether due or to become due, absolute or contingent, liquidated or
8730	8732		4297
8731	8733		unliquidated, founded on contract, tort, or other legal basis are barred against the
8732	8734		4298
8733	8735		deceased settlor's estate, the trustee, the trust estate, and the beneficiaries of the deceased
8734	8736		4299
8735	8737		settlor, unless presented as follows:
8736	8738		4300
8737	8739		(a) a claim based on a contract with the trustee within three months after performance by
8738	8740		4301
8739	8741		the trustee is due; or
8740	8742		4302
8741	8743		(b) any other claim within the later of three months after [it] the claim arises, or the time
8742	8744		4303
8743	8745		specified in Subsection (1).
8744	8746		4304
8745	8747		(4) Nothing in this section affects or prevents:
8746	8748		4305
8747	8749		(a) any proceeding to enforce any mortgage, pledge, or other lien upon property of the
8748	8750		4306
8749	8751		deceased settlor's estate or the trust estate;
8750	8752		4307
8751	8753		(b) to the limits of the insurance protection only, any proceeding to establish liability of
8752	8754		4308
8753	8755		the deceased settlor or the trustee for which [he] the deceased settlor or trustee is
8754	8756		4309
8755	8757		protected by liability insurance;
8756	8758		4310
8757	8759		(c) collection of compensation for services rendered and reimbursement for expenses
8758		-	- 127 - S.B. 100 Enrolled Copy
8759	8760		4311
8760	8761		advanced by the trustee or by the attorney or accountant for the trustee of the trust
	8762	+	- 127 - 1st Sub. (Green) S.B. 100 02-07 14:26
8761	8763		4312
8762	8764		estate; or
8763	8765		4313
8764	8766		(d) the right to recover medical assistance provided to the settlor under Title 26B,
8765	8767		4314
8766	8768		Chapter 3, Part 10, Medical Benefits Recovery.
8767	8769		4315
8768	8770		Section 123. Section 75B-2-510, which is renumbered from Section 75-7-510 is renumbered
8769	8771		4316
8770	8772		and amended to read:
8771	8773		4317
8772	8774		[75-7-510] 75B-2-510 . Manner of presentation of claims.
8773	8775		4318
8774	8776		(1) Claims against a deceased settlor's estate or inter vivos revocable trust shall be
8775	8777		4319
8776	8778		presented as follows:
8777	8779		4320
8778	8780		(a)(i) The claimant may deliver or mail to the trustee, or the trustee's attorney of
8779	8781		4321
8780	8782		record, a written statement of the claim indicating its basis, the name and address
8781	8783		4322
8782	8784		of the claimant, and the amount claimed.
8783	8785		4323
8784	8786		(ii) The claim is considered presented upon the receipt of the written statement of
8785	8787		4324
8786	8788		claim by the trustee or the trustee's attorney of record.
8787	8789		4325
8788	8790		(iii) If a claim is not yet due, the date when [it] the claim will become due shall be
8789	8791		4326
8790	8792		stated.
8791	8793		4327
8792	8794		(iv) If the claim is contingent or unliquidated, the nature of the uncertainty shall be
8793	8795		4328
8794	8796		stated.
8795	8797		4329
8796	8798		(v) If the claim is secured, the security shall be described.
8797	8799		4330
8798	8800		(vi) Failure to describe correctly the security, the nature of any uncertainty, and the
8799	8801		4331
8800	8802		due date of a claim not yet due does not invalidate the presentation made.
8801	8803		4332
8802	8804		(b)(i) The claimant may commence a proceeding against the trustee in any court
8803	8805		4333
8804	8806		where the trustee may be subjected to jurisdiction to obtain payment of the claim
8805	8807		4334
8806	8808		against the deceased settlor's estate or the trust estate, but the commencement of
8807	8809		4335
8808	8810		the proceeding must occur within the time limited for presenting the claim.
8809	8811		4336
8810	8812		(ii) No presentation of claim is required in regard to matters claimed in proceedings
8811	8813		4337
8812	8814		against the deceased settlor which were pending at the time of the deceased
8813	8815		4338
8814	8816		settlor's death.
8815	8817		4339
8816	8818		(2)(a) If a claim is presented under Subsection (1)(a), [no proceeding thereon may] a
8817	8819		4340
8818	8820		proceeding may not be commenced more than 60 days after the trustee has mailed a
8819	8821		4341
8820	8822		notice of disallowance[; but,] .
8821	8823		4342
8822	8824		(b) Notwithstanding Subsection (2)(a), in the case of a claim which is not presently due
8823	8825		4343
8824	8826		or which is contingent or unliquidated, the trustee may consent to an extension of the
8825	8827		4344
8826	8828		60-day period, or to avoid injustice, the court, on petition, may order an extension of
8827		-	- 128 - Enrolled Copy S.B. 100
8828	8829		4345
8829	8830		the 60-day period, [but in no event may] except that the extension may not run beyond
	8831	+	- 128 - 02-07 14:26 1st Sub. (Green) S.B. 100
8830	8832		4346
8831	8833		the applicable statute of limitations.
8832	8834		4347
8833	8835		Section 124. Section 75B-2-511, which is renumbered from Section 75-7-511 is renumbered
8834	8836		4348
8835	8837		and amended to read:
8836	8838		4349
8837	8839		[75-7-511] 75B-2-511 . Classification of claims.
8838	8840		4350
8839	8841		(1) If the applicable assets of the deceased settlor's estate or trust estate are insufficient to
8840	8842		4351
8841	8843		pay all claims in full, the trustee shall make payment in the following order:
8842	8844		4352
8843	8845		(a) reasonable funeral expenses;
8844	8846		4353
8845	8847		(b) costs and expenses of administration;
8846	8848		4354
8847	8849		(c) debts and taxes with preference under federal law;
8848	8850		4355
8849	8851		(d) reasonable and necessary medical and hospital expenses of the last illness of the
8850	8852		4356
8851	8853		deceased settlor, including compensation of persons attending the deceased settlor,
8852	8854		4357
8853	8855		and medical assistance if Section 26B-3-1013 applies;
8854	8856		4358
8855	8857		(e) debts and taxes with preference under other laws of this state; and
8856	8858		4359
8857	8859		(f) all other claims.
8858	8860		4360
8859	8861		(2) No preference shall be given in the payment of any claim over any other claim of the
8860	8862		4361
8861	8863		same class[, and a] .
8862	8864		4362
8863	8865		(3) A claim due and payable shall not be entitled to a preference over claims not due.
8864	8866		4363
8865	8867		Section 125. Section 75B-2-512, which is renumbered from Section 75-7-512 is renumbered
8866	8868		4364
8867	8869		and amended to read:
8868	8870		4365
8869	8871		[75-7-512] 75B-2-512 . Allowance of claims.
8870	8872		4366
8871	8873		(1)(a) As to claims presented in the manner described in Section [75-7-510] 75B-2-510
8872	8874		4367
8873	8875		and within the time limit prescribed in Section [75-7-509] 75B-2-509, the trustee may
8874	8876		4368
8875	8877		mail a notice to any claimant stating that the claim has been allowed or disallowed.
8876	8878		4369
8877	8879		(b) If, after allowing or disallowing a claim, the trustee changes the decision concerning
8878	8880		4370
8879	8881		the claim, the trustee shall notify the claimant.
8880	8882		4371
8881	8883		(c) The trustee may not change a disallowance of a claim after the time for the claimant
8882	8884		4372
8883	8885		to file a petition for allowance or to commence a proceeding on the claim has expired
8884	8886		4373
8885	8887		and the claim has been barred.
8886	8888		4374
8887	8889		(d) If the notice of disallowance warns the claimant of the impending bar, a claim which
8888	8890		4375
8889	8891		is disallowed in whole or in part by the trustee is barred so far as not allowed, unless
8890	8892		4376
8891	8893		the claimant seeks a court-ordered allowance by filing a petition for allowance in the
8892	8894		4377
8893	8895		court or by commencing a proceeding against the trustee not later than 60 days after
8894	8896		4378
8895	8897		the mailing of the notice of disallowance or partial allowance.
8896		-	- 129 - S.B. 100 Enrolled Copy
8897	8898		4379
8898	8899		(e) If the trustee fails to mail notice to a claimant of action on the claim within 60 days
	8900	+	- 129 - 1st Sub. (Green) S.B. 100 02-07 14:26
8899	8901		4380
8900	8902		after the time for original presentation of the claim has expired, this failure has the
8901	8903		4381
8902	8904		effect of a notice of allowance.
8903	8905		4382
8904	8906		(2)(a) Upon the petition of the trustee or a claimant in a proceeding for this purpose, the
8905	8907		4383
8906	8908		court may order any claim presented to the trustee or trustee's attorney in a timely
8907	8909		4384
8908	8910		manner and not barred by Subsection (1) to be allowed in whole or in part.
8909	8911		4385
8910	8912		(b) Notice of this proceeding shall be given to the claimant, the trustee, and those other
8911	8913		4386
8912	8914		persons interested in the trust estate as the court may direct by order at the time the
8913	8915		4387
8914	8916		proceeding is commenced.
8915	8917		4388
8916	8918		(3) A judgment in a proceeding in another court against the trustee to enforce a claim
8917	8919		4389
8918	8920		against a deceased settlor's estate is a court-ordered allowance of the claim.
8919	8921		4390
8920	8922		(4) Unless otherwise provided in any judgment in another court entered against a trustee,
8921	8923		4391
8922	8924		allowed claims bear interest at the legal rate for the period commencing six months after
8923	8925		4392
8924	8926		the deceased settlor's date of death unless based on a contract making a provision for
8925	8927		4393
8926	8928		interest, in which case they bear interest in accordance with that provision.
8927	8929		4394
8928	8930		Section 126. Section 75B-2-513, which is renumbered from Section 75-7-513 is renumbered
8929	8931		4395
8930	8932		and amended to read:
8931	8933		4396
8932	8934		[75-7-513] 75B-2-513 . Payment of claims.
8933	8935		4397
8934	8936		(1)(a) Upon the expiration of the earliest of the time limitations provided in Section [
8935	8937		4398
8936	8938		75-7-509] 75B-2-509 for the presentation of claims, the trustee shall pay the claims
8937	8939		4399
8938	8940		allowed against the deceased settlor's estate in the order of priority prescribed, after
8939	8941		4400
8940	8942		making provision for claims already presented which have not yet been allowed or
8941	8943		4401
8942	8944		whose allowance has been appealed, and for unbarred claims which may yet be
8943	8945		4402
8944	8946		presented, including costs and expenses of administration.
8945	8947		4403
8946	8948		(b) By petition to the court in a proceeding for that purpose, a claimant whose claim has
8947	8949		4404
8948	8950		been allowed but not paid as provided in this section may secure an order directing
8949	8951		4405
8950	8952		the trustee to pay the claim to the extent that funds of the deceased settlor's estate or
8951	8953		4406
8952	8954		trust estate are available for the payment.
8953	8955		4407
8954	8956		(2) The trustee at any time may pay any just claim that has not been barred, with or without
8955	8957		4408
8956	8958		formal presentation, but the trustee shall be personally liable to any other claimant
8957	8959		4409
8958	8960		whose claim is allowed and who is injured by the payment if:
8959	8961		4410
8960	8962		(a) the payment was made before the expiration of the time limit stated in Subsection (1)
8961	8963		4411
8962	8964		and the trustee failed to require the payee to give adequate security for the refund of
8963	8965		4412
8964	8966		any of the payment necessary to pay other claimants; or
8965		-	- 130 - Enrolled Copy S.B. 100
8966	8967		4413
8967	8968		(b) the payment was made, due to the negligence or willful fault of the trustee, in a way
	8969	+	- 130 - 02-07 14:26 1st Sub. (Green) S.B. 100
8968	8970		4414
8969	8971		that deprived the injured claimant of his priority.
8970	8972		4415
8971	8973		Section 127. Section 75B-2-514, which is renumbered from Section 75-7-514 is renumbered
8972	8974		4416
8973	8975		and amended to read:
8974	8976		4417
8975	8977		[75-7-514] 75B-2-514 . Secured claims.
8976	8978		4418
8977	8979		Payment of a secured claim shall be upon the basis of the amount allowed if the creditor
8978	8980		4419
8979	8981		surrenders [his] the creditor's security[;] , but otherwise payment shall be based upon one of the
8980	8982		4420
8981	8983		following:
8982	8984		4421
8983	8985		(1) if the creditor exhausts [his] the creditor's security before receiving payment, unless
8984	8986		4422
8985	8987		precluded by another provision of the law, upon the amount of the claim allowed less the
8986	8988		4423
8987	8989		fair value of the security; or
8988	8990		4424
8989	8991		(2) if the creditor does not have the right to exhaust [his] the creditor's security or has not
8990	8992		4425
8991	8993		done so, upon the amount of the claim allowed less the value of the security determined
8992	8994		4426
8993	8995		by converting [it] the security into money according to the terms of the agreement
8994	8996		4427
8995	8997		pursuant to which the security was delivered to the creditor, or by the creditor and
8996	8998		4428
8997	8999		trustee by agreement, arbitration, compromise, or litigation.
8998	9000		4429
8999	9001		Section 128. Section 75B-2-515, which is renumbered from Section 75-7-515 is renumbered
9000	9002		4430
9001	9003		and amended to read:
9002	9004		4431
9003	9005		[75-7-515] 75B-2-515 . Claims not due and contingent or unliquidated claims.
9004	9006		4432
9005	9007		(1) If a claim which will become due at a future time or a contingent or unliquidated claim
9006	9008		4433
9007	9009		becomes due or certain before the distribution of the trust estate, and if the claim has
9008	9010		4434
9009	9011		been allowed or established by a proceeding, [it] the claim shall be paid in the same
9010	9012		4435
9011	9013		manner as presently due and absolute claims of the same class.
9012	9014		4436
9013	9015		(2) In other cases the trustee, or, on petition of the trustee or the claimant in a special
9014	9016		4437
9015	9017		proceeding for that purpose, the court, may provide for payment as follows:
9016	9018		4438
9017	9019		(a) if the claimant consents, [he] the claimant may be paid the present or agreed value of
9018	9020		4439
9019	9021		the claim, taking any uncertainty into account; or
9020	9022		4440
9021	9023		(b) arrangement for future payment, or possible payment, on the happening of the
9022	9024		4441
9023	9025		contingency or on liquidation may be made by creating a trust, giving a mortgage,
9024	9026		4442
9025	9027		obtaining a bond or security from a beneficiary, or otherwise.
9026	9028		4443
9027	9029		Section 129. Section 75B-2-516, which is renumbered from Section 75-7-516 is renumbered
9028	9030		4444
9029	9031		and amended to read:
9030	9032		4445
9031	9033		[75-7-516] 75B-2-516 . Counterclaims.
9032	9034		4446
9033	9035		(1)(a) In allowing a claim, the trustee may deduct any counterclaim which the deceased
9034		-	- 131 - S.B. 100 Enrolled Copy
9035	9036		4447
9036	9037		settlor's estate has against the claimant.
	9038	+	- 131 - 1st Sub. (Green) S.B. 100 02-07 14:26
9037	9039		4448
9038	9040		(b) In determining a claim against a deceased settlor's estate, a court shall reduce the
9039	9041		4449
9040	9042		amount allowed by the amount of any counterclaims and, if the counterclaims exceed
9041	9043		4450
9042	9044		the claim, render a judgment against the claimant in the amount of the excess.
9043	9045		4451
9044	9046		(2) A counterclaim, liquidated or unliquidated, may arise from a transaction other than that
9045	9047		4452
9046	9048		upon which the claim is based.
9047	9049		4453
9048	9050		(3) A counterclaim may give rise to relief exceeding in amount or different in kind from
9049	9051		4454
9050	9052		that sought in the claim.
9051	9053		4455
9052	9054		Section 130. Section 75B-2-517, which is renumbered from Section 75-7-517 is renumbered
9053	9055		4456
9054	9056		and amended to read:
9055	9057		4457
9056	9058		[75-7-517] 75B-2-517 . Execution and levies prohibited.
9057	9059		4458
9058	9060		(1) No execution may issue upon nor may any levy be made against any property of the
9059	9061		4459
9060	9062		deceased settlor's estate under any judgment against a deceased settlor or a trustee.
9061	9063		4460
9062	9064		(2) This section may not be construed to prevent the enforcement of mortgages, pledges, or
9063	9065		4461
9064	9066		liens upon real or personal property in an appropriate proceeding.
9065	9067		4462
9066	9068		Section 131. Section 75B-2-518, which is renumbered from Section 75-7-518 is renumbered
9067	9069		4463
9068	9070		and amended to read:
9069	9071		4464
9070	9072		[75-7-518] 75B-2-518 . Compromise of claims.
9071	9073		4465
9072	9074		When a claim against a deceased settlor's estate has been presented in any manner, the
9073	9075		4466
9074	9076		trustee may, if [it] the claim appears in the best interest of the deceased settlor's estate,
9075	9077		4467
9076	9078		compromise the claim, whether due or not due, absolute or contingent, liquidated or
9077	9079		4468
9078	9080		unliquidated.
9079	9081		4469
9080	9082		Section 132. Section 75B-2-519, which is renumbered from Section 75-7-519 is renumbered
9081	9083		4470
9082	9084		and amended to read:
9083	9085		4471
9084	9086		[75-7-519] 75B-2-519 . Encumbered assets.
9085	9087		4472
9086	9088		(1) If any assets of the deceased settlor's estate are encumbered by mortgage, pledge, lien,
9087	9089		4473
9088	9090		or other security interest, the trustee may pay the encumbrance or any part thereof,
9089	9091		4474
9090	9092		renew or extend any obligation secured by the encumbrance, or convey or transfer the
9091	9093		4475
9092	9094		assets to the creditor in satisfaction of [his] the creditor's lien, in whole or in part,
9093	9095		4476
9094	9096		whether or not the holder of the encumbrance has presented a claim, if it appears to be in
9095	9097		4477
9096	9098		the best interest of the deceased settlor's estate.
9097	9099		4478
9098	9100		(2) Payment of an encumbrance does not increase the share of the beneficiary entitled to the
9099	9101		4479
9100	9102		encumbered assets unless the beneficiary is entitled to exoneration or unless the terms of
9101	9103		4480
9102	9104		the deceased settlor's trust, under which the beneficiary is entitled to the encumbered
9103		-	- 132 - Enrolled Copy S.B. 100
9104	9105		4481
9105	9106		assets, provides otherwise.
	9107	+	- 132 - 02-07 14:26 1st Sub. (Green) S.B. 100
9106	9108		4482
9107	9109		Section 133. Section 75B-2-601, which is renumbered from Section 75-7-604 is renumbered
9108	9110		4483
9109	9111		and amended to read:
9110	9112		4484
9111	9113
9112	9114		Part 6. Revocable Trust
9113	9115		4485
9114	9116		[75-7-604] 75B-2-601 . Capacity of settlor of revocable trust.
9115	9117		4486
9116	9118		The capacity required to create, amend, revoke, or add property to a revocable trust, or
9117	9119		4487
9118	9120		to direct the actions of the trustee of a revocable trust, is the same as that required to make a
9119	9121		4488
9120	9122		will.
9121	9123		4489
9122	9124		Section 134. Section 75B-2-602, which is renumbered from Section 75-7-605 is renumbered
9123	9125		4490
9124	9126		and amended to read:
9125	9127		4491
9126	9128		[75-7-605] 75B-2-602 . Revocation or amendment of revocable trust.
9127	9129		4492
9128	9130		(1)(a) Unless the terms of a trust expressly provide that the trust is irrevocable, the
9129	9131		4493
9130	9132		settlor may revoke or amend the trust.
9131	9133		4494
9132	9134		(b) This Subsection (1) does not apply to a trust created under an instrument executed
9133	9135		4495
9134	9136		before May 1, 2004.
9135	9137		4496
9136	9138		(2) If a revocable trust is created or funded by more than one settlor:
9137	9139		4497
9138	9140		(a) to the extent the trust consists of community property, the trust may be revoked by
9139	9141		4498
9140	9142		either spouse acting alone but may be amended only by joint action of both spouses;
9141	9143		4499
9142	9144		and
9143	9145		4500
9144	9146		(b) to the extent the trust consists of property other than community property, each
9145	9147		4501
9146	9148		settlor may revoke or amend the trust with regard to the portion of the trust property
9147	9149		4502
9148	9150		attributable to that settlor's contribution.
9149	9151		4503
9150	9152		(3) The settlor may revoke or amend a revocable trust:
9151	9153		4504
9152	9154		(a) by substantially complying with a method provided in the terms of the trust; or
9153	9155		4505
9154	9156		(b) if the terms of the trust do not provide a method or the method provided in the terms
9155	9157		4506
9156	9158		is not expressly made exclusive, by:
9157	9159		4507
9158	9160		(i) executing a later will or codicil that expressly refers to the trust or specifically
9159	9161		4508
9160	9162		devises property that would otherwise have passed according to the terms of the
9161	9163		4509
9162	9164		trust; or
9163	9165		4510
9164	9166		(ii) any other method manifesting clear and convincing evidence of the settlor's intent.
9165	9167		4511
9166	9168		(4) Upon revocation of a revocable trust, the trustee shall deliver the trust property as the
9167	9169		4512
9168	9170		settlor directs.
9169	9171		4513
9170	9172		(5) A settlor's powers with respect to revocation, amendment, or distribution of trust
9171	9173		4514
9172	9174		property may be exercised by an agent under a power of attorney only to the extent
9173		-	- 133 - S.B. 100 Enrolled Copy
9174	9175		4515
9175	9176		expressly authorized by the terms of the trust or the power.
	9177	+	- 133 - 1st Sub. (Green) S.B. 100 02-07 14:26
9176	9178		4516
9177	9179		(6) A conservator of the settlor or, if no conservator has been appointed, a guardian of the
9178	9180		4517
9179	9181		settlor may exercise a settlor's powers with respect to revocation, amendment, or
9180	9182		4518
9181	9183		distribution of trust property only with the approval of the court supervising the
9182	9184		4519
9183	9185		conservatorship or guardianship.
9184	9186		4520
9185	9187		(7) A trustee who does not know that a trust has been revoked or amended is not liable to
9186	9188		4521
9187	9189		the settlor or settlor's successors in interest for distributions made and other actions
9188	9190		4522
9189	9191		taken on the assumption that the trust had not been amended or revoked.
9190	9192		4523
9191	9193		Section 135. Section 75B-2-603, which is renumbered from Section 75-7-606 is renumbered
9192	9194		4524
9193	9195		and amended to read:
9194	9196		4525
9195	9197		[75-7-606] 75B-2-603 . Settlor's powers -- Powers of withdrawal.
9196	9198		4526
9197	9199		(1)(a) To the extent a trust is revocable by a settlor, a trustee may follow a direction of
9198	9200		4527
9199	9201		the settlor that is contrary to the terms of the trust.
9200	9202		4528
9201	9203		(b) To the extent a trust is revocable by a settlor in conjunction with a person other than
9202	9204		4529
9203	9205		a trustee or a person holding an adverse interest, the trustee may follow a direction
9204	9206		4530
9205	9207		from the settlor and the other person holding the power to revoke even if the direction
9206	9208		4531
9207	9209		is contrary to the terms of the trust.
9208	9210		4532
9209	9211		(2) To the extent a trust is revocable and the settlor has capacity to revoke the trust, rights
9210	9212		4533
9211	9213		of the beneficiaries are subject to the control of, and the duties of the trustee are owed
9212	9214		4534
9213	9215		exclusively to, the settlor.
9214	9216		4535
9215	9217		(3) If a revocable trust has more than one settlor, the duties of the trustee are owed to all of
9216	9218		4536
9217	9219		the settlors having capacity to revoke the trust.
9218	9220		4537
9219	9221		(4) During the period the power may be exercised, the holder of a power of withdrawal has
9220	9222		4538
9221	9223		the rights of a settlor of a revocable trust under this section to the extent of the property
9222	9224		4539
9223	9225		subject to the power.
9224	9226		4540
9225	9227		Section 136. Section 75B-2-604, which is renumbered from Section 75-7-607 is renumbered
9226	9228		4541
9227	9229		and amended to read:
9228	9230		4542
9229	9231		[75-7-607] 75B-2-604 . Limitation on action contesting validity of revocable trust
9230	9232		4543
9231	9233		-- Distribution of trust property.
9232	9234		4544
9233	9235		(1) A person shall commence a judicial proceeding to contest the validity of a trust that was
9234	9236		4545
9235	9237		revocable at the settlor's death within the earlier of:
9236	9238		4546
9237	9239		(a) three years after the settlor's death; or
9238	9240		4547
9239	9241		(b) 90 days after the trustee sent the person a copy of the trust instrument and a notice
9240	9242		4548
9241	9243		informing the person of the trust's existence, of the trustee's name and address, and of
9242		-	- 134 - Enrolled Copy S.B. 100
9243	9244		4549
9244	9245		the time allowed for commencing a proceeding.
	9246	+	- 134 - 02-07 14:26 1st Sub. (Green) S.B. 100
9245	9247		4550
9246	9248		(2)(a) Upon the death of the settlor of a trust that was revocable at the settlor's death, the
9247	9249		4551
9248	9250		trustee may proceed to distribute the trust property in accordance with the terms of
9249	9251		4552
9250	9252		the trust.
9251	9253		4553
9252	9254		(b) The trustee is not subject to liability for doing so unless:
9253	9255		4554
9254	9256		[(a)] (i) the trustee knows of a pending judicial proceeding contesting the validity of
9255	9257		4555
9256	9258		the trust; or
9257	9259		4556
9258	9260		[(b)] (ii) a potential contestant has notified the trustee of a possible judicial
9259	9261		4557
9260	9262		proceeding to contest the trust and a judicial proceeding is commenced within 60
9261	9263		4558
9262	9264		days after the contestant sent the notification.
9263	9265		4559
9264	9266		(3)(a) With respect to a potential contest, the trustee is only liable for actions taken two
9265	9267		4560
9266	9268		or more business days after the trustee has actual receipt of written notice from a
9267	9269		4561
9268	9270		potential contestant.
9269	9271		4562
9270	9272		(b) The written notice shall include the name of the settlor or of the trust, the name of
9271	9273		4563
9272	9274		the potential contestant, and a description of the basis for the potential contest.
9273	9275		4564
9274	9276		(c) The written notice shall be mailed to the trustee at the principal place of
9275	9277		4565
9276	9278		administration of the trust by registered or certified mail, return receipt requested, or
9277	9279		4566
9278	9280		served upon the trustee in the same manner as a summons in a civil action.
9279	9281		4567
9280	9282		(d) Any other form or service of notice is not sufficient to impose liability on the trustee
9281	9283		4568
9282	9284		for actions taken pursuant to the terms of the trust.
9283	9285		4569
9284	9286		(4) A beneficiary of a trust that is determined to have been invalid is liable to return any
9285	9287		4570
9286	9288		distribution received.
9287	9289		4571
9288	9290		Section 137. Section 75B-2-701, which is renumbered from Section 75-7-701 is renumbered
9289	9291		4572
9290	9292		and amended to read:
9291	9293		4573
9292	9294
9293	9295		Part 7. Office of Trustee
9294	9296		4574
9295	9297		[75-7-701] 75B-2-701 . Accepting or declining trusteeship.
9296	9298		4575
9297	9299		(1) Except as otherwise provided in Subsection (3), a person designated as trustee accepts
9298	9300		4576
9299	9301		the trusteeship:
9300	9302		4577
9301	9303		(a) by substantially complying with a method of acceptance provided in the terms of the
9302	9304		4578
9303	9305		trust; or
9304	9306		4579
9305	9307		(b) if the terms of the trust do not provide a method or the method provided in the terms
9306	9308		4580
9307	9309		is not expressly made exclusive, by accepting delivery of the trust property,
9308	9310		4581
9309	9311		exercising powers or performing duties as trustee, or otherwise indicating acceptance
9310	9312		4582
9311	9313		of the trusteeship.
9312		-	- 135 - S.B. 100 Enrolled Copy
9313	9314		4583
9314	9315		(2)(a) A person designated as trustee who has not yet accepted the trusteeship may reject
	9316	+	- 135 - 1st Sub. (Green) S.B. 100 02-07 14:26
9315	9317		4584
9316	9318		the trusteeship.
9317	9319		4585
9318	9320		(b) A designated trustee who does not accept the trusteeship within a reasonable time
9319	9321		4586
9320	9322		after knowing of the designation is considered to have rejected the trusteeship.
9321	9323		4587
9322	9324		(3) A person designated as trustee, without accepting the trusteeship, may:
9323	9325		4588
9324	9326		(a) act to preserve the trust property if, within a reasonable time after acting, the person
9325	9327		4589
9326	9328		sends a rejection of the trusteeship to the settlor or, if the settlor is dead or lacks
9327	9329		4590
9328	9330		capacity, to a qualified beneficiary; and
9329	9331		4591
9330	9332		(b) inspect or investigate trust property to determine potential liability under
9331	9333		4592
9332	9334		environmental or other law or for any other purpose.
9333	9335		4593
9334	9336		Section 138. Section 75B-2-702, which is renumbered from Section 75-7-702 is renumbered
9335	9337		4594
9336	9338		and amended to read:
9337	9339		4595
9338	9340		[75-7-702] 75B-2-702 . Trustee's bond.
9339	9341		4596
9340	9342		(1) A trustee shall give bond to secure performance of the trustee's duties only if the court
9341	9343		4597
9342	9344		finds that a bond is needed to protect the interests of the beneficiaries or is required by
9343	9345		4598
9344	9346		the terms of the trust and the court has not dispensed with the requirement.
9345	9347		4599
9346	9348		(2)(a) The court may specify the amount of a bond, [its] the bond's liabilities, and
9347	9349		4600
9348	9350		whether sureties are necessary.
9349	9351		4601
9350	9352		(b) The court may modify or terminate a bond at any time.
9351	9353		4602
9352	9354		(3)(a) A regulated financial service institution qualified to do trust business in this state
9353	9355		4603
9354	9356		need not give bond, unless required by the terms of the trust.
9355	9357		4604
9356	9358		(b) The cost of any bond shall be borne by the trust.
9357	9359		4605
9358	9360		(4) Unless otherwise directed by the court, the cost of the bond is charged to the trust.
9359	9361		4606
9360	9362		Section 139. Section 75B-2-703, which is renumbered from Section 75-7-703 is renumbered
9361	9363		4607
9362	9364		and amended to read:
9363	9365		4608
9364	9366		[75-7-703] 75B-2-703 . Cotrustees.
9365	9367		4609
9366	9368		(1) Cotrustees who are unable to reach a unanimous decision may act by majority decision.
9367	9369		4610
9368	9370		(2) If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust.
9369	9371		4611
9370	9372		(3) Subject to Section [75-12-112] 75B-3-112, a cotrustee must participate in the
9371	9373		4612
9372	9374		performance of a trustee's function unless the cotrustee is unavailable to perform the
9373	9375		4613
9374	9376		function because of absence, illness, disqualification under other law, or other temporary
9375	9377		4614
9376	9378		incapacity, or the cotrustee has properly delegated the performance of the function to
9377	9379		4615
9378	9380		another trustee.
9379	9381		4616
9380	9382		(4) If a cotrustee is unavailable to perform duties because of absence, illness,
9381		-	- 136 - Enrolled Copy S.B. 100
9382	9383		4617
9383	9384		disqualification under other law, or other temporary incapacity, or if a cotrustee fails or
	9385	+	- 136 - 02-07 14:26 1st Sub. (Green) S.B. 100
9384	9386		4618
9385	9387		refuses to act after reasonable notice, and prompt action is necessary to achieve the
9386	9388		4619
9387	9389		purposes of the trust or to avoid injury to the trust property, the remaining cotrustee or a
9388	9390		4620
9389	9391		majority of the remaining cotrustees may act for the trust.
9390	9392		4621
9391	9393		(5)(a) A trustee may not delegate to a cotrustee the performance of a function the settlor
9392	9394		4622
9393	9395		intended the trustees to perform jointly as determined from the terms of the trust.
9394	9396		4623
9395	9397		(b) If one of the cotrustees is a regulated financial service institution qualified to do trust
9396	9398		4624
9397	9399		business in this state and the remaining cotrustees are individuals, a delegation by the
9398	9400		4625
9399	9401		individual cotrustees to the regulated financial service institution of the performance
9400	9402		4626
9401	9403		of trust investment functions shall be presumed to be in accordance with the settlor's
9402	9404		4627
9403	9405		intent unless the terms of the trust specifically provide otherwise.
9404	9406		4628
9405	9407		(c) Unless a delegation was irrevocable, a trustee may revoke a delegation previously
9406	9408		4629
9407	9409		made.
9408	9410		4630
9409	9411		(6) Except as otherwise provided in Subsection (7), a trustee who does not join in an action
9410	9412		4631
9411	9413		of another trustee is not liable for the action.
9412	9414		4632
9413	9415		(7) Subject to Section [75-12-112] 75B-3-112, each trustee shall exercise reasonable care to:
9414	9416		4633
9415	9417		(a) prevent a cotrustee from committing a serious breach of trust; and
9416	9418		4634
9417	9419		(b) compel a cotrustee to redress a serious breach of trust.
9418	9420		4635
9419	9421		(8) A dissenting trustee who joins in an action at the direction of the majority of the trustees
9420	9422		4636
9421	9423		and who notified any cotrustee of the dissent at or before the time of the action is not
9422	9424		4637
9423	9425		liable for the action unless the action is a serious breach of trust.
9424	9426		4638
9425	9427		Section 140. Section 75B-2-704, which is renumbered from Section 75-7-704 is renumbered
9426	9428		4639
9427	9429		and amended to read:
9428	9430		4640
9429	9431		[75-7-704] 75B-2-704 . Vacancy in trusteeship -- Appointment of successor.
9430	9432		4641
9431	9433		(1) A vacancy in a trusteeship occurs if:
9432	9434		4642
9433	9435		(a) a person designated as trustee rejects the trusteeship;
9434	9436		4643
9435	9437		(b) a person designated as trustee cannot be identified or does not exist;
9436	9438		4644
9437	9439		(c) a trustee resigns;
9438	9440		4645
9439	9441		(d) a trustee is disqualified or removed;
9440	9442		4646
9441	9443		(e) a trustee dies; or
9442	9444		4647
9443	9445		(f) a guardian or conservator is appointed for an individual serving as trustee, unless
9444	9446		4648
9445	9447		otherwise provided in the trust.
9446	9448		4649
9447	9449		(2)(a) If one or more cotrustees remain in office, a vacancy in a trusteeship need not be
9448	9450		4650
9449	9451		filled.
9450		-	- 137 - S.B. 100 Enrolled Copy
9451	9452		4651
9452	9453		(b) A vacancy in a trusteeship must be filled if the trust has no remaining trustee.
	9454	+	- 137 - 1st Sub. (Green) S.B. 100 02-07 14:26
9453	9455		4652
9454	9456		(3) A vacancy in a trusteeship required to be filled must be filled in the following order of
9455	9457		4653
9456	9458		priority:
9457	9459		4654
9458	9460		(a) by a person designated in the terms of the trust to act as successor trustee;
9459	9461		4655
9460	9462		(b) by a person appointed by unanimous agreement of the qualified beneficiaries; or
9461	9463		4656
9462	9464		(c) by a person appointed by the court.
9463	9465		4657
9464	9466		(4) A vacancy in a trusteeship of a charitable trust that is required to be filled must be filled
9465	9467		4658
9466	9468		in the following order of priority:
9467	9469		4659
9468	9470		(a) by a person designated in the terms of the trust to act as successor trustee;
9469	9471		4660
9470	9472		(b) by a person selected by the charitable organizations expressly designated to receive
9471	9473		4661
9472	9474		distributions under the terms of the trust if the attorney general concurs in the
9473	9475		4662
9474	9476		selection; or
9475	9477		4663
9476	9478		(c) by a person appointed by the court.
9477	9479		4664
9478	9480		(5) Whether or not a vacancy in a trusteeship exists or is required to be filled, the court may
9479	9481		4665
9480	9482		appoint an additional trustee or special fiduciary whenever the court considers the
9481	9483		4666
9482	9484		appointment necessary for the administration of the trust.
9483	9485		4667
9484	9486		Section 141. Section 75B-2-705, which is renumbered from Section 75-7-705 is renumbered
9485	9487		4668
9486	9488		and amended to read:
9487	9489		4669
9488	9490		[75-7-705] 75B-2-705 . Resignation of trustee.
9489	9491		4670
9490	9492		(1) A trustee may resign:
9491	9493		4671
9492	9494		(a) upon at least 30 days' notice to the qualified beneficiaries, the settlor, if living, and
9493	9495		4672
9494	9496		all cotrustees; or
9495	9497		4673
9496	9498		(b) with the approval of the court.
9497	9499		4674
9498	9500		(2) In approving a resignation, the court may issue orders and impose conditions reasonably
9499	9501		4675
9500	9502		necessary for the protection of the trust property.
9501	9503		4676
9502	9504		(3) Any liability of a resigning trustee or of any sureties on the trustee's bond for acts or
9503	9505		4677
9504	9506		omissions of the trustee is not discharged or affected by the trustee's resignation.
9505	9507		4678
9506	9508		Section 142. Section 75B-2-706, which is renumbered from Section 75-7-706 is renumbered
9507	9509		4679
9508	9510		and amended to read:
9509	9511		4680
9510	9512		[75-7-706] 75B-2-706 . Removal of trustee.
9511	9513		4681
9512	9514		(1) The settlor, a cotrustee, or a qualified beneficiary may request the court to remove a
9513	9515		4682
9514	9516		trustee, or a trustee may be removed by the court on [its] the court's own initiative.
9515	9517		4683
9516	9518		(2) The court may remove a trustee if:
9517	9519		4684
9518	9520		(a) the trustee has committed a serious breach of trust;
9519		-	- 138 - Enrolled Copy S.B. 100
9520	9521		4685
9521	9522		(b) lack of cooperation among cotrustees substantially impairs the administration of the
	9523	+	- 138 - 02-07 14:26 1st Sub. (Green) S.B. 100
9522	9524		4686
9523	9525		trust;
9524	9526		4687
9525	9527		(c) because of unfitness, unwillingness, or persistent failure of the trustee to administer
9526	9528		4688
9527	9529		the trust effectively, the court determines that removal of the trustee best serves the
9528	9530		4689
9529	9531		interests of the beneficiaries; or
9530	9532		4690
9531	9533		(d) there has been a substantial change of circumstances or removal is requested by all
9532	9534		4691
9533	9535		of the qualified beneficiaries, the court finds that removal of the trustee best serves
9534	9536		4692
9535	9537		the interests of all of the beneficiaries and is not inconsistent with a material purpose
9536	9538		4693
9537	9539		of the trust, and a suitable cotrustee or successor trustee is available.
9538	9540		4694
9539	9541		(3) Pending a final decision on a request to remove a trustee, or in lieu of or in addition to
9540	9542		4695
9541	9543		removing a trustee, the court may order appropriate relief under Subsection [
9542	9544		4696
9543	9545		75-7-1001(2)] 75B-2-1001(2) necessary to protect the trust property or the interests of
9544	9546		4697
9545	9547		the beneficiaries.
9546	9548		4698
9547	9549		Section 143. Section 75B-2-707, which is renumbered from Section 75-7-707 is renumbered
9548	9550		4699
9549	9551		and amended to read:
9550	9552		4700
9551	9553		[75-7-707] 75B-2-707 . Delivery of property by former trustee.
9552	9554		4701
9553	9555		(1) Unless a cotrustee remains in office or the court otherwise orders, and until the trust
9554	9556		4702
9555	9557		property is delivered to a successor trustee or other person entitled to it, a trustee who
9556	9558		4703
9557	9559		has resigned or been removed has the duties of a trustee and the powers necessary to
9558	9560		4704
9559	9561		protect the trust property.
9560	9562		4705
9561	9563		(2) A trustee who has resigned or been removed shall proceed expeditiously to deliver the
9562	9564		4706
9563	9565		trust property within the trustee's possession to the cotrustee, successor trustee, or other
9564	9566		4707
9565	9567		person entitled to [it] the trust property.
9566	9568		4708
9567	9569		Section 144. Section 75B-2-708, which is renumbered from Section 75-7-708 is renumbered
9568	9570		4709
9569	9571		and amended to read:
9570	9572		4710
9571	9573		[75-7-708] 75B-2-708 . Compensation of trustee.
9572	9574		4711
9573	9575		If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to
9574	9576		4712
9575	9577		compensation that is reasonable under the circumstances.
9576	9578		4713
9577	9579		Section 145. Section 75B-2-709, which is renumbered from Section 75-7-709 is renumbered
9578	9580		4714
9579	9581		and amended to read:
9580	9582		4715
9581	9583		[75-7-709] 75B-2-709 . Reimbursement of expenses.
9582	9584		4716
9583	9585		(1) A trustee is entitled to be reimbursed out of the trust property, with interest as
9584	9586		4717
9585	9587		appropriate, for:
9586	9588		4718
9587	9589		(a) expenses that were properly incurred in the administration of the trust; and
9588		-	- 139 - S.B. 100 Enrolled Copy
9589	9590		4719
9590	9591		(b) to the extent necessary to prevent unjust enrichment of the trust, expenses that were
	9592	+	- 139 - 1st Sub. (Green) S.B. 100 02-07 14:26
9591	9593		4720
9592	9594		not properly incurred in the administration of the trust.
9593	9595		4721
9594	9596		(2) An advance by the trustee of money for the protection of the trust gives rise to a lien
9595	9597		4722
9596	9598		against trust property to secure reimbursement with reasonable interest.
9597	9599		4723
9598	9600		Section 146. Section 75B-2-801, which is renumbered from Section 75-7-801 is renumbered
9599	9601		4724
9600	9602		and amended to read:
9601	9603		4725
9602	9604
9603	9605		Part 8. Duties and Power of Trustee
9604	9606		4726
9605	9607		[75-7-801] 75B-2-801 . Duty to administer trust.
9606	9608		4727
9607	9609		Upon acceptance of a trusteeship, the trustee shall administer the trust expeditiously and
9608	9610		4728
9609	9611		in good faith, in accordance with [its] the trust's terms and purposes and the interests of the
9610	9612		4729
9611	9613		beneficiaries, and in accordance with this chapter.
9612	9614		4730
9613	9615		Section 147. Section 75B-2-802, which is renumbered from Section 75-7-802 is renumbered
9614	9616		4731
9615	9617		and amended to read:
9616	9618		4732
9617	9619		[75-7-802] 75B-2-802 . Duty of loyalty.
9618	9620		4733
9619	9621		(1) A trustee shall administer the trust solely in the interests of the beneficiaries.
9620	9622		4734
9621	9623		(2) Subject to the rights of persons dealing with or assisting the trustee as provided in
9622	9624		4735
9623	9625		Section [75-7-1012] 75B-2-1012, a sale, encumbrance, or other transaction involving the
9624	9626		4736
9625	9627		investment or management of trust property entered into by the trustee for the trustee's
9626	9628		4737
9627	9629		own personal account or which is otherwise affected by a conflict between the trustee's
9628	9630		4738
9629	9631		fiduciary and personal interests is voidable by a beneficiary affected by the transaction
9630	9632		4739
9631	9633		unless:
9632	9634		4740
9633	9635		(a) the transaction was authorized by the terms of the trust;
9634	9636		4741
9635	9637		(b) the transaction was approved by the court;
9636	9638		4742
9637	9639		(c) the beneficiary did not commence a judicial proceeding within the time allowed by
9638	9640		4743
9639	9641		Section [75-7-1005] 75B-2-1005;
9640	9642		4744
9641	9643		(d) the beneficiary consented to the trustee's conduct, ratified the transaction, or released
9642	9644		4745
9643	9645		the trustee in compliance with Section [75-7-1009] 75B-2-1009; or
9644	9646		4746
9645	9647		(e) the transaction involves a contract entered into or claim acquired by the trustee
9646	9648		4747
9647	9649		before the person became or contemplated becoming trustee.
9648	9650		4748
9649	9651		(3) A sale, encumbrance, or other transaction involving the investment or management of
9650	9652		4749
9651	9653		trust property is presumed to be affected by a conflict between personal and fiduciary
9652	9654		4750
9653	9655		interests if [it] the sale, encumbrance, or other transaction is entered into by the trustee
9654	9656		4751
9655	9657		with:
9656	9658		4752
9657	9659		(a) the trustee's spouse;
9658		-	- 140 - Enrolled Copy S.B. 100
9659	9660		4753
9660	9661		(b) the trustee's descendants, siblings, parents, or [their spouses] the spouses of the
	9662	+	- 140 - 02-07 14:26 1st Sub. (Green) S.B. 100
9661	9663		4754
9662	9664		trustee's descendants, siblings, or parents;
9663	9665		4755
9664	9666		(c) an agent of the trustee, including but not limited to an attorney, accountant, or
9665	9667		4756
9666	9668		financial advisor; or
9667	9669		4757
9668	9670		(d) a corporation or other person or enterprise in which the trustee, or a person that owns
9669	9671		4758
9670	9672		a significant interest in the trustee, has an interest that might affect the trustee's best
9671	9673		4759
9672	9674		judgment.
9673	9675		4760
9674	9676		(4) A transaction between a trustee and a beneficiary that does not concern trust property
9675	9677		4761
9676	9678		but that occurs during the existence of the trust or while the trustee retains significant
9677	9679		4762
9678	9680		influence over the beneficiary and from which the trustee obtains an advantage is
9679	9681		4763
9680	9682		voidable by the beneficiary unless the trustee establishes that the transaction was fair to
9681	9683		4764
9682	9684		the beneficiary.
9683	9685		4765
9684	9686		(5) A transaction not concerning trust property in which the trustee engages in the trustee's
9685	9687		4766
9686	9688		individual capacity involves a conflict between personal and fiduciary interests if the
9687	9689		4767
9688	9690		transaction concerns an opportunity properly belonging to the trust.
9689	9691		4768
9690	9692		(6)(a) An investment by a trustee in securities of an investment company or investment
9691	9693		4769
9692	9694		trust to which the trustee, or its affiliate, provides services in a capacity other than as
9693	9695		4770
9694	9696		trustee is not presumed to be affected by a conflict between personal and fiduciary
9695	9697		4771
9696	9698		interests if the investment complies with the prudent investor rule of Section [
9697	9699		4772
9698	9700		75-7-901] 75B-2-901.
9699	9701		4773
9700	9702		(b) The trustee may be compensated by the investment company or investment trust for
9701	9703		4774
9702	9704		providing those services out of fees charged to the trust.
9703	9705		4775
9704	9706		(7)(a) In voting shares of stock or in exercising powers of control over similar interests
9705	9707		4776
9706	9708		in other forms of enterprise, the trustee shall act in the best interests of the
9707	9709		4777
9708	9710		beneficiaries.
9709	9711		4778
9710	9712		(b) If the trust is the sole owner of a corporation or other form of enterprise, the trustee
9711	9713		4779
9712	9714		shall elect or appoint directors or other managers who will manage the corporation or
9713	9715		4780
9714	9716		enterprise in the best interests of the beneficiaries.
9715	9717		4781
9716	9718		(8) This section does not preclude the following actions by the trustee:
9717	9719		4782
9718	9720		(a) an agreement between the trustee and a beneficiary relating to the appointment or
9719	9721		4783
9720	9722		compensation of the trustee;
9721	9723		4784
9722	9724		(b) payment of reasonable compensation to the trustee;
9723	9725		4785
9724	9726		(c) a transaction between a trust and another trust, decedent's estate, conservatorship, or
9725	9727		4786
9726	9728		guardianship of which the trustee is a fiduciary or in which a beneficiary has an
9727		-	- 141 - S.B. 100 Enrolled Copy
9728	9729		4787
9729	9730		interest;
	9731	+	- 141 - 1st Sub. (Green) S.B. 100 02-07 14:26
9730	9732		4788
9731	9733		(d) a deposit of trust money in a regulated financial service institution operated by the
9732	9734		4789
9733	9735		trustee;
9734	9736		4790
9735	9737		(e) an advance by the trustee of money for the protection of the trust;
9736	9738		4791
9737	9739		(f) collecting, holding, and retaining trust assets received from a trustor until, in the
9738	9740		4792
9739	9741		judgment of the trustee, disposition of the assets should be made, even though the
9740	9742		4793
9741	9743		assets include an asset in which the trustee is personally interested;
9742	9744		4794
9743	9745		(g) acquiring an undivided interest in a trust asset in which the trustee, in any trust
9744	9746		4795
9745	9747		capacity, holds an undivided interest;
9746	9748		4796
9747	9749		(h) borrowing money to be repaid from the trust assets or otherwise;
9748	9750		4797
9749	9751		(i) advancing money to be repaid from the assets or otherwise;
9750	9752		4798
9751	9753		(j) employing [persons, including attorneys, auditors, investment advisers, or agents] a
9752	9754		4799
9753	9755		person, including an attorney, an auditor, an investment adviser, or an agent, even if [
9754	9756		4800
9755	9757		they are] the person is associated with the trustee:
9756	9758		4801
9757	9759		(i) to advise or assist the trustee in the performance of the trustee's administrative
9758	9760		4802
9759	9761		duties or perform any act of administration, whether or not discretionary; or
9760	9762		4803
9761	9763		(ii) to act without independent investigation upon [their] the person's
9762	9764		4804
9763	9765		recommendations;
9764	9766		4805
9765	9767		(k) if a governing instrument or order requires or authorizes investment in United States
9766	9768		4806
9767	9769		government obligations, investing in those obligations, either directly or in the form
9768	9770		4807
9769	9771		of securities or other interests, in any open-end or closed-end management type
9770	9772		4808
9771	9773		investment company or investment trust registered under the provisions of the
9772	9774		4809
9773	9775		Investment Company Act of 1940, 15 U.S.C. Sections 80a-1 through 80a-64 if:
9774	9776		4810
9775	9777		(i) the portfolio of the investment company or investment trust is limited to United
9776	9778		4811
9777	9779		States government obligations, and repurchase agreements are fully collateralized
9778	9780		4812
9779	9781		by United States government obligations; and
9780	9782		4813
9781	9783		(ii) the investment company or investment trust takes delivery of the collateral for
9782	9784		4814
9783	9785		any repurchase agreement either directly or through an authorized custodian.
9784	9786		4815
9785	9787		(9) The court may appoint a special fiduciary to make a decision with respect to any
9786	9788		4816
9787	9789		proposed transaction that might violate this section if entered into by the trustee.
9788	9790		4817
9789	9791		Section 148. Section 75B-2-803, which is renumbered from Section 75-7-803 is renumbered
9790	9792		4818
9791	9793		and amended to read:
9792	9794		4819
9793	9795		[75-7-803] 75B-2-803 . Impartiality.
9794	9796		4820
9795	9797		If a trust has two or more beneficiaries, the trustee shall act impartially in investing,
9796		-	- 142 - Enrolled Copy S.B. 100
9797	9798		4821
9798	9799		managing, and distributing the trust property, giving due regard to the beneficiaries' respective
	9800	+	- 142 - 02-07 14:26 1st Sub. (Green) S.B. 100
9799	9801		4822
9800	9802		interests.
9801	9803		4823
9802	9804		Section 149. Section 75B-2-804, which is renumbered from Section 75-7-804 is renumbered
9803	9805		4824
9804	9806		and amended to read:
9805	9807		4825
9806	9808		[75-7-804] 75B-2-804 . Prudent administration.
9807	9809		4826
9808	9810		(1) A trustee shall administer the trust as a prudent person would, by considering the
9809	9811		4827
9810	9812		purposes, terms, distributional requirements, and other circumstances of the trust.
9811	9813		4828
9812	9814		(2) In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.
9813	9815		4829
9814	9816		Section 150. Section 75B-2-805, which is renumbered from Section 75-7-805 is renumbered
9815	9817		4830
9816	9818		and amended to read:
9817	9819		4831
9818	9820		[75-7-805] 75B-2-805 . Costs of administration.
9819	9821		4832
9820	9822		In administering a trust, the trustee may incur only costs that are reasonable in relation to
9821	9823		4833
9822	9824		the trust property, the purposes of the trust, and the skills of the trustee.
9823	9825		4834
9824	9826		Section 151. Section 75B-2-806, which is renumbered from Section 75-7-806 is renumbered
9825	9827		4835
9826	9828		and amended to read:
9827	9829		4836
9828	9830		[75-7-806] 75B-2-806 . Trustee's skills.
9829	9831		4837
9830	9832		A trustee who is named trustee in reliance upon the trustee's representation that the
9831	9833		4838
9832	9834		trustee has special skills or expertise, shall use those special skills or expertise.
9833	9835		4839
9834	9836		Section 152. Section 75B-2-807, which is renumbered from Section 75-7-807 is renumbered
9835	9837		4840
9836	9838		and amended to read:
9837	9839		4841
9838	9840		[75-7-807] 75B-2-807 . Control and protection of trust property.
9839	9841		4842
9840	9842		A trustee shall take reasonable steps to take control of and protect the trust property.
9841	9843		4843
9842	9844		Section 153. Section 75B-2-808, which is renumbered from Section 75-7-808 is renumbered
9843	9845		4844
9844	9846		and amended to read:
9845	9847		4845
9846	9848		[75-7-808] 75B-2-808 . Recordkeeping and identification of trust property.
9847	9849		4846
9848	9850		(1) A trustee shall keep adequate records of the administration of the trust.
9849	9851		4847
9850	9852		(2) A trustee shall keep trust property separate from the trustee's own property.
9851	9853		4848
9852	9854		(3) Except as otherwise provided in Subsection (4), a trustee shall cause the trust property
9853	9855		4849
9854	9856		to be designated so that the interest of the trust, to the extent feasible, appears in records
9855	9857		4850
9856	9858		maintained by a party other than a trustee or beneficiary.
9857	9859		4851
9858	9860		(4) If the trustee maintains records clearly indicating the respective interests, a trustee may
9859	9861		4852
9860	9862		invest as a whole the property of two or more separate trusts.
9861	9863		4853
9862	9864		Section 154. Section 75B-2-809, which is renumbered from Section 75-7-809 is renumbered
9863	9865		4854
9864	9866		and amended to read:
9865		-	- 143 - S.B. 100 Enrolled Copy
9866	9867		4855
9867	9868		[75-7-809] 75B-2-809 . Enforcement and defense of claims.
	9869	+	- 143 - 1st Sub. (Green) S.B. 100 02-07 14:26
9868	9870		4856
9869	9871		A trustee shall take reasonable steps to enforce claims of the trust and to defend claims
9870	9872		4857
9871	9873		against the trust.
9872	9874		4858
9873	9875		Section 155. Section 75B-2-810, which is renumbered from Section 75-7-810 is renumbered
9874	9876		4859
9875	9877		and amended to read:
9876	9878		4860
9877	9879		[75-7-810] 75B-2-810 . Collecting trust property.
9878	9880		4861
9879	9881		A trustee shall take reasonable steps to compel a former trustee or other person to
9880	9882		4862
9881	9883		deliver trust property to the trustee, and to redress a breach of trust known to the trustee to
9882	9884		4863
9883	9885		have been committed by a former trustee, unless the terms of the trust provide otherwise.
9884	9886		4864
9885	9887		Section 156. Section 75B-2-811, which is renumbered from Section 75-7-811 is renumbered
9886	9888		4865
9887	9889		and amended to read:
9888	9890		4866
9889	9891		[75-7-811] 75B-2-811 . Duty to inform and report.
9890	9892		4867
9891	9893		(1)(a) Except to the extent the terms of the trust provide otherwise, a trustee shall keep
9892	9894		4868
9893	9895		the qualified beneficiaries of the trust reasonably informed about the administration
9894	9896		4869
9895	9897		of the trust and of the material facts necessary for [them] the qualified beneficiaries to
9896	9898		4870
9897	9899		protect [their] the qualified beneficiaries' interests.
9898	9900		4871
9899	9901		(b) Unless unreasonable under the circumstances, and unless otherwise provided by the
9900	9902		4872
9901	9903		terms of the trust a trustee shall promptly respond to a qualified beneficiary's request
9902	9904		4873
9903	9905		for information related to the administration of the trust.
9904	9906		4874
9905	9907		(2) Except to the extent the terms of the trust provide otherwise, a trustee:
9906	9908		4875
9907	9909		(a) upon request of a qualified beneficiary, shall promptly furnish to the beneficiary a
9908	9910		4876
9909	9911		copy of the portions of the trust instrument which describe or affect the beneficiary's
9910	9912		4877
9911	9913		interest;
9912	9914		4878
9913	9915		(b) within 60 days after accepting a trusteeship, shall notify the qualified beneficiaries of
9914	9916		4879
9915	9917		the acceptance and of the trustee's name, address, and telephone number;
9916	9918		4880
9917	9919		(c) within 60 days after the date the trustee acquires knowledge of the creation of an
9918	9920		4881
9919	9921		irrevocable trust, or the date the trustee acquires knowledge that a formerly revocable
9920	9922		4882
9921	9923		trust has become irrevocable, whether by the death of the settlor or otherwise, shall
9922	9924		4883
9923	9925		notify the qualified beneficiaries of the trust's existence, of the identity of the settlor
9924	9926		4884
9925	9927		or settlors, of the right to request a copy of the trust instrument, and of the right to a
9926	9928		4885
9927	9929		trustee's report as provided in Subsection (3); and
9928	9930		4886
9929	9931		(d) shall notify the qualified beneficiaries in advance of any change in the method or rate
9930	9932		4887
9931	9933		of the trustee's compensation.
9932	9934		4888
9933	9935		(3)(a) A trustee shall send to the qualified beneficiaries who request it, at least annually
9934		-	- 144 - Enrolled Copy S.B. 100
9935	9936		4889
9936	9937		and at the termination of the trust, a report of the trust property, liabilities, receipts,
	9938	+	- 144 - 02-07 14:26 1st Sub. (Green) S.B. 100
9937	9939		4890
9938	9940		and disbursements, including the amount of the trustee's compensation or a fee
9939	9941		4891
9940	9942		schedule or other writing showing how the trustee's compensation was determined, a
9941	9943		4892
9942	9944		listing of the trust assets and, if feasible, [their] the trust assets' respective market
9943	9945		4893
9944	9946		values.
9945	9947		4894
9946	9948		(b) Upon a vacancy in a trusteeship, unless a cotrustee remains in office, a report must
9947	9949		4895
9948	9950		be sent to the qualified beneficiaries by the former trustee, unless the terms of the
9949	9951		4896
9950	9952		trust provide otherwise.
9951	9953		4897
9952	9954		(c) A personal representative, conservator, or guardian may send the qualified
9953	9955		4898
9954	9956		beneficiaries a report on behalf of a deceased or incapacitated trustee.
9955	9957		4899
9956	9958		(4)(a) A qualified beneficiary may waive the right to a trustee's report or other
9957	9959		4900
9958	9960		information otherwise required to be furnished under this section.
9959	9961		4901
9960	9962		(b) A beneficiary, with respect to future reports and other information, may withdraw a
9961	9963		4902
9962	9964		waiver previously given.
9963	9965		4903
9964	9966		Section 157. Section 75B-2-812, which is renumbered from Section 75-7-812 is renumbered
9965	9967		4904
9966	9968		and amended to read:
9967	9969		4905
9968	9970		[75-7-812] 75B-2-812 . Discretionary powers -- Tax savings.
9969	9971		4906
9970	9972		(1) Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust,
9971	9973		4907
9972	9974		including the use of such terms as "absolute," "sole," or "uncontrolled," the trustee shall
9973	9975		4908
9974	9976		exercise a discretionary power in good faith and in accordance with the terms and
9975	9977		4909
9976	9978		purposes of the trust and the interests of the beneficiaries.
9977	9979		4910
9978	9980		(2) Subject to Subsection (4), and unless the terms of the trust expressly indicate that [a rule
9979	9981		4911
9980	9982		in] a requirement described in this section does not apply:
9981	9983		4912
9982	9984		(a) a person other than a settlor who is a beneficiary and trustee of a trust that confers on
9983	9985		4913
9984	9986		the trustee a power to make discretionary distributions to or for the trustee's personal
9985	9987		4914
9986	9988		benefit may exercise the power only in accordance with an ascertainable standard
9987	9989		4915
9988	9990		relating to the trustee's individual health, education, support, or maintenance within
9989	9991		4916
9990	9992		the meaning of Subsection 2041(b)(1)(A) or 2514(c)(1) of the Internal Revenue Code
9991	9993		4917
9992	9994		of 1986, as in effect on May 1, 2004; and
9993	9995		4918
9994	9996		(b) a trustee may not exercise a power to make discretionary distributions to satisfy a
9995	9997		4919
9996	9998		legal obligation of support that the trustee personally owes another person.
9997	9999		4920
9998	10000		(3)(a) A power whose exercise is limited or prohibited by Subsection (2) may be
9999	10001		4921
10000	10002		exercised by a majority of the remaining trustees whose exercise of the power is not
10001	10003		4922
10002	10004		so limited or prohibited.
10003		-	- 145 - S.B. 100 Enrolled Copy
10004	10005		4923
10005	10006		(b) If the power of all trustees is so limited or prohibited, the court may appoint a special
	10007	+	- 145 - 1st Sub. (Green) S.B. 100 02-07 14:26
10006	10008		4924
10007	10009		fiduciary with authority to exercise the power.
10008	10010		4925
10009	10011		(4) Subsection (2) does not apply to:
10010	10012		4926
10011	10013		(a) a power held by the settlor's spouse who is the trustee of a trust for which a marital
10012	10014		4927
10013	10015		deduction, as defined in Subsection 2056(b)(5) or 2523(e) of the Internal Revenue
10014	10016		4928
10015	10017		Code of 1986, as in effect on May 1, 2004, was previously allowed;
10016	10018		4929
10017	10019		(b) any trust during any period that the trust may be revoked or amended by [its] the
10018	10020		4930
10019	10021		trust's settlor; or
10020	10022		4931
10021	10023		(c) a trust if contributions to the trust qualify for the annual exclusion under Subsection
10022	10024		4932
10023	10025		2503(c) of the Internal Revenue Code of 1986, as in effect on May 1, 2004.
10024	10026		4933
10025	10027		Section 158. Section 75B-2-813, which is renumbered from Section 75-7-813 is renumbered
10026	10028		4934
10027	10029		and amended to read:
10028	10030		4935
10029	10031		[75-7-813] 75B-2-813 . General powers of trustee.
10030	10032		4936
10031	10033		(1) A trustee, without authorization by the court, may exercise:
10032	10034		4937
10033	10035		(a) powers conferred by the terms of the trust; or
10034	10036		4938
10035	10037		(b) except as limited by the terms of the trust:
10036	10038		4939
10037	10039		(i) all powers over the trust property [which] that an unmarried competent owner has
10038	10040		4940
10039	10041		over individually owned property;
10040	10042		4941
10041	10043		(ii) any other powers appropriate to achieve the proper investment, management, and
10042	10044		4942
10043	10045		distribution of the trust property; and
10044	10046		4943
10045	10047		(iii) any other powers conferred by this chapter.
10046	10048		4944
10047	10049		(2) The exercise of a power is subject to the fiduciary duties prescribed by this part.
10048	10050		4945
10049	10051		Section 159. Section 75B-2-814, which is renumbered from Section 75-7-814 is renumbered
10050	10052		4946
10051	10053		and amended to read:
10052	10054		4947
10053	10055		[75-7-814] 75B-2-814 . Specific powers of trustee.
10054	10056		4948
10055	10057		(1) Without limiting the authority conferred by Section [75-7-813] 75B-2-813, a trustee may:
10056	10058		4949
10057	10059		(a) collect trust property and accept or reject additions to the trust property from a settlor
10058	10060		4950
10059	10061		or any other person;
10060	10062		4951
10061	10063		(b) acquire or sell property, for cash or on credit, at public or private sale;
10062	10064		4952
10063	10065		(c) exchange, partition, or otherwise change the character of trust property;
10064	10066		4953
10065	10067		(d) deposit trust money in an account in a regulated financial service institution;
10066	10068		4954
10067	10069		(e) borrow money, with or without security from any financial institution, including a
10068	10070		4955
10069	10071		financial institution that is serving as a trustee or one of [its] the financial institution's
10070	10072		4956
10071	10073		affiliates, and mortgage or pledge trust property for a period within or extending
10072		-	- 146 - Enrolled Copy S.B. 100
10073	10074		4957
10074	10075		beyond the duration of the trust;
	10076	+	- 146 - 02-07 14:26 1st Sub. (Green) S.B. 100
10075	10077		4958
10076	10078		(f) with respect to an interest in a proprietorship, partnership, limited liability company,
10077	10079		4959
10078	10080		business trust, corporation, or other form of business or enterprise, continue the
10079	10081		4960
10080	10082		business or other enterprise and take any action that may be taken by shareholders,
10081	10083		4961
10082	10084		members, or property owners, including merging, dissolving, or otherwise changing
10083	10085		4962
10084	10086		the form of business organization or contributing additional capital;
10085	10087		4963
10086	10088		(g) with respect to stocks or other securities, exercise the rights of an absolute owner,
10087	10089		4964
10088	10090		including the right to:
10089	10091		4965
10090	10092		(i) vote, or give proxies to vote, with or without power of substitution, or enter into or
10091	10093		4966
10092	10094		continue a voting trust agreement;
10093	10095		4967
10094	10096		(ii) hold a security in the name of a nominee or in other form without disclosure of
10095	10097		4968
10096	10098		the trust so that title may pass by delivery;
10097	10099		4969
10098	10100		(iii) pay calls, assessments, and other sums chargeable or accruing against the
10099	10101		4970
10100	10102		securities, and sell or exercise stock subscription or conversion rights; and
10101	10103		4971
10102	10104		(iv) deposit the securities with a depositary or other regulated financial service
10103	10105		4972
10104	10106		institution;
10105	10107		4973
10106	10108		(h) with respect to an interest in real property, construct, or make ordinary or
10107	10109		4974
10108	10110		extraordinary repairs to, alterations to, or improvements in, buildings or other
10109	10111		4975
10110	10112		structures, demolish improvements, raze existing or erect new party walls or
10111	10113		4976
10112	10114		buildings, subdivide or develop land, dedicate land to public use or grant public or
10113	10115		4977
10114	10116		private easements, and make or vacate plats and adjust boundaries;
10115	10117		4978
10116	10118		(i) enter into a lease for any purpose as lessor or lessee, including a lease or other
10117	10119		4979
10118	10120		arrangement for exploration and removal of natural resources, with or without the
10119	10121		4980
10120	10122		option to purchase or renew, for a period within or extending beyond the duration of
10121	10123		4981
10122	10124		the trust;
10123	10125		4982
10124	10126		(j) grant an option involving a sale, lease, or other disposition of trust property or
10125	10127		4983
10126	10128		acquire an option for the acquisition of property, including an option exercisable
10127	10129		4984
10128	10130		beyond the duration of the trust, and exercise an option so acquired;
10129	10131		4985
10130	10132		(k) insure the property of the trust against damage or loss and insure the trustee, the
10131	10133		4986
10132	10134		trustee's agents, and beneficiaries against liability arising from the administration of
10133	10135		4987
10134	10136		the trust;
10135	10137		4988
10136	10138		(l) abandon or decline to administer property of no value or of insufficient value to
10137	10139		4989
10138	10140		justify its collection or continued administration;
10139	10141		4990
10140	10142		(m) with respect to possible liability for violation of environmental law:
10141		-	- 147 - S.B. 100 Enrolled Copy
10142	10143		4991
10143	10144		(i) inspect or investigate property the trustee holds or has been asked to hold, or
	10145	+	- 147 - 1st Sub. (Green) S.B. 100 02-07 14:26
10144	10146		4992
10145	10147		property owned or operated by an organization in which the trustee holds or has
10146	10148		4993
10147	10149		been asked to hold an interest, for the purpose of determining the application of
10148	10150		4994
10149	10151		environmental law with respect to the property;
10150	10152		4995
10151	10153		(ii) take action to prevent, abate, or otherwise remedy any actual or potential
10152	10154		4996
10153	10155		violation of any environmental law affecting property held directly or indirectly
10154	10156		4997
10155	10157		by the trustee, whether taken before or after the assertion of a claim or the
10156	10158		4998
10157	10159		initiation of governmental enforcement;
10158	10160		4999
10159	10161		(iii) decline to accept property into trust or disclaim any power with respect to
10160	10162		5000
10161	10163		property that is or may be burdened with liability for violation of environmental
10162	10164		5001
10163	10165		law;
10164	10166		5002
10165	10167		(iv) compromise claims against the trust which may be asserted for an alleged
10166	10168		5003
10167	10169		violation of environmental law; and
10168	10170		5004
10169	10171		(v) pay the expense of any inspection, review, abatement, or remedial action to
10170	10172		5005
10171	10173		comply with environmental law;
10172	10174		5006
10173	10175		(n) pay or contest any claim, settle a claim by or against the trust, and release, in whole
10174	10176		5007
10175	10177		or in part, a claim belonging to the trust;
10176	10178		5008
10177	10179		(o) pay taxes, assessments, compensation of the trustee and of employees and agents of
10178	10180		5009
10179	10181		the trust, and other expenses incurred in the administration of the trust;
10180	10182		5010
10181	10183		(p) exercise elections with respect to federal, state, and local taxes;
10182	10184		5011
10183	10185		(q) select a mode of payment under any employee benefit or retirement plan, annuity, or
10184	10186		5012
10185	10187		life insurance payable to the trustee, exercise rights thereunder, including exercise of
10186	10188		5013
10187	10189		the right to indemnification for expenses and against liabilities, and take appropriate
10188	10190		5014
10189	10191		action to collect the proceeds;
10190	10192		5015
10191	10193		(r) make loans out of trust property, including loans to a beneficiary on terms and
10192	10194		5016
10193	10195		conditions the trustee considers to be fair and reasonable under the circumstances,
10194	10196		5017
10195	10197		and the trustee has a lien on future distributions for repayment of those loans;
10196	10198		5018
10197	10199		(s) pledge trust property to guarantee loans made by others to the beneficiary;
10198	10200		5019
10199	10201		(t) appoint a trustee to act in another jurisdiction with respect to trust property located in
10200	10202		5020
10201	10203		the other jurisdiction, confer upon the appointed trustee all of the powers and duties
10202	10204		5021
10203	10205		of the appointing trustee, require that the appointed trustee furnish security, and
10204	10206		5022
10205	10207		remove any trustee so appointed;
10206	10208		5023
10207	10209		(u) pay an amount distributable to a beneficiary who is under a legal disability or who
10208	10210		5024
10209	10211		the trustee reasonably believes is incapacitated, by paying [it] the amount directly to
10210		-	- 148 - Enrolled Copy S.B. 100
10211	10212		5025
10212	10213		the beneficiary or applying it for the beneficiary's benefit, or by:
	10214	+	- 148 - 02-07 14:26 1st Sub. (Green) S.B. 100
10213	10215		5026
10214	10216		(i) paying [it] the amount to the beneficiary's conservator or, if the beneficiary does
10215	10217		5027
10216	10218		not have a conservator, the beneficiary's guardian;
10217	10219		5028
10218	10220		(ii) paying [it] the amount to the beneficiary's custodian under Title 75A, Chapter 8,
10219	10221		5029
10220	10222		Uniform Transfers to Minors Act;
10221	10223		5030
10222	10224		(iii) if the trustee does not know of a conservator, guardian, custodian, or custodial
10223	10225		5031
10224	10226		trustee, paying [it] the amount to an adult relative or other person having legal or
10225	10227		5032
10226	10228		physical care or custody of the beneficiary, to be expended on the beneficiary's
10227	10229		5033
10228	10230		behalf; or
10229	10231		5034
10230	10232		(iv) managing [it] the amount as a separate fund on the beneficiary's behalf, subject to
10231	10233		5035
10232	10234		the beneficiary's continuing right to withdraw the distribution;
10233	10235		5036
10234	10236		(v) on distribution of trust property or the division or termination of a trust, make
10235	10237		5037
10236	10238		distributions in divided or undivided interests, allocate particular assets in
10237	10239		5038
10238	10240		proportionate or disproportionate shares, value the trust property for those purposes,
10239	10241		5039
10240	10242		and adjust for resulting differences in valuation;
10241	10243		5040
10242	10244		(w) resolve a dispute concerning the interpretation of the trust or its administration by
10243	10245		5041
10244	10246		mediation, arbitration, or other procedure for alternative dispute resolution;
10245	10247		5042
10246	10248		(x) prosecute or defend an action, claim, or judicial proceeding in any jurisdiction to
10247	10249		5043
10248	10250		protect trust property and the trustee in the performance of the trustee's duties;
10249	10251		5044
10250	10252		(y) sign and deliver contracts and other instruments that are useful to achieve or
10251	10253		5045
10252	10254		facilitate the exercise of the trustee's powers; and
10253	10255		5046
10254	10256		(z) on termination of the trust, exercise the powers appropriate to finalize the
10255	10257		5047
10256	10258		administration of the trust and distribute the trust property to the persons entitled to [it]
10257	10259		5048
10258	10260		the trust.
10259	10261		5049
10260	10262		(2) A trustee may delegate investment and management functions that a prudent trustee of
10261	10263		5050
10262	10264		comparable skills could properly delegate under the circumstances.
10263	10265		5051
10264	10266		(a) The trustee shall exercise reasonable care, skill, and caution in:
10265	10267		5052
10266	10268		(i) selecting the agent;
10267	10269		5053
10268	10270		(ii) establishing the scope and terms of the delegation consistent with the purposes of
10269	10271		5054
10270	10272		the trust; and
10271	10273		5055
10272	10274		(iii) periodically reviewing the agent's actions to monitor the agent's performance and
10273	10275		5056
10274	10276		compliance with the terms of the delegation.
10275	10277		5057
10276	10278		(b) In performing a delegated function, an agent has a duty to the trust to exercise
10277	10279		5058
10278	10280		reasonable care to comply with the terms of the delegation.
10279		-	- 149 - S.B. 100 Enrolled Copy
10280	10281		5059
10281	10282		(c) A trustee who complies with the requirements of this Subsection (2) is not liable to
	10283	+	- 149 - 1st Sub. (Green) S.B. 100 02-07 14:26
10282	10284		5060
10283	10285		the beneficiaries or to the trust for the decisions or actions of the agent to whom the
10284	10286		5061
10285	10287		function was delegated.
10286	10288		5062
10287	10289		(3)(a) The trustee may exercise the powers set forth in this section and in the trust either
10288	10290		5063
10289	10291		in the name of the trust or in the name of the trustee as trustee, specifically including
10290	10292		5064
10291	10293		the right to take title, to encumber or convey assets, including real property, in the
10292	10294		5065
10293	10295		name of the trust.
10294	10296		5066
10295	10297		(b) This Subsection (3) applies to a trustee's exercise of trust powers.
10296	10298		5067
10297	10299		(c) After May 11, 2010, for recording purposes, the name of the trustee, the address of
10298	10300		5068
10299	10301		the trustee, and the name and date of the trust, shall be included on all recorded
10300	10302		5069
10301	10303		documents affecting real property to which the trust is a party in interest.
10302	10304		5070
10303	10305		Section 160. Section 75B-2-815, which is renumbered from Section 75-7-815 is renumbered
10304	10306		5071
10305	10307		and amended to read:
10306	10308		5072
10307	10309		[75-7-815] 75B-2-815 . Distribution upon termination.
10308	10310		5073
10309	10311		(1)(a) Upon termination or partial termination of a trust, the trustee may send to the
10310	10312		5074
10311	10313		beneficiaries a proposal for distribution.
10312	10314		5075
10313	10315		(b) The right of any beneficiary to object to the proposed distribution terminates if the
10314	10316		5076
10315	10317		beneficiary does not notify the trustee of an objection within 30 days after the
10316	10318		5077
10317	10319		proposal was sent but only if the proposal informed the beneficiary of the right to
10318	10320		5078
10319	10321		object and of the time allowed for objection.
10320	10322		5079
10321	10323		(2) Upon the occurrence of an event terminating or partially terminating a trust, the trustee
10322	10324		5080
10323	10325		shall proceed expeditiously to distribute the trust property to the persons entitled to [it]
10324	10326		5081
10325	10327		the trust property, subject to the right of the trustee to retain a reasonable reserve for the
10326	10328		5082
10327	10329		payment of debts, expenses, and taxes.
10328	10330		5083
10329	10331		(3) A release by a beneficiary of a trustee from liability for breach of trust is invalid to the
10330	10332		5084
10331	10333		extent:
10332	10334		5085
10333	10335		(a) [it] the release was induced by improper conduct of the trustee; or
10334	10336		5086
10335	10337		(b) the beneficiary, at the time of the release, did not know or had no reason to know of
10336	10338		5087
10337	10339		the beneficiary's rights or of the material facts relating to the breach.
10338	10340		5088
10339	10341		Section 161. Section 75B-2-816, which is renumbered from Section 75-7-816 is renumbered
10340	10342		5089
10341	10343		and amended to read:
10342	10344		5090
10343	10345		[75-7-816] 75B-2-816 . Recitals when title to real property is in trust -- Failure.
10344	10346		5091
10345	10347		(1) When title to real property is granted to a person as trustee, the terms of the trust may be
10346	10348		5092
10347	10349		given either:
10348		-	- 150 - Enrolled Copy S.B. 100
10349	10350		5093
10350	10351		(a) in the deed of transfer; or
	10352	+	- 150 - 02-07 14:26 1st Sub. (Green) S.B. 100
10351	10353		5094
10352	10354		(b) in an instrument signed by the grantor and recorded in the same office as the grant to
10353	10355		5095
10354	10356		the trustee.
10355	10357		5096
10356	10358		(2) If the terms of the trust are not made public as required in Subsection (1), a conveyance
10357	10359		5097
10358	10360		from the trustee is absolute in favor of purchasers for value who take the property
10359	10361		5098
10360	10362		without notice of the terms of the trust.
10361	10363		5099
10362	10364		(3) The terms of the trust recited in the deed of transfer or the instrument recorded under
10363	10365		5100
10364	10366		Subsection (1)(b) shall include:
10365	10367		5101
10366	10368		(a) the name of the trustee;
10367	10369		5102
10368	10370		(b) the address of the trustee; and
10369	10371		5103
10370	10372		(c) the name and date of the trust.
10371	10373		5104
10372	10374		(4) Any real property titled in a trust [which] that has a restriction on transfer described in
10373	10375		5105
10374	10376		Section 75B-1-302 shall include in the title the words "asset protection trust."
10375	10377		5106
10376	10378		Section 162. Section 75B-2-817, which is renumbered from Section 75-7-817 is renumbered
10377	10379		5107
10378	10380		and amended to read:
10379	10381		5108
10380	10382		[75-7-817] 75B-2-817 . Marital deduction formulas -- Trusts.
10381	10383		5109
10382	10384		(1) For estates of decedents dying after December 31, 1981, where a decedent's trust
10383	10385		5110
10384	10386		executed before September 13, 1981, contains a formula expressly providing that the
10385	10387		5111
10386	10388		decedent's spouse is to receive the maximum amount of property qualifying for the
10387	10389		5112
10388	10390		marital deduction allowable by federal law, this formula shall be construed as referring
10389	10391		5113
10390	10392		to the unlimited marital deduction allowable by federal law as amended by Section
10391	10393		5114
10392	10394		403(a) of the Economic Recovery Tax Act of 1981.
10393	10395		5115
10394	10396		(2) The intention of a trustor as expressed in the trust shall control the legal effect of any
10395	10397		5116
10396	10398		dispositions made by it for purposes of construing Subsection (1), and the rule of
10397	10399		5117
10398	10400		construction of Subsection (1) shall apply unless a contrary intention is indicated by the
10399	10401		5118
10400	10402		trust.
10401	10403		5119
10402	10404		Section 163. Section 75B-2-901, which is renumbered from Section 75-7-901 is renumbered
10403	10405		5120
10404	10406		and amended to read:
10405	10407		5121
10406	10408
10407	10409		Part 9. Uniform Prudent Investor Act
10408	10410		5122
10409	10411		[75-7-901] 75B-2-901 . Prudent investor rule.
10410	10412		5123
10411	10413		(1)(a) Except as otherwise provided in Subsection (2), a trustee who invests and
10412	10414		5124
10413	10415		manages trust assets owes a duty to the beneficiaries of the trust to comply with the
10414	10416		5125
10415	10417		prudent investor rule [set forth] described in this chapter.
10416	10418		5126
10417	10419		(b) If a trustee is named on the basis of a trustee's representations of special skills or
10418		-	- 151 - S.B. 100 Enrolled Copy
10419	10420		5127
10420	10421		expertise, the trustee has a duty to use those special skills or expertise.
	10422	+	- 151 - 1st Sub. (Green) S.B. 100 02-07 14:26
10421	10423		5128
10422	10424		(2)(a) The prudent investor rule is a default rule and may be expanded, restricted,
10423	10425		5129
10424	10426		eliminated, or otherwise altered by the provisions of a trust.
10425	10427		5130
10426	10428		(b) A trustee is not liable to a beneficiary to the extent that the trustee acted in
10427	10429		5131
10428	10430		reasonable reliance on the provisions of the trust.
10429	10431		5132
10430	10432		Section 164. Section 75B-2-902, which is renumbered from Section 75-7-902 is renumbered
10431	10433		5133
10432	10434		and amended to read:
10433	10435		5134
10434	10436		[75-7-902] 75B-2-902 . Standard of care -- Portfolio strategy -- Risk and return
10435	10437		5135
10436	10438		objectives.
10437	10439		5136
10438	10440		(1)(a) A trustee shall invest and manage trust assets as a prudent investor would, by
10439	10441		5137
10440	10442		considering the purposes, terms, distribution requirements, and other circumstances
10441	10443		5138
10442	10444		of the trust.
10443	10445		5139
10444	10446		(b) In satisfying this standard, the trustee shall exercise reasonable care, skill, and
10445	10447		5140
10446	10448		caution.
10447	10449		5141
10448	10450		(2) A trustee's investment and management decisions respecting individual assets must be
10449	10451		5142
10450	10452		evaluated not in isolation but in the context of the trust portfolio as a whole and as a part
10451	10453		5143
10452	10454		of an overall investment strategy having risk and return objectives reasonably suited to
10453	10455		5144
10454	10456		the trust.
10455	10457		5145
10456	10458		(3) Among circumstances that a trustee shall consider in investing and managing trust
10457	10459		5146
10458	10460		assets are the following which may be relevant to the trust or [its] the trust's beneficiaries:
10459	10461		5147
10460	10462		(a) general economic conditions;
10461	10463		5148
10462	10464		(b) the possible effect of inflation or deflation;
10463	10465		5149
10464	10466		(c) the expected tax consequences of investment decisions or strategies;
10465	10467		5150
10466	10468		(d) the role that each investment or course of action plays within the overall trust
10467	10469		5151
10468	10470		portfolio, which may include financial assets, interests in closely held enterprises,
10469	10471		5152
10470	10472		tangible and intangible personal property, and real property;
10471	10473		5153
10472	10474		(e) the expected total return from income and the appreciation of capital;
10473	10475		5154
10474	10476		(f) other resources of the beneficiaries;
10475	10477		5155
10476	10478		(g) needs for liquidity, regularity of income, and preservation or appreciation of capital;
10477	10479		5156
10478	10480		and
10479	10481		5157
10480	10482		(h) an asset's special relationship or special value, if any, to the purposes of the trust or
10481	10483		5158
10482	10484		to one or more of the beneficiaries.
10483	10485		5159
10484	10486		(4) A trustee shall make a reasonable effort to verify facts relevant to the investment and
10485	10487		5160
10486	10488		management of trust assets.
10487		-	- 152 - Enrolled Copy S.B. 100
10488	10489		5161
10489	10490		(5) A trustee may invest in any kind of property or type of investment consistent with the
	10491	+	- 152 - 02-07 14:26 1st Sub. (Green) S.B. 100
10490	10492		5162
10491	10493		standards of this chapter.
10492	10494		5163
10493	10495		Section 165. Section 75B-2-903, which is renumbered from Section 75-7-903 is renumbered
10494	10496		5164
10495	10497		and amended to read:
10496	10498		5165
10497	10499		[75-7-903] 75B-2-903 . Diversification.
10498	10500		5166
10499	10501		A trustee shall diversify the investments of the trust unless the trustee reasonably
10500	10502		5167
10501	10503		determines that, because of special circumstances, the purposes of the trust are better served
10502	10504		5168
10503	10505		without diversifying.
10504	10506		5169
10505	10507		Section 166. Section 75B-2-904, which is renumbered from Section 75-7-904 is renumbered
10506	10508		5170
10507	10509		and amended to read:
10508	10510		5171
10509	10511		[75-7-904] 75B-2-904 . Duties at inception of trusteeship.
10510	10512		5172
10511	10513		Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee
10512	10514		5173
10513	10515		shall review the trust assets and make and implement decisions concerning the retention and
10514	10516		5174
10515	10517		disposition of assets, in order to bring the trust portfolio into compliance with the purposes,
10516	10518		5175
10517	10519		terms, distribution requirements, and other circumstances of the trust, and with the
10518	10520		5176
10519	10521		requirements of this chapter.
10520	10522		5177
10521	10523		Section 167. Section 75B-2-905, which is renumbered from Section 75-7-905 is renumbered
10522	10524		5178
10523	10525		and amended to read:
10524	10526		5179
10525	10527		[75-7-905] 75B-2-905 . Reviewing compliance.
10526	10528		5180
10527	10529		(1) Compliance with the prudent investor rule is determined in light of the facts and
10528	10530		5181
10529	10531		circumstances existing at the time of a trustee's decision or action and not by hindsight.
10530	10532		5182
10531	10533		(2) This section does not require a specific outcome in investing.
10532	10534		5183
10533	10535		Section 168. Section 75B-2-906, which is renumbered from Section 75-7-906 is renumbered
10534	10536		5184
10535	10537		and amended to read:
10536	10538		5185
10537	10539		[75-7-906] 75B-2-906 . Investment direction.
10538	10540		5186
10539	10541		(1) [For purposes of] As used in this section, "investment direction" means a direction that is
10540	10542		5187
10541	10543		binding on the trustee, except for an investment direction given by a settlor as described
10542	10544		5188
10543	10545		in Subsection (2) to do any of the following with respect to an investment:
10544	10546		5189
10545	10547		(a) retention;
10546	10548		5190
10547	10549		(b) purchase;
10548	10550		5191
10549	10551		(c) sale;
10550	10552		5192
10551	10553		(d) exchange;
10552	10554		5193
10553	10555		(e) tender; or
10554	10556		5194
10555	10557		(f) any other transaction affecting ownership in the investment.
10556		-	- 153 - S.B. 100 Enrolled Copy
10557	10558		5195
10558	10559		(2)(a) During the time period that a trust is revocable, the trustee may follow any
	10560	+	- 153 - 1st Sub. (Green) S.B. 100 02-07 14:26
10559	10561		5196
10560	10562		investment direction of the settlor, including an investment direction that:
10561	10563		5197
10562	10564		(i) is manifestly contrary to the terms of the trust; or
10563	10565		5198
10564	10566		(ii) seriously breaches a fiduciary duty to the beneficiaries.
10565	10567		5199
10566	10568		(b) The trustee is not liable for any loss resulting from following an investment direction
10567	10569		5200
10568	10570		described in Subsection (2)(a).
10569	10571		5201
10570	10572		(3) If the terms of a trust authorize a person to give investment direction to the trustee, the
10571	10573		5202
10572	10574		person authorized to give investment direction:
10573	10575		5203
10574	10576		(a) is presumptively a fiduciary only with respect to an investment direction that the
10575	10577		5204
10576	10578		person gives to the trustee;
10577	10579		5205
10578	10580		(b) is required to act in good faith with regard to:
10579	10581		5206
10580	10582		(i) the purposes of the trust; and
10581	10583		5207
10582	10584		(ii) the interests of the beneficiaries; and
10583	10585		5208
10584	10586		(c) is liable for any loss that results from breach of the fiduciary duty only with respect
10585	10587		5209
10586	10588		to an investment direction that the person gives to the trustee.
10587	10589		5210
10588	10590		(4) Except in cases of willful misconduct or gross negligence, a trustee is not liable for any
10589	10591		5211
10590	10592		loss that results from following an investment direction if:
10591	10593		5212
10592	10594		(a) the terms of a trust authorizes a person to give the investment direction to the trustee;
10593	10595		5213
10594	10596		and
10595	10597		5214
10596	10598		(b) the trustee acts in accordance with the investment direction given by a person
10597	10599		5215
10598	10600		described in Subsection (4)(a).
10599	10601		5216
10600	10602		(5) If the terms of a trust require another person's approval or consent to an investment
10601	10603		5217
10602	10604		decision of the trustee:
10603	10605		5218
10604	10606		(a) the person from whom approval or consent is required:
10605	10607		5219
10606	10608		(i) is presumptively a fiduciary;
10607	10609		5220
10608	10610		(ii) is required to act in good faith with regard to:
10609	10611		5221
10610	10612		(A) the purposes of the trust; and
10611	10613		5222
10612	10614		(B) the interests of the beneficiaries; and
10613	10615		5223
10614	10616		(iii) is liable for any loss that results from breach of the fiduciary duty; and
10615	10617		5224
10616	10618		(b) except in cases of willful misconduct or gross negligence, the trustee is not liable for
10617	10619		5225
10618	10620		any loss resulting from any act not taken as a result of the person's failure to respond
10619	10621		5226
10620	10622		to a request for approval or consent.
10621	10623		5227
10622	10624		Section 169. Section 75B-2-907, which is renumbered from Section 75-7-907 is renumbered
10623	10625		5228
10624	10626		and amended to read:
10625		-	- 154 - Enrolled Copy S.B. 100
10626	10627		5229
10627	10628		[75-7-907] 75B-2-907 . Language invoking standard of chapter.
	10629	+	- 154 - 02-07 14:26 1st Sub. (Green) S.B. 100
10628	10630		5230
10629	10631		The following terms or comparable language in the provisions of a trust, unless
10630	10632		5231
10631	10633		otherwise limited or modified, authorizes any investment or strategy permitted under this
10632	10634		5232
10633	10635		chapter: "investments permissible by law for investment of trust funds," "legal investments,"
10634	10636		5233
10635	10637		"authorized investments," "using the judgment and care under the circumstances then
10636	10638		5234
10637	10639		prevailing that persons of prudence, discretion, and intelligence exercise in the management of
10638	10640		5235
10639	10641		their own affairs, not in regard to speculation but in regard to the permanent disposition of
10640	10642		5236
10641	10643		their funds, considering the probable income as well as the probable safety of their capital,"
10642	10644		5237
10643	10645		"prudent man rule," "prudent trustee rule," "prudent person rule," and "prudent investor rule."
10644	10646		5238
10645	10647		Section 170. Section 75B-2-1001, which is renumbered from Section 75-7-1001 is renumbered
10646	10648		5239
10647	10649		and amended to read:
10648	10650		5240
10649	10651
10650	10652		Part 10. Liability of Trustees and Rights of Persons Dealing with Trustee
10651	10653		5241
10652	10654		[75-7-1001] 75B-2-1001 . Remedies for breach of trust.
10653	10655		5242
10654	10656		(1) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust.
10655	10657		5243
10656	10658		(2) To remedy a breach of trust that has occurred or may occur, the court may:
10657	10659		5244
10658	10660		(a) compel the trustee to perform the trustee's duties;
10659	10661		5245
10660	10662		(b) enjoin the trustee from committing a breach of trust;
10661	10663		5246
10662	10664		(c) compel the trustee to redress a breach of trust by paying money, restoring property,
10663	10665		5247
10664	10666		or other means;
10665	10667		5248
10666	10668		(d) order a trustee to account;
10667	10669		5249
10668	10670		(e) appoint a special fiduciary to take possession of the trust property and administer the
10669	10671		5250
10670	10672		trust;
10671	10673		5251
10672	10674		(f) suspend the trustee;
10673	10675		5252
10674	10676		(g) remove the trustee as provided in Section [75-7-706] 75B-2-706;
10675	10677		5253
10676	10678		(h) reduce or deny compensation to the trustee;
10677	10679		5254
10678	10680		(i) subject to Section [75-7-1012] 75B-2-1012, void an act of the trustee, impose a lien or
10679	10681		5255
10680	10682		a constructive trust on trust property, or trace trust property wrongfully disposed of
10681	10683		5256
10682	10684		and recover the property or [its] the property's proceeds; or
10683	10685		5257
10684	10686		(j) order any other appropriate relief.
10685	10687		5258
10686	10688		Section 171. Section 75B-2-1002, which is renumbered from Section 75-7-1002 is renumbered
10687	10689		5259
10688	10690		and amended to read:
10689	10691		5260
10690	10692		[75-7-1002] 75B-2-1002 . Damages for breach of trust.
10691	10693		5261
10692	10694		(1) A trustee who commits a breach of trust is liable to the beneficiaries affected for the
10693	10695		5262
10694	10696		greater of:
10695		-	- 155 - S.B. 100 Enrolled Copy
10696	10697		5263
10697	10698		(a) the amount required to restore the value of the trust property and trust distributions to
	10699	+	- 155 - 1st Sub. (Green) S.B. 100 02-07 14:26
10698	10700		5264
10699	10701		what [they] the beneficiaries would have been had the breach not occurred; or
10700	10702		5265
10701	10703		(b) the profit the trustee made by reason of the breach.
10702	10704		5266
10703	10705		(2)(a) Except as otherwise provided in this Subsection (2), if more than one trustee is
10704	10706		5267
10705	10707		liable to the beneficiaries for a breach of trust, a trustee is entitled to contribution
10706	10708		5268
10707	10709		from the other trustee or trustees.
10708	10710		5269
10709	10711		(b) A trustee is not entitled to contribution if the trustee was substantially more at fault
10710	10712		5270
10711	10713		than another trustee or if the trustee committed the breach of trust in bad faith or with
10712	10714		5271
10713	10715		reckless indifference to the purposes of the trust or the interests of the beneficiaries.
10714	10716		5272
10715	10717		(c) A trustee who received a benefit from the breach of trust is not entitled to
10716	10718		5273
10717	10719		contribution from another trustee to the extent of the benefit received.
10718	10720		5274
10719	10721		Section 172. Section 75B-2-1003, which is renumbered from Section 75-7-1003 is renumbered
10720	10722		5275
10721	10723		and amended to read:
10722	10724		5276
10723	10725		[75-7-1003] 75B-2-1003 . Damages in absence of breach.
10724	10726		5277
10725	10727		(1) A trustee is accountable to an affected beneficiary for any profit made by the trustee
10726	10728		5278
10727	10729		arising from the administration of the trust, even absent a breach of trust.
10728	10730		5279
10729	10731		(2) Absent a breach of trust, a trustee is not liable to a beneficiary for a loss or depreciation
10730	10732		5280
10731	10733		in the value of trust property or for not having made a profit.
10732	10734		5281
10733	10735		Section 173. Section 75B-2-1004, which is renumbered from Section 75-7-1004 is renumbered
10734	10736		5282
10735	10737		and amended to read:
10736	10738		5283
10737	10739		[75-7-1004] 75B-2-1004 . Attorney's fees and costs.
10738	10740		5284
10739	10741		(1) In a judicial proceeding involving the administration of a trust, the court may, as justice
10740	10742		5285
10741	10743		and equity may require, award costs and expenses, including reasonable attorney's fees,
10742	10744		5286
10743	10745		to any party, to be paid by another party or from the trust that is the subject of the
10744	10746		5287
10745	10747		controversy.
10746	10748		5288
10747	10749		(2) If a trustee defends or prosecutes any proceeding in good faith, whether successful or
10748	10750		5289
10749	10751		not, the trustee is entitled to receive from the trust the necessary expenses and
10750	10752		5290
10751	10753		disbursements, including reasonable attorney's fees, incurred.
10752	10754		5291
10753	10755		Section 174. Section 75B-2-1005, which is renumbered from Section 75-7-1005 is renumbered
10754	10756		5292
10755	10757		and amended to read:
10756	10758		5293
10757	10759		[75-7-1005] 75B-2-1005 . Limitation of action against trustee.
10758	10760		5294
10759	10761		(1) A beneficiary may not commence a proceeding against a trustee for breach of trust more
10760	10762		5295
10761	10763		than six months after the date that the beneficiary or a person who may represent and
10762	10764		5296
10763	10765		bind the beneficiary was sent a report that adequately disclosed the existence of a
10764		-	- 156 - Enrolled Copy S.B. 100
10765	10766		5297
10766	10767		potential claim for breach of trust and informed the beneficiary of the time allowed for
	10768	+	- 156 - 02-07 14:26 1st Sub. (Green) S.B. 100
10767	10769		5298
10768	10770		commencing a proceeding.
10769	10771		5299
10770	10772		(2) A report adequately discloses the existence of a potential claim for breach of trust if [it]
10771	10773		5300
10772	10774		the report provides sufficient information so that the beneficiary or representative knows
10773	10775		5301
10774	10776		of the potential claim or should have inquired into [its] the claim's existence.
10775	10777		5302
10776	10778		(3) If Subsection (1) does not apply, a judicial proceeding by a beneficiary against a trustee
10777	10779		5303
10778	10780		for breach of trust must be commenced within one year after the first to occur of:
10779	10781		5304
10780	10782		(a) the removal, resignation, or death of the trustee;
10781	10783		5305
10782	10784		(b) the termination of the beneficiary's interest in the trust; or
10783	10785		5306
10784	10786		(c) the termination of the trust.
10785	10787		5307
10786	10788		(4) This section does not preclude an action to recover for fraud or misrepresentation
10787	10789		5308
10788	10790		related to the report.
10789	10791		5309
10790	10792		Section 175. Section 75B-2-1006, which is renumbered from Section 75-7-1006 is renumbered
10791	10793		5310
10792	10794		and amended to read:
10793	10795		5311
10794	10796		[75-7-1006] 75B-2-1006 . Reliance on trust instrument.
10795	10797		5312
10796	10798		A trustee who acts in reasonable reliance on the terms of the trust as expressed in the
10797	10799		5313
10798	10800		trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach
10799	10801		5314
10800	10802		resulted from the reliance.
10801	10803		5315
10802	10804		Section 176. Section 75B-2-1007, which is renumbered from Section 75-7-1007 is renumbered
10803	10805		5316
10804	10806		and amended to read:
10805	10807		5317
10806	10808		[75-7-1007] 75B-2-1007 . Event affecting administration or distribution.
10807	10809		5318
10808	10810		If the happening of an event, including marriage, divorce, performance of educational
10809	10811		5319
10810	10812		requirements, or death, affects the administration or distribution of a trust, a trustee is not
10811	10813		5320
10812	10814		liable for a loss resulting from the trustee's lack of knowledge or lack of notice.
10813	10815		5321
10814	10816		Section 177. Section 75B-2-1008, which is renumbered from Section 75-7-1008 is renumbered
10815	10817		5322
10816	10818		and amended to read:
10817	10819		5323
10818	10820		[75-7-1008] 75B-2-1008 . Exculpation of trustee.
10819	10821		5324
10820	10822		A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the
10821	10823		5325
10822	10824		extent that [it] the term:
10823	10825		5326
10824	10826		(1) relieves the trustee of liability for breach of trust committed in bad faith or with reckless
10825	10827		5327
10826	10828		indifference to the purposes of the trust or the interests of the beneficiaries; or
10827	10829		5328
10828	10830		(2) was inserted by the trustee or fiduciary without disclosure of its existence and contents.
10829	10831		5329
10830	10832		Section 178. Section 75B-2-1009, which is renumbered from Section 75-7-1009 is renumbered
10831	10833		5330
10832	10834		and amended to read:
10833		-	- 157 - S.B. 100 Enrolled Copy
10834	10835		5331
10835	10836		[75-7-1009] 75B-2-1009 . Beneficiary's consent, release, or ratification.
	10837	+	- 157 - 1st Sub. (Green) S.B. 100 02-07 14:26
10836	10838		5332
10837	10839		A trustee is not liable to a beneficiary for breach of trust if the beneficiary, while having
10838	10840		5333
10839	10841		capacity, consented to the conduct constituting the breach, released the trustee from liability
10840	10842		5334
10841	10843		for the breach, or ratified the transaction constituting the breach, unless at the time of the
10842	10844		5335
10843	10845		consent, release, or ratification, the beneficiary did not know of the beneficiary's rights or of
10844	10846		5336
10845	10847		the material facts relating to the breach.
10846	10848		5337
10847	10849		Section 179. Section 75B-2-1010, which is renumbered from Section 75-7-1010 is renumbered
10848	10850		5338
10849	10851		and amended to read:
10850	10852		5339
10851	10853		[75-7-1010] 75B-2-1010 . Limitation on personal liability of trustee.
10852	10854		5340
10853	10855		(1) Except as otherwise provided in the contract, a trustee is not personally liable on a
10854	10856		5341
10855	10857		contract properly entered into in the trustee's fiduciary capacity in the course of
10856	10858		5342
10857	10859		administering the trust if the trustee in the contract disclosed the fiduciary capacity.
10858	10860		5343
10859	10861		(2) A trustee is personally liable for torts committed in the course of administering a trust,
10860	10862		5344
10861	10863		or for obligations arising from ownership or control of trust property, including liability
10862	10864		5345
10863	10865		for violation of environmental law, only if the trustee is personally at fault.
10864	10866		5346
10865	10867		(3) A claim based on a contract entered into by a trustee in the trustee's fiduciary capacity,
10866	10868		5347
10867	10869		on an obligation arising from ownership or control of trust property, or on a tort
10868	10870		5348
10869	10871		committed in the course of administering a trust, may be asserted in a judicial
10870	10872		5349
10871	10873		proceeding against the trustee in the trustee's fiduciary capacity, whether or not the
10872	10874		5350
10873	10875		trustee is personally liable for the claim.
10874	10876		5351
10875	10877		(4) The question of liability as between the trust estate and the trustee individually may be
10876	10878		5352
10877	10879		determined in a proceeding for accounting, surcharge, or indemnification or other
10878	10880		5353
10879	10881		appropriate proceeding.
10880	10882		5354
10881	10883		(5) Whenever an instrument creating a trust reserves to the settlor, or vests in an advisory or
10882	10884		5355
10883	10885		investment committee, or in any other person or persons, including one or more
10884	10886		5356
10885	10887		cotrustees to the exclusion of the trustee or to the exclusion of one or more of several
10886	10888		5357
10887	10889		trustees, authority to direct the making or retention of any investment, the excluded
10888	10890		5358
10889	10891		trustee or trustees shall not be liable, either individually or as a fiduciary, for any loss
10890	10892		5359
10891	10893		resulting from the making or retention of any investment pursuant to such direction.
10892	10894		5360
10893	10895		(6)(a) In the absence of actual knowledge or information which would cause a
10894	10896		5361
10895	10897		reasonable trustee to inquire further, no trustee shall be liable for failure to take
10896	10898		5362
10897	10899		necessary steps to compel the redress of any breach of trust or fiduciary duty by any
10898	10900		5363
10899	10901		predecessor personal representative, trustee, or other fiduciary.
10900	10902		5364
10901	10903		(b) The provisions of this section shall not be construed to limit the fiduciary liability of
10902		-	- 158 - Enrolled Copy S.B. 100
10903	10904		5365
10904	10905		any trustee for [his] the trustee's own acts or omissions with respect to the trust estate.
	10906	+	- 158 - 02-07 14:26 1st Sub. (Green) S.B. 100
10905	10907		5366
10906	10908		Section 180. Section 75B-2-1011, which is renumbered from Section 75-7-1011 is renumbered
10907	10909		5367
10908	10910		and amended to read:
10909	10911		5368
10910	10912		[75-7-1011] 75B-2-1011 . Interest as general partner.
10911	10913		5369
10912	10914		(1) Except as otherwise provided in Subsection (3) or unless personal liability is imposed in
10913	10915		5370
10914	10916		the contract, a trustee who holds an interest as a general partner in a general or limited
10915	10917		5371
10916	10918		partnership is not personally liable on a contract entered into by the partnership after the
10917	10919		5372
10918	10920		trust's acquisition of the interest if the fiduciary capacity was disclosed in the contract or
10919	10921		5373
10920	10922		in a statement previously filed [pursuant to] in accordance with Title 48, Chapter 2e,
10921	10923		5374
10922	10924		Utah Uniform Limited Partnership Act.
10923	10925		5375
10924	10926		(2) Except as otherwise provided in Subsection (3), a trustee who holds an interest as a
10925	10927		5376
10926	10928		general partner is not personally liable for torts committed by the partnership or for
10927	10929		5377
10928	10930		obligations arising from ownership or control of the interest unless the trustee is
10929	10931		5378
10930	10932		personally at fault.
10931	10933		5379
10932	10934		(3) The immunity provided by this section does not apply if an interest in the partnership is
10933	10935		5380
10934	10936		held by the trustee in a capacity other than that of trustee or is held by the trustee's
10935	10937		5381
10936	10938		spouse or one or more of the trustee's descendants, siblings, or parents, or the spouse of
10937	10939		5382
10938	10940		any of them.
10939	10941		5383
10940	10942		(4) If the trustee of a revocable trust holds an interest as a general partner, the settlor is
10941	10943		5384
10942	10944		personally liable for contracts and other obligations of the partnership as if the settlor
10943	10945		5385
10944	10946		were a general partner.
10945	10947		5386
10946	10948		Section 181. Section 75B-2-1012, which is renumbered from Section 75-7-1012 is renumbered
10947	10949		5387
10948	10950		and amended to read:
10949	10951		5388
10950	10952		[75-7-1012] 75B-2-1012 . Protection of person dealing with trustee.
10951	10953		5389
10952	10954		(1) A person other than a beneficiary who in good faith assists a trustee, or who in good
10953	10955		5390
10954	10956		faith and for value deals with a trustee, without knowledge that the trustee is exceeding
10955	10957		5391
10956	10958		or improperly exercising the trustee's powers is protected from liability as if the trustee
10957	10959		5392
10958	10960		properly exercised the power.
10959	10961		5393
10960	10962		(2) A person other than a beneficiary who in good faith deals with a trustee is not required
10961	10963		5394
10962	10964		to inquire into the extent of the trustee's powers or the propriety of [their] the trustee's
10963	10965		5395
10964	10966		exercise.
10965	10967		5396
10966	10968		(3) A person who in good faith delivers assets to a trustee need not ensure [their] the assets'
10967	10969		5397
10968	10970		proper application.
10969	10971		5398
10970	10972		(4) A person other than a beneficiary who in good faith assists a former trustee, or who in
10971		-	- 159 - S.B. 100 Enrolled Copy
10972	10973		5399
10973	10974		good faith and for value deals with a former trustee, without knowledge that the
	10975	+	- 159 - 1st Sub. (Green) S.B. 100 02-07 14:26
10974	10976		5400
10975	10977		trusteeship has terminated is protected from liability as if the former trustee were still a
10976	10978		5401
10977	10979		trustee.
10978	10980		5402
10979	10981		(5) Comparable protective provisions of other laws relating to commercial transactions or
10980	10982		5403
10981	10983		transfer of securities by fiduciaries prevail over the protection provided by this section.
10982	10984		5404
10983	10985		Section 182. Section 75B-2-1013, which is renumbered from Section 75-7-1013 is renumbered
10984	10986		5405
10985	10987		and amended to read:
10986	10988		5406
10987	10989		[75-7-1013] 75B-2-1013 . Certification of trust.
10988	10990		5407
10989	10991		(1) Instead of furnishing a copy of the trust instrument to a person other than a beneficiary,
10990	10992		5408
10991	10993		the trustee may furnish to the person a certification of trust containing the following
10992	10994		5409
10993	10995		information:
10994	10996		5410
10995	10997		(a) that the trust exists and the date the trust instrument was executed;
10996	10998		5411
10997	10999		(b) the identity of the settlor;
10998	11000		5412
10999	11001		(c) the identity and address of the currently acting trustee;
11000	11002		5413
11001	11003		(d) the powers of the trustee in the pending transaction;
11002	11004		5414
11003	11005		(e) the revocability or irrevocability of the trust and the identity of any person holding a
11004	11006		5415
11005	11007		power to revoke the trust;
11006	11008		5416
11007	11009		(f) the authority of cotrustees to sign or otherwise authenticate and whether all or less
11008	11010		5417
11009	11011		than all are required in order to exercise powers of the trustee; and
11010	11012		5418
11011	11013		(g) the name in which title to trust property may be taken.
11012	11014		5419
11013	11015		(2) A certification of trust may be signed or otherwise authenticated by any trustee.
11014	11016		5420
11015	11017		(3) A certification of trust must state that the trust has not been revoked, modified, or
11016	11018		5421
11017	11019		amended in any manner that would cause the representations contained in the
11018	11020		5422
11019	11021		certification of trust to be incorrect.
11020	11022		5423
11021	11023		(4) A certification of trust need not contain the dispositive terms of a trust.
11022	11024		5424
11023	11025		(5) A recipient of a certification of trust may require the trustee to furnish copies of those
11024	11026		5425
11025	11027		excerpts from the original trust instrument and later amendments which designate the
11026	11028		5426
11027	11029		trustee and confer upon the trustee the power to act in the pending transaction.
11028	11030		5427
11029	11031		(6)(a) A person who acts in reliance upon a certification of trust without knowledge that
11030	11032		5428
11031	11033		the representations contained in it are incorrect is not liable to any person for acting
11032	11034		5429
11033	11035		and may assume without inquiry the existence of the facts contained in the
11034	11036		5430
11035	11037		certification.
11036	11038		5431
11037	11039		(b) Knowledge of the terms of the trust may not be inferred solely from the fact that a
11038	11040		5432
11039	11041		copy of all or part of the trust instrument is held by the person relying upon the
11040		-	- 160 - Enrolled Copy S.B. 100
11041	11042		5433
11042	11043		certification.
	11044	+	- 160 - 02-07 14:26 1st Sub. (Green) S.B. 100
11043	11045		5434
11044	11046		(7) A person who in good faith enters into a transaction in reliance upon a certification of
11045	11047		5435
11046	11048		trust may enforce the transaction against the trust property as if the representations
11047	11049		5436
11048	11050		contained in the certification were correct.
11049	11051		5437
11050	11052		(8) A person making a demand for the trust instrument in addition to a certification of trust
11051	11053		5438
11052	11054		or excerpts is liable for costs, expenses, attorney fees, and damages if the court
11053	11055		5439
11054	11056		determines that the person did not act in good faith in demanding the trust instrument.
11055	11057		5440
11056	11058		(9) This section does not limit the right of a person to obtain a copy of the trust instrument
11057	11059		5441
11058	11060		in a judicial proceeding concerning the trust.
11059	11061		5442
11060	11062		Section 183. Section 75B-2-1101, which is renumbered from Section 75-7-1101 is renumbered
11061	11063		5443
11062	11064		and amended to read:
11063	11065		5444
11064	11066
11065	11067		Part 11. Applicability Provisions
11066	11068		5445
11067	11069		[75-7-1101] 75B-2-1101 . Uniformity of application and construction.
11068	11070		5446
11069	11071		In applying and construing this chapter, consideration must be given to the need to
11070	11072		5447
11071	11073		promote uniformity of the law with respect to [its] this chapter's subject matter among states
11072	11074		5448
11073	11075		that enact [it] this chapter.
11074	11076		5449
11075	11077		Section 184. Section 75B-2-1102, which is renumbered from Section 75-7-1102 is renumbered
11076	11078		5450
11077	11079		and amended to read:
11078	11080		5451
11079	11081		[75-7-1102] 75B-2-1102 . Electronic records and signatures.
11080	11082		5452
11081	11083		The provisions of this chapter governing the legal effect, validity, or enforceability of
11082	11084		5453
11083	11085		electronic records or electronic signatures, and of contracts formed or performed with the use
11084	11086		5454
11085	11087		of such records or signatures, conform to the requirements of Section 102 of the Electronic
11086	11088		5455
11087	11089		Signatures in Global and National Commerce Act (15 U.S.C. Sec. 7002) and supersede,
11088	11090		5456
11089	11091		modify, and limit the requirements of the Electronic Signatures in Global and National
11090	11092		5457
11091	11093		Commerce Act.
11092	11094		5458
11093	11095		Section 185. Section 75B-2-1103, which is renumbered from Section 75-7-1103 is renumbered
11094	11096		5459
11095	11097		and amended to read:
11096	11098		5460
11097	11099		[75-7-1103] 75B-2-1103 . Application to existing relationships.
11098	11100		5461
11099	11101		(1) Except as otherwise provided, this chapter applies to:
11100	11102		5462
11101	11103		(a) all trusts created before, on, or after July 1, 2004;
11102	11104		5463
11103	11105		(b) all judicial proceedings concerning trusts commenced on or after July 1, 2004; and
11104	11106		5464
11105	11107		(c) judicial proceedings concerning trusts commenced before July 1, 2004, unless the
11106	11108		5465
11107	11109		court finds that application of a particular provision of this chapter would
11108	11110		5466
11109	11111		substantially interfere with the effective conduct of the judicial proceedings or
11110		-	- 161 - S.B. 100 Enrolled Copy
11111	11112		5467
11112	11113		prejudice the rights of the parties, in which case the particular provision of this
	11114	+	- 161 - 1st Sub. (Green) S.B. 100 02-07 14:26
11113	11115		5468
11114	11116		chapter does not apply and the superseded section will apply.
11115	11117		5469
11116	11118		(2) Any rule of construction or presumption provided in this chapter applies to trust
11117	11119		5470
11118	11120		instruments executed before July 1, 2004, unless there is a clear indication of a contrary
11119	11121		5471
11120	11122		intent in the terms of the trust.
11121	11123		5472
11122	11124		(3) An act done before July 1, 2004, is not affected by this chapter.
11123	11125		5473
11124	11126		(4) If a right is acquired, extinguished, or barred upon the expiration of a prescribed period
11125	11127		5474
11126	11128		that has commenced to run under any other statute before July 1, 2004, that statute
11127	11129		5475
11128	11130		continues to apply to the right even if [it] the right has been repealed or superseded.
11129	11131		5476
11130	11132		Section 186. Section 75B-3-101 is enacted to read:
11131	11133		5477
11132	11134
11133	11135		CHAPTER 3. UNIFORM DIRECTED TRUST ACT
11134	11136		5478
11135	11137		75B-3-101 . Reserved.
11136	11138		5479
11137	11139		Reserved.
11138	11140		5480
11139	11141		Section 187. Section 75B-3-102, which is renumbered from Section 75-12-102 is renumbered
11140	11142		5481
11141	11143		and amended to read:
11142	11144		5482
11143	11145		[75-12-102] 75B-3-102 . Definitions.
11144	11146		5483
11145	11147		As used in this chapter:
11146	11148		5484
11147	11149		(1) "Breach of trust" includes a violation by a trust director or trustee of a duty imposed on
11148	11150		5485
11149	11151		the director or trustee by the terms of the trust, this chapter, or the law of this state other
11150	11152		5486
11151	11153		than this chapter pertaining to trusts.
11152	11154		5487
11153	11155		(2) "Directed trust" means a trust for which the terms of the trust grant a power of direction.
11154	11156		5488
11155	11157		(3) "Directed trustee" means a trustee that is subject to a trust director's power of direction.
11156	11158		5489
11157	11159		[(4) "Person" means an individual, estate, business or nonprofit entity, public corporation,
11158	11160		5490
11159	11161		government or governmental subdivision, agency, instrumentality, or other legal entity.]
11160	11162		5491
11161	11163		[(5)] (4)(a) "Power of direction" means a power over a trust granted to a person by the
11162	11164		5492
11163	11165		terms of the trust to the extent the power is exercisable while the person is not
11164	11166		5493
11165	11167		serving as a trustee.
11166	11168		5494
11167	11169		(b) "Power of direction" includes a power over the investment, management, or
11168	11170		5495
11169	11171		distribution of trust property or other matters of trust administration.
11170	11172		5496
11171	11173		(c) "Power of direction" does not include the powers described in Subsection [
11172	11174		5497
11173	11175		75-12-105(2)] 75B-3-105(2).
11174	11176		5498
11175	11177		[(6) "Settlor" means the same as that term is defined in Section 75-7-103.]
11176	11178		5499
11177	11179		[(7) "State" means a state of the United States, the District of Columbia, Puerto Rico, the
11178	11180		5500
11179	11181		United States Virgin Islands, or any territory or insular possession subject to the
11180		-	- 162 - Enrolled Copy S.B. 100
11181	11182		5501
11182	11183		jurisdiction of the United States.]
	11184	+	- 162 - 02-07 14:26 1st Sub. (Green) S.B. 100
11183	11185		5502
11184	11186		[(8)] (5) "Terms of a trust" means:
11185	11187		5503
11186	11188		(a) subject to Subsection [(8)(b)] (5)(b), the manifestation of the settlor's intent regarding
11187	11189		5504
11188	11190		a trust's provisions as:
11189	11191		5505
11190	11192		(i) expressed in the trust instrument; or
11191	11193		5506
11192	11194		(ii) established by other evidence that would be admissible in a judicial proceeding; or
11193	11195		5507
11194	11196		(b) the trust's provisions as established, determined, or amended by:
11195	11197		5508
11196	11198		(i) a trustee or trust director in accordance with applicable law;
11197	11199		5509
11198	11200		(ii) a court order; or
11199	11201		5510
11200	11202		(iii) a nonjudicial settlement agreement under Section [75-7-110] 75B-2-110.
11201	11203		5511
11202	11204		[(9)] (6) "Trust director" means a person that is granted a power of direction by the terms of
11203	11205		5512
11204	11206		a trust to the extent the power is exercisable while the person is not serving as a trustee,
11205	11207		5513
11206	11208		regardless of whether:
11207	11209		5514
11208	11210		(a) the terms of the trust refer to the person as a trust director; or
11209	11211		5515
11210	11212		(b) the person is a beneficiary or settlor of the trust.
11211	11213		5516
11212	11214		[(10) "Trustee" includes an original, additional, and successor trustee, and a cotrustee.]
11213	11215		5517
11214	11216		Section 188. Section 75B-3-103, which is renumbered from Section 75-12-103 is renumbered
11215	11217		5518
11216	11218		and amended to read:
11217	11219		5519
11218	11220		[75-12-103] 75B-3-103 . Application -- Principal place of administration.
11219	11221		5520
11220	11222		(1) This chapter applies to a trust, whenever created, that has the trust's principal place of
11221	11223		5521
11222	11224		administration in this state, subject to the following rules:
11223	11225		5522
11224	11226		(a) if the trust was created before May 14, 2019, this chapter applies only to a decision
11225	11227		5523
11226	11228		or action occurring on or after May 14, 2019; and
11227	11229		5524
11228	11230		(b) if the principal place of administration of the trust is changed to this state on or after
11229	11231		5525
11230	11232		May 14, 2019, this chapter applies only to a decision or action occurring on or after
11231	11233		5526
11232	11234		the date of the change.
11233	11235		5527
11234	11236		(2) Without precluding other means to establish a sufficient connection with the designated
11235	11237		5528
11236	11238		jurisdiction in a directed trust, the terms of the trust that designate the principal place of
11237	11239		5529
11238	11240		administration of the trust are valid and controlling if:
11239	11241		5530
11240	11242		(a) a trustee's principal place of business is located in, or a trustee is a resident of, the
11241	11243		5531
11242	11244		designated jurisdiction;
11243	11245		5532
11244	11246		(b) a trust director's principal place of business is located in, or a trust director is a
11245	11247		5533
11246	11248		resident of, the designated jurisdiction; or
11247	11249		5534
11248	11250		(c) all or part of the administration occurs in the designated jurisdiction.
11249		-	- 163 - S.B. 100 Enrolled Copy
11250	11251		5535
11251	11252		Section 189. Section 75B-3-104, which is renumbered from Section 75-12-104 is renumbered
	11253	+	- 163 - 1st Sub. (Green) S.B. 100 02-07 14:26
11252	11254		5536
11253	11255		and amended to read:
11254	11256		5537
11255	11257		[75-12-104] 75B-3-104 . Common law and principles of equity.
11256	11258		5538
11257	11259		The common law and principles of equity supplement this chapter, except to the extent
11258	11260		5539
11259	11261		modified by this chapter or the law of this state other than this chapter.
11260	11262		5540
11261	11263		Section 190. Section 75B-3-105, which is renumbered from Section 75-12-105 is renumbered
11262	11264		5541
11263	11265		and amended to read:
11264	11266		5542
11265	11267		[75-12-105] 75B-3-105 . Exclusions.
11266	11268		5543
11267	11269		(1) As used in this section, "power of appointment" means a power that enables a person
11268	11270		5544
11269	11271		acting in a nonfiduciary capacity to designate a recipient of an ownership interest in, or
11270	11272		5545
11271	11273		another power of appointment over, trust property.
11272	11274		5546
11273	11275		(2) This chapter does not apply to:
11274	11276		5547
11275	11277		(a) a power of appointment;
11276	11278		5548
11277	11279		(b) a power to appoint or remove a trustee or trust director;
11278	11280		5549
11279	11281		(c) a power of a settlor over a trust to the extent the settlor has a power to revoke the
11280	11282		5550
11281	11283		trust;
11282	11284		5551
11283	11285		(d) a power of a beneficiary over a trust to the extent the exercise or nonexercise of the
11284	11286		5552
11285	11287		power affects the beneficial interest of:
11286	11288		5553
11287	11289		(i) the beneficiary; or
11288	11290		5554
11289	11291		(ii) another beneficiary represented by the beneficiary under [Sections 75-7-301
11290	11292		5555
11291	11293		through 75-7-305] Chapter 2, Part 3, Representation, with respect to the exercise or
11292	11294		5556
11293	11295		nonexercise of the power; or
11294	11296		5557
11295	11297		(e) power over a trust if:
11296	11298		5558
11297	11299		(i) the terms of the trust provide that the power is held in a nonfiduciary capacity; and
11298	11300		5559
11299	11301		(ii) the power must be held in a nonfiduciary capacity to achieve the settlor's tax
11300	11302		5560
11301	11303		objectives under the Internal Revenue Code of 1986, as amended, and any related
11302	11304		5561
11303	11305		Internal Revenue Service regulations.
11304	11306		5562
11305	11307		(3) Unless the terms of a trust provide otherwise, a power granted to a person to designate a
11306	11308		5563
11307	11309		recipient of an ownership interest in, or power of appointment over, trust property that is
11308	11310		5564
11309	11311		exercisable while the person is not serving as trustee is a power of appointment and not a
11310	11312		5565
11311	11313		power of direction.
11312	11314		5566
11313	11315		Section 191. Section 75B-3-106, which is renumbered from Section 75-12-106 is renumbered
11314	11316		5567
11315	11317		and amended to read:
11316	11318		5568
11317	11319		[75-12-106] 75B-3-106 . Powers of trust director.
11318		-	- 164 - Enrolled Copy S.B. 100
11319	11320		5569
11320	11321		(1) Subject to Section [75-12-107] 75B-3-107, the terms of a trust may grant a power of
	11322	+	- 164 - 02-07 14:26 1st Sub. (Green) S.B. 100
11321	11323		5570
11322	11324		direction to a trust director.
11323	11325		5571
11324	11326		(2) Unless the terms of a trust provide otherwise:
11325	11327		5572
11326	11328		(a) a trust director may exercise any further power appropriate to the exercise or
11327	11329		5573
11328	11330		nonexercise of a power of direction granted to the director under Subsection (1); and
11329	11331		5574
11330	11332		(b) trust directors with joint powers shall act by majority decision.
11331	11333		5575
11332	11334		Section 192. Section 75B-3-107, which is renumbered from Section 75-12-107 is renumbered
11333	11335		5576
11334	11336		and amended to read:
11335	11337		5577
11336	11338		[75-12-107] 75B-3-107 . Limitations on trust director.
11337	11339		5578
11338	11340		A trust director is subject to the same rules as a trustee in a like position and under
11339	11341		5579
11340	11342		similar circumstances in the exercise or nonexercise of a power of direction or further power
11341	11343		5580
11342	11344		under Subsection [75-12-106(2)(a)] 75B-3-106(2)(a) regarding:
11343	11345		5581
11344	11346		(1) a payback provision in the terms of a trust necessary to comply with the Medicaid
11345	11347		5582
11346	11348		reimbursement requirements in Section 1917 of the Social Security Act, 42 U.S.C. Sec.
11347	11349		5583
11348	11350		1396p(d)(4)(A), as amended, and any related regulations; and
11349	11351		5584
11350	11352		(2) a charitable interest in the trust, including notice regarding the interest to the attorney
11351	11353		5585
11352	11354		general.
11353	11355		5586
11354	11356		Section 193. Section 75B-3-108, which is renumbered from Section 75-12-108 is renumbered
11355	11357		5587
11356	11358		and amended to read:
11357	11359		5588
11358	11360		[75-12-108] 75B-3-108 . Duty and liability of trust director.
11359	11361		5589
11360	11362		(1) Subject to Subsection (2), with respect to a power of direction or further power under
11361	11363		5590
11362	11364		Subsection [75-12-106(2)(a)] 75B-3-106(2)(a):
11363	11365		5591
11364	11366		(a) a trust director has the same fiduciary duty and liability in the exercise or
11365	11367		5592
11366	11368		nonexercise of the power:
11367	11369		5593
11368	11370		(i) if the power is held individually, as a sole trustee in a like position and under
11369	11371		5594
11370	11372		similar circumstances; or
11371	11373		5595
11372	11374		(ii) if the power is held jointly with a trustee or another trust director, as a cotrustee in
11373	11375		5596
11374	11376		a like position and under similar circumstances; and
11375	11377		5597
11376	11378		(b) the terms of the trust may vary the director's duty or liability to the same extent the
11377	11379		5598
11378	11380		terms of the trust could vary the duty or liability of a trustee in a like position and
11379	11381		5599
11380	11382		under similar circumstances.
11381	11383		5600
11382	11384		(2) Unless the terms of a trust provide otherwise, if a trust director is licensed, certified, or
11383	11385		5601
11384	11386		otherwise authorized or permitted by law other than this chapter to provide health care in
11385	11387		5602
11386	11388		the ordinary course of the director's business or practice of a profession, to the extent the
11387		-	- 165 - S.B. 100 Enrolled Copy
11388	11389		5603
11389	11390		director acts in that capacity, the director has no duty or liability under this chapter.
	11391	+	- 165 - 1st Sub. (Green) S.B. 100 02-07 14:26
11390	11392		5604
11391	11393		(3) The terms of a trust may impose a duty or liability on a trust director in addition to the
11392	11394		5605
11393	11395		duties and liability described in this section.
11394	11396		5606
11395	11397		Section 194. Section 75B-3-109, which is renumbered from Section 75-12-109 is renumbered
11396	11398		5607
11397	11399		and amended to read:
11398	11400		5608
11399	11401		[75-12-109] 75B-3-109 . Duty and liability of directed trustee.
11400	11402		5609
11401	11403		(1) Subject to Subsection (2), a directed trustee shall take reasonable action to comply with
11402	11404		5610
11403	11405		a trust director's exercise or nonexercise of a power of direction or further power under
11404	11406		5611
11405	11407		Subsection [75-12-106(2)(a)] 75B-3-106(2)(a), and the trustee is not liable for the action.
11406	11408		5612
11407	11409		(2) A directed trustee may not comply with a trust director's exercise or nonexercise of a
11408	11410		5613
11409	11411		power of direction or further power under Subsection [75-12-106(2)(a)] 75B-3-106(2)(a)
11410	11412		5614
11411	11413		to the extent that by complying the trustee would engage in willful misconduct.
11412	11414		5615
11413	11415		(3) An exercise of a power of direction under which a trust director may release a trustee or
11414	11416		5616
11415	11417		another trust director from liability for breach of trust is not effective if:
11416	11418		5617
11417	11419		(a) the breach involved the trustee's or other director's willful misconduct;
11418	11420		5618
11419	11421		(b) the release was induced by improper conduct of the trustee or other director in
11420	11422		5619
11421	11423		procuring the release; or
11422	11424		5620
11423	11425		(c) at the time of the release, the director did not know the material facts relating to the
11424	11426		5621
11425	11427		breach.
11426	11428		5622
11427	11429		(4) A directed trustee that has reasonable doubt about the directed trustee's duty under this
11428	11430		5623
11429	11431		section may petition the court for instructions.
11430	11432		5624
11431	11433		(5) The terms of a trust may impose a duty or liability on a directed trustee in addition to
11432	11434		5625
11433	11435		the duties and liabilities under this section.
11434	11436		5626
11435	11437		Section 195. Section 75B-3-110, which is renumbered from Section 75-12-110 is renumbered
11436	11438		5627
11437	11439		and amended to read:
11438	11440		5628
11439	11441		[75-12-110] 75B-3-110 . Duty to provide information to trust director or trustee.
11440	11442		5629
11441	11443		(1) Subject to Section [75-12-111] 75B-3-111, a trustee shall provide information to a trust
11442	11444		5630
11443	11445		director to the extent the information is reasonably related both to:
11444	11446		5631
11445	11447		(a) the powers or duties of the trustee; and
11446	11448		5632
11447	11449		(b) the powers or duties of the director.
11448	11450		5633
11449	11451		(2) Subject to Section [75-12-111] 75B-3-111, a trust director shall provide information to a
11450	11452		5634
11451	11453		trustee or another trust director to the extent the information is reasonably related both to:
11452	11454		5635
11453	11455		(a) the powers or duties of the director; and
11454	11456		5636
11455	11457		(b) the powers or duties of the trustee or other director.
11456		-	- 166 - Enrolled Copy S.B. 100
11457	11458		5637
11458	11459		(3) A trustee that acts in reliance on information provided by a trust director is not liable for
	11460	+	- 166 - 02-07 14:26 1st Sub. (Green) S.B. 100
11459	11461		5638
11460	11462		a breach of trust to the extent the breach resulted from the reliance, unless, by acting, the
11461	11463		5639
11462	11464		trustee engages in willful misconduct.
11463	11465		5640
11464	11466		(4) A trust director that acts in reliance on information provided by a trustee or another trust
11465	11467		5641
11466	11468		director is not liable for a breach of trust to the extent the breach resulted from the
11467	11469		5642
11468	11470		reliance, unless, by acting, the trust director engages in willful misconduct.
11469	11471		5643
11470	11472		Section 196. Section 75B-3-111, which is renumbered from Section 75-12-111 is renumbered
11471	11473		5644
11472	11474		and amended to read:
11473	11475		5645
11474	11476		[75-12-111] 75B-3-111 . No duty to monitor, inform, or advise.
11475	11477		5646
11476	11478		(1) Unless the terms of a trust provide otherwise:
11477	11479		5647
11478	11480		(a) a trustee does not have a duty to:
11479	11481		5648
11480	11482		(i) monitor a trust director; or
11481	11483		5649
11482	11484		(ii) inform or give advice to a settlor, beneficiary, trustee, or trust director concerning
11483	11485		5650
11484	11486		an instance in which the trustee might have acted differently than the director; and
11485	11487		5651
11486	11488		(b) by taking an action described in Subsection (1)(a), a trustee does not assume the duty
11487	11489		5652
11488	11490		excluded under Subsection (1)(a).
11489	11491		5653
11490	11492		(2) Unless the terms of a trust provide otherwise:
11491	11493		5654
11492	11494		(a) a trust director does not have a duty to:
11493	11495		5655
11494	11496		(i) monitor a trustee or another trust director; or
11495	11497		5656
11496	11498		(ii) inform or give advice to a settlor, beneficiary, trustee, or another trust director
11497	11499		5657
11498	11500		concerning an instance in which the director might have acted differently than a
11499	11501		5658
11500	11502		trustee or another trust director; and
11501	11503		5659
11502	11504		(b) by taking an action described in Subsection (1)(a), a trust director does not assume
11503	11505		5660
11504	11506		the duty excluded under Subsection (1)(a).
11505	11507		5661
11506	11508		Section 197. Section 75B-3-112, which is renumbered from Section 75-12-112 is renumbered
11507	11509		5662
11508	11510		and amended to read:
11509	11511		5663
11510	11512		[75-12-112] 75B-3-112 . Application to cotrustee.
11511	11513		5664
11512	11514		The terms of a trust may relieve a cotrustee from duty and liability with respect to
11513	11515		5665
11514	11516		another cotrustee's exercise or nonexercise of a power of the other cotrustee to the same extent
11515	11517		5666
11516	11518		that, in a directed trust, a directed trustee is relieved from duty and liability with respect to a
11517	11519		5667
11518	11520		trust director's power of direction under Sections [75-12-109 through 75-12-111] 75B-3-109
11519	11521		5668
11520	11522		through 75B-3-111.
11521	11523		5669
11522	11524		Section 198. Section 75B-3-113, which is renumbered from Section 75-12-113 is renumbered
11523	11525		5670
11524	11526		and amended to read:
11525		-	- 167 - S.B. 100 Enrolled Copy
11526	11527		5671
11527	11528		[75-12-113] 75B-3-113 . Limitation of action against trust director.
	11529	+	- 167 - 1st Sub. (Green) S.B. 100 02-07 14:26
11528	11530		5672
11529	11531		(1) An action against a trust director for a breach of trust must be commenced within the
11530	11532		5673
11531	11533		same limitation period as described in Section [75-7-1005] 75B-2-1005 for an action for
11532	11534		5674
11533	11535		a breach of trust against a trustee in a like position and under similar circumstances.
11534	11536		5675
11535	11537		(2) A report or accounting has the same effect on the limitation period for an action against
11536	11538		5676
11537	11539		a trust director for breach of trust that the report or accounting would have as described
11538	11540		5677
11539	11541		in Section [75-7-1005] 75B-2-1005 in an action for a breach of trust against a trustee in a
11540	11542		5678
11541	11543		like position and under similar circumstances.
11542	11544		5679
11543	11545		Section 199. Section 75B-3-114, which is renumbered from Section 75-12-114 is renumbered
11544	11546		5680
11545	11547		and amended to read:
11546	11548		5681
11547	11549		[75-12-114] 75B-3-114 . Defenses in action against trust director.
11548	11550		5682
11549	11551		In an action against a trust director for a breach of trust, the director may assert the same
11550	11552		5683
11551	11553		defenses a trustee in a like position and under similar circumstances could assert in an action
11552	11554		5684
11553	11555		for a breach of trust against the trustee.
11554	11556		5685
11555	11557		Section 200. Section 75B-3-115, which is renumbered from Section 75-12-115 is renumbered
11556	11558		5686
11557	11559		and amended to read:
11558	11560		5687
11559	11561		[75-12-115] 75B-3-115 . Jurisdiction over trust director.
11560	11562		5688
11561	11563		(1) By accepting appointment as a trust director of a trust subject to this chapter, the
11562	11564		5689
11563	11565		director submits to personal jurisdiction of the courts of this state regarding any matter
11564	11566		5690
11565	11567		related to a power or duty of the director.
11566	11568		5691
11567	11569		(2) This section does not preclude other methods of obtaining jurisdiction over a trust
11568	11570		5692
11569	11571		director.
11570	11572		5693
11571	11573		Section 201. Section 75B-3-116, which is renumbered from Section 75-12-116 is renumbered
11572	11574		5694
11573	11575		and amended to read:
11574	11576		5695
11575	11577		[75-12-116] 75B-3-116 . Office of trust director.
11576	11578		5696
11577	11579		Unless the terms of a trust provide otherwise, the rules applicable to a trustee apply to a
11578	11580		5697
11579	11581		trust director regarding the following matters:
11580	11582		5698
11581	11583		(1) acceptance under Section [75-7-701] 75B-2-701;
11582	11584		5699
11583	11585		(2) giving of bond to secure performance under Section [75-7-702] 75B-2-702;
11584	11586		5700
11585	11587		(3) reasonable compensation under Section [75-7-708] 75B-2-708;
11586	11588		5701
11587	11589		(4) resignation under Section [75-7-705] 75B-2-705;
11588	11590		5702
11589	11591		(5) removal under Section [75-7-706] 75B-2-706; and
11590	11592		5703
11591	11593		(6) vacancy and appointment of successor under Section [75-7-704] 75B-2-704.
11592	11594		5704
11593	11595		Section 202. Section 75B-3-117, which is renumbered from Section 75-12-117 is renumbered
11594		-	- 168 - Enrolled Copy S.B. 100
11595	11596		5705
11596	11597		and amended to read:
	11598	+	- 168 - 02-07 14:26 1st Sub. (Green) S.B. 100
11597	11599		5706
11598	11600		[75-12-117] 75B-3-117 . Uniformity of application and construction.
11599	11601		5707
11600	11602		In applying and construing this chapter, consideration must be given to the need to
11601	11603		5708
11602	11604		promote uniformity of the law with respect to [its] this chapter's subject matter among states
11603	11605		5709
11604	11606		that enact [it] this chapter.
11605	11607		5710
11606	11608		Section 203. Section 75B-3-118, which is renumbered from Section 75-12-118 is renumbered
11607	11609		5711
11608	11610		and amended to read:
11609	11611		5712
11610	11612		[75-12-118] 75B-3-118 . Electronic records and signatures.
11611	11613		5713
11612	11614		This chapter modifies, limits, or supersedes the Electronic Signatures in Global and
11613	11615		5714
11614	11616		National Commerce Act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or supersede
11615	11617		5715
11616	11618		Section 101(c) of that act, 15 U.S.C. Sec. 7001(c), or authorize electronic delivery of any of
11617	11619		5716
11618	11620		the notices described in Section 103(b) of that act, 15 U.S.C. Sec. 7003(b).
11619	11621		5717
11620	11622		Section 204. Section 78B-5-505 is amended to read:
11621	11623		5718
11622	11624		78B-5-505 . Property exempt from execution.
11623	11625		5719
11624	11626		(1)(a) An individual is entitled to exemption of the following property:
11625	11627		5720
11626	11628		(i) a burial plot for the individual and the individual's family;
11627	11629		5721
11628	11630		(ii) health aids reasonably necessary to enable the individual or a dependent to work
11629	11631		5722
11630	11632		or sustain health;
11631	11633		5723
11632	11634		(iii) benefits that the individual or the individual's dependent have received or are
11633	11635		5724
11634	11636		entitled to receive from any source because of:
11635	11637		5725
11636	11638		(A) disability;
11637	11639		5726
11638	11640		(B) illness; or
11639	11641		5727
11640	11642		(C) unemployment;
11641	11643		5728
11642	11644		(iv) benefits paid or payable for medical, surgical, or hospital care to the extent that
11643	11645		5729
11644	11646		the benefits are used by an individual or the individual's dependent to pay for that
11645	11647		5730
11646	11648		care;
11647	11649		5731
11648	11650		(v) veterans benefits;
11649	11651		5732
11650	11652		(vi) money or property received, and rights to receive money or property for child
11651	11653		5733
11652	11654		support;
11653	11655		5734
11654	11656		(vii) money or property received, and rights to receive money or property for alimony
11655	11657		5735
11656	11658		or separate maintenance, to the extent reasonably necessary for the support of the
11657	11659		5736
11658	11660		individual and the individual's dependents;
11659	11661		5737
11660	11662		(viii)(A) one:
11661	11663		5738
11662	11664		(I) clothes washer and dryer;
11663		-	- 169 - S.B. 100 Enrolled Copy
11664	11665		5739
11665	11666		(II) refrigerator;
	11667	+	- 169 - 1st Sub. (Green) S.B. 100 02-07 14:26
11666	11668		5740
11667	11669		(III) freezer;
11668	11670		5741
11669	11671		(IV) stove;
11670	11672		5742
11671	11673		(V) microwave oven; and
11672	11674		5743
11673	11675		(VI) sewing machine;
11674	11676		5744
11675	11677		(B) all carpets in use;
11676	11678		5745
11677	11679		(C) provisions sufficient for 12 months actually provided for individual or family
11678	11680		5746
11679	11681		use;
11680	11682		5747
11681	11683		(D) all wearing apparel of every individual and dependent, not including jewelry
11682	11684		5748
11683	11685		or furs; and
11684	11686		5749
11685	11687		(E) all beds and bedding for every individual or dependent;
11686	11688		5750
11687	11689		(ix) except for works of art held by the debtor as part of a trade or business, works of
11688	11690		5751
11689	11691		art:
11690	11692		5752
11691	11693		(A) depicting the debtor or the debtor and the debtor's resident family; or
11692	11694		5753
11693	11695		(B) produced by the debtor or the debtor and the debtor's resident family;
11694	11696		5754
11695	11697		(x) proceeds of insurance, a judgment, or a settlement, or other rights accruing as a
11696	11698		5755
11697	11699		result of bodily injury of the individual or of the wrongful death or bodily injury
11698	11700		5756
11699	11701		of another individual of whom the individual was or is a dependent to the extent
11700	11702		5757
11701	11703		that those proceeds are compensatory;
11702	11704		5758
11703	11705		(xi) the proceeds or benefits of any life insurance contracts or policies paid or
11704	11706		5759
11705	11707		payable to the debtor or any trust of which the debtor is a beneficiary upon the
11706	11708		5760
11707	11709		death of the spouse or children of the debtor, provided that the contract or policy
11708	11710		5761
11709	11711		has been owned by the debtor for a continuous unexpired period of one year;
11710	11712		5762
11711	11713		(xii) the proceeds or benefits of any life insurance contracts or policies paid or
11712	11714		5763
11713	11715		payable to the spouse or children of the debtor or any trust of which the spouse or
11714	11716		5764
11715	11717		children are beneficiaries upon the death of the debtor, provided that the contract
11716	11718		5765
11717	11719		or policy has been in existence for a continuous unexpired period of one year;
11718	11720		5766
11719	11721		(xiii) proceeds and avails of any unmatured life insurance contracts owned by the
11720	11722		5767
11721	11723		debtor or any revocable grantor trust created by the debtor, excluding any
11722	11724		5768
11723	11725		payments made on the contract during the one year immediately preceding a
11724	11726		5769
11725	11727		creditor's levy or execution;
11726	11728		5770
11727	11729		(xiv) except as provided in Subsection (1)(b), and except for a judgment described in
11728	11730		5771
11729	11731		Subsection [75-7-503(2)(c)] 75B-2-503(2)(c), any money or other assets held for
11730	11732		5772
11731	11733		or payable to the individual as an owner, participant, or beneficiary from or an
11732		-	- 170 - Enrolled Copy S.B. 100
11733	11734		5773
11734	11735		interest of the individual as an owner, participant, or beneficiary in a fund or
	11736	+	- 170 - 02-07 14:26 1st Sub. (Green) S.B. 100
11735	11737		5774
11736	11738		account, including an inherited fund or account, in a retirement plan or
11737	11739		5775
11738	11740		arrangement that is described in Section 401(a), 401(h), 401(k), 403(a), 403(b),
11739	11741		5776
11740	11742		408, 408A, 409, 414(d), 414(e), or 457, Internal Revenue Code, including an
11741	11743		5777
11742	11744		owner's, a participant's, or a beneficiary's interest that arises by inheritance,
11743	11745		5778
11744	11746		designation, appointment, or otherwise;
11745	11747		5779
11746	11748		(xv) the interest of or any money or other assets payable to an alternate payee under a
11747	11749		5780
11748	11750		qualified domestic relations order as those terms are defined in Section 414(p),
11749	11751		5781
11750	11752		Internal Revenue Code;
11751	11753		5782
11752	11754		(xvi) unpaid earnings of the household of the filing individual due as of the date of
11753	11755		5783
11754	11756		the filing of a bankruptcy petition in the amount of 1/24 of the Utah State annual
11755	11757		5784
11756	11758		median family income for the household size of the filing individual as
11757	11759		5785
11758	11760		determined by the Utah State Annual Median Family Income reported by the
11759	11761		5786
11760	11762		United States Census Bureau and as adjusted based upon the Consumer Price
11761	11763		5787
11762	11764		Index for All Urban Consumers for an individual whose unpaid earnings are paid
11763	11765		5788
11764	11766		more often than once a month or, if unpaid earnings are not paid more often than
11765	11767		5789
11766	11768		once a month, then in the amount of 1/12 of the Utah State annual median family
11767	11769		5790
11768	11770		income for the household size of the individual as determined by the Utah State
11769	11771		5791
11770	11772		Annual Median Family Income reported by the United States Census Bureau and
11771	11773		5792
11772	11774		as adjusted based upon the Consumer Price Index for All Urban Consumers;
11773	11775		5793
11774	11776		(xvii) except for curio or relic firearms, as defined in Section 76-10-501, any three of
11775	11777		5794
11776	11778		the following:
11777	11779		5795
11778	11780		(A) one handgun and ammunition for the handgun not exceeding 1,000 rounds;
11779	11781		5796
11780	11782		(B) one shotgun and ammunition for the shotgun not exceeding 1,000 rounds; and
11781	11783		5797
11782	11784		(C) one shoulder arm and ammunition for the shoulder arm not exceeding 1,000
11783	11785		5798
11784	11786		rounds; and
11785	11787		5799
11786	11788		(xviii) money, not exceeding $200,000, in the aggregate, that an individual deposits,
11787	11789		5800
11788	11790		more than 18 months before the day on which the individual files a petition for
11789	11791		5801
11790	11792		bankruptcy or an action is filed by a creditor against the individual, as applicable,
11791	11793		5802
11792	11794		in all tax-advantaged accounts for saving for higher education costs on behalf of a
11793	11795		5803
11794	11796		particular individual that meets the requirements of Section 529, Internal Revenue
11795	11797		5804
11796	11798		Code.
11797	11799		5805
11798	11800		(b)(i) Any money, asset, or other interest in a fund or account that is exempt from a
11799	11801		5806
11800	11802		claim of a creditor of the owner, beneficiary, or participant under Subsection
11801		-	- 171 - S.B. 100 Enrolled Copy
11802	11803		5807
11803	11804		(1)(a)(xiv) does not cease to be exempt after the owner's, participant's, or
	11805	+	- 171 - 1st Sub. (Green) S.B. 100 02-07 14:26
11804	11806		5808
11805	11807		beneficiary's death by reason of a direct transfer or eligible rollover to an inherited
11806	11808		5809
11807	11809		individual retirement account as defined in Section 408(d)(3), Internal Revenue
11808	11810		5810
11809	11811		Code.
11810	11812		5811
11811	11813		(ii) Subsections (1)(a)(xiv) and (1)(b)(i) apply to all inherited individual retirement
11812	11814		5812
11813	11815		accounts without regard to the date on which the account was created.
11814	11816		5813
11815	11817		(c)(i) The exemption granted by Subsection (1)(a)(xiv) does not apply to:
11816	11818		5814
11817	11819		(A) an alternate payee under a qualified domestic relations order, as those terms
11818	11820		5815
11819	11821		are defined in Section 414(p), Internal Revenue Code; or
11820	11822		5816
11821	11823		(B) amounts contributed or benefits accrued by or on behalf of a debtor within one
11822	11824		5817
11823	11825		year before the debtor files for bankruptcy, except amounts directly rolled over
11824	11826		5818
11825	11827		from other funds that are exempt from attachment under this section.
11826	11828		5819
11827	11829		(ii) The exemptions in Subsections (1)(a)(xi), (xii), and (xiii) do not apply to the
11828	11830		5820
11829	11831		secured creditor's interest in proceeds and avails of any matured or unmatured life
11830	11832		5821
11831	11833		insurance contract assigned or pledged as collateral for repayment of a loan or
11832	11834		5822
11833	11835		other legal obligation.
11834	11836		5823
11835	11837		(2)(a) Disability benefits, as described in Subsection (1)(a)(iii)(A), and veterans benefits,
11836	11838		5824
11837	11839		as described in Subsection (1)(a)(v), may be garnished on behalf of a victim who is a
11838	11840		5825
11839	11841		child if the person receiving the benefits has been convicted of a felony sex offense
11840	11842		5826
11841	11843		against the victim and ordered by the sentencing court to pay restitution to the victim.
11842	11844		5827
11843	11845		(b) The exemption from execution under this Subsection (2) shall be reinstated upon
11844	11846		5828
11845	11847		payment of the restitution in full.
11846	11848		5829
11847	11849		(3) The exemptions under this section do not limit items that may be claimed as exempt
11848	11850		5830
11849	11851		under Section 78B-5-506.
11850	11852		5831
11851	11853		(4)(a) The exemptions described in Subsections (1)(a)(iii), (iv), (vi), (vii), (x), (xii), (xiii),
11852	11854		5832
11853	11855		(xiv), (xv), (xvii), and (xviii) do not apply to a civil accounts receivable or a civil
11854	11856		5833
11855	11857		judgment of restitution for an individual who is found in contempt under Section
11856	11858		5834
11857	11859		78B-6-317.
11858	11860		5835
11859	11861		(b) Subsection (4)(a) does not apply to the benefits described in Subsection (1)(a)(iii) if
11860	11862		5836
11861	11863		the individual's dependent received, or is entitled to receive, the benefits.
11862	11864		5837
11863	11865		Section 205. Repealer.
11864	11866		5838
11865	11867		This bill repeals:
11866	11868		5839
11867	11869		Section 75-7-101, Title.
11868	11870		5840
11869	11871		Section 75-12-101, Title.
11870		-	- 172 - Enrolled Copy S.B. 100
11871	11872		5841
11872	11873		Section 206. Effective Date.
	11874	+	- 172 - 02-07 14:26 1st Sub. (Green) S.B. 100
11873	11875		5842
11874	11876		This bill takes effect on May 7, 2025.
11875	11877		5843
11876	11878		Section 207. Coordinating S.B. 100 with S.B. 134.
11877	11879		5844
11878	11880		If S.B. 100, Estate Planning Recodification, and S.B. 134, Health-Care Decisions Act
11879	11881		5845
11880	11882		Amendments, both pass and become law, the Legislature intends that, on January 1, 2026, the
11881	11883		5846
11882	11884		following subsections enacted by S.B. 134 be deleted and the remaining subsections
11883	11885		5847
11884	11886		renumbered accordingly:
11885	11887		5848
11886	11888		(1) Subsection 75A-9-101(7), defining the term, "Electronic";
11887	11889		5849
11888	11890		(2) Subsection 75A-9-101(10), defining the term, "Guardian";
11889	11891		5850
11890	11892		(3) Subsection 75A-9-101(19), defining the term, "Person";
11891	11893		5851
11892	11894		(4) Subsection 75A-9-101(24), defining the term, "Record";
11893	11895		5852
11894	11896		(5) Subsection 75A-9-101(26), defining the term, "Sign"; and
11895	11897		5853
11896	11898		(6) Subsection 75A-9-101(27), defining the term, "State".
11897	11899		5854
11898	11900		Section 208. Coordinating S.B. 100 with H.B. 334.
11899	11901		5855
11900	11902		If S.B. 100, Estate Planning Recodification, and H.B. 334, Guardianships and Supported
11901	11903		5856
11902	11904		Decision-Making Agreements Amendments, both pass and become law, the Legislature
11903	11905		5857
11904	11906		intends that, on May 7, 2025, the changes in H.B. 334 to Subsection 7-5-1(1)(b) not be made.
11905	11907		- 173 -