Enrolled Copy S.B. 233
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Probate Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Kirk A. Cullimore
House Sponsor: Jordan D. Teuscher
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LONG TITLE
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General Description:
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This bill modifies provisions of the Utah Uniform Probate Code.
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Highlighted Provisions:
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This bill:
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▸ enacts within the Utah Uniform Probate Code a separate process for transferring a
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beneficiary's interest that is purchased by a third party in certain circumstances;
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▸ provides a process for the transfer and requirements for written agreements to purchase a
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beneficiary's interest;
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▸ provides for an optional hearing in relation to the transfer; and
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▸ provides a penalty for a willful violation of the process.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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ENACTS:
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75-3-918, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 75-3-918 is enacted to read:
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75-3-918 . Distribution to a purchaser of interest in a decedent's estate --
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Exclusions -- Requirements for filing and agreement contents and form -- Redactions
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required -- Hearing -- Probate action in another state.
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(1) As used in this section: S.B. 233 Enrolled Copy
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(a) "Interest" has the same meaning as "estate, trust, or other beneficial interest" as
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defined in Section 75A-2-211.
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(b) "Purchaser of interest" means a person who:
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(i) purchases, by means of a written agreement, an interest from a beneficiary in
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exchange for consideration; and
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(ii) regularly engages in, either directly or indirectly, the purchase of beneficial
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interests in estates in exchange for consideration.
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(2) The requirements of this section apply to a distribution from a decedent's estate that is
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made to a purchaser of interest.
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(3) This section does not apply to:
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(a) a transferee who is a beneficiary of the estate;
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(b) a person who has a claim to distribution from the estate under another instrument or
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by intestate succession;
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(c) a transferee who is the registered domestic partner of the beneficiary, or who is
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related by blood, marriage, or adoption to the beneficiary or the decedent;
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(d) a transaction made under Title 70C, Utah Consumer Credit Code; or
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(e) a transferee who is engaged in the business of locating missing or unknown heirs and
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who acquires an interest from a beneficiary solely in exchange for providing
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information or services associated with locating the heir or beneficiary.
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(4)(a) A written agreement under this section shall:
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(i) be printed in 10-point type or larger, including any accompanying documents
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provided by the purchaser of interest in relation to the written agreement;
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(ii) state the amount of consideration paid to the beneficiary;
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(iii) provide a description of the transferred interest; and
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(iv) if the written agreement so provides, state the amount by which the transferee for
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value would have its distribution reduced if the beneficial interest assigned is
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distributed prior to a specified date.
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(b) A written agreement under this section may not contain any of the following
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provisions, and if any such provision is included, the prohibited provision is null and
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void:
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(i) a provision that holds the purchaser of interest harmless, other than for liability
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arising out of fraud by the beneficiary;
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(ii) a provision granting the purchaser of interest agency powers to represent the
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beneficiary's interest in the decedent's estate beyond the interest to be transferred;
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(iii) a provision requiring the beneficiary to pay the purchaser of interest for services
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that are not related to the written agreement or for services other than the transfer
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of interest under the written agreement; or
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(iv) a provision permitting the purchaser of interest to have recourse against the
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beneficiary if the distribution from the estate in satisfaction of the beneficial
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interest is less than the beneficial interest assigned to the purchaser of interest,
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other than recourse for any expense or damage arising out of the material breach
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of the agreement or fraud by the beneficiary.
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(c) Before a copy of a written agreement under this section is filed, served, or otherwise
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publicly distributed as may be required by law, the purchaser of interest shall redact
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from that copy all information that personally identifies the beneficiary, other than
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the name and address of the beneficiary.
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(5) To request a transfer of the interest as provided under this section, the purchaser of
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interest shall, not later than 30 days following the date of execution of the written
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agreement or, if administration of the decedent's estate has not commenced, then within
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30 days of issuance of the letters of administration or letters testamentary, but in no
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event later than 15 days prior to the hearing on the petition for final distribution:
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(a) provide a copy of the written agreement to the beneficiary, and if all or some of the
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negotiation or discussion that resulted in the execution of the written agreement by
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the beneficiary was conducted in a language other than English, provide the
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beneficiary with a copy of the written agreement in English, together with a copy of
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the written agreement translated into the language in which the written agreement
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was negotiated or discussed;
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(b) file a copy of the written agreement that meets the requirements of this section, and
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that is redacted in accordance with the requirements of Subsection (4)(c), with the
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court; and
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(c) provide notice of the assignment on the personal representative or the attorney of
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record for the personal representative.
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(6)(a) The beneficiary may file a motion in opposition, which motion may also request
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that the court schedule a hearing, within 10 calendar days of receipt of the written
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agreement.
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(b) The court on its own motion, or in response to a motion under Subsection (6)(a), may
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inquire into the circumstances surrounding the execution of, and the consideration
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for, the written agreement to determine that the requirements of this section have
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been satisfied.
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(c) Notice of a hearing on any motion brought under this section shall be served on the
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beneficiary and on the purchaser of interest at least 15 days before the date of the
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hearing.
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(7)(a) Except as provided in Subsections (7)(b) and (7)(c), if no motion in opposition has
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been filed under Subsection (6)(a), the court shall allow the transfer.
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(b) The court may order distribution under the written agreement, or may order
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distribution on any terms that the court considers equitable, if the court finds that the
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purchaser of interest did not substantially comply with the requirements of this
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section, or if the court finds that any of the following conditions existed at the time of
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transfer:
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(i) fees, charges, or consideration paid or agreed to be paid by the beneficiary were
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grossly unreasonable; or
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(ii) the transfer of the beneficial interest was obtained by duress, fraud, or undue
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influence.
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(c) In addition to any remedy specified in this section, for any willful violation of the
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requirements of this section found to be committed in bad faith, the court may require
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the purchaser of interest to pay to the beneficiary up to twice the value paid for the
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assignment.
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(8) If the decedent's estate is not subject to a pending court proceeding under Title 75, Utah
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Uniform Probate Code, but is the subject of a probate proceeding in another state, the
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purchaser of interest shall not be required to submit to the court a copy of the written
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agreement as required under Subsection (5).
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Section 2. Effective Date.
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This bill takes effect on May 7, 2025.
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