Utah 2025 Regular Session

Utah Senate Bill SB0233 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~Enrolled Copy~~ S.B. 233
	1	+	02-24 10:52 S.B. 233
2	2		1
3	3		Probate Amendments
4	4		2025 GENERAL SESSION
5	5		STATE OF UTAH
6	6		Chief Sponsor: Kirk A. Cullimore
7	7		House Sponsor: Jordan D. Teuscher
8	8		2
9	9
10	10		3
11	11		LONG TITLE
12	12		4
13	13		General Description:
14	14		5
15	15		This bill modifies provisions of the Utah Uniform Probate Code.
16	16		6
17	17		Highlighted Provisions:
18	18		7
19	19		This bill:
20	20		8
21	21		▸ enacts within the Utah Uniform Probate Code a separate process for transferring a
22	22		9
23	23		beneficiary's interest that is purchased by a third party in certain circumstances;
24	24		10
25	25		▸ provides a process for the transfer and requirements for written agreements to purchase a
26	26		11
27	27		beneficiary's interest;
28	28		12
29	29		▸ provides for an optional hearing in relation to the transfer; and
30	30		13
31	31		▸ provides a penalty for a willful violation of the process.
32	32		14
33	33		Money Appropriated in this Bill:
34	34		15
35	35		None
36	36		16
37	37		Other Special Clauses:
38	38		17
39	39		None
40	40		18
41	41		Utah Code Sections Affected:
42	42		19
43	43		ENACTS:
44	44		20
45	45		75-3-918, Utah Code Annotated 1953
46	46		21
47	47
48	48		22
49	49		Be it enacted by the Legislature of the state of Utah:
50	50		23
51	51		Section 1. Section 75-3-918 is enacted to read:
52	52		24
53	53		75-3-918 . Distribution to a purchaser of interest in a decedent's estate --
54	54		25
55	55		Exclusions -- Requirements for filing and agreement contents and form -- Redactions
56	56		26
57	57		required -- Hearing -- Probate action in another state.
58	58		27
59		-	(1) As used in this section: ~~S.B. 233 Enrolled Copy~~
	59	+	(1) As used in this section:
60	60		28
61	61		(a) "Interest" has the same meaning as "estate, trust, or other beneficial interest" as
62	62		29
63	63		defined in Section 75A-2-211.
64	64		30
65	65		(b) "Purchaser of interest" means a person who:
	66	+	S.B. 233 S.B. 233 02-24 10:52
66	67		31
67	68		(i) purchases, by means of a written agreement, an interest from a beneficiary in
68	69		32
69	70		exchange for consideration; and
70	71		33
71	72		(ii) regularly engages in, either directly or indirectly, the purchase of beneficial
72	73		34
73	74		interests in estates in exchange for consideration.
74	75		35
75	76		(2) The requirements of this section apply to a distribution from a decedent's estate that is
76	77		36
77	78		made to a purchaser of interest.
78	79		37
79	80		(3) This section does not apply to:
80	81		38
81	82		(a) a transferee who is a beneficiary of the estate;
82	83		39
83	84		(b) a person who has a claim to distribution from the estate under another instrument or
84	85		40
85	86		by intestate succession;
86	87		41
87	88		(c) a transferee who is the registered domestic partner of the beneficiary, or who is
88	89		42
89	90		related by blood, marriage, or adoption to the beneficiary or the decedent;
90	91		43
91	92		(d) a transaction made under Title 70C, Utah Consumer Credit Code; or
92	93		44
93	94		(e) a transferee who is engaged in the business of locating missing or unknown heirs and
94	95		45
95	96		who acquires an interest from a beneficiary solely in exchange for providing
96	97		46
97	98		information or services associated with locating the heir or beneficiary.
98	99		47
99	100		(4)(a) A written agreement under this section shall:
100	101		48
101	102		(i) be printed in 10-point type or larger, including any accompanying documents
102	103		49
103	104		provided by the purchaser of interest in relation to the written agreement;
104	105		50
105	106		(ii) state the amount of consideration paid to the beneficiary;
106	107		51
107	108		(iii) provide a description of the transferred interest; and
108	109		52
109	110		(iv) if the written agreement so provides, state the amount by which the transferee for
110	111		53
111	112		value would have its distribution reduced if the beneficial interest assigned is
112	113		54
113	114		distributed prior to a specified date.
114	115		55
115	116		(b) A written agreement under this section may not contain any of the following
116	117		56
117	118		provisions, and if any such provision is included, the prohibited provision is null and
118	119		57
119	120		void:
120	121		58
121	122		(i) a provision that holds the purchaser of interest harmless, other than for liability
122	123		59
123	124		arising out of fraud by the beneficiary;
124	125		60
125	126		(ii) a provision granting the purchaser of interest agency powers to represent the
126	127		61
127	128		beneficiary's interest in the decedent's estate beyond the interest to be transferred;
128		-	- 2 - Enrolled Copy S.B. 233
129	129		62
130	130		(iii) a provision requiring the beneficiary to pay the purchaser of interest for services
131	131		63
132	132		that are not related to the written agreement or for services other than the transfer
133	133		64
134	134		of interest under the written agreement; or
	135	+	- 2 - 02-24 10:52 S.B. 233
135	136		65
136	137		(iv) a provision permitting the purchaser of interest to have recourse against the
137	138		66
138	139		beneficiary if the distribution from the estate in satisfaction of the beneficial
139	140		67
140	141		interest is less than the beneficial interest assigned to the purchaser of interest,
141	142		68
142	143		other than recourse for any expense or damage arising out of the material breach
143	144		69
144	145		of the agreement or fraud by the beneficiary.
145	146		70
146	147		(c) Before a copy of a written agreement under this section is filed, served, or otherwise
147	148		71
148	149		publicly distributed as may be required by law, the purchaser of interest shall redact
149	150		72
150	151		from that copy all information that personally identifies the beneficiary, other than
151	152		73
152	153		the name and address of the beneficiary.
153	154		74
154	155		(5) To request a transfer of the interest as provided under this section, the purchaser of
155	156		75
156	157		interest shall, not later than 30 days following the date of execution of the written
157	158		76
158	159		agreement or, if administration of the decedent's estate has not commenced, then within
159	160		77
160	161		30 days of issuance of the letters of administration or letters testamentary, but in no
161	162		78
162	163		event later than 15 days prior to the hearing on the petition for final distribution:
163	164		79
164	165		(a) provide a copy of the written agreement to the beneficiary, and if all or some of the
165	166		80
166	167		negotiation or discussion that resulted in the execution of the written agreement by
167	168		81
168	169		the beneficiary was conducted in a language other than English, provide the
169	170		82
170	171		beneficiary with a copy of the written agreement in English, together with a copy of
171	172		83
172	173		the written agreement translated into the language in which the written agreement
173	174		84
174	175		was negotiated or discussed;
175	176		85
176	177		(b) file a copy of the written agreement that meets the requirements of this section, and
177	178		86
178	179		that is redacted in accordance with the requirements of Subsection (4)(c), with the
179	180		87
180	181		court; and
181	182		88
182	183		(c) provide notice of the assignment on the personal representative or the attorney of
183	184		89
184	185		record for the personal representative.
185	186		90
186		-	(6)(a) The beneficiary may file a motion in opposition, which motion may also request
	187	+	(6)(a) The beneficiary Ŝ→ [, the personal representative,
	188	+	90a
	189	+	or another person who has a claim to
187	190		91
188		-	that the court schedule a hearing, within 10 calendar days of receipt of the written
	191	+	distributions from the estate] ←Ŝ may file a motion in opposition, which
	192	+	91a
	193	+	motion may also
189	194		92
190		-	~~agreement.~~
	195	+	request that the court schedule a hearing, within 10 calendar days of receipt of the
191	196		93
	197	+	written agreement.
	198	+	94
192	199		(b) The court on its own motion, or in response to a motion under Subsection (6)(a), may
193		-	94
	200	+	95
194	201		inquire into the circumstances surrounding the execution of, and the consideration
195		-	95
	202	+	96
196	203		for, the written agreement to determine that the requirements of this section have
197		-	- 3 - S.B. 233 ~~Enrolled Copy~~
198		-	96
	204	+	- 3 - S.B. 233 02-24 10:52
	205	+	97
199	206		been satisfied.
200		-	97
	207	+	98
201	208		(c) Notice of a hearing on any motion brought under this section shall be served on the
202		-	98
	209	+	99
203	210		beneficiary and on the purchaser of interest at least 15 days before the date of the
204		-	99
	211	+	100
205	212		hearing.
206		-	~~100~~
	213	+	101
207	214		(7)(a) Except as provided in Subsections (7)(b) and (7)(c), if no motion in opposition has
208		-	~~101~~
	215	+	102
209	216		been filed under Subsection (6)(a), the court shall allow the transfer.
210		-	~~102~~
	217	+	103
211	218		(b) The court may order distribution under the written agreement, or may order
212		-	~~103~~
	219	+	104
213	220		distribution on any terms that the court considers equitable, if the court finds that the
214		-	~~104~~
	221	+	105
215	222		purchaser of interest did not substantially comply with the requirements of this
216		-	~~105~~
	223	+	106
217	224		section, or if the court finds that any of the following conditions existed at the time of
218		-	~~106~~
	225	+	107
219	226		transfer:
220		-	~~107~~
	227	+	108
221	228		(i) fees, charges, or consideration paid or agreed to be paid by the beneficiary were
222		-	~~108~~
	229	+	109
223	230		grossly unreasonable; or
224		-	~~109~~
	231	+	110
225	232		(ii) the transfer of the beneficial interest was obtained by duress, fraud, or undue
226		-	~~110~~
	233	+	111
227	234		influence.
228		-	~~111~~
	235	+	112
229	236		(c) In addition to any remedy specified in this section, for any willful violation of the
230		-	~~112~~
	237	+	113
231	238		requirements of this section found to be committed in bad faith, the court may require
232		-	~~113~~
	239	+	114
233	240		the purchaser of interest to pay to the beneficiary up to twice the value paid for the
234		-	~~114~~
	241	+	115
235	242		assignment.
236		-	~~115~~
	243	+	116
237	244		(8) If the decedent's estate is not subject to a pending court proceeding under Title 75, Utah
238		-	~~116~~
	245	+	117
239	246		Uniform Probate Code, but is the subject of a probate proceeding in another state, the
240		-	~~117~~
	247	+	118
241	248		purchaser of interest shall not be required to submit to the court a copy of the written
242		-	~~118~~
	249	+	119
243	250		agreement as required under Subsection (5).
244		-	~~119~~
	251	+	120
245	252		Section 2. Effective Date.
246		-	~~120~~
	253	+	121
247	254		This bill takes effect on May 7, 2025.
248	255		- 4 -