Utah 2025 Regular Session

Utah Senate Bill SB0293 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	02-17 11:08 S.B. 293
2	2	1
3	3	Trust Business Amendments
4	4	2025 GENERAL SESSION
5	5	STATE OF UTAH
6	6	Chief Sponsor: Brady Brammer
7	7	House Sponsor:
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 amends provisions related to trust business.
16	16	6
17	17	Highlighted Provisions:
18	18	7
19	19	This bill:
20	20	8
21	21	▸ defines terms;
22	22	9
23	23	▸ modifies the definition of "trust company" to remove a requirement that a corporation be
24	24	10
25	25	continuously engaged in trust business since 1981 to qualify as a trust business;
26	26	11
27	27	▸ provides that a corporation offering accounts denominated in specie legal tender may
28	28	12
29	29	qualify as a trust company in this state; and
30	30	13
31	31	▸ makes technical and conforming changes.
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	AMENDS:
44	44	20
45	45	7-5-1, as last amended by Laws of Utah 2013, Chapter 364
46	46	21
47	47	59-10-202, as last amended by Laws of Utah 2019, Chapter 412
48	48	22
49	49
50	50	23
51	51	Be it enacted by the Legislature of the state of Utah:
52	52	24
53	53	Section 1. Section 7-5-1 is amended to read:
54	54	25
55	55	7-5-1 . Definitions -- Allowable trust companies -- Exceptions.
56	56	26
57	57	(1) As used in this chapter:
58	58	27
59	59	(a) "Business trust" means an entity engaged in a trade or business that is created by a
60	60	28
61	61	declaration of trust that transfers property to trustees, to be held and managed by [
62	62	29
63	63	them] the trustees for the benefit of persons holding certificates representing the
64	64	30
65	65	beneficial interest in the trust estate and assets.
66	66	S.B. 293 S.B. 293 02-17 11:08
67	67	31
68	68	(b) "Court appointed fiduciary" means a court appointed conservator, guardian, receiver,
69	69	32
70	70	trustee, or other fiduciary that:
71	71	33
72	72	(i) is responsible to the court in the same manner as a personal representative under
73	73	34
74	74	Title 75, Chapter 3, Part 5, Supervised Administration, or as a receiver under Rule
75	75	35
76	76	66, Utah Rules of Civil Procedure; and
77	77	36
78	78	(ii) is a certified public accountant or has qualified for and received a designation as a
79	79	37
80	80	certified financial planner, chartered financial consultant, certified financial
81	81	38
82	82	analyst, or similar designation suitable to the court, that evidences the
83	83	39
84	84	conservator's, guardian's, receiver's, trustee's, or other fiduciary's professional
85	85	40
86	86	competence to manage financial matters.
87	87	41
88	88	[(b)] (c)(i) "Trust business" means[, except as provided in Subsection (1)(c),] a
89	89	42
90	90	business in which [one] a person acts in any agency or fiduciary capacity,
91	91	43
92	92	including that of personal representative, executor, administrator, conservator,
93	93	44
94	94	guardian, assignee, receiver, depositary, or trustee under appointment as trustee
95	95	45
96	96	for any purpose permitted by law, including the definition of "trust" set forth in [
97	97	46
98	98	Subsection 75-1-201(55)] Section 75-1-201.
99	99	47
100	100	[(c)] (d)(i) "Trust business" does not include the following means of holding money,
101	101	48
102	102	assets, or other property:
103	103	49
104	104	[(i)] (A) money held in a client trust account by an attorney authorized to practice
105	105	50
106	106	law in this state;
107	107	51
108	108	[(ii)] (B) money held in connection with the purchase or sale of real estate by a
109	109	52
110	110	person licensed as a principal broker in accordance with Title 61, Chapter 2f,
111	111	53
112	112	Real Estate Licensing and Practices Act;
113	113	54
114	114	[(iii)] (C) money or other assets held in escrow by a person authorized by the
115	115	55
116	116	department in accordance with Chapter 22, Regulation of Independent Escrow
117	117	56
118	118	Agents, or by the Utah Insurance Department to act as an escrow agent in this
119	119	57
120	120	state;
121	121	58
122	122	[(iv)] (D) money held by a homeowners' association or similar organization to pay
123	123	59
124	124	maintenance and other related costs for commonly owned property;
125	125	60
126	126	[(v)] (E) money held in connection with the collection of debts or payments on
127	127	61
128	128	loans by a person acting solely as the agent or representative or otherwise at
129	129	62
130	130	the sole direction of the person to which the debt or payment is owed,
131	131	63
132	132	including money held by an escrow agent for payment of taxes or insurance;
133	133	64
134	134	[(vi)] (F) money and other assets held in trust on an occasional or isolated basis by
135	135	- 2 - 02-17 11:08 S.B. 293
136	136	65
137	137	a person who does not represent that the person is engaged in the trust business
138	138	66
139	139	in Utah;
140	140	67
141	141	[(vii)] (G) money or other assets found by a court to be held in an implied,
142	142	68
143	143	resulting, or constructive trust;
144	144	69
145	145	[(viii)] (H) money or other assets held by a court appointed [conservator, guardian,
146	146	70
147	147	receiver, trustee, or other ]fiduciary[ if:] ;
148	148	71
149	149	[(A) the conservator, receiver, guardian, trustee, or other fiduciary is responsible
150	150	72
151	151	to the court in the same manner as a personal representative under Title 75,
152	152	73
153	153	Chapter 3, Part 5, Supervised Administration, or as a receiver under Rule 66,
154	154	74
155	155	Utah Rules of Civil Procedure; and]
156	156	75
157	157	[(B) the conservator, trustee, or other fiduciary is a certified public accountant or
158	158	76
159	159	has qualified for and received a designation as a certified financial planner,
160	160	77
161	161	chartered financial consultant, certified financial analyst, or similar designation
162	162	78
163	163	suitable to the court, that evidences the conservator's, trustee's, or other
164	164	79
165	165	fiduciary's professional competence to manage financial matters;]
166	166	80
167	167	[(ix)] (I) money or other assets held by a credit services organization operating in
168	168	81
169	169	compliance with Title 13, Chapter 21, Credit Services Organizations Act;
170	170	82
171	171	[(x)] (J) money, securities, or other assets held in a customer account in connection
172	172	83
173	173	with the purchase or sale of securities by a regulated securities broker, dealer,
174	174	84
175	175	or transfer agent; or
176	176	85
177	177	[(xi)] (K) money, assets, and other property held in a business trust for the benefit
178	178	86
179	179	of holders of certificates of beneficial interest if the fiduciary activities of the
180	180	87
181	181	business trust are merely incidental to conducting business in the business trust
182	182	88
183	183	form.
184	184	89
185	185	[(d)] (e) "Trust company" means[ an institution authorized to engage in the trust business
186	186	90
187	187	under this chapter. Only the following may be a trust company]:
188	188	91
189	189	(i) a Utah depository institution or [its] the Utah depository institution's wholly owned
190	190	92
191	191	subsidiary;
192	192	93
193	193	(ii) an out-of-state depository institution authorized to engage in business as a
194	194	94
195	195	depository institution in Utah or [its] the out-of-state depository institution's
196	196	95
197	197	wholly owned subsidiary;
198	198	96
199	199	(iii) a corporation, including a credit union service organization, owned entirely by
200	200	97
201	201	one or more federally insured depository institutions as that term is defined in [
202	202	98
203	203	Subsection 7-1-103(8)] Section 7-1-103;
204	204	- 3 - S.B. 293 02-17 11:08
205	205	99
206	206	(iv) a direct or indirect subsidiary of a depository institution holding company that
207	207	100
208	208	also has a direct or indirect subsidiary authorized to engage in business as a
209	209	101
210	210	depository institution in Utah; and
211	211	102
212	212	(v) any other corporation [continuously and] that lawfully [engaged] engages in the
213	213	103
214	214	trust business in this state[ since before July 1, 1981] , including a corporation
215	215	104
216	216	offering accounts denominated in specie legal tender.
217	217	105
218	218	(2) Only a trust company may engage in the trust business in this state.
219	219	106
220	220	(3) The requirements of this chapter do not apply to:
221	221	107
222	222	(a) an institution authorized to engage in a trust business in another state that[ is engaged ]
223	223	108
224	224	engages in trust activities in this state solely to fulfill [its] the institution's duties as a
225	225	109
226	226	trustee of a trust created and administered in another state;
227	227	110
228	228	(b) a national bank, federal savings bank, federal savings and loan association, or federal
229	229	111
230	230	credit union authorized to engage in business as a depository institution in Utah, or
231	231	112
232	232	any wholly owned subsidiary of [any of these] a national bank, federal savings bank,
233	233	113
234	234	federal savings and loan association, or federal credit union authorized to engage in
235	235	114
236	236	business as a depository institution in Utah, to the extent the [institution is authorized
237	237	115
238	238	by its primary federal regulator] primary federal regulator authorizes the institution to
239	239	116
240	240	engage in the trust business in this state; or
241	241	117
242	242	(c) a state agency that [is otherwise authorized by statute] a statute authorizes to act as a
243	243	118
244	244	conservator, receiver, guardian, trustee, or in any other fiduciary capacity.
245	245	119
246	246	Section 2. Section 59-10-202 is amended to read:
247	247	120
248	248	59-10-202 . Additions to and subtractions from unadjusted income of a resident
249	249	121
250	250	or nonresident estate or trust.
251	251	122
252	252	(1) There shall be added to unadjusted income of a resident or nonresident estate or trust:
253	253	123
254	254	(a) a lump sum distribution allowable as a deduction under Section 402(d)(3), Internal
255	255	124
256	256	Revenue Code, to the extent deductible under Section 62(a)(8), Internal Revenue
257	257	125
258	258	Code, in determining adjusted gross income;
259	259	126
260	260	(b) except as provided in Subsection (3), for bonds, notes, and other evidences of
261	261	127
262	262	indebtedness acquired on or after January 1, 2003, the interest from bonds, notes, and
263	263	128
264	264	other evidences of indebtedness:
265	265	129
266	266	(i) issued by one or more of the following entities:
267	267	130
268	268	(A) a state other than this state;
269	269	131
270	270	(B) the District of Columbia;
271	271	132
272	272	(C) a political subdivision of a state other than this state; or
273	273	- 4 - 02-17 11:08 S.B. 293
274	274	133
275	275	(D) an agency or instrumentality of an entity described in Subsections (1)(b)(i)(A)
276	276	134
277	277	through (C); and
278	278	135
279	279	(ii) to the extent the interest is not included in federal taxable income on the
280	280	136
281	281	taxpayer's federal income tax return for the taxable year;
282	282	137
283	283	(c) any portion of federal taxable income for a taxable year if that federal taxable income
284	284	138
285	285	is derived from stock:
286	286	139
287	287	(i) in an S corporation; and
288	288	140
289	289	(ii) that is held by an electing small business trust;
290	290	141
291	291	(d) the amount withdrawn under Title 53B, Chapter 8a, Utah Educational Savings Plan,
292	292	142
293	293	from the account of a resident or nonresident estate or trust that is an account owner
294	294	143
295	295	as defined in Section 53B-8a-102, for the taxable year for which the amount is
296	296	144
297	297	withdrawn, if that amount withdrawn from the account of the resident or nonresident
298	298	145
299	299	estate or trust that is the account owner:
300	300	146
301	301	(i) is not expended for:
302	302	147
303	303	(A) higher education costs as defined in Section 53B-8a-102.5; or
304	304	148
305	305	(B) a payment or distribution that qualifies as an exception to the additional tax
306	306	149
307	307	for distributions not used for educational expenses provided in Sections 529(c)
308	308	150
309	309	and 530(d), Internal Revenue Code; and
310	310	151
311	311	(ii) is:
312	312	152
313	313	(A) subtracted by the resident or nonresident estate or trust:
314	314	153
315	315	(I) that is the account owner; and
316	316	154
317	317	(II) on the resident or nonresident estate's or trust's return filed under this
318	318	155
319	319	chapter for a taxable year beginning on or before December 31, 2007; or
320	320	156
321	321	(B) used as the basis for the resident or nonresident estate or trust that is the
322	322	157
323	323	account owner to claim a tax credit under Section 59-10-1017; and
324	324	158
325	325	(e) any fiduciary adjustments required by Section 59-10-210.
326	326	159
327	327	(2) There shall be subtracted from unadjusted income of a resident or nonresident estate or
328	328	160
329	329	trust:
330	330	161
331	331	(a) the interest or a dividend on obligations or securities of the United States and its
332	332	162
333	333	possessions or of any authority, commission, or instrumentality of the United States,
334	334	163
335	335	to the extent that interest or dividend is included in gross income for federal income
336	336	164
337	337	tax purposes for the taxable year but exempt from state income taxes under the laws
338	338	165
339	339	of the United States, but the amount subtracted under this Subsection (2) shall be
340	340	166
341	341	reduced by any interest on indebtedness incurred or continued to purchase or carry
342	342	- 5 - S.B. 293 02-17 11:08
343	343	167
344	344	the obligations or securities described in this Subsection (2), and by any expenses
345	345	168
346	346	incurred in the production of interest or dividend income described in this Subsection
347	347	169
348	348	(2) to the extent that such expenses, including amortizable bond premiums, are
349	349	170
350	350	deductible in determining federal taxable income;
351	351	171
352	352	(b) income of an irrevocable resident trust if:
353	353	172
354	354	(i) the income would not be treated as state taxable income derived from Utah
355	355	173
356	356	sources under Section 59-10-204 if received by a nonresident trust;
357	357	174
358	358	(ii) the trust first became a resident trust on or after January 1, 2004;
359	359	175
360	360	(iii) no assets of the trust were held, at any time after January 1, 2003, in another
361	361	176
362	362	resident irrevocable trust created by the same settlor or the spouse of the same
363	363	177
364	364	settlor;
365	365	178
366	366	(iv) the trustee of the trust is a trust company as defined in [Subsection 7-5-1(1)(d)]
367	367	179
368	368	Section 7-5-1;
369	369	180
370	370	(v) the amount subtracted under this Subsection (2)(b) is reduced to the extent the
371	371	181
372	372	settlor or any other person is treated as an owner of any portion of the trust under
373	373	182
374	374	Subtitle A, Subchapter J, Subpart E of the Internal Revenue Code; and
375	375	183
376	376	(vi) the amount subtracted under this Subsection (2)(b) is reduced by any interest on
377	377	184
378	378	indebtedness incurred or continued to purchase or carry the assets generating the
379	379	185
380	380	income described in this Subsection (2)(b), and by any expenses incurred in the
381	381	186
382	382	production of income described in this Subsection (2)(b), to the extent that those
383	383	187
384	384	expenses, including amortizable bond premiums, are deductible in determining
385	385	188
386	386	federal taxable income;
387	387	189
388	388	(c) if the conditions of Subsection (4)(a) are met, the amount of income of a resident or
389	389	190
390	390	nonresident estate or trust derived from a deceased Ute tribal member:
391	391	191
392	392	(i) during a time period that the Ute tribal member resided on homesteaded land
393	393	192
394	394	diminished from the Uintah and Ouray Reservation; and
395	395	193
396	396	(ii) from a source within the Uintah and Ouray Reservation;
397	397	194
398	398	(d) any amount:
399	399	195
400	400	(i) received by a resident or nonresident estate or trust;
401	401	196
402	402	(ii) that constitutes a refund of taxes imposed by:
403	403	197
404	404	(A) a state; or
405	405	198
406	406	(B) the District of Columbia; and
407	407	199
408	408	(iii) to the extent that amount is included in total income on that resident or
409	409	200
410	410	nonresident estate's or trust's federal tax return for estates and trusts for that
411	411	- 6 - 02-17 11:08 S.B. 293
412	412	201
413	413	taxable year;
414	414	202
415	415	(e) the amount of a railroad retirement benefit:
416	416	203
417	417	(i) paid:
418	418	204
419	419	(A) in accordance with The Railroad Retirement Act of 1974, 45 U.S.C. Sec. 231
420	420	205
421	421	et seq.;
422	422	206
423	423	(B) to a resident or nonresident estate or trust derived from a deceased resident or
424	424	207
425	425	nonresident individual; and
426	426	208
427	427	(C) for the taxable year; and
428	428	209
429	429	(ii) to the extent that railroad retirement benefit is included in total income on that
430	430	210
431	431	resident or nonresident estate's or trust's federal tax return for estates and trusts;
432	432	211
433	433	(f) an amount:
434	434	212
435	435	(i) received by a resident or nonresident estate or trust if that amount is derived from
436	436	213
437	437	a deceased enrolled member of an American Indian tribe; and
438	438	214
439	439	(ii) to the extent that the state is not authorized or permitted to impose a tax under this
440	440	215
441	441	part on that amount in accordance with:
442	442	216
443	443	(A) federal law;
444	444	217
445	445	(B) a treaty; or
446	446	218
447	447	(C) a final decision issued by a court of competent jurisdiction;
448	448	219
449	449	(g) the amount that a qualified nongrantor charitable lead trust deducts under Section
450	450	220
451	451	642(c), Internal Revenue Code, as a charitable contribution deduction, as allowed on
452	452	221
453	453	the qualified nongrantor charitable lead trust's federal income tax return for estates
454	454	222
455	455	and trusts for the taxable year;
456	456	223
457	457	(h) any fiduciary adjustments required by Section 59-10-210;
458	458	224
459	459	(i) an amount received:
460	460	225
461	461	(i) for the interest on a bond, note, or other obligation issued by an entity for which
462	462	226
463	463	state statute provides an exemption of interest on its bonds from state individual
464	464	227
465	465	income tax;
466	466	228
467	467	(ii) by a resident or nonresident estate or trust;
468	468	229
469	469	(iii) for the taxable year; and
470	470	230
471	471	(iv) to the extent the amount is included in federal taxable income on the taxpayer's
472	472	231
473	473	federal income tax return for the taxable year;
474	474	232
475	475	(j) for a taxable year beginning on or after January 1, 2019, but beginning on or before
476	476	233
477	477	December 31, 2019, only:
478	478	234
479	479	(i) the amount of any FDIC premium paid or incurred by the resident or nonresident
480	480	- 7 - S.B. 293 02-17 11:08
481	481	235
482	482	estate or trust that is disallowed as a deduction for federal income tax purposes
483	483	236
484	484	under Section 162(r), Internal Revenue Code, on the resident's or nonresident
485	485	237
486	486	estate's or trust's 2018 federal income tax return; plus
487	487	238
488	488	(ii) the amount of any FDIC premium paid or incurred by the resident or nonresident
489	489	239
490	490	estate or trust that is disallowed as a deduction for federal income tax purposes
491	491	240
492	492	under Section 162(r), Internal Revenue Code, for the taxable year; and
493	493	241
494	494	(k) for a taxable year beginning on or after January 1, 2020, the amount of any FDIC
495	495	242
496	496	premium paid or incurred by the resident or nonresident estate or trust that is
497	497	243
498	498	disallowed as a deduction for federal income tax purposes under Section 162(r),
499	499	244
500	500	Internal Revenue Code, for the taxable year.
501	501	245
502	502	(3) Notwithstanding Subsection (1)(b), interest from bonds, notes, and other evidences of
503	503	246
504	504	indebtedness issued by an entity described in Subsections (1)(b)(i)(A) through (D) may
505	505	247
506	506	not be added to unadjusted income of a resident or nonresident estate or trust if, as
507	507	248
508	508	annually determined by the commission:
509	509	249
510	510	(a) for an entity described in Subsection (1)(b)(i)(A) or (B), the entity and all of the
511	511	250
512	512	political subdivisions, agencies, or instrumentalities of the entity do not impose a tax
513	513	251
514	514	based on income on any part of the bonds, notes, and other evidences of indebtedness
515	515	252
516	516	of this state; or
517	517	253
518	518	(b) for an entity described in Subsection (1)(b)(i)(C) or (D), the following do not impose
519	519	254
520	520	a tax based on income on any part of the bonds, notes, and other evidences of
521	521	255
522	522	indebtedness of this state:
523	523	256
524	524	(i) the entity; or
525	525	257
526	526	(ii)(A) the state in which the entity is located; or
527	527	258
528	528	(B) the District of Columbia, if the entity is located within the District of
529	529	259
530	530	Columbia.
531	531	260
532	532	(4)(a) A subtraction for an amount described in Subsection (2)(c) is allowed only if:
533	533	261
534	534	(i) the income is derived from a deceased Ute tribal member; and
535	535	262
536	536	(ii) the governor and the Ute tribe execute and maintain an agreement meeting the
537	537	263
538	538	requirements of this Subsection (4).
539	539	264
540	540	(b) The agreement described in Subsection (4)(a):
541	541	265
542	542	(i) may not:
543	543	266
544	544	(A) authorize the state to impose a tax in addition to a tax imposed under this
545	545	267
546	546	chapter;
547	547	268
548	548	(B) provide a subtraction under this section greater than or different from the
549	549	- 8 - 02-17 11:08 S.B. 293
550	550	269
551	551	subtraction described in Subsection (2)(c); or
552	552	270
553	553	(C) affect the power of the state to establish rates of taxation; and
554	554	271
555	555	(ii) shall:
556	556	272
557	557	(A) provide for the implementation of the subtraction described in Subsection
558	558	273
559	559	(2)(c);
560	560	274
561	561	(B) be in writing;
562	562	275
563	563	(C) be signed by:
564	564	276
565	565	(I) the governor; and
566	566	277
567	567	(II) the chair of the Business Committee of the Ute tribe;
568	568	278
569	569	(D) be conditioned on obtaining any approval required by federal law; and
570	570	279
571	571	(E) state the effective date of the agreement.
572	572	280
573	573	(c)(i) The governor shall report to the commission by no later than February 1 of each
574	574	281
575	575	year regarding whether or not an agreement meeting the requirements of this
576	576	282
577	577	Subsection (4) is in effect.
578	578	283
579	579	(ii) If an agreement meeting the requirements of this Subsection (4) is terminated, the
580	580	284
581	581	subtraction permitted under Subsection (2)(c) is not allowed for taxable years
582	582	285
583	583	beginning on or after the January 1 following the termination of the agreement.
584	584	286
585	585	(d) For purposes of Subsection (2)(c) and in accordance with Title 63G, Chapter 3, Utah
586	586	287
587	587	Administrative Rulemaking Act, the commission may make rules:
588	588	288
589	589	(i) for determining whether income is derived from a source within the Uintah and
590	590	289
591	591	Ouray Reservation; and
592	592	290
593	593	(ii) that are substantially similar to how adjusted gross income derived from Utah
594	594	291
595	595	sources is determined under Section 59-10-117.
596	596	292
597	597	Section 3. Effective Date.
598	598	293
599	599	This bill takes effect on May 7, 2025.
600	600	- 9 -