Wyoming 2025 Regular Session

Wyoming Senate Bill SF0097 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	ORIGINAL SENATE
2		-	FILE NO. SF0097
3		-	ENROLLED ACT NO. 66, SENATE
4		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
5		-	2025 GENERAL SESSION
	1	+	2025
	2	+	STATE OF WYOMING
	3	+	25LSO-04971SF0097
	4	+	SENATE FILE NO. SF0097
	5	+	Trust code revisions.
	6	+	Sponsored by: Senator(s) Case, Nethercott and Olsen and
	7	+	Representative(s) Lawley
	8	+	A BILL
	9	+	for
	10	+	1 AN ACT relating to the uniform trust code; clarifying the
	11	+	2 definition of "qualified trustee"; specifying who is
	12	+	3 required to receive notice for judicial proceedings related
	13	+	4 to trusts; specifying that no rule of perpetuities applies
	14	+	5 to noncharitable purpose trusts; specifying when a trustee
	15	+	6 can reimburse a person for certain tax costs attributable
	16	+	7 to the trust; specifying applicability; and providing for
	17	+	8 an effective date.
	18	+	9
	19	+	10
	20	+	11
	21	+	12
	22	+	13 and (C), 4-10-109 by creating a new subsection (e),
	23	+	14 4-10-410(a)(iv) and 4-10-816(a)(xxxi), (xxxii) and by 2025STATE OF WYOMING25LSO-04972SF0097
	24	+	1 creating a new paragraph (xxxiii) and (b) are amended to
	25	+	2 read:
	26	+	3
	27	+	4
	28	+	5
	29	+	6 (a) As used in this act:
	30	+	7
	31	+	8 (xxxv) "Qualified trustee", as used in article 5
	32	+	9 of this act, means:
	33	+	10
	34	+	11 (B) A person authorized by the law of this
	35	+	12 state to act as a trustee or a regulated financial
	36	+	13 institution
	37	+	14:
	38	+	15
	39	+	16 (C) Neither the settlor,
	40	+	17
	41	+	18
	42	+	19
	43	+	20
	44	+	21 nor any other
	45	+	22 natural person who is a nonresident of this state, nor an
	46	+	23 entity that is not authorized by the law of this state to 2025STATE OF WYOMING25LSO-04973SF0097
	47	+	1 act as a trustee or is not a regulated financial
	48	+	2 institution, may serve as a qualified trustee.
	49	+	3
	50	+	4
	51	+	5
	52	+	6
	53	+	7
	54	+	8
	55	+	9
	56	+	10
	57	+	11
	58	+	12
	59	+	13
	60	+	14 (a) Except as otherwise provided in W.S. 4-10-409 or
	61	+	15 by another statute, the following rules apply:
	62	+	16
	63	+	17 (iv) No common law rule limiting the duration of
	64	+	18 noncharitable purpose trusts is in force in this state, and
	65	+	19
	66	+	20
	67	+	21.
	68	+	22
	69	+	23 2025STATE OF WYOMING25LSO-04974SF0097
6	70		1
7		-	AN ACT relating to the uniform trust code; clarifying the
8		-	definition of "qualified trustee"; specifying who is
9		-	required to receive notice for judicial proceedings related
10		-	to trusts; specifying that no rule of perpetuities applies
11		-	to noncharitable purpose trusts; specifying when a trustee
12		-	can reimburse a person for certain tax costs attributable
13		-	to the trust; specifying applicability; and providing for
14		-	an effective date.
15		-	Be It Enacted by the Legislature of the State of Wyoming:
16		-	Section 1. W.S. 4-10-103(a)(xxxv)(intro), (B)(intro)
17		-	and (C), 4-10-109 by creating a new subsection (e),
18		-	4-10-410(a)(iv) and 4-10-816(a)(xxxi), (xxxii) and by
19		-	creating a new paragraph (xxxiii) and (b) are amended to
20		-	read:
21		-	4-10-103. Definitions.
22		-	(a) As used in this act:
23		-	(xxxv) "Qualified trustee", as used in article 5
24		-	of this act, means:
25		-	(B) A person authorized by the law of this
26		-	state to act as a trustee or a regulated financial
27		-	institution
28		-	following activities within this state:
29		-	(C) Neither the settlor,
30		-	indirectly through an entity, unless discretionary
31		-	distributions by the entity require the consent or approval
32		-	of one (1) or more disinterested persons who are not a
33		-	related or subordinate party with respect to the settlor
34		-	within the meaning of 26 U.S.C. § 672(c), nor any other ORIGINAL SENATE
35		-	FILE NO. SF0097
36		-	ENROLLED ACT NO. 66, SENATE
37		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
38		-	2025 GENERAL SESSION
	71	+	2 (a) Without limiting the authority conferred by W.S.
	72	+	3 4-10-815, a trustee may:
	73	+	4
	74	+	5 (xxxi) Exercise elections with respect to
	75	+	6 federal, state and local taxes; and
	76	+	7
	77	+	8 (xxxii) Decide each trust taxable year whether
	78	+	9 principal distributions made from a trust to a beneficiary
	79	+	10 include net realized capital gains and losses in section
	80	+	11 643(a) of the Internal Revenue Code distributable net
	81	+	12 income;. and
	82	+	13
	83	+	14
	84	+	15
	85	+	16
	86	+	17
	87	+	18
	88	+	19
	89	+	20
	90	+	21
	91	+	22
	92	+	23 2025STATE OF WYOMING25LSO-04975SF0097
	93	+	1
39	94		2
40		-	natural person who is a nonresident of this state, nor an
41		-	entity that is not authorized by the law of this state to
42		-	act as a trustee or is not a regulated financial
43		-	institution, may serve as a qualified trustee.
44		-	4-10-109. Methods and waiver of notice.
45		-	(e) For any judicial action or proceeding concerning
46		-	a trust under this act, notice shall only be required to be
47		-	provided to interested persons as defined in W.S.
48		-	4-10-201(d).
49		-	4-10-410. Noncharitable trust without ascertainable
50		-	beneficiary.
51		-	(a) Except as otherwise provided in W.S. 4-10-409 or
52		-	by another statute, the following rules apply:
53		-	(iv) No common law rule limiting the duration of
54		-	noncharitable purpose trusts is in force in this state, and
55		-	no common law rule of perpetuities that is otherwise in
56		-	force in this state shall apply to noncharitable purpose
57		-	trusts
58		-	4-10-816. Specific powers of trustee.
59		-	(a) Without limiting the authority conferred by W.S.
60		-	4-10-815, a trustee may:
61		-	(xxxi) Exercise elections with respect to
62		-	federal, state and local taxes; and
63		-	(xxxii) Decide each trust taxable year whether
64		-	principal distributions made from a trust to a beneficiary
65		-	include net realized capital gains and losses in section ORIGINAL SENATE
66		-	FILE NO. SF0097
67		-	ENROLLED ACT NO. 66, SENATE
68		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
69		-	2025 GENERAL SESSION
70	95		3
71		-	643(a) of the Internal Revenue Code distributable net
72		-	income. and
73		-	(xxxiii) Except as otherwise provided under this
74		-	paragraph or under the terms of a trust, if all or any
75		-	portion of the trust is treated as being owned by a person
76		-	under 26 U.S.C. § 671 or any similar federal, state or
77		-	other tax law, the trustee may, in the trustee's sole
78		-	discretion, reimburse or pay on behalf of the person being
79		-	treated as the owner any amount of the person's personal
80		-	federal, state or other income tax liability that is
81		-	attributable to the inclusion of the trust's income,
82		-	capital gains, deductions or credits in the calculation of
83		-	the person's taxable income. This paragraph shall not apply
84		-	to a trustee who is the settlor or a person who is a
85		-	related or subordinate party to the settlor within the
86		-	meaning of 26 U.S.C. § 672(c). Neither the power authorized
87		-	under this paragraph or the exercise of the power under
88		-	this paragraph shall cause the settlor to be treated as a
89		-	beneficiary of the trust, the trust property to be
90		-	includable in the estate of the settlor or otherwise
91		-	entitle a creditor of the settlor to compel, attach or
92		-	otherwise encumber a payment authorized under this
93		-	paragraph. The provisions of this paragraph apply to all
94		-	trusts governed by the laws of this state unless an
95		-	independent trustee of the trust irrevocably elects
96		-	otherwise in writing.
97		-	(b) The provided in
98		-	(a)(xxviii) of this section shall not be
99		-	exercised in any manner that would prevent qualification
100		-	for a federal estate or gift tax marital deduction, federal
101		-	estate or gift tax charitable deduction, or other federal
102		-	income, estate, gift or generation-skipping transfer tax
103		-	benefit claimed for the trust from which the distribution ORIGINAL SENATE
104		-	FILE NO. SF0097
105		-	ENROLLED ACT NO. 66, SENATE
106		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
107		-	2025 GENERAL SESSION
108	96		4
109		-	in further trust is made. If the trustee making a
110		-	distribution in further trust under paragraph (a)(xxviii)
111		-	of this section is a beneficiary of the trust from which
112		-	the distribution in further trust is made, the distribution
113		-	in further trust may not change the trustee's interest as a
114		-	beneficiary in the trust. A trustee shall not be liable for
115		-	exercising the permitted under
116		-	paragraphs (a)(xxviii) of this section if the
117		-	power is exercised in good faith.
118		-	Section 2. This act shall apply to all trusts created
119		-	or that become subject to the uniform trust code on or
120		-	after July 1, 2025. ORIGINAL SENATE
121		-	FILE NO. SF0097
122		-	ENROLLED ACT NO. 66, SENATE
123		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
124		-	2025 GENERAL SESSION
125		-	5Section 3. This act is effective July 1, 2025.
126		-	(END)
127		-	Speaker of the HousePresident of the SenateGovernorTIME APPROVED: _________DATE APPROVED: _________
128		-	I hereby certify that this act originated in the Senate.
129		-	Chief Clerk
	97	+	5
	98	+	6
	99	+	7
	100	+	8
	101	+	9
	102	+	10
	103	+	11
	104	+	12
	105	+	13
	106	+	14
	107	+	15
	108	+	16 (b) The provided in
	109	+	17 (a)(xxviii) of this section shall not be
	110	+	18 exercised in any manner that would prevent qualification
	111	+	19 for a federal estate or gift tax marital deduction, federal
	112	+	20 estate or gift tax charitable deduction, or other federal
	113	+	21 income, estate, gift or generation-skipping transfer tax
	114	+	22 benefit claimed for the trust from which the distribution
	115	+	23 in further trust is made. If the trustee making a 2025STATE OF WYOMING25LSO-04976SF0097
	116	+	1 distribution in further trust under paragraph (a)(xxviii)
	117	+	2 of this section is a beneficiary of the trust from which
	118	+	3 the distribution in further trust is made, the distribution
	119	+	4 in further trust may not change the trustee's interest as a
	120	+	5 beneficiary in the trust. A trustee shall not be liable for
	121	+	6 exercising the permitted under
	122	+	7 (a)(xxviii) of this section if the
	123	+	8 power is exercised in good faith.
	124	+	9
	125	+	10
	126	+	11 or that become subject to the uniform trust code on or
	127	+	12 after July 1, 2025.
	128	+	13
	129	+	14. This act is effective July 1, 2025
	130	+	15
	131	+	16 (END)