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uca_title_75B.txt
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uca_title_75B.txt
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Utah Code Annotated - Title 75B - Trusts
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Utah Code Annotated - Title 75B - Chapter 1 - General Provisions
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Utah Code Annotated § 75B-1-101 Reserved for title definitions.
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Reserved.
Utah Code Annotated § 75B-1-102 Transition clause.
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If, at the time a trust or another legal document was executed, the document contained a correct citation to a provision in Title 22, Fiduciaries and Trusts, and Title 75, Utah Uniform Probate Code, that, after the execution of the document, was renumbered and amended for inclusion in this title, that citation is a valid citation to the same provision in this title.
Utah Code Annotated § 75B-1-103 Death of trustee -- Trust estate vests in successor.
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Upon the death of a sole or surviving trustee of an express trust:Utah Code Annotated § 75B-1-103(1): the trust estate does not descend to the trustee's heirs or pass to the trustee's personal representatives; and
Utah Code Annotated § 75B-1-103(2): the trust estate immediately vests in the successor trustee upon the appointment and qualification of a successor trustee.
Utah Code Annotated § 75B-1-201 Definitions for part.
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As used in this part:Utah Code Annotated § 75B-1-201(1): 75A-5-101 "Income" means the same as that term is defined in Section
Utah Code Annotated § 75B-1-201(2): 75A-5-101 "Principal" means the same as that term is defined in Section
Utah Code Annotated § 75B-1-201(3): "Retirement trust" means a trust:
Utah Code Annotated § 75B-1-201(3)(a): created by an employer as part of a pension, stock bonus, disability, death benefit, profit sharing, retirement, or similar plan primarily for the benefit of an employee or the employee's family, appointee, or beneficiary;
Utah Code Annotated § 75B-1-201(3)(b): to which contributions are made by the employer or employee; and
Utah Code Annotated § 75B-1-201(3)(c): that is created for the purpose of distributing principal or income to the employee or the employee's family, appointee, or beneficiary.
Utah Code Annotated § 75B-1-202 Retirement trusts exempted from rules against perpetuities, accumulations, or suspension of power of alienation.
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Utah Code Annotated § 75B-1-202(1): A retirement trust is not invalid as violating a rule against perpetuities, a rule against accumulations, a rule concerning the suspension of the power of alienation of title to property, or any other law restricting or limiting the duration of trusts.
Utah Code Annotated § 75B-1-202(2): A retirement trust may continue in perpetuity or for the time that is necessary to accomplish the purposes for which the retirement trust was created.
Utah Code Annotated § 75B-1-203 Income permitted to accumulate.
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The income arising from or earned by the property held in a retirement trust is permitted to accumulate, in accordance with the terms of the trust:Utah Code Annotated § 75B-1-203(1): for the time period permitted by the instrument creating the trust; or
Utah Code Annotated § 75B-1-203(2): if the instrument creating the trust does not specify a time period, for the time period that is necessary for a trustee of the trust to accomplish the purposes for which the trust was created.
Utah Code Annotated § 75B-1-301 Definitions for part.
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As used in this part:Utah Code Annotated § 75B-1-301(1): "Creditor" means:
Utah Code Annotated § 75B-1-301(1)(a): a creditor or other claimant of the settlor existing when the trust is created; or
Utah Code Annotated § 75B-1-301(1)(b): a person who subsequently becomes a creditor, including whether or not reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured:
Utah Code Annotated § 75B-1-301(1)(b)(i): holding or seeking to enforce a judgment entered by a court or other body having adjudicative authority; or
Utah Code Annotated § 75B-1-301(1)(b)(ii): with a right to payment.
Utah Code Annotated § 75B-1-301(2): "Domestic support obligation" means:
Utah Code Annotated § 75B-1-301(2)(a): a child support judgment or order;
Utah Code Annotated § 75B-1-301(2)(b): a spousal support judgment or order; or
Utah Code Annotated § 75B-1-301(2)(c): an unsatisfied claim arising from a property division in a divorce proceeding.
Utah Code Annotated § 75B-1-301(3): "Insolvent" means:
Utah Code Annotated § 75B-1-301(3)(a): having generally ceased to pay debts in the ordinary course of business other than as a result of a bona fide dispute;
Utah Code Annotated § 75B-1-301(3)(b): being unable to pay debts as they become due; or
Utah Code Annotated § 75B-1-301(3)(c): being insolvent within the meaning of federal bankruptcy law.
Utah Code Annotated § 75B-1-301(4): "Paid and delivered" does not include the settlor's use or occupancy of real property or personal property owned by the trust if the use or occupancy is in accordance with the trustee's discretionary authority under the trust instrument.
Utah Code Annotated § 75B-1-301(5): "Personal property" includes intangible and tangible personal property.
Utah Code Annotated § 75B-1-301(6): "Property" means real property, personal property, and interests in real or personal property.
Utah Code Annotated § 75B-1-301(7): "Settlor" means a person who transfers property in trust.
Utah Code Annotated § 75B-1-301(8): "Transfer" means any form of transfer of property, including gratuitous transfers, whether by deed, conveyance, or assignment.
Utah Code Annotated § 75B-1-301(9): 75-1-201 "Trust" means the same as that term is defined in Section
Utah Code Annotated § 75B-1-302 Asset protection trust.
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Utah Code Annotated § 75B-1-302(1): If the settlor of an irrevocable trust is also a beneficiary of the trust, and if the requirements of Subsection (3) are satisfied, a creditor of the settlor may not:
Utah Code Annotated § 75B-1-302(1)(a): satisfy a claim or liability of the settlor in either law or equity out of the settlor's transfer to the trust or the settlor's beneficial interest in the trust;
Utah Code Annotated § 75B-1-302(1)(b): force or require the trustee to make a distribution to the settlor, as beneficiary; or
Utah Code Annotated § 75B-1-302(1)(c): require the trustee to pay any distribution directly to the creditor, or otherwise attach the distribution before it has been paid or delivered by the trustee to the settlor, as beneficiary.
Utah Code Annotated § 75B-1-302(2): Notwithstanding Subsection (1), nothing in this section:
Utah Code Annotated § 75B-1-302(2)(a): prohibits a creditor from satisfying a claim or liability from the distribution once it has been paid or delivered by the trustee to the settlor, as beneficiary; or
Utah Code Annotated § 75B-1-302(2)(b): nullifies or impairs a security interest that was granted by a settlor or a trustee with respect to property that is transferred to the trust.
Utah Code Annotated § 75B-1-302(3): 7-5-1
Utah Code Annotated § 75B-1-302(3)(a): In order for Subsection (1) to apply, the conditions in this Subsection (3) shall be satisfied.
Utah Code Annotated § 75B-1-302(3)(b): Where this Subsection (3) requires that a provision be included in the trust instrument, no particular language need be used in the trust instrument if the meaning of the trust provision otherwise complies with this Subsection (3).
Utah Code Annotated § 75B-1-302(3)(c): An agreement or understanding, express or implied, between the settlor and the trustee that attempts to grant or permit the retention by the settlor of greater rights or authority than is stated in the trust instrument is void.
Utah Code Annotated § 75B-1-302(3)(d): The trust instrument shall provide that the trust is governed by Utah law and is established pursuant to this section.
Utah Code Annotated § 75B-1-302(3)(e): 7-5-1 The trust instrument shall require that at all times at least one trustee shall be a Utah resident or Utah trust company, as the term "trust company" is defined in Section
Utah Code Annotated § 75B-1-302(3)(f):
Utah Code Annotated § 75B-1-302(3)(f)(i): The trust instrument shall provide that neither the interest of the settlor, as beneficiary, nor the income or principal of the trust may be voluntarily or involuntarily transferred by the settlor, as beneficiary.
Utah Code Annotated § 75B-1-302(3)(f)(ii): The provision shall be considered to be a restriction on the transfer of the settlor's beneficial interest in the trust that is enforceable under applicable nonbankruptcy law within the meaning of 11 U.S.C. Sec. 541(c)(2).
Utah Code Annotated § 75B-1-302(3)(g): The settlor may not have the ability under the trust instrument, without the consent of a person who has a substantial beneficial interest in the trust, which interest would be adversely affected by the exercise of the power held by the settlor:
Utah Code Annotated § 75B-1-302(3)(g)(i): to revoke, amend, or terminate all or any part of the trust; or
Utah Code Annotated § 75B-1-302(3)(g)(ii): to withdraw any property from the trust, except that the settlor, without the approval or consent of any person, may be given the power, under the trust agreement, to substitute assets of substantially equivalent value.
Utah Code Annotated § 75B-1-302(3)(h): The trust instrument may not provide for any mandatory distributions of either income or principal to the settlor, as beneficiary, except as provided in Subsection (5)(g).
Utah Code Annotated § 75B-1-302(3)(i):
Utah Code Annotated § 75B-1-302(3)(i)(i): The trust instrument shall require that, at least 30 days before paying and delivering any distribution to the settlor, as beneficiary, the trustee notify in writing every person who has a domestic support obligation against the settlor.
Utah Code Annotated § 75B-1-302(3)(i)(ii): The trust instrument shall require that the notice state the date the distribution will be paid and delivered and the amount of the distribution.
Utah Code Annotated § 75B-1-302(3)(j): At the time that the settlor transfers any assets to the trust, the settlor may not be in default of making a payment due under a domestic support obligation.
Utah Code Annotated § 75B-1-302(3)(k): A transfer of assets to the trust may not render the settlor insolvent.
Utah Code Annotated § 75B-1-302(3)(l): At the time the settlor transfers any assets to the trust, the settlor may not intend to hinder, delay, or defraud a known creditor by transferring the assets to the trust. A settlor's expressed intention to protect trust assets from the settlor's potential future creditors is not evidence of an intent to hinder, delay, or defraud a known creditor.
Utah Code Annotated § 75B-1-302(3)(m): Assets transferred to the trust may not be derived from unlawful activities.
Utah Code Annotated § 75B-1-302(3)(nn): With respect to each transfer of assets to the trust, the settlor shall sign a sworn affidavit stating that at the time of the transfer of the assets to the trust:
Utah Code Annotated § 75B-1-302(3)(nn)(i): the settlor has full right, title, and authority to transfer the assets to the trust;
Utah Code Annotated § 75B-1-302(3)(nn)(ii): the transfer of the assets to the trust will not render the settlor insolvent;
Utah Code Annotated § 75B-1-302(3)(nn)(iii): the settlor does not intend to hinder, delay, or defraud a known creditor by transferring the assets to the trust;
Utah Code Annotated § 75B-1-302(3)(nn)(iv): there is no pending or threatened court action against the settlor, except for a court action identified by the settlor on an attachment to the affidavit;
Utah Code Annotated § 75B-1-302(3)(nn)(v): the settlor is not involved in an administrative proceeding that is reasonably expected to have a material adverse effect on the financial condition of the settlor, except an administrative proceeding identified on an attachment to the affidavit;
Utah Code Annotated § 75B-1-302(3)(nn)(vi): at the time of the transfer of the assets to the trust, the settlor is not in default of a domestic support obligation;
Utah Code Annotated § 75B-1-302(3)(nn)(vii): the settlor does not contemplate filing for relief under the provisions of United States Code, Title 11, Bankruptcy; and
Utah Code Annotated § 75B-1-302(3)(nn)(viii): the assets being transferred to the trust were not derived from unlawful activities.
Utah Code Annotated § 75B-1-302(4): Failure to satisfy the requirements of Subsection (3) shall result in the consequences described in this Subsection (4).
Utah Code Annotated § 75B-1-302(4)(a): If any requirement of Subsections (3)(b) through (g) is not satisfied, none of the property held in the trust will at any time have the benefit of the protections described in Subsection (1).
Utah Code Annotated § 75B-1-302(4)(b): If the trustee does not send the notice required under Subsection (3)(g), the court may authorize any person with a domestic support obligation against the settlor to whom notice was not sent to attach the distribution or future distributions, but the person may not:
Utah Code Annotated § 75B-1-302(4)(b)(i): satisfy a claim or liability in either law or equity out of the settlor's transfer to the trust or the settlor's beneficial interest in the trust; or
Utah Code Annotated § 75B-1-302(4)(b)(ii): force or require the trustee to make a distribution to the settlor, as beneficiary.
Utah Code Annotated § 75B-1-302(4)(c): If any requirement described in Subsections (3)(i) through (l) is not satisfied, the property transferred to the trust that does not satisfy the requirement may not have the benefit of the protections described in Subsection (1).
Utah Code Annotated § 75B-1-302(4)(d): If the requirement described in Subsection (3)(h) is not satisfied, the property transferred to the trust that does not satisfy the requirement does not have the benefit of the protections described in Subsection (1) with respect to any person with a domestic support obligation.
Utah Code Annotated § 75B-1-302(4)(e): A creditor of the settlor has the burden of proving that the requirement in Subsection (3)(i) or (j) is not satisfied by clear and convincing evidence.
Utah Code Annotated § 75B-1-302(5): 75-7-906 The provisions of Subsection (1) may apply to a trust even if:
Utah Code Annotated § 75B-1-302(5)(a): the settlor serves as a cotrustee or as an advisor to the trustee, except that the settlor may not determine whether a discretionary distribution will be made;
Utah Code Annotated § 75B-1-302(5)(b): the settlor participates in a determination regarding whether a discretionary distribution is made to the settlor by:
Utah Code Annotated § 75B-1-302(5)(b)(i): requesting a distribution from the trust;
Utah Code Annotated § 75B-1-302(5)(b)(ii): consulting with the trustees regarding whether a discretionary distribution will be made;
Utah Code Annotated § 75B-1-302(5)(b)(iii): exercising a right to consent to or veto the distribution under a power described in Subsection (5)(e);
Utah Code Annotated § 75B-1-302(5)(b)(iv): signing documentation in the settlor's capacity as a cotrustee that implements a distribution when the other trustees use discretionary power to independently authorize a distribution; or
Utah Code Annotated § 75B-1-302(5)(b)(v): participating in an action authorizing a distribution if the other trustees can authorize the distribution without the settlor's participation.
Utah Code Annotated § 75B-1-302(5)(c): the settlor has the authority under the terms of the trust instrument to appoint a nonsubordinate advisor or a trust protector who can remove and appoint trustees and who can direct, consent to, or disapprove distributions;
Utah Code Annotated § 75B-1-302(5)(d): 75-7-906 the settlor has the power under the terms of the trust instrument to serve as an investment director or to appoint an investment director under Section
Utah Code Annotated § 75B-1-302(5)(e): the trust instrument gives the settlor the power to consent to or veto a distribution from the trust;
Utah Code Annotated § 75B-1-302(5)(f): the trust instrument gives the settlor an inter vivos or a testamentary nongeneral power of appointment or similar power;
Utah Code Annotated § 75B-1-302(5)(g): the trust instrument gives the settlor the right to receive the following types of distributions:
Utah Code Annotated § 75B-1-302(5)(g)(i): income, principal, or both in the discretion of a person, including a trustee, other than the settlor;
Utah Code Annotated § 75B-1-302(5)(g)(ii): principal, subject to an ascertainable standard set forth in the trust;
Utah Code Annotated § 75B-1-302(5)(g)(iii): income or principal from a charitable remainder annuity trust or charitable remainder unitrust, as defined in 26 U.S.C. Sec. 664;
Utah Code Annotated § 75B-1-302(5)(g)(iv): a percentage of the value of the trust each year as determined under the trust instrument, but not exceeding the amount that may be defined as income under 26 U.S.C. Sec. 643(b);
Utah Code Annotated § 75B-1-302(5)(g)(v): the transferor's potential or actual use of real property held under a qualified personal residence trust, or potential or actual possession of a qualified annuity interest, within the meaning of 26 U.S.C. Sec. 2702 and the accompanying regulations;
Utah Code Annotated § 75B-1-302(5)(g)(vi): income or principal from a grantor retained annuity trust or grantor retained unitrust that is allowed under 26 U.S.C. Sec. 2702; and
Utah Code Annotated § 75B-1-302(5)(g)(vii): income from a trust intended to qualify for the federal estate tax or gift tax marital deduction under 26 U.S.C. Sec. 2056(b)(7) or 2523(f);
Utah Code Annotated § 75B-1-302(5)(h): the trust instrument authorizes the settlor to use real or personal property owned by the trust; or
Utah Code Annotated § 75B-1-302(5)(i): with respect to the property held in the trust, the settlor may:
Utah Code Annotated § 75B-1-302(5)(i)(i): give a personal guarantee on a debt or obligation secured by the property;
Utah Code Annotated § 75B-1-302(5)(i)(ii): make payments, directly or indirectly, on a debt or obligation secured by the property;
Utah Code Annotated § 75B-1-302(5)(i)(iii): pay property taxes, casualty and liability insurance premiums, homeowner association dues, maintenance expenses, or other similar expenses on the property; or
Utah Code Annotated § 75B-1-302(5)(i)(iv): pay income tax on income attributable to the portion of property held in the trust, of which the settlor is considered to be the owner under 26 U.S.C. Secs. 671 through 678, which payments will not be considered additional transfers to the trust for purposes of this section.
Utah Code Annotated § 75B-1-302(6):
Utah Code Annotated § 75B-1-302(6)(a): If a trust instrument contains the provisions described in Subsections (3)(b) through (g), the transfer restrictions prevent a creditor or other person from asserting any cause of action or claim for relief against a trustee of the trust or against others involved in the counseling, drafting, preparation, execution, or funding of the trust for conspiracy to commit fraudulent conveyance or another voidable transfer, aiding and abetting a fraudulent conveyance or another voidable transfer, participation in the trust transaction, or similar cause of action or claim for relief.
Utah Code Annotated § 75B-1-302(6)(b): For purposes of this Subsection (6), counseling, drafting, preparation, execution, or funding of the trust includes the preparation and funding of a limited partnership, a limited liability company, or other entity if interests in the entity are subsequently transferred to the trust.
Utah Code Annotated § 75B-1-302(6)(c): The creditor and other person prevented from asserting a cause of action or claim for relief may assert a cause of action against, and are limited to recourse against, only:
Utah Code Annotated § 75B-1-302(6)(c)(i): the trust and the trust assets; and
Utah Code Annotated § 75B-1-302(6)(c)(ii): the settlor, to the extent otherwise allowed in this section.
Utah Code Annotated § 75B-1-302(7): 25-6-202; 25-6-203; 25-6-101; 25-6-407; 25-6-305; 45-1-101
Utah Code Annotated § 75B-1-302(7)(a): 25-6-202; 25-6-203 A cause of action or claim for relief under Subsection (3)(i) or (j) is a cause of action or claim for relief under Section
Utah Code Annotated § 75B-1-302(7)(b): 25-6-101; 25-6-407 Except as provided in Subsection (7)(a), a cause of action or claim for relief under this section is not a cause of action or claim for relief under Sections
Utah Code Annotated § 75B-1-302(7)(c): 25-6-305; 45-1-101 Notwithstanding Section
Utah Code Annotated § 75B-1-302(7)(c)(i): the later of two years after the transfer is made, or one year after the transfer is or reasonably could have been discovered by the creditor if the creditor:
Utah Code Annotated § 75B-1-302(7)(c)(i)(A): can demonstrate, by clear and convincing evidence, that the creditor asserted a specific claim against the settlor before the transfer; or
Utah Code Annotated § 75B-1-302(7)(c)(i)(B): files another action, other than an action alleging a fraudulent conveyance or other voidable transfer against the settlor that asserts a claim based on an act or omission of the settlor that occurred before the transfer, and the action described in Subsection (7)(c) is filed within two years after the transfer; or
Utah Code Annotated § 75B-1-302(7)(c)(ii): 45-1-101
Utah Code Annotated § 75B-1-302(7)(c)(ii)(A): with respect to a creditor known to the settlor, 120 days after the date on which notice of the transfer is mailed to the creditor, which notice shall state the name and address of the settlor or the settlor's representative, the name and address of the trustee or the trustee's representative, and also describe the assets that were transferred, but does not need to state the value of those assets if the assets are other than cash, and which shall inform the creditor that the creditor is required to bring the creditor's cause of action or claim for relief against the settlor and the trustee within 120 days from the mailing of the notice or be forever barred; or
Utah Code Annotated § 75B-1-302(7)(c)(ii)(B): 45-1-101 with respect to a creditor not known to the settlor, 120 days after the date on which notice of the transfer is first published in a newspaper of general circulation in the county in which the settlor then resides, or is published on a public legal notice website as defined in Section
Utah Code Annotated § 75B-1-302(8): 45-1-101
Utah Code Annotated § 75B-1-302(8)(a): 45-1-101 The notice required in Subsection (7)(c)(ii)(B) shall be published in accordance with the provisions of Section
Utah Code Annotated § 75B-1-302(8)(b): Failure to give the notice required in Subsection (7)(c)(ii) to a creditor does not prevent the shortening of the limitations period under Subsection (7)(c)(ii) with respect to another creditor who properly received notice by mail or publication.
Utah Code Annotated § 75B-1-302(9): 75-7-107
Utah Code Annotated § 75B-1-302(9)(a): 75-7-107 A trust is subject to this section if it is governed by Utah law, as provided in Section
Utah Code Annotated § 75B-1-302(9)(b): A court of this state has exclusive jurisdiction over an action or claim for relief that is based on a transfer of property to a trust that is the subject of this section.
Utah Code Annotated § 75B-1-302(10): 75-7-501; 75-7-505
Utah Code Annotated § 75B-1-302(10)(a): 75-7-501 With respect to a trust that is subject to this section, a claim brought by a creditor of a beneficiary who is not the settlor is subject to Section
Utah Code Annotated § 75B-1-302(10)(b): 75-7-505 With respect to an irrevocable trust that is not subject to this section, a claim brought by a creditor of a beneficiary who is the settlor is subject to the provisions of Subsection
Utah Code Annotated § 75B-1-302(11): 25-6-101; 25-6-407; 25-6-101; 25-6-407 If a provision in this section conflicts with a provision in Sections
Utah Code Annotated § 75B-1-302(12): Nothing in this section alters rights vested or created under this section before May 14, 2019.