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[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 118 Enrolled

             1     

UNIFORM PROBATE CODE AMENDMENTS

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Lyle W. Hillyard

             5     
House Sponsor: Kay L. McIff

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill makes changes to the Uniform Probate Code in response to a proposal by the
             10      National Commission on Uniform State Laws.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides for cost of living adjustments to certain amounts in the Probate Code;
             14          .    requires the Administrative Office of the Courts to adjust and maintain a listing of
             15      the amounts each year;
             16          .    increases amounts throughout the Probate Code;
             17          .    clarifies the division of a decedent's estate and adds one more level of heirs before
             18      escheat;
             19          .    adopts a provision to coordinate with the Uniform Trust Code to allow the court to
             20      reform the terms of a document to conform it to the author's intent;
             21          .    allows the court to modify the terms of a document to achieve the author's tax
             22      objectives to coordinate with the Uniform Trust Code;
             23          .    makes a change to the Uniform Trust Code, allowing the transacting of trust
             24      business in the name of the trust; and
             25          .    makes technical changes.
             26      Monies Appropriated in this Bill:
             27          None
             28      Other Special Clauses:
             29          None


             30      Utah Code Sections Affected:
             31      AMENDS:
             32          7-5-9, as last amended by Laws of Utah 1998, Chapter 39
             33          75-1-201, as last amended by Laws of Utah 2009, Chapter 278
             34          75-1-403, as last amended by Laws of Utah 2004, Chapter 89
             35          75-2-102, as repealed and reenacted by Laws of Utah 1998, Chapter 39
             36          75-2-103, as repealed and reenacted by Laws of Utah 1998, Chapter 39
             37          75-2-104, as repealed and reenacted by Laws of Utah 1998, Chapter 39
             38          75-2-106, as repealed and reenacted by Laws of Utah 1998, Chapter 39
             39          75-2-202, as last amended by Laws of Utah 1999, Chapter 142
             40          75-2-402, as repealed and reenacted by Laws of Utah 1998, Chapter 39
             41          75-2-403, as repealed and reenacted by Laws of Utah 1998, Chapter 39
             42          75-2-405, as enacted by Laws of Utah 1998, Chapter 39
             43          75-7-814, as enacted by Laws of Utah 2004, Chapter 89
             44      ENACTS:
             45          75-1-110, Utah Code Annotated 1953
             46          75-2-805, Utah Code Annotated 1953
             47          75-2-806, Utah Code Annotated 1953
             48      REPEALS:
             49          75-2-108, as repealed and reenacted by Laws of Utah 1998, Chapter 39
             50     
             51      Be it enacted by the Legislature of the state of Utah:
             52          Section 1. Section 7-5-9 is amended to read:
             53           7-5-9. Registration of investment in name of nominee -- Records -- Possession of
             54      investment.
             55          (1) A trust company may cause any security, as defined in [Subsection] Section
             56      75-1-201 [(43)], held in its agency or fiduciary capacity to be registered and held in the name
             57      of a nominee or nominees of the trust company. The trust company shall be liable for the acts


             58      of any such nominee with respect to any investment so registered. Investments other than
             59      securities held in the name of a nominee on June 30, 1981, may continue to be held in that
             60      manner.
             61          (2) The records of the trust company shall at all times show the ownership of any such
             62      investment, which investment shall be in the possession or control of the trust company and be
             63      kept separate and apart from the assets of the trust company.
             64          Section 2. Section 75-1-110 is enacted to read:
             65          75-1-110. Cost of living adjustment of certain dollar amounts.
             66          (1) In this section:
             67          (a) "CPI" means the Consumer Price Index (Annual Average) for All Urban
             68      Consumers (CPI-U), U.S. City Average, reported by the Bureau of Labor Statistics, United
             69      States Department of Labor or its successor or, if the index is discontinued, an equivalent
             70      index reported by a federal authority. If no such index is reported, the term means the
             71      substitute index adopted by the Administrative Office of the Courts.
             72          (b) "Reference base index" means the CPI for calendar year 2009.
             73          (2) The dollar amounts stated in Subsection 75-2-202 (2) and Sections 75-2-102 ,
             74      75-2-402 , 75-2-403 , and 75-2-405 apply to the estate of a decedent who died in or after 2010,
             75      but for the estate of a decedent who died after 2011, these dollar amounts shall be increased or
             76      decreased if the CPI for the calendar year immediately preceding the year of death exceeds or
             77      is less than the reference base index. The amount of any increase or decrease is computed by
             78      multiplying each dollar amount by the percentage by which the CPI for the calendar year
             79      immediately preceding the year of death exceeds or is less than the reference base index. If
             80      any increase or decrease produced by the computation is not a multiple of $100, the increase
             81      or decrease is rounded down, if an increase, or up, if a decrease, to the next multiple of $100,
             82      but for the purpose of Section 75-2-405 , the periodic installment amount is the lump sum
             83      amount divided by 12. If the CPI for 2009 is changed by the Bureau of Labor Statistics, the
             84      reference base index shall be revised using the rebasing factor reported by the Bureau of Labor
             85      Statistics, or other comparable data if a rebasing factor is not reported.


             86          (3) Before February 1, 2011, and before February 1 of each succeeding year, the
             87      Administrative Office of the Courts shall publish a cumulative list, beginning with the dollar
             88      amounts effective for the estate of a decedent who died in 2011, of each dollar amount as
             89      increased or decreased under this section.
             90          Section 3. Section 75-1-201 is amended to read:
             91           75-1-201. General definitions.
             92          Subject to additional definitions contained in the subsequent chapters that are
             93      applicable to specific chapters, parts, or sections, and unless the context otherwise requires, in
             94      this code:
             95          (1) "Agent" includes an attorney-in-fact under a durable or nondurable power of
             96      attorney, an individual authorized to make decisions concerning another's health care, and an
             97      individual authorized to make decisions for another under a natural death act.
             98          (2) "Application" means a written request to the registrar for an order of informal
             99      probate or appointment under Title 75, Chapter 3, Part 3, Informal Probate and Appointment
             100      Proceedings.
             101          (3) "Beneficiary," as it relates to trust beneficiaries, includes a person who has any
             102      present or future interest, vested or contingent, and also includes the owner of an interest by
             103      assignment or other transfer; as it relates to a charitable trust, includes any person entitled to
             104      enforce the trust; as it relates to a "beneficiary of a beneficiary designation," refers to a
             105      beneficiary of an insurance or annuity policy, of an account with POD designation, of a
             106      security registered in beneficiary form (TOD), or of a pension, profit-sharing, retirement, or
             107      similar benefit plan, or other nonprobate transfer at death; and, as it relates to a "beneficiary
             108      designated in a governing instrument," includes a grantee of a deed, a devisee, a trust
             109      beneficiary, a beneficiary of a beneficiary designation, a donee, appointee, or taker in default
             110      of a power of appointment, and a person in whose favor a power of attorney or a power held in
             111      any individual, fiduciary, or representative capacity is exercised.
             112          (4) "Beneficiary designation" refers to a governing instrument naming a beneficiary of
             113      an insurance or annuity policy, of an account with POD designation, of a security registered in


             114      beneficiary form (TOD), or of a pension, profit-sharing, retirement, or similar benefit plan, or
             115      other nonprobate transfer at death.
             116          (5) "Child" includes any individual entitled to take as a child under this code by
             117      intestate succession from the parent whose relationship is involved and excludes any person
             118      who is only a stepchild, a foster child, a grandchild, or any more remote descendant.
             119          (6) "Claims," in respect to estates of decedents and protected persons, includes
             120      liabilities of the decedent or protected person, whether arising in contract, in tort, or otherwise,
             121      and liabilities of the estate which arise at or after the death of the decedent or after the
             122      appointment of a conservator, including funeral expenses and expenses of administration.
             123      "Claims" does not include estate or inheritance taxes, or demands or disputes regarding title of
             124      a decedent or protected person to specific assets alleged to be included in the estate.
             125          (7) "Conservator" means a person who is appointed by a court to manage the estate of
             126      a protected person.
             127          (8) "Court" means any of the courts of record in this state having jurisdiction in
             128      matters relating to the affairs of decedents.
             129          (9) "Descendant" of an individual means all of his descendants of all generations, with
             130      the relationship of parent and child at each generation being determined by the definition of
             131      child and parent contained in this title.
             132          (10) "Devise," when used as a noun, means a testamentary disposition of real or
             133      personal property and, when used as a verb, means to dispose of real or personal property by
             134      will.
             135          (11) "Devisee" means any person designated in a will to receive a devise. For the
             136      purposes of Title 75, Chapter 3, Probate of Wills and Administration, in the case of a devise to
             137      an existing trust or trustee, or to a trustee in trust described by will, the trust or trustee is the
             138      devisee, and the beneficiaries are not devisees.
             139          (12) "Disability" means cause for a protective order as described by Section 75-5-401 .
             140          (13) "Distributee" means any person who has received property of a decedent from his
             141      personal representative other than as a creditor or purchaser. A testamentary trustee is a


             142      distributee only to the extent of distributed assets or increment thereto remaining in his hands.
             143      A beneficiary of a testamentary trust to whom the trustee has distributed property received
             144      from a personal representative is a distributee of the personal representative. For purposes of
             145      this provision, "testamentary trustee" includes a trustee to whom assets are transferred by will,
             146      to the extent of the devised assets.
             147          (14) "Estate" includes the property of the decedent, trust, or other person whose affairs
             148      are subject to this title as originally constituted and as it exists from time to time during
             149      administration.
             150          (15) "Exempt property" means that property of a decedent's estate which is described
             151      in Section 75-2-403 .
             152          (16) "Fiduciary" includes a personal representative, guardian, conservator, and trustee.
             153          (17) "Foreign personal representative" means a personal representative of another
             154      jurisdiction.
             155          (18) "Formal proceedings" means proceedings conducted before a judge with notice to
             156      interested persons.
             157          (19) "Governing instrument" means a deed, will, trust, insurance or annuity policy,
             158      account with POD designation, security registered in beneficiary form (TOD), pension,
             159      profit-sharing, retirement, or similar benefit plan, instrument creating or exercising a power of
             160      appointment or a power of attorney, or a dispositive, appointive, or nominative instrument of
             161      any similar type.
             162          (20) "Guardian" means a person who has qualified as a guardian of a minor or
             163      incapacitated person pursuant to testamentary or court appointment, or by written instrument
             164      as provided in Section 75-5-202.5 , but excludes one who is merely a guardian ad litem.
             165          (21) "Heirs," except as controlled by Section 75-2-711 , means persons, including the
             166      surviving spouse and state, who are entitled under the statutes of intestate succession to the
             167      property of a decedent.
             168          (22) "Incapacitated person" means any person who is impaired by reason of mental
             169      illness, mental deficiency, physical illness or disability, chronic use of drugs, chronic


             170      intoxication, or other cause, except minority, to the extent of lacking sufficient understanding
             171      or capacity to make or communicate responsible decisions.
             172          (23) "Informal proceedings" mean those conducted without notice to interested
             173      persons by an officer of the court acting as a registrar for probate of a will or appointment of a
             174      personal representative.
             175          (24) "Interested person" includes heirs, devisees, children, spouses, creditors,
             176      beneficiaries, and any others having a property right in or claim against a trust estate or the
             177      estate of a decedent, ward, or protected person. It also includes persons having priority for
             178      appointment as personal representative, other fiduciaries representing interested persons, a
             179      settlor of a trust, if living, or the settlor's legal representative, if any, if the settlor is living but
             180      incapacitated. The meaning as it relates to particular persons may vary from time to time and
             181      shall be determined according to the particular purposes of, and matter involved in, any
             182      proceeding.
             183          (25) "Issue" of a person means descendant as defined in Subsection (9).
             184          (26) "Joint tenants with the right of survivorship" and "community property with the
             185      right of survivorship" includes coowners of property held under circumstances that entitle one
             186      or more to the whole of the property on the death of the other or others, but excludes forms of
             187      coownership registration in which the underlying ownership of each party is in proportion to
             188      that party's contribution.
             189          (27) "Lease" includes an oil, gas, or other mineral lease.
             190          (28) "Letters" includes letters testamentary, letters of guardianship, letters of
             191      administration, and letters of conservatorship.
             192          (29) "Minor" means a person who is under 18 years of age.
             193          (30) "Mortgage" means any conveyance, agreement, or arrangement in which property
             194      is used as security.
             195          (31) "Nonresident decedent" means a decedent who was domiciled in another
             196      jurisdiction at the time of his death.
             197          (32) "Organization" includes a corporation, limited liability company, business trust,


             198      estate, trust, partnership, joint venture, association, government or governmental subdivision
             199      or agency, or any other legal or commercial entity.
             200          (33) "Parent" includes any person entitled to take, or who would be entitled to take if
             201      the child died without a will, as a parent under this code by intestate succession from the child
             202      whose relationship is in question and excludes any person who is only a stepparent, foster
             203      parent, or grandparent.
             204          (34) "Payor" means a trustee, insurer, business entity, employer, government,
             205      governmental agency or subdivision, or any other person authorized or obligated by law or a
             206      governing instrument to make payments.
             207          (35) "Person" means an individual or an organization.
             208          (36) (a) "Personal representative" includes executor, administrator, successor personal
             209      representative, special administrator, and persons who perform substantially the same function
             210      under the law governing their status.
             211          (b) "General personal representative" excludes special administrator.
             212          (37) "Petition" means a written request to the court for an order after notice.
             213          (38) "Proceeding" includes action at law and suit in equity.
             214          (39) "Property" includes both real and personal property or any interest therein and
             215      means anything that may be the subject of ownership.
             216          (40) "Protected person" means a person for whom a conservator has been appointed.
             217      A "minor protected person" means a minor for whom a conservator has been appointed
             218      because of minority.
             219          (41) "Protective proceeding" means a proceeding described in Section 75-5-401 .
             220          (42) "Record" means information that is inscribed on a tangible medium or that is
             221      stored in an electronic or other medium and is retrievable in perceivable form.
             222          [(42)] (43) "Registrar" refers to the official of the court designated to perform the
             223      functions of registrar as provided in Section 75-1-307 .
             224          [(43)] (44) "Security" includes any note, stock, treasury stock, bond, debenture,
             225      evidence of indebtedness, certificate of interest, or participation in an oil, gas, or mining title


             226      or lease or in payments out of production under such a title or lease, collateral trust certificate,
             227      transferable share, voting trust certificate, and, in general, any interest or instrument
             228      commonly known as a security, or any certificate of interest or participation, any temporary or
             229      interim certificate, receipt, or certificate of deposit for, or any warrant or right to subscribe to
             230      or purchase, any of the foregoing.
             231          [(44)] (45) "Settlement," in reference to a decedent's estate, includes the full process of
             232      administration, distribution, and closing.
             233          (46) "Sign" means, with present intent to authenticate or adopt a record other than a
             234      will:
             235          (a) to execute or adopt a tangible symbol; or
             236          (b) to attach to or logically associate with the record an electronic symbol, sound, or
             237      process.
             238          [(45)] (47) "Special administrator" means a personal representative as described in
             239      Sections 75-3-614 through 75-3-618 .
             240          [(46)] (48) "State" means a state of the United States, the District of Columbia, the
             241      Commonwealth of Puerto Rico, any territory or insular possession subject to the jurisdiction of
             242      the United States, or a Native American tribe or band recognized by federal law or formally
             243      acknowledged by a state.
             244          [(47)] (49) "Successor personal representative" means a personal representative, other
             245      than a special administrator, who is appointed to succeed a previously appointed personal
             246      representative.
             247          [(48)] (50) "Successors" means persons, other than creditors, who are entitled to
             248      property of a decedent under the decedent's will or this title.
             249          [(49)] (51) "Supervised administration" refers to the proceedings described in Title 75,
             250      Chapter 3, Part 5, Supervised Administration.
             251          [(50)] (52) "Survive," except for purposes of Part 3 of Article VI, Uniform TOD
             252      Security Registration Act, means that an individual has neither predeceased an event,
             253      including the death of another individual, nor is considered to have predeceased an event


             254      under Section 75-2-104 or 75-2-702 . The term includes its derivatives, such as "survives,"
             255      "survived," "survivor," and "surviving."
             256          [(51)] (53) "Testacy proceeding" means a proceeding to establish a will or determine
             257      intestacy.
             258          [(52)] (54) "Testator" includes an individual of either sex.
             259          [(53)] (55) "Trust" includes a health savings account, as defined in Section 223,
             260      Internal Revenue Code, any express trust, private or charitable, with additions thereto,
             261      wherever and however created. The term also includes a trust created or determined by
             262      judgment or decree under which the trust is to be administered in the manner of an express
             263      trust. The term excludes other constructive trusts, and it excludes resulting trusts,
             264      conservatorships, personal representatives, trust accounts as defined in Title 75, Chapter 6,
             265      Nonprobate Transfers, custodial arrangements pursuant to any Uniform Transfers To Minors
             266      Act, business trusts providing for certificates to be issued to beneficiaries, common trust
             267      funds, voting trusts, preneed funeral plans under Title 58, Chapter 9, Funeral Services
             268      Licensing Act, security arrangements, liquidation trusts, and trusts for the primary purpose of
             269      paying debts, dividends, interest, salaries, wages, profits, pensions, or employee benefits of
             270      any kind, and any arrangement under which a person is nominee or escrowee for another.
             271          [(54)] (56) "Trustee" includes an original, additional, and successor trustee, and
             272      cotrustee, whether or not appointed or confirmed by the court.
             273          [(55)] (57) "Ward" means a person for whom a guardian has been appointed. A
             274      "minor ward" is a minor for whom a guardian has been appointed solely because of minority.
             275          [(56)] (58) "Will" includes codicil and any testamentary instrument which merely
             276      appoints an executor, revokes or revises another will, nominates a guardian, or expressly
             277      excludes or limits the right of an individual or class to succeed to property of the decedent
             278      passing by intestate succession.
             279          Section 4. Section 75-1-403 is amended to read:
             280           75-1-403. Pleadings -- Notice.
             281          In formal proceedings involving inter vivos or testamentary trusts, including


             282      proceedings to modify or terminate a trust, estates of decedents, minors, protected persons, or
             283      incapacitated persons, and in judicially supervised settlements, the following apply:
             284          (1) Interests to be affected shall be described in pleadings which give reasonable
             285      information to owners by name or class, by reference to the instrument creating the interests,
             286      or in any other appropriate manner.
             287          (2) Notice is required as follows:
             288          [(2)] (a) Notice as prescribed by Section 75-1-401 shall be given to every interested
             289      person. Notice may be given both to a person and to another who may bind him.
             290          (b) Whenever notice to a person is required or permitted under this chapter, notice to
             291      another person who may represent and bind the person represented under this section
             292      constitutes notice to the person represented.
             293          (3) Persons are bound by orders binding others in the following cases:
             294          (a) To the extent there is no conflict of interest between the holder of a general
             295      testamentary power of appointment and the persons represented with respect to a particular
             296      question or dispute, the holder may represent and bind persons whose interests, as permissible
             297      appointees, takers in default, or otherwise, are subject to the power.
             298          (b) To the extent there is no conflict of interest between the representative and the
             299      person represented with respect to a particular question or dispute:
             300          (i) a conservator may represent and bind the person whose estate he controls;
             301          (ii) a guardian may represent and bind the ward if no conservator of the ward's estate
             302      has been appointed;
             303          (iii) an agent having authority to do so may represent and bind the principal;
             304          (iv) a trustee may represent and bind the beneficiaries of the trust;
             305          (v) a personal representative of a decedent's estate may represent and bind persons
             306      interested in the estate; and
             307          (vi) if no conservator or guardian has been appointed, a parent may represent and bind
             308      the parent's minor or unborn child.
             309          (c) Unless otherwise represented, a minor, incapacitated or unborn person, or a person


             310      whose identity or location is unknown and not reasonably ascertainable, may be represented
             311      and bound by another person having a substantially identical interest with respect to the
             312      particular question or dispute, but only to the extent there is no conflict of interest between the
             313      representative and the person represented.
             314          (4) Even if there is representation under this section, if the court determines that
             315      representation of the interest might otherwise be inadequate, the court may appoint a guardian
             316      ad litem to represent the interest of, and approve an agreement on behalf of, a minor,
             317      incapacitated or unborn person, or a person whose identity or location is unknown.
             318          (5) If not precluded by conflict of interest, a guardian ad litem may be appointed to
             319      represent several persons or interests. In approving an agreement, a guardian ad litem may
             320      consider the general family benefit accruing to the living members of the family of the person
             321      represented.
             322          (6) Whenever consent may be given by a person pursuant to this chapter, the consent
             323      of a person who may represent and bind the person represented under this section is the
             324      consent of, and is binding on, the person represented unless the person represented objects to
             325      the representation before the consent would otherwise become effective.
             326          Section 5. Section 75-2-102 is amended to read:
             327           75-2-102. Intestate share of spouse.
             328          (1) The intestate share of a decedent's surviving spouse is:
             329          (a) the entire intestate estate if:
             330          (i) no descendant of the decedent survives the decedent; or
             331          (ii) all of the decedent's surviving descendants are also descendants of the surviving
             332      spouse;
             333          (b) the first [$50,000] $75,000, plus 1/2 of any balance of the intestate estate, if one or
             334      more of the decedent's surviving descendants are not descendants of the surviving spouse.
             335          (2) For purposes of Subsection (1)(b), if the intestate estate passes to both the
             336      decedent's surviving spouse and to other heirs, then any nonprobate transfer, as defined in
             337      Section 75-2-206 , received by the surviving spouse is [chargeable against the intestate share of


             338      the surviving spouse] added to the probate estate in calculating the intestate heirs' shares and
             339      is conclusively treated as an advancement under Section 75-2-109 in determining the spouse's
             340      share.
             341          Section 6. Section 75-2-103 is amended to read:
             342           75-2-103. Share of heirs other than surviving spouse.
             343          (1) Any part of the intestate estate not passing to [the] a decedent's surviving spouse
             344      under Section 75-2-102 , or the entire intestate estate if there is no surviving spouse, passes in
             345      the following order to the individuals [designated below] who survive the decedent:
             346          (a) to the decedent's descendants per capita at each generation as defined in
             347      Subsection 75-2-106 (2);
             348          (b) if there is no surviving descendant, to the decedent's parents equally if both
             349      survive, or to the surviving parent if only one survives;
             350          (c) if there is no surviving descendant or parent, to the descendants of the decedent's
             351      parents or either of them per capita at each generation as defined in Subsection 75-2-106 (3);
             352          (d) if there is no surviving descendant, parent, or descendant of a parent, but the
             353      decedent is survived on both the paternal and maternal sides by one or more grandparents or
             354      descendants of grandparents[,]:
             355          (i) half [of the estate passes] to the decedent's paternal grandparents equally if both
             356      survive, or to the surviving paternal grandparent if only one survives, or to the descendants of
             357      the decedent's paternal grandparents or either of them if both are deceased, the descendants
             358      taking per capita at each generation as defined in Subsection 75-2-106 (3); and [the other]
             359          (ii) half [passes] to the decedent's maternal [relatives in the same manner; but]
             360      grandparents equally if both survive, to the surviving maternal grandparent if only one
             361      survives, or to the descendants of the decedent's maternal grandparents or either of them if
             362      both are deceased, the descendants taking per capita at each generation as defined in
             363      Subsection 75-2-106 (3);
             364          (e) if there is no surviving [grandparent] descendant, parent, or descendant of a
             365      [grandparent on either the paternal or] parent, but the decedent is survived by one or more


             366      grandparents or descendants of grandparents on the paternal but not the maternal side, [the
             367      entire estate passes] or on the maternal but not the paternal side, to the decedent's relatives on
             368      the [other] side with one or more surviving members in the same manner as the half[.]
             369      described in Subsection (1)(d);
             370          (f) if there is no taker under Subsection (1)(a), (b), (c), (d), or (e), but the decedent
             371      has:
             372          (i) one deceased spouse who has one or more descendants who survive the decedent,
             373      the estate or part of the estate passes to that spouse's descendants who survive the decedent,
             374      the descendants taking per capita at each generation as defined in Subsection 75-2-106 (4); or
             375          (ii) more than one deceased spouse who has one or more descendants who survive the
             376      decedent, an equal share of the estate or part of the estate passes to each set of descendants, the
             377      descendants taking per capita at each generation as defined in Subsection 75-2-106 (4).
             378          (2) For purposes of Subsections (1)(a), (b), (c), [and] (d), (e), and (f) any nonprobate
             379      transfer, as defined in Section 75-2-205 , received by an heir is [chargeable against the intestate
             380      share of such heir] added to the probate estate in calculating the intestate heirs' shares and is
             381      conclusively treated as an advancement under Section 75-2-109 to the heir in determining the
             382      heir's share.
             383          Section 7. Section 75-2-104 is amended to read:
             384           75-2-104. Requirement of survival by 120 hours -- Individual in gestation.
             385          [An individual] (1) For purposes of intestate succession, homestead allowance, and
             386      exempt property, and except as otherwise provided in Subsection (2), the following rules
             387      apply:
             388          (a) An individual born before a decedent's death who fails to survive the decedent by
             389      120 hours is considered to have predeceased the decedent [for purposes of homestead
             390      allowance, exempt property, and intestate succession, and the decedent's heirs are determined
             391      accordingly]. If it is not established by clear and convincing evidence that an individual [who
             392      would otherwise be an heir] born before the decedent's death survived the decedent by 120
             393      hours, it is considered that the individual failed to survive for the required period. [This


             394      section is not to be applied if]
             395          (b) An individual in gestation at a decedent's death is considered to be living at the
             396      decedent's death if the individual lives 120 hours after birth. If it is not established by clear
             397      and convincing evidence that an individual in gestation at the decedent's death lived 120 hours
             398      after birth, it is considered that the individual failed to survive for the required period.
             399          (2) This section does not apply if its application would [result in a taking of intestate
             400      estate by] cause the estate to pass to the state under Section 75-2-105 .
             401          Section 8. Section 75-2-106 is amended to read:
             402           75-2-106. Definitions -- Per capita at each generation -- Terms in governing
             403      instruments.
             404          (1) As used in this section:
             405          (a) "Deceased descendant," "deceased parent," or "deceased grandparent" means a
             406      descendant, parent, or grandparent who either predeceased the decedent or is considered to
             407      have predeceased the decedent under Section 75-2-104 .
             408          (b) "Surviving descendant" means a descendant who neither predeceased the decedent
             409      nor is considered to have predeceased the decedent under Section 75-2-104 .
             410          (2) (a) If, under Subsection 75-2-103 (1)(a), a decedent's intestate estate or a part
             411      thereof passes "per capita at each generation" to the decedent's descendants, the estate or part
             412      thereof is divided into as many equal shares as there are:
             413          (i) surviving descendants in the generation nearest to the decedent which contains one
             414      or more surviving descendants; and
             415          (ii) deceased descendants in the same generation who left surviving descendants, if
             416      any.
             417          (b) Each surviving descendant in the nearest generation is allocated one share.
             418          (c) The remaining shares, if any, are combined and then divided in the same manner
             419      among the surviving descendants of the deceased descendants as if the surviving descendants
             420      who were allocated a share and their surviving descendants had predeceased the decedent.
             421          (3) (a) If, under Subsection 75-2-103 (1)(c) or (d), a decedent's intestate estate or a part


             422      thereof passes "per capita at each generation" to the descendants of the decedent's deceased
             423      parents or either of them or to the descendants of the decedent's deceased paternal or maternal
             424      grandparents or either of them, the estate or part thereof is divided into as many equal shares
             425      as there are:
             426          (i) surviving descendants in the generation nearest the deceased parents or either of
             427      them, or the deceased grandparents or either of them, that contains one or more surviving
             428      descendants; and
             429          (ii) deceased descendants in the same generation who left surviving descendants, if
             430      any.
             431          (b) Each surviving descendant in the nearest generation is allocated one share.
             432          (c) The remaining shares, if any, are combined and then divided in the same manner
             433      among the surviving descendants of the deceased descendants as if the surviving descendants
             434      who were allocated a share and their surviving descendants had predeceased the decedent.
             435          (4) (a) If, under Subsection 75-2-103 (1)(e), a decedent's intestate estate or a part of the
             436      estate passes "per capita at each generation" to the descendants of the decedent's deceased
             437      spouse, the estate or part of the estate is divided into as many equal shares as there are:
             438          (i) surviving descendants in the generation nearest the deceased spouse that contains
             439      one or more surviving descendants; and
             440          (ii) deceased descendants in the same generation who left surviving descendants, if
             441      any.
             442          (b) Each surviving descendant in the nearest generation is allocated one share.
             443          (c) The remaining shares, if any, are combined and then divided in the same manner
             444      among the surviving descendants of the deceased descendants as if the surviving descendants
             445      who were allocated a share and their surviving descendants had predeceased the decedent.
             446          [(4)] (5) Any reference to this section found in a governing instrument for the
             447      definitions of "per stirpes," "by representation," or "by right of representation" shall be
             448      considered a reference to Section 75-2-709 .
             449          Section 9. Section 75-2-202 is amended to read:


             450           75-2-202. Elective share -- Supplemental elective share amount -- Effect of
             451      election on statutory benefits -- Nondomicilary.
             452          (1) The surviving spouse of a decedent who dies domiciled in Utah has a right of
             453      election, under the limitations and conditions stated in this part, to take an elective-share
             454      amount equal to the value of 1/3 of the augmented estate.
             455          (2) If the sum of the amounts described in Subsection 75-2-209 (1), and that part of the
             456      elective-share amount payable from the decedent's probate estate and nonprobate transfers to
             457      others under Subsections 75-2-209 (2) and (3) is less than [$25,000] $75,000, the surviving
             458      spouse is entitled to a supplemental elective-share amount equal to [$25,000] $75,000, minus
             459      the sum of the amounts described in those sections. The supplemental elective-share amount
             460      is payable from the decedent's probate estate and from recipients of the decedent's nonprobate
             461      transfers to others in the order of priority set forth in Subsections 75-2-209 (2) and (3).
             462          (3) If the right of election is exercised by or on behalf of the surviving spouse, the
             463      surviving spouse's homestead allowance, exempt property, and family allowance, if any, are
             464      charged against, and are not in addition to, the elective-share and supplemental elective-share
             465      amounts.
             466          (4) The right, if any, of the surviving spouse of a decedent who dies domiciled outside
             467      Utah to take an elective share in property in Utah is governed by the law of the decedent's
             468      domicile at death.
             469          Section 10. Section 75-2-402 is amended to read:
             470           75-2-402. Homestead allowance.
             471          A decedent's surviving spouse is entitled to a homestead allowance of [$15,000]
             472      $22,500. If there is no surviving spouse, each minor child and each dependent child of the
             473      decedent is entitled to a homestead allowance amounting to [$15,000] $22,500 divided by the
             474      number of minor and dependent children of the decedent. The homestead allowance is exempt
             475      from and has priority over all claims of the estate. Unless otherwise provided by the will or
             476      governing instrument, the homestead allowance is chargeable against any benefit or share
             477      passing to the surviving spouse, minor, or dependent child, by the will of the decedent, by


             478      intestate succession, by way of elective share, and by way of nonprobate transfers as defined in
             479      Sections 75-2-205 and 75-2-206 .
             480          Section 11. Section 75-2-403 is amended to read:
             481           75-2-403. Exempt property.
             482          In addition to the homestead allowance, the decedent's surviving spouse is entitled
             483      from the estate to a value, not exceeding [$10,000] $15,000 in excess of any security interests
             484      therein, in household furniture, automobiles, furnishings, appliances, and personal effects. If
             485      there is no surviving spouse, the decedent's children are entitled jointly to the same value. If
             486      encumbered chattels are selected and the value in excess of security interests, plus that of other
             487      exempt property, is less than [$10,000] $15,000, or if there is not [$10,000] $15,000 worth of
             488      exempt property in the estate, the spouse or children are entitled to other assets of the estate, if
             489      any, to the extent necessary to make up the [$10,000] $15,000 value. Rights to exempt
             490      property and assets needed to make up a deficiency of exempt property have priority over all
             491      claims against the estate, but the right to any assets to make up a deficiency of exempt
             492      property abates as necessary to permit earlier payment of homestead allowance and family
             493      allowance. Unless otherwise provided by the will or governing instrument, the exempt
             494      property allowance is chargeable against any benefit or share passing to the surviving spouse,
             495      if any, or if there is no surviving spouse, to the decedent's children, by the will of the decedent,
             496      by intestate succession, by way of elective share, and by way of nonprobate transfers as
             497      defined in Sections 75-2-205 and 75-2-206 .
             498          Section 12. Section 75-2-405 is amended to read:
             499           75-2-405. Source, determination, and documentation.
             500          (1) If the estate is otherwise sufficient, property specifically devised may not be used
             501      to satisfy rights to homestead allowance or exempt property. Subject to this restriction, the
             502      surviving spouse, guardians of minor children, or children who are adults may select property
             503      of the estate as homestead allowance and exempt property. The personal representative may
             504      make those selections if the surviving spouse, the children, or the guardians of the minor
             505      children are unable or fail to do so within a reasonable time or there is no guardian of a minor


             506      child. The personal representative may execute an instrument or deed of distribution to
             507      establish the ownership of property taken as homestead allowance or exempt property. The
             508      personal representative may determine the family allowance in a lump sum not exceeding
             509      [$18,000] $27,000 or periodic installments not exceeding [$1,500] $2,250 per month for one
             510      year, and may disburse funds of the estate in payment of the family allowance and any part of
             511      the homestead allowance payable in cash. The personal representative or an interested person
             512      aggrieved by any selection, determination, payment, proposed payment, or failure to act under
             513      this section may petition the court for appropriate relief, which may include a family
             514      allowance other than that which the personal representative determined or could have
             515      determined.
             516          (2) If the right to an elective share is exercised on behalf of a surviving spouse who is
             517      an incapacitated person, the personal representative may add any unexpended portions payable
             518      under the homestead allowance, exempt property, and family allowance to the trust established
             519      under Subsection 75-2-212 (2).
             520          Section 13. Section 75-2-805 is enacted to read:
             521          75-2-805. Reformation to correct mistakes.
             522          The court may reform the terms of a governing instrument, even if unambiguous, to
             523      conform the terms to the transferor's intention if it is proved by clear and convincing evidence
             524      that the transferor's intent and the terms of the governing instrument were affected by a
             525      mistake of fact or law, whether in expression or inducement.
             526          Section 14. Section 75-2-806 is enacted to read:
             527          75-2-806. Modification to achieve transferor's tax objectives.
             528          To achieve the transferor's tax objectives, the court may modify the terms of a
             529      governing instrument in a manner that is not contrary to the transferor's probable intention.
             530      The court may provide that the modification has retroactive effect.
             531          Section 15. Section 75-7-814 is amended to read:
             532           75-7-814. Specific powers of trustee.
             533          (1) Without limiting the authority conferred by Section 75-7-813 , a trustee may:


             534          (a) collect trust property and accept or reject additions to the trust property from a
             535      settlor or any other person;
             536          (b) acquire or sell property, for cash or on credit, at public or private sale;
             537          (c) exchange, partition, or otherwise change the character of trust property;
             538          (d) deposit trust money in an account in a regulated financial service institution;
             539          (e) borrow money, with or without security from any financial institution, including a
             540      financial institution that is serving as a trustee or one of its affiliates, and mortgage or pledge
             541      trust property for a period within or extending beyond the duration of the trust;
             542          (f) with respect to an interest in a proprietorship, partnership, limited liability
             543      company, business trust, corporation, or other form of business or enterprise, continue the
             544      business or other enterprise and take any action that may be taken by shareholders, members,
             545      or property owners, including merging, dissolving, or otherwise changing the form of business
             546      organization or contributing additional capital;
             547          (g) with respect to stocks or other securities, exercise the rights of an absolute owner,
             548      including the right to:
             549          (i) vote, or give proxies to vote, with or without power of substitution, or enter into or
             550      continue a voting trust agreement;
             551          (ii) hold a security in the name of a nominee or in other form without disclosure of the
             552      trust so that title may pass by delivery;
             553          (iii) pay calls, assessments, and other sums chargeable or accruing against the
             554      securities, and sell or exercise stock subscription or conversion rights; and
             555          (iv) deposit the securities with a depositary or other regulated financial service
             556      institution;
             557          (h) with respect to an interest in real property, construct, or make ordinary or
             558      extraordinary repairs to, alterations to, or improvements in, buildings or other structures,
             559      demolish improvements, raze existing or erect new party walls or buildings, subdivide or
             560      develop land, dedicate land to public use or grant public or private easements, and make or
             561      vacate plats and adjust boundaries;


             562          (i) enter into a lease for any purpose as lessor or lessee, including a lease or other
             563      arrangement for exploration and removal of natural resources, with or without the option to
             564      purchase or renew, for a period within or extending beyond the duration of the trust;
             565          (j) grant an option involving a sale, lease, or other disposition of trust property or
             566      acquire an option for the acquisition of property, including an option exercisable beyond the
             567      duration of the trust, and exercise an option so acquired;
             568          (k) insure the property of the trust against damage or loss and insure the trustee, the
             569      trustee's agents, and beneficiaries against liability arising from the administration of the trust;
             570          (l) abandon or decline to administer property of no value or of insufficient value to
             571      justify its collection or continued administration;
             572          (m) with respect to possible liability for violation of environmental law:
             573          (i) inspect or investigate property the trustee holds or has been asked to hold, or
             574      property owned or operated by an organization in which the trustee holds or has been asked to
             575      hold an interest, for the purpose of determining the application of environmental law with
             576      respect to the property;
             577          (ii) take action to prevent, abate, or otherwise remedy any actual or potential violation
             578      of any environmental law affecting property held directly or indirectly by the trustee, whether
             579      taken before or after the assertion of a claim or the initiation of governmental enforcement;
             580          (iii) decline to accept property into trust or disclaim any power with respect to
             581      property that is or may be burdened with liability for violation of environmental law;
             582          (iv) compromise claims against the trust which may be asserted for an alleged
             583      violation of environmental law; and
             584          (v) pay the expense of any inspection, review, abatement, or remedial action to comply
             585      with environmental law;
             586          (n) pay or contest any claim, settle a claim by or against the trust, and release, in
             587      whole or in part, a claim belonging to the trust;
             588          (o) pay taxes, assessments, compensation of the trustee and of employees and agents
             589      of the trust, and other expenses incurred in the administration of the trust;


             590          (p) exercise elections with respect to federal, state, and local taxes;
             591          (q) select a mode of payment under any employee benefit or retirement plan, annuity,
             592      or life insurance payable to the trustee, exercise rights thereunder, including exercise of the
             593      right to indemnification for expenses and against liabilities, and take appropriate action to
             594      collect the proceeds;
             595          (r) make loans out of trust property, including loans to a beneficiary on terms and
             596      conditions the trustee considers to be fair and reasonable under the circumstances, and the
             597      trustee has a lien on future distributions for repayment of those loans;
             598          (s) pledge trust property to guarantee loans made by others to the beneficiary;
             599          (t) appoint a trustee to act in another jurisdiction with respect to trust property located
             600      in the other jurisdiction, confer upon the appointed trustee all of the powers and duties of the
             601      appointing trustee, require that the appointed trustee furnish security, and remove any trustee
             602      so appointed;
             603          (u) pay an amount distributable to a beneficiary who is under a legal disability or who
             604      the trustee reasonably believes is incapacitated, by paying it directly to the beneficiary or
             605      applying it for the beneficiary's benefit, or by:
             606          (i) paying it to the beneficiary's conservator or, if the beneficiary does not have a
             607      conservator, the beneficiary's guardian;
             608          (ii) paying it to the beneficiary's custodian under Title 75, Chapter 5a, Uniform
             609      Transfers to Minors Act;
             610          (iii) if the trustee does not know of a conservator, guardian, custodian, or custodial
             611      trustee, paying it to an adult relative or other person having legal or physical care or custody of
             612      the beneficiary, to be expended on the beneficiary's behalf; or
             613          (iv) managing it as a separate fund on the beneficiary's behalf, subject to the
             614      beneficiary's continuing right to withdraw the distribution;
             615          (v) on distribution of trust property or the division or termination of a trust, make
             616      distributions in divided or undivided interests, allocate particular assets in proportionate or
             617      disproportionate shares, value the trust property for those purposes, and adjust for resulting


             618      differences in valuation;
             619          (w) resolve a dispute concerning the interpretation of the trust or its administration by
             620      mediation, arbitration, or other procedure for alternative dispute resolution;
             621          (x) prosecute or defend an action, claim, or judicial proceeding in any jurisdiction to
             622      protect trust property and the trustee in the performance of the trustee's duties;
             623          (y) sign and deliver contracts and other instruments that are useful to achieve or
             624      facilitate the exercise of the trustee's powers; and
             625          (z) on termination of the trust, exercise the powers appropriate to finalize the
             626      administration of the trust and distribute the trust property to the persons entitled to it.
             627          (2) A trustee may delegate investment and management functions that a prudent
             628      trustee of comparable skills could properly delegate under the circumstances.
             629          (a) The trustee shall exercise reasonable care, skill, and caution in:
             630          (i) selecting the agent;
             631          (ii) establishing the scope and terms of the delegation consistent with the purposes of
             632      the trust; and
             633          (iii) periodically reviewing the agent's actions to monitor the agent's performance and
             634      compliance with the terms of the delegation.
             635          (b) In performing a delegated function, an agent has a duty to the trust to exercise
             636      reasonable care to comply with the terms of the delegation.
             637          (c) A trustee who complies with the requirements of this Subsection (2) is not liable to
             638      the beneficiaries or to the trust for the decisions or actions of the agent to whom the function
             639      was delegated.
             640          (3) The trustee may exercise the powers set forth in this section and in the trust either
             641      in the name of the trust or in the name of the trustee as trustee, specifically including the right
             642      to take title, to encumber or convey assets, including real property, in the name of the trust.
             643      This Subsection (3) applies to a trustee's exercise of trust powers. After May 11, 2010, for
             644      recording purposes, the name of the trustee, the address of the trustee, and the name and date
             645      of the trust, shall be included on all recorded documents affecting real property to which the


             646      trust is a party in interest.
             647          Section 16. Repealer.
             648          This bill repeals:
             649          Section 75-2-108, Afterborn heirs.


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