! The Capitol Complex is closed to the public due to COVID-19. All meetings will be held virtually online. View procedures and guidelines (PDF) for remote public comment and virtual meeting instructions (PDF).

Download Zipped Introduced WordPerfect SB0118.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 118

             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 of
             57      a nominee or nominees of the trust company. The trust company shall be liable for the acts of
             58      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 index
             70      reported by a federal authority. If no such index is reported, the term means the substitute
             71      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 is
             77      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 any
             80      increase or decrease produced by the computation is not a multiple of $100, the increase or
             81      decrease is rounded down, if an increase, or up, if a decrease, to the next multiple of $100, but
             82      for the purpose of Section 75-2-405 , the periodic installment amount is the lump sum amount
             83      divided by 12. If the CPI for 2009 is changed by the Bureau of Labor Statistics, the reference
             84      base index shall be revised using the rebasing factor reported by the Bureau of Labor Statistics,
             85      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 security
             106      registered in beneficiary form (TOD), or of a pension, profit-sharing, retirement, or similar
             107      benefit plan, or other nonprobate transfer at death; and, as it relates to a "beneficiary designated
             108      in a governing instrument," includes a grantee of a deed, a devisee, a trust beneficiary, a
             109      beneficiary of a beneficiary designation, a donee, appointee, or taker in default of a power of
             110      appointment, and a person in whose favor a power of attorney or a power held in any
             111      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 a
             126      protected person.
             127          (8) "Court" means any of the courts of record in this state having jurisdiction in matters
             128      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 from
             144      a personal representative is a distributee of the personal representative. For purposes of this
             145      provision, "testamentary trustee" includes a trustee to whom assets are transferred by will, to
             146      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 in
             151      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 as
             164      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 persons
             173      by an officer of the court acting as a registrar for probate of a will or appointment of a personal
             174      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 or
             199      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. A
             217      "minor protected person" means a minor for whom a conservator has been appointed because
             218      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 or
             226      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 commonly
             228      known as a security, or any certificate of interest or participation, any temporary or interim
             229      certificate, receipt, or certificate of deposit for, or any warrant or right to subscribe to or
             230      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, including
             253      the death of another individual, nor is considered to have predeceased an event under Section
             254      75-2-104 or 75-2-702 . The term includes its derivatives, such as "survives," "survived,"
             255      "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 funds,
             267      voting trusts, preneed funeral plans under Title 58, Chapter 9, Funeral Services Licensing Act,
             268      security arrangements, liquidation trusts, and trusts for the primary purpose of paying debts,
             269      dividends, interest, salaries, wages, profits, pensions, or employee benefits of any kind, and any
             270      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 "minor
             274      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, or
             286      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 of
             323      a person who may represent and bind the person represented under this section is the consent
             324      of, and is binding on, the person represented unless the person represented objects to the
             325      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 is
             339      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 Subsection
             347      75-2-106 (2);
             348          (b) if there is no surviving descendant, to the decedent's parents equally if both survive,
             349      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 both
             362      are deceased, the descendants taking per capita at each generation as defined in Subsection
             363      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 has:
             371          (i) one deceased spouse who has one or more descendants who survive the decedent,
             372      the estate or part of the estate passes to that spouse's descendants who survive the decedent, the
             373      descendants taking per capita at each generation as defined in Subsection 75-2-106 (4); or
             374          (ii) more than one deceased spouse who has one or more descendants who survive the
             375      decedent, an equal share of the estate or part of the estate passes to each set of descendants, the
             376      descendants taking per capita at each generation as defined in Subsection 75-2-106 (4).
             377          (2) For purposes of Subsections (1)(a), (b), (c), [and] (d), (e), and (f) any nonprobate
             378      transfer, as defined in Section 75-2-205 , received by an heir is [chargeable against the intestate
             379      share of such heir] added to the probate estate in calculating the intestate heirs' shares and is
             380      conclusively treated as an advancement under Section 75-2-109 to the heir in determining the
             381      heir's share.
             382          Section 7. Section 75-2-104 is amended to read:
             383           75-2-104. Requirement of survival by 120 hours -- Individual in gestation.
             384          [An individual] (1) For purposes of intestate succession, homestead allowance, and
             385      exempt property, and except as otherwise provided in Subsection (2), the following rules apply:
             386          (a) An individual born before a decedent's death who fails to survive the decedent by
             387      120 hours is considered to have predeceased the decedent [for purposes of homestead
             388      allowance, exempt property, and intestate succession, and the decedent's heirs are determined
             389      accordingly]. If it is not established by clear and convincing evidence that an individual [who
             390      would otherwise be an heir] born before the decedent's death survived the decedent by 120
             391      hours, it is considered that the individual failed to survive for the required period. [This
             392      section is not to be applied if]
             393          (b) An individual in gestation at a decedent's death is considered to be living at the
             394      decedent's death if the individual lives 120 hours after birth. If it is not established by clear and
             395      convincing evidence that an individual in gestation at the decedent's death lived 120 hours after
             396      birth, it is considered that the individual failed to survive for the required period.
             397          (2) This section does not apply if its application would [result in a taking of intestate
             398      estate by] cause the estate to pass to the state under Section 75-2-105 .
             399          Section 8. Section 75-2-106 is amended to read:


             400           75-2-106. Definitions -- Per capita at each generation -- Terms in governing
             401      instruments.
             402          (1) As used in this section:
             403          (a) "Deceased descendant," "deceased parent," or "deceased grandparent" means a
             404      descendant, parent, or grandparent who either predeceased the decedent or is considered to
             405      have predeceased the decedent under Section 75-2-104 .
             406          (b) "Surviving descendant" means a descendant who neither predeceased the decedent
             407      nor is considered to have predeceased the decedent under Section 75-2-104 .
             408          (2) (a) If, under Subsection 75-2-103 (1)(a), a decedent's intestate estate or a part
             409      thereof passes "per capita at each generation" to the decedent's descendants, the estate or part
             410      thereof is divided into as many equal shares as there are:
             411          (i) surviving descendants in the generation nearest to the decedent which contains one
             412      or more surviving descendants; and
             413          (ii) deceased descendants in the same generation who left surviving descendants, if
             414      any.
             415          (b) Each surviving descendant in the nearest generation is allocated one share.
             416          (c) The remaining shares, if any, are combined and then divided in the same manner
             417      among the surviving descendants of the deceased descendants as if the surviving descendants
             418      who were allocated a share and their surviving descendants had predeceased the decedent.
             419          (3) (a) If, under Subsection 75-2-103 (1)(c) or (d), a decedent's intestate estate or a part
             420      thereof passes "per capita at each generation" to the descendants of the decedent's deceased
             421      parents or either of them or to the descendants of the decedent's deceased paternal or maternal
             422      grandparents or either of them, the estate or part thereof is divided into as many equal shares as
             423      there are:
             424          (i) surviving descendants in the generation nearest the deceased parents or either of
             425      them, or the deceased grandparents or either of them, that contains one or more surviving
             426      descendants; and
             427          (ii) deceased descendants in the same generation who left surviving descendants, if
             428      any.
             429          (b) Each surviving descendant in the nearest generation is allocated one share.
             430          (c) The remaining shares, if any, are combined and then divided in the same manner


             431      among the surviving descendants of the deceased descendants as if the surviving descendants
             432      who were allocated a share and their surviving descendants had predeceased the decedent.
             433          (4) (a) If, under Subsection 75-2-103 (1)(e), a decedent's intestate estate or a part of the
             434      estate passes "per capita at each generation" to the descendants of the decedent's deceased
             435      spouse, the estate or part of the estate is divided into as many equal shares as there are:
             436          (i) surviving descendants in the generation nearest the deceased spouse that contains
             437      one or more surviving descendants; and
             438          (ii) deceased descendants in the same generation who left surviving descendants, if
             439      any.
             440          (b) Each surviving descendant in the nearest generation is allocated one share.
             441          (c) The remaining shares, if any, are combined and then divided in the same manner
             442      among the surviving descendants of the deceased descendants as if the surviving descendants
             443      who were allocated a share and their surviving descendants had predeceased the decedent.
             444          [(4)] (5) Any reference to this section found in a governing instrument for the
             445      definitions of "per stirpes," "by representation," or "by right of representation" shall be
             446      considered a reference to Section 75-2-709 .
             447          Section 9. Section 75-2-202 is amended to read:
             448           75-2-202. Elective share -- Supplemental elective share amount -- Effect of
             449      election on statutory benefits -- Nondomicilary.
             450          (1) The surviving spouse of a decedent who dies domiciled in Utah has a right of
             451      election, under the limitations and conditions stated in this part, to take an elective-share
             452      amount equal to the value of 1/3 of the augmented estate.
             453          (2) If the sum of the amounts described in Subsection 75-2-209 (1), and that part of the
             454      elective-share amount payable from the decedent's probate estate and nonprobate transfers to
             455      others under Subsections 75-2-209 (2) and (3) is less than [$25,000] $75,000, the surviving
             456      spouse is entitled to a supplemental elective-share amount equal to [$25,000] $75,000, minus
             457      the sum of the amounts described in those sections. The supplemental elective-share amount is
             458      payable from the decedent's probate estate and from recipients of the decedent's nonprobate
             459      transfers to others in the order of priority set forth in Subsections 75-2-209 (2) and (3).
             460          (3) If the right of election is exercised by or on behalf of the surviving spouse, the
             461      surviving spouse's homestead allowance, exempt property, and family allowance, if any, are


             462      charged against, and are not in addition to, the elective-share and supplemental elective-share
             463      amounts.
             464          (4) The right, if any, of the surviving spouse of a decedent who dies domiciled outside
             465      Utah to take an elective share in property in Utah is governed by the law of the decedent's
             466      domicile at death.
             467          Section 10. Section 75-2-402 is amended to read:
             468           75-2-402. Homestead allowance.
             469          A decedent's surviving spouse is entitled to a homestead allowance of [$15,000]
             470      $22,500. If there is no surviving spouse, each minor child and each dependent child of the
             471      decedent is entitled to a homestead allowance amounting to [$15,000] $22,500 divided by the
             472      number of minor and dependent children of the decedent. The homestead allowance is exempt
             473      from and has priority over all claims of the estate. Unless otherwise provided by the will or
             474      governing instrument, the homestead allowance is chargeable against any benefit or share
             475      passing to the surviving spouse, minor, or dependent child, by the will of the decedent, by
             476      intestate succession, by way of elective share, and by way of nonprobate transfers as defined in
             477      Sections 75-2-205 and 75-2-206 .
             478          Section 11. Section 75-2-403 is amended to read:
             479           75-2-403. Exempt property.
             480          In addition to the homestead allowance, the decedent's surviving spouse is entitled from
             481      the estate to a value, not exceeding [$10,000] $15,000 in excess of any security interests
             482      therein, in household furniture, automobiles, furnishings, appliances, and personal effects. If
             483      there is no surviving spouse, the decedent's children are entitled jointly to the same value. If
             484      encumbered chattels are selected and the value in excess of security interests, plus that of other
             485      exempt property, is less than [$10,000] $15,000, or if there is not [$10,000] $15,000 worth of
             486      exempt property in the estate, the spouse or children are entitled to other assets of the estate, if
             487      any, to the extent necessary to make up the [$10,000] $15,000 value. Rights to exempt
             488      property and assets needed to make up a deficiency of exempt property have priority over all
             489      claims against the estate, but the right to any assets to make up a deficiency of exempt property
             490      abates as necessary to permit earlier payment of homestead allowance and family allowance.
             491      Unless otherwise provided by the will or governing instrument, the exempt property allowance
             492      is chargeable against any benefit or share passing to the surviving spouse, if any, or if there is


             493      no surviving spouse, to the decedent's children, by the will of the decedent, by intestate
             494      succession, by way of elective share, and by way of nonprobate transfers as defined in Sections
             495      75-2-205 and 75-2-206 .
             496          Section 12. Section 75-2-405 is amended to read:
             497           75-2-405. Source, determination, and documentation.
             498          (1) If the estate is otherwise sufficient, property specifically devised may not be used to
             499      satisfy rights to homestead allowance or exempt property. Subject to this restriction, the
             500      surviving spouse, guardians of minor children, or children who are adults may select property
             501      of the estate as homestead allowance and exempt property. The personal representative may
             502      make those selections if the surviving spouse, the children, or the guardians of the minor
             503      children are unable or fail to do so within a reasonable time or there is no guardian of a minor
             504      child. The personal representative may execute an instrument or deed of distribution to
             505      establish the ownership of property taken as homestead allowance or exempt property. The
             506      personal representative may determine the family allowance in a lump sum not exceeding
             507      [$18,000] $27,000 or periodic installments not exceeding [$1,500] $2,250 per month for one
             508      year, and may disburse funds of the estate in payment of the family allowance and any part of
             509      the homestead allowance payable in cash. The personal representative or an interested person
             510      aggrieved by any selection, determination, payment, proposed payment, or failure to act under
             511      this section may petition the court for appropriate relief, which may include a family allowance
             512      other than that which the personal representative determined or could have determined.
             513          (2) If the right to an elective share is exercised on behalf of a surviving spouse who is
             514      an incapacitated person, the personal representative may add any unexpended portions payable
             515      under the homestead allowance, exempt property, and family allowance to the trust established
             516      under Subsection 75-2-212 (2).
             517          Section 13. Section 75-2-805 is enacted to read:
             518          75-2-805. Reformation to correct mistakes.
             519          The court may reform the terms of a governing instrument, even if unambiguous, to
             520      conform the terms to the transferor's intention if it is proved by clear and convincing evidence
             521      that the transferor's intent and the terms of the governing instrument were affected by a mistake
             522      of fact or law, whether in expression or inducement.
             523          Section 14. Section 75-2-806 is enacted to read:


             524          75-2-806. Modification to achieve transferor's tax objectives.
             525          To achieve the transferor's tax objectives, the court may modify the terms of a
             526      governing instrument in a manner that is not contrary to the transferor's probable intention.
             527      The court may provide that the modification has retroactive effect.
             528          Section 15. Section 75-7-814 is amended to read:
             529           75-7-814. Specific powers of trustee.
             530          (1) Without limiting the authority conferred by Section 75-7-813 , a trustee may:
             531          (a) collect trust property and accept or reject additions to the trust property from a
             532      settlor or any other person;
             533          (b) acquire or sell property, for cash or on credit, at public or private sale;
             534          (c) exchange, partition, or otherwise change the character of trust property;
             535          (d) deposit trust money in an account in a regulated financial service institution;
             536          (e) borrow money, with or without security from any financial institution, including a
             537      financial institution that is serving as a trustee or one of its affiliates, and mortgage or pledge
             538      trust property for a period within or extending beyond the duration of the trust;
             539          (f) with respect to an interest in a proprietorship, partnership, limited liability company,
             540      business trust, corporation, or other form of business or enterprise, continue the business or
             541      other enterprise and take any action that may be taken by shareholders, members, or property
             542      owners, including merging, dissolving, or otherwise changing the form of business
             543      organization or contributing additional capital;
             544          (g) with respect to stocks or other securities, exercise the rights of an absolute owner,
             545      including the right to:
             546          (i) vote, or give proxies to vote, with or without power of substitution, or enter into or
             547      continue a voting trust agreement;
             548          (ii) hold a security in the name of a nominee or in other form without disclosure of the
             549      trust so that title may pass by delivery;
             550          (iii) pay calls, assessments, and other sums chargeable or accruing against the
             551      securities, and sell or exercise stock subscription or conversion rights; and
             552          (iv) deposit the securities with a depositary or other regulated financial service
             553      institution;
             554          (h) with respect to an interest in real property, construct, or make ordinary or


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


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


             617      mediation, arbitration, or other procedure for alternative dispute resolution;
             618          (x) prosecute or defend an action, claim, or judicial proceeding in any jurisdiction to
             619      protect trust property and the trustee in the performance of the trustee's duties;
             620          (y) sign and deliver contracts and other instruments that are useful to achieve or
             621      facilitate the exercise of the trustee's powers; and
             622          (z) on termination of the trust, exercise the powers appropriate to finalize the
             623      administration of the trust and distribute the trust property to the persons entitled to it.
             624          (2) A trustee may delegate investment and management functions that a prudent trustee
             625      of comparable skills could properly delegate under the circumstances.
             626          (a) The trustee shall exercise reasonable care, skill, and caution in:
             627          (i) selecting the agent;
             628          (ii) establishing the scope and terms of the delegation consistent with the purposes of
             629      the trust; and
             630          (iii) periodically reviewing the agent's actions to monitor the agent's performance and
             631      compliance with the terms of the delegation.
             632          (b) In performing a delegated function, an agent has a duty to the trust to exercise
             633      reasonable care to comply with the terms of the delegation.
             634          (c) A trustee who complies with the requirements of this Subsection (2) is not liable to
             635      the beneficiaries or to the trust for the decisions or actions of the agent to whom the function
             636      was delegated.
             637          (3) The trustee may exercise the powers set forth in this section and in the trust either
             638      in the name of the trust or in the name of the trustee as trustee, specifically including the right
             639      to take title, to encumber or convey assets, including real property, in the name of the trust.
             640      This Subsection (3) applies to a trustee's exercise of trust powers. After May 11, 2010, for
             641      recording purposes, the name of the trustee, the address of the trustee, and the name and date of
             642      the trust, shall be included on all recorded documents affecting real property to which the trust
             643      is a party in interest.
             644          Section 16. Repealer.
             645          This bill repeals:
             646          Section 75-2-108, Afterborn heirs.





Legislative Review Note
    as of 1-27-10 5:37 PM


Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]