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H.B. 116

             1     

PROBATE CODE AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: V. Lowry Snow

             5     
Senate Sponsor: Todd Weiler

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill makes amendments regarding guardians, conservators, trustees, and advance
             10      directions regarding funeral and burial arrangements.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides that advance directions regarding funeral and burial directions executed in
             14      the same manner as a will are acceptable;
             15          .    adds a personal representative to the list of persons who may provide directions
             16      regarding disposition of a deceased person;
             17          .    clarifies attorney fees in a will contest for the personal representative if the will was
             18      filed in good faith;
             19          .    allows for attorney fees in an action for a guardianship or conservatorship under
             20      specific circumstances;
             21          .    clarifies that a conservatorship estate does not include the assets of a trust, but the
             22      conservator is considered a qualified beneficiary of a trust in which the protected
             23      person is a qualified beneficiary; and
             24          .    makes technical corrections.
             25      Money Appropriated in this Bill:
             26          None
             27      Other Special Clauses:


             28          None
             29      Utah Code Sections Affected:
             30      AMENDS:
             31          58-9-601, as enacted by Laws of Utah 2003, Chapter 49
             32          58-9-602, as last amended by Laws of Utah 2010, Chapter 251
             33          75-3-719, as enacted by Laws of Utah 1975, Chapter 150
             34          75-5-303, as last amended by Laws of Utah 2011, Chapter 366
             35          75-5-307, as last amended by Laws of Utah 1988, Chapter 104
             36          75-5-407, as enacted by Laws of Utah 1975, Chapter 150
             37          75-5-408, as last amended by Laws of Utah 2011, Chapter 366
             38          75-5-414, as enacted by Laws of Utah 1975, Chapter 150
             39          75-5-415, as enacted by Laws of Utah 1975, Chapter 150
             40          75-5-418, as enacted by Laws of Utah 1975, Chapter 150
             41          75-5-419, as enacted by Laws of Utah 1975, Chapter 150
             42          75-5-420, as last amended by Laws of Utah 1977, Chapter 194
             43          75-5-424, as last amended by Laws of Utah 1977, Chapter 194
             44          75-5-425, as last amended by Laws of Utah 2011, Chapter 366
             45          75-5-501, as last amended by Laws of Utah 2011, Chapter 366
             46     
             47      Be it enacted by the Legislature of the state of Utah:
             48          Section 1. Section 58-9-601 is amended to read:
             49           58-9-601. Advance directions.
             50          (1) A person may provide written directions [meeting the requirements of Subsection
             51      (2)], executed with the same formalities required of a will under Section 75-2-502 , to direct the
             52      preparation, type, and place of the person's disposition, including:
             53          (a) designating a funeral service establishment;
             54          (b) providing directions for burial arrangements; or
             55          (c) providing directions for cremation arrangements.
             56          [(2) The written directions described in Subsection (1) shall contain:]
             57          [(a) the name and address of the decedent;]
             58          [(b) written directions regarding the decedent's disposition;]


             59          [(c) the signature of the decedent;]
             60          [(d) the signatures of at least two unrelated individuals, each of whom signed within a
             61      reasonable time after witnessing the signing of the form by the decedent; and]
             62          [(e) the date or dates the written directions were prepared and signed.]
             63          [(3)] (2) A funeral service director shall carry out the written directions of the decedent
             64      prepared under this section to the extent that:
             65          (a) the directions are lawful; and
             66          (b) the decedent has provided resources to carry out the directions.
             67          [(4)] (3) Directions for disposition contained in a will shall be carried out pursuant to
             68      Subsection [(3)] (2) regardless of:
             69          (a) the validity of other aspects of the will; or
             70          (b) the fact that the will may not be offered or admitted to probate until a later date.
             71          [(5)] (4) A person may change or cancel written directions prepared under this section
             72      at any time prior to the person's death by providing written notice to all applicable persons,
             73      including:
             74          (a) if the written directions designate a funeral service establishment or funeral service
             75      director, the funeral service establishment or funeral service director designated in the written
             76      directions; and
             77          (b) if the written directions are contained in a will, the personal representative as
             78      defined in Section 75-1-201 .
             79          Section 2. Section 58-9-602 is amended to read:
             80           58-9-602. Determination of control of disposition.
             81          The right and duty to control the disposition of a deceased person, including the
             82      location, manner and conditions of the disposition, and arrangements for funeral goods and
             83      services to be provided vest in the following degrees of relationship in the order named,
             84      provided the person is at least 18 and is mentally competent:
             85          (1) [a] the person designated:
             86          (a) in a written instrument, excluding a power of attorney that terminates at death under
             87      Sections 75-5-501 and 75-5-502 , if the written instrument [contains:] is executed with the same
             88      formalities required of a will under Section 75-2-502 ; or
             89          [(i) the name and address of the decedent;]


             90          [(ii) the name and address of the person designated under this Subsection (1)(a);]
             91          [(iii) directions that the person designated in this Subsection (1) is authorized to carry
             92      out the disposition of the decedent's remains;]
             93          [(iv) the signature of the decedent;]
             94          [(v) the signatures of at least two unrelated individuals who are not the person
             95      designated under this Subsection (1), each of whom signed within a reasonable time after
             96      witnessing the signing of the form by the decedent; and]
             97          [(vi) the date or dates the written instrument was prepared and signed; or]
             98          (b) by a service member while serving in a branch of the United States Armed Forces
             99      as defined in 10 U.S.C. Sec. 1481 in a federal Record of Emergency Data, DD Form 93 or
             100      subsequent form;
             101          (2) the surviving, legally recognized spouse of the decedent[;], unless a personal
             102      representative was nominated by the decedent subsequent to the marriage, in which case the
             103      personal representative shall take priority over the spouse;
             104          (3) the person nominated to serve as the personal representative of the decedent's estate
             105      in a will executed with the formalities required in Section 75-2-502 ;
             106          [(3)] (4) (a) the sole surviving child of the decedent, or if there is more than one child
             107      of the decedent, the majority of the surviving children;
             108          (b) less than one-half of the surviving children are vested with the rights of this section
             109      if they have used reasonable efforts to notify all other surviving children of their instructions
             110      and are not aware of any opposition to those instructions on the part of more than one-half of
             111      all surviving children;
             112          [(4)] (5) the surviving parent or parents of the decedent, and if one of the surviving
             113      parents is absent, the remaining parent is vested with the rights and duties of this section after
             114      reasonable efforts have been unsuccessful in locating the absent surviving parent;
             115          [(5)] (6) (a) the surviving brother or sister of the decedent, or if there is more than one
             116      sibling of the decedent, the majority of the surviving siblings;
             117          (b) less than the majority of surviving siblings are vested with the rights and duties of
             118      this section if they have used reasonable efforts to notify all other surviving siblings of their
             119      instructions and are not aware of any opposition to those instructions on the part of more than
             120      one-half of all surviving siblings;


             121          [(6)] (7) the person in the classes of the next degree of kinship, in descending order,
             122      under the laws of descent and distribution to inherit the estate of the decedent, and if there is
             123      more than one person of the same degree, any person of that degree may exercise the right of
             124      disposition;
             125          [(7)] (8) any public official charged with arranging the disposition of deceased persons;
             126      and
             127          [(8)] (9) in the absence of any person under Subsections (1) through [(7)] (8), any other
             128      person willing to assume the responsibilities to act and arrange the final disposition of the
             129      decedent's remains, including the personal representative of the decedent's estate or the funeral
             130      service director with custody of the body, after attesting in writing that a good faith effort has
             131      been made to no avail to contact the individuals referred to in Subsections (1) through [(7)] (8).
             132          Section 3. Section 75-3-719 is amended to read:
             133           75-3-719. Expenses in estate litigation.
             134          If any personal representative or person nominated as personal representative defends or
             135      prosecutes any proceeding in good faith, whether successful or not, [he] the personal
             136      representative is entitled to receive from the estate [his] all necessary expenses and
             137      disbursements, including reasonable [attorneys'] attorney fees incurred. This provision
             138      expressly applies in a will contest to any person nominated as a personal representative in a
             139      testamentary instrument submitted in good faith.
             140          Section 4. Section 75-5-303 is amended to read:
             141           75-5-303. Procedure for court appointment of a guardian of an incapacitated
             142      person.
             143          (1) The incapacitated person or any person interested in the incapacitated person's
             144      welfare may petition for a finding of incapacity and appointment of a guardian.
             145          (2) Upon the filing of a petition, the court shall set a date for hearing on the issues of
             146      incapacity[; and unless]. Unless the allegedly incapacitated person has counsel of the person's
             147      own choice, [it] the court shall appoint an attorney to represent the person in the proceeding the
             148      cost of which shall be paid by the person alleged to be incapacitated[, unless]. If the court
             149      determines that the petition is without merit, [in which case] the attorney fees and court costs
             150      shall be paid by the person filing the petition. If the court appoints the petitioner or the
             151      petitioner's nominee as guardian of the incapacitated person, regardless of whether the nominee


             152      is specified in the moving petition or nominated during the proceedings, the petitioner shall be
             153      entitled to receive from the incapacitated person reasonable attorney fees and court costs
             154      incurred in bringing and defending the petition.
             155          (3) The legal representation of the incapacitated person by an attorney shall terminate
             156      upon the appointment of a guardian, unless:
             157          (a) there are separate conservatorship proceedings pending before the court;
             158          (b) the appointed guardian elects at the time to maintain the attorney's representation of
             159      the incapacitated person;
             160          (c) there is a timely filed appeal of the appointment of the guardian or the
             161      determination of incapacity; or
             162          (d) the court orders otherwise.
             163          [(3)] (4) The person alleged to be incapacitated may be examined by a physician
             164      appointed by the court who shall submit a report in writing to the court and may be interviewed
             165      by a visitor sent by the court. The visitor also may interview the person seeking appointment
             166      as guardian, visit the present place of abode of the person alleged to be incapacitated and the
             167      place it is proposed that the person will be detained or reside if the requested appointment is
             168      made, and submit a report in writing to the court.
             169          [(4)] (5) (a) The person alleged to be incapacitated shall be present at the hearing in
             170      person and see or hear all evidence bearing upon the person's condition. If the person seeking
             171      the guardianship requests a waiver of presence of the person alleged to be incapacitated, the
             172      court shall order an investigation by a court visitor, the costs of which shall be paid by the
             173      person seeking the guardianship.
             174          (b) The investigation by a court visitor is not required if there is clear and convincing
             175      evidence from a physician that the person alleged to be incapacitated has:
             176          (i) fourth stage Alzheimer's Disease;
             177          (ii) extended comatosis; or
             178          (iii) (A) an intellectual disability; and
             179          (B) an intelligence quotient score under 20 to 25.
             180          (c) The person alleged to be incapacitated is entitled to be represented by counsel, to
             181      present evidence, to cross-examine witnesses, including the court-appointed physician and the
             182      visitor, and to trial by jury. The issue may be determined at a closed hearing without a jury if


             183      the person alleged to be incapacitated or the person's counsel so requests.
             184          Section 5. Section 75-5-307 is amended to read:
             185           75-5-307. Removal or resignation of guardian -- Termination of incapacity.
             186          (1) On petition of the ward or any person interested in the ward's welfare, the court
             187      may remove a guardian and appoint a successor if in the best interests of the ward. On petition
             188      of the guardian, the court may accept the guardian's resignation and make any other order
             189      which may be appropriate.
             190          (2) An order adjudicating incapacity may specify a minimum period, not exceeding one
             191      year, during which no petition for an adjudication that the ward is no longer incapacitated may
             192      be filed without special leave. Subject to this restriction, the ward or any person interested in
             193      the ward's welfare may petition for an order that the ward is no longer incapacitated and for
             194      removal or resignation of the guardian. A request for this order may be made by informal letter
             195      to the court or judge and any person who knowingly interferes with transmission of this kind of
             196      request to the court or judge may be adjudged guilty of contempt of court.
             197          (3) Before removing a guardian, accepting the resignation of a guardian, or ordering
             198      that a ward's incapacity has terminated, the court shall follow the same procedures to safeguard
             199      the rights of the ward as apply to a petition for appointment of a guardian as provided [under]
             200      in Section 75-5-303 . The court is not required to appoint an attorney to represent the ward if
             201      the case is uncontested and the ward's incapacity is not at issue.
             202          Section 6. Section 75-5-407 is amended to read:
             203           75-5-407. Procedure concerning hearing and order on original petition.
             204          (1) Upon receipt of a petition for appointment of a conservator or other protective order
             205      because of minority, the court shall set a date for the hearing on the matters alleged in the
             206      petition. If, at any time in the proceeding, the court determines that the interests of the minor
             207      are or may be inadequately represented, it may appoint an attorney to represent the minor,
             208      giving consideration to the choice of the minor if 14 years of age or older. [A lawyer] An
             209      attorney appointed by the court to represent a minor has the powers and duties of a guardian ad
             210      litem.
             211          (2) Upon receipt of a petition for appointment of a conservator or other protective order
             212      for reasons other than minority, the court shall set a date for hearing. Unless the person to be
             213      protected has already retained counsel [of his own choice], the court may appoint [a lawyer] an


             214      attorney to represent [him] the person to be protected who then has the powers and duties of a
             215      guardian ad litem.
             216          (3) The legal representation of the protected person by an attorney shall terminate upon
             217      the appointment of a conservator, unless:
             218          (a) there are separate guardianship proceedings pending before the court;
             219          (b) the appointed conservator elects at the time to maintain the attorney's representation
             220      of the protected person;
             221          (c) there is a timely filed appeal of the appointment of the conservator or the
             222      determination of the incapacity; or
             223          (d) the court orders otherwise.
             224          (4) If the alleged disability is mental illness, mental deficiency, physical illness or
             225      disability, advanced age, chronic use of drugs, or chronic intoxication, the court may direct that
             226      the person to be protected be examined by a physician designated by the court, preferably a
             227      physician who is not connected with any institution in which the person is a patient or is
             228      detained. The court may send a visitor to interview the person to be protected. The visitor may
             229      be a guardian ad litem or an officer or employee of the court.
             230          [(3)] (5) After hearing, upon finding that a basis for the appointment of a conservator
             231      or other protective order has been established, the court shall make an appointment or other
             232      appropriate protective order.
             233          Section 7. Section 75-5-408 is amended to read:
             234           75-5-408. Permissible court orders.
             235          (1) The court has the following powers which may be exercised directly or through a
             236      conservator in respect to the estate and affairs of protected persons:
             237          (a) While a petition for appointment of a conservator or other protective order is
             238      pending and after preliminary hearing and without notice to others, the court has power to
             239      preserve and apply the property of the person to be protected as may be required for the
             240      person's benefit or the benefit of the person's dependents.
             241          (b) After hearing and upon determining that a basis for an appointment or other
             242      protective order exists with respect to a minor without other disability, the court has all those
             243      powers over the estate and affairs of the minor which are or might be necessary for the best
             244      interests of the minor, the minor's family, and the members of the minor's household.


             245          (c) After hearing and upon determining that a basis for an appointment or other
             246      protective order exists with respect to a person for reasons other than minority, the court has,
             247      for the benefit of the person and members of the person's household, all the powers over the
             248      person's estate and affairs that the person could exercise if present and not under disability,
             249      except the power to make a will. These powers include the power to:
             250          (i) make gifts[, to];
             251          (ii) convey or release the person's contingent and expectant interests in property
             252      including marital property rights and any right of survivorship incident to joint tenancy or
             253      tenancy by the entirety[, to];
             254          (iii) exercise or release the person's powers as [trustee,] personal representative,
             255      custodian for minors, conservator, or donee of a power of appointment[, to];
             256          (iv) enter into contracts[, to];
             257          (v) create revocable or irrevocable trusts of property of the estate that may extend
             258      beyond the person's disability or life[, to];
             259          (vi) exercise options of the person with a disability to purchase securities or other
             260      property[, to];
             261          (vii) exercise the person's rights to elect options and change beneficiaries under
             262      insurance and annuity policies and to surrender the policies for their cash value[, to];
             263          (viii) exercise the person's right to an elective share in the estate of the person's
             264      deceased spouse[,]; and [to]
             265          (ix) renounce any interest by testate or intestate succession or by inter vivos transfer.
             266          (d) The court may exercise, or direct the exercise of, its authority to exercise or release
             267      powers of appointment of which the protected person is donee, to renounce interests, to make
             268      gifts in trust or otherwise exceeding 20% of any year's income of the estate, or to change
             269      beneficiaries under insurance and annuity policies, only if satisfied, after notice and hearing,
             270      that it is in the best interests of the protected person, and that the person either is incapable of
             271      consenting or has consented to the proposed exercise of power.
             272          (2) An order made pursuant to this section determining that a basis for appointment of
             273      a conservator or other protective order exists has no effect on the capacity of the protected
             274      person.
             275          Section 8. Section 75-5-414 is amended to read:


             276           75-5-414. Compensation and expenses.
             277          If not otherwise compensated for services rendered, any visitor, lawyer, physician,
             278      conservator, or special conservator appointed in a protective proceeding is entitled to
             279      reasonable compensation from the estate. If the court appoints the petitioner or the petitioner's
             280      nominee as conservator over the protected person, regardless of whether the nominee is
             281      specified in the moving petition or nominated during the proceedings, the petitioner is entitled
             282      to receive from the estate reasonable attorney fees and court costs incurred in bringing and
             283      defending the petition.
             284          Section 9. Section 75-5-415 is amended to read:
             285           75-5-415. Death, resignation, or removal of conservator.
             286          (1) The court may remove a conservator for good cause, upon notice and hearing, or
             287      accept the resignation of a conservator. After [his] the death, resignation, or removal of a
             288      conservator, the court may appoint another conservator. A conservator so appointed succeeds
             289      to the title and powers of [his predecessor] the preceding conservator.
             290          (2) An order adjudicating incapacity may specify a minimum period, not exceeding one
             291      year, during which no petition for an adjudication that the protected person is no longer
             292      incapacitated may be filed without special leave. Subject to this restriction, the protected
             293      person or any person interested in the protected person's welfare may petition for an order that
             294      the protected person is no longer incapacitated and for removal or resignation of the
             295      conservator. A request for this order may be made by informal letter to the court or judge and
             296      any person who knowingly interferes with transmission of the request to the court or judge may
             297      be found guilty of contempt of court.
             298          (3) Before removing a conservator, accepting the resignation of a conservator, or
             299      ordering that a protected person's incapacity has terminated, the court shall follow the same
             300      procedures to safeguard the rights of the protected person as apply to a petition for appointment
             301      of a conservator as provided in Section 75-5-407 .
             302          Section 10. Section 75-5-418 is amended to read:
             303           75-5-418. Inventory and records.
             304          (1) Within 90 days after [his] appointment[, every] of a conservator, the conservator
             305      shall prepare and file with the appointing court a complete inventory of the estate of the
             306      protected person together with [his] an oath or affirmation that it is complete and accurate so


             307      far as [he] the conservator is informed. The estate of the protected person does not include the
             308      assets of a trust.
             309          (2) The conservator shall provide a copy [thereof] of the inventory to the protected
             310      person if [he] the person:
             311          (a) can be located[,];
             312          (b) has attained the age of 14 years[,]; and
             313          (c) has sufficient mental capacity to understand these matters, and to any parent or
             314      guardian with whom the protected person resides.
             315          (3) The conservator shall keep suitable administrative records [of his administration]
             316      and [exhibit the same on] produce them upon the request of any interested person.
             317          Section 11. Section 75-5-419 is amended to read:
             318           75-5-419. Accounts.
             319          (1) Every conservator must account to the court for [his] the administration of the
             320      [trust] estate upon [his] resignation or removal and at any other times [as] the court may direct.
             321          (2) On termination of the protected person's minority or disability, a conservator may
             322      account to the court, [or he may account to] the former protected person, or [his] the personal
             323      representative of the protected person.
             324          (3) Subject to appeal or vacation within the time permitted, an order, made upon notice
             325      and hearing, allowing an intermediate account of a conservator, adjudicates as to [his] any
             326      liabilities concerning the matters considered in connection with [this] the protected person's
             327      account, and an order, made upon notice and hearing, allowing a final account adjudicates as to
             328      all previously unsettled liabilities of the conservator to the protected person or [his] the
             329      protected person's successors relating to the conservatorship.
             330          (4) In connection with any account, the court may require a conservator to submit to a
             331      physical check of the estate in [his] the conservator's control, to be made in any manner the
             332      court may specify.
             333          Section 12. Section 75-5-420 is amended to read:
             334           75-5-420. Conservators -- Title by appointment.
             335          (1) The appointment of a conservator vests in [him] the conservator title as [trustee]
             336      fiduciary to all property of the protected person, presently held or thereafter acquired, not
             337      including the assets of a trust, including title to any property previously held for the protected


             338      person by custodians or attorneys-in-fact, except for property held pursuant to any uniform gifts
             339      to minors act or provisions.
             340          (2) The appointment of a conservator is not a transfer or alienation within the meaning
             341      of general provisions of any federal or state statute or regulation, insurance policy, pension
             342      plan, contract, will, or trust instrument imposing restrictions upon or penalties for transfer or
             343      alienation by the protected person of [his] any rights or interest, but this section does not
             344      restrict the ability of persons to make specific provision by contract or dispositive instrument
             345      relating to a conservator.
             346          Section 13. Section 75-5-424 is amended to read:
             347           75-5-424. Powers of conservator in administration.
             348          (1) A conservator has all of the powers conferred in this chapter and any additional
             349      powers conferred by law on trustees in this state. In addition, a conservator of the estate of an
             350      unmarried minor as to whom no one has parental rights, has the duties and powers of a
             351      guardian of a minor described in Section 75-5-209 until the minor attains majority or marries,
             352      but the parental rights so conferred on a conservator do not preclude appointment of a guardian
             353      as provided by Part 2 of this chapter.
             354          (2) A conservator has power without court authorization or confirmation to invest and
             355      reinvest funds of the estate as would a trustee.
             356          (3) A conservator, acting reasonably in efforts to accomplish the purpose for which
             357      [he] the conservator was appointed, may act without court authorization or confirmation, to:
             358          (a) collect, hold, and retain assets of the estate, including land in another state, until, in
             359      his judgment, disposition of the assets should be made, and the assets may be retained even
             360      though they include an asset in which he is personally interested;
             361          (b) receive additions to the estate;
             362          (c) continue or participate in the operation of any business or other enterprise;
             363          (d) acquire an undivided interest in an estate asset in which the conservator, in any
             364      fiduciary capacity, holds an undivided interest;
             365          (e) invest and reinvest estate assets in accordance with Subsection (2) [above];
             366          (f) deposit estate funds in a bank including a bank operated by the conservator;
             367          (g) acquire or dispose of an estate asset, including land in another state, for cash or on
             368      credit, at public or private sale; and to manage, develop, improve, exchange, partition, change


             369      the character of, or abandon an estate asset;
             370          (h) make ordinary or extraordinary repairs or alterations in buildings or other
             371      structures, demolish any improvements, and raze existing or erect new party walls or buildings;
             372          (i) subdivide, develop, or dedicate land to public use; make or obtain the vacation of
             373      plats and adjust boundaries; adjust differences in valuation on exchange or partition by giving
             374      or receiving considerations; and dedicate easements to public use without consideration;
             375          (j) enter for any purpose into a lease as lessor or lessee with or without option to
             376      purchase or renew for a term within or extending beyond the term of the conservatorship;
             377          (k) enter into a lease or arrangement for exploration and removal of minerals or other
             378      natural resources or enter into a pooling or unitization agreement;
             379          (l) grant an option involving disposition of an estate asset or take an option for the
             380      acquisition of any asset;
             381          (m) vote a security, in person or by general or limited proxy;
             382          (n) pay calls, assessments, and any other sums chargeable or accruing against or on
             383      account of securities;
             384          (o) sell or exercise stock subscription or conversion rights; consent, directly or through
             385      a committee or other agent, to the reorganization, consolidation, merger, dissolution, or
             386      liquidation of a corporation or other business enterprise;
             387          (p) hold a security in the name of a nominee or in other form without disclosure of the
             388      conservatorship so that title to the security may pass by delivery, but the conservator is liable
             389      for any act of the nominee in connection with the stock so held;
             390          (q) insure the assets of the estate against damage or loss and the conservator against
             391      liability with respect to third persons;
             392          (r) borrow money to be repaid from estate assets or otherwise; and advance money for
             393      the protection of the estate or the protected person, and for all expenses, losses, and liabilities
             394      sustained in the administration of the estate or because of the holding or ownership of any
             395      estate assets, and the conservator has a lien on the estate as against the protected person for
             396      advances so made;
             397          (s) pay or contest any claim; settle a claim by or against the estate or the protected
             398      person by compromise, arbitration, or otherwise; and release, in whole or in part, any claim
             399      belonging to the estate to the extent that the claim is uncollectible;


             400          (t) pay taxes, assessments, compensation of the conservator, and other expenses
             401      incurred in the collection, care, administration, and protection of the estate;
             402          (u) allocate items of income or expense to either estate income or principal, as
             403      provided by law, including creation of reserves out of income for depreciation, obsolescence,
             404      or amortization, or for depletion in mineral or timber properties;
             405          (v) pay any sum distributable to a protected person or [his] dependent without liability
             406      to the conservator, by paying the sum to the distributee or by paying the sum for the use of the
             407      distributee either to [his] the distributee's guardian, or if none, to a relative or other person with
             408      custody of [his] the person;
             409          (w) employ persons, including attorneys, auditors, investment advisors, or agents, even
             410      though they are associated with the conservator, to advise or assist [him] in the performance of
             411      [his] administrative duties; act upon their recommendation without independent investigation;
             412      and instead of acting personally, employ one or more agents to perform any act of
             413      administration, whether or not discretionary;
             414          (x) prosecute or defend actions, claims, or proceedings in any jurisdiction for the
             415      protection of estate assets and of the conservator in the performance of [his] the conservator's
             416      duties; [and]
             417          (y) act as a qualified beneficiary of any trust in which the protected person is a
             418      qualified beneficiary; and
             419          [(y)] (z) execute and deliver all instruments which will accomplish or facilitate the
             420      exercise of the powers vested in the conservator.
             421          Section 14. Section 75-5-425 is amended to read:
             422           75-5-425. Distributive duties and powers of conservator.
             423          (1) A conservator may expend or distribute income or principal of the estate without
             424      court authorization or confirmation for the support, education, care, or benefit of the protected
             425      person and his dependents in accordance with the following principles:
             426          (a) The conservator is to consider recommendations relating to the appropriate standard
             427      of support, education, and benefit for the protected person made by a parent or guardian, if any.
             428      He may not be surcharged for sums paid to persons or organizations actually furnishing
             429      support, education, or care to the protected person pursuant to the recommendations of a parent
             430      or guardian of the protected person unless he knows that the parent or guardian is deriving


             431      personal financial benefit therefrom, including relief from any personal duty of support, or
             432      unless the recommendations are clearly not in the best interests of the protected person.
             433          (b) The conservator is to expend or distribute sums reasonably necessary for the
             434      support, education, care or benefit of the protected person with due regard to:
             435          (i) the size of the estate, the probable duration of the conservatorship and the likelihood
             436      that the protected person, at some future time, may be fully able to manage the protected
             437      person's affairs and the estate which has been conserved for the protected person;
             438          (ii) the accustomed standard of living of the protected person and members of the
             439      protected person's household; and
             440          (iii) other funds or sources used for the support of the protected person.
             441          (c) The conservator may expend funds of the estate for the support of persons legally
             442      dependent on the protected person and others who are members of the protected person's
             443      household who are unable to support themselves and who are in need of support.
             444          (d) Funds expended under this Subsection (1) may be paid by the conservator to any
             445      person, including the protected person to reimburse for expenditures which the conservator
             446      might have made, or in advance for services to be rendered to the protected person when it is
             447      reasonable to expect that they will be performed and where advance payments are customary or
             448      reasonably necessary under the circumstances.
             449          (2) If the estate is ample to provide for the purposes implicit in the distributions
             450      authorized by Subsection (1), a conservator for a protected person other than a minor has power
             451      to make gifts to charity and other objects as the protected person might have been expected to
             452      make, in amounts which do not exceed in total for any year 20% of the income from the estate.
             453          (3) When a person who is a minor and who has not been adjudged to have a disability
             454      under Subsection 75-5-401 (2)(a) attains the age of majority, the person's conservator, after
             455      meeting all prior claims and expenses of administration, shall pay over and distribute all funds
             456      and properties to the former protected person as soon as possible.
             457          (4) When the conservator is satisfied that a protected person's disability (other than
             458      minority) has ceased, the conservator, after meeting all prior claims and expenses of
             459      administration, shall pay over and distribute all funds and properties to the former protected
             460      person as soon as possible.
             461          (5) If a protected person dies, the conservator:


             462          (a) shall:
             463          (i) deliver to the court for safekeeping any will of the deceased protected person that
             464      may have come into the conservator's possession[,];
             465          (ii) inform the executor or a beneficiary named in the will that the conservator has done
             466      so[,]; and
             467          (iii) retain the estate for delivery to a duly appointed personal representative of the
             468      decedent or other persons entitled to it[. If after 40 days from the death of the protected person
             469      no other person has been appointed personal representative and no application or petition for
             470      appointment is before the court, the conservator];
             471          (b) may continue to pay the obligations lawfully due against the estate and to protect
             472      the estate from waste, injury, or damages that might reasonably be foreseeable; and
             473          (c) may apply to exercise the powers and duties of a personal representative so that the
             474      conservator may proceed to administer and distribute the decedent's estate without additional or
             475      further appointment, provided that at least 40 days from the death of the protected person no
             476      other person has been appointed personal representative and no application or petition for
             477      appointment is before the court.
             478          (6) Upon application for an order granting the powers of a personal representative to a
             479      conservator[,] as provided in Subsection (5)(c) and after notice as provided in Section
             480      75-3-310 , the court may order the conferral of the power upon determining that there is no
             481      objection and endorse the letters of the conservator to note that the formerly protected person is
             482      deceased and that the conservator has acquired all of the powers and duties of a personal
             483      representative. The making and entry of an order under this section shall have the effect of an
             484      order of appointment of a personal representative as provided in Section 75-3-308 and Chapter
             485      3, Parts 6 through 10, except that the estate in the name of the conservator, after administration,
             486      may be distributed to the decedent's successors without prior retransfer to the conservator as
             487      personal representative.
             488          Section 15. Section 75-5-501 is amended to read:
             489           75-5-501. Power of attorney not affected by disability or lapse of time -- Agent
             490      responsibilities.
             491          (1) Whenever a principal designates another as the principal's attorney-in-fact or agent
             492      by a power of attorney in writing and the writing contains the words "This power of attorney


             493      shall not be affected by disability of the principal," or "This power of attorney shall become
             494      effective upon the disability of the principal," or similar words showing the intent of the
             495      principal that the authority conferred shall be exercisable notwithstanding the principal's
             496      disability, the authority of the attorney-in-fact or agent is exercisable by the attorney-in-fact or
             497      agent as provided in the power on behalf of the principal notwithstanding:
             498          (a) later disability or incapacity of the principal at law or later uncertainty as to whether
             499      the principal is dead or alive; or
             500          (b) the lapse of time since the execution of the instrument, unless the instrument states
             501      a time of termination.
             502          (2) If an attorney-in-fact or agent determines that the principal has become
             503      incapacitated or has acquired a disability and the power of attorney by its terms remains in
             504      effect or becomes effective as a result of a principal's incapacity or disability, the
             505      attorney-in-fact or agent shall:
             506          (a) notify all interested persons of the attorney-in-fact's or agent's status as the power of
             507      attorney holder within 30 days of the principal's incapacitation, and provide them with the
             508      attorney-in-fact's or agent's name and address;
             509          (b) provide to any interested persons upon written request, a copy of the power of
             510      attorney;
             511          (c) provide to any interested persons upon written request, an annual accounting of the
             512      assets to which the power of attorney applies, unless the power of attorney specifically directs
             513      that the attorney-in-fact or agent is not required to do so; and
             514          (d) notify all interested persons upon the death of the principal.
             515          (3) All interested persons shall be notified within 10 days if the attorney-in-fact or
             516      agent changes. The notification shall be made by the new attorney-in-fact or agent who shall
             517      then be accountable to the interested persons in accordance with Subsection (2).
             518          (4) All acts done by the attorney-in-fact or agent pursuant to the power during any
             519      period of disability or incompetence or uncertainty as to whether the principal is dead or alive
             520      have the same effect and inure to the benefit of and bind the principal or the principal's heirs,
             521      devisees, and personal representative as if the principal were alive, competent, and did not have
             522      a disability, except as provided in Section 75-5-503 .
             523          (5) A conservator may be appointed for a principal even though the principal has a


             524      valid power of attorney in place. If a conservator thereafter is appointed for the principal, the
             525      attorney-in-fact or agent, during the continuance of the appointment, shall account to the
             526      conservator rather than the principal. The conservator, pursuant to court order [as provided in
             527      Subsection 75-5-408 (1)(d)], has the same power the principal would have had, if the principal
             528      did not have a disability or was not incompetent, to revoke, suspend, or terminate all or any
             529      part of the power of attorney or agency.
             530          (6) For the purposes of this section, "interested person" means any person entitled to a
             531      part of the principal's estate from the principal's will or through the intestacy laws, whichever is
             532      applicable.




Legislative Review Note
    as of 1-26-12 8:10 AM


Office of Legislative Research and General Counsel


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