First Substitute H.B. 265

This document includes House Committee Amendments incorporated into the bill on Tue, Feb 25, 2014 at 11:36 AM by jeyring. -->

Representative V. Lowry Snow proposes the following substitute bill:


             1     
PROBATE CODE AMENDMENTS

             2     
2014 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 amends the Utah Uniform Probate Code.
             10      Highlighted Provisions:
             11          This bill:
             12          .    clarifies the parent and child relationship related to adoption;
             13          .    amends language related to the electronic filings of wills in court;
             14          .    provides for an emergency guardian or court appointed temporary guardian until
             15      further order of the court;
             16          .    allows a guardian to compel production of a ward's estate documents and advance
             17      health care directives;
             18          .    allows for a temporary conservator until further order of the court;
             19          .    provides for a conservator to compel production of a protected person's estate
             20      documents and advanced health care directives; and
             21          .    makes technical and clarifying changes.
             22      Money Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          None


             26      Utah Code Sections Affected:
             27      AMENDS:
             28           75-2-114 , as last amended by Laws of Utah 2008, Chapter 3
             29           75-3-107 , as last amended by Laws of Utah 2013, Chapter 364
             30           75-3-301 , as last amended by Laws of Utah 2013, Chapter 364
             31           75-5-310 , as last amended by Laws of Utah 1979, Chapter 244
             32           75-5-312 , as last amended by Laws of Utah 2013, Chapter 364
             33           75-5-408 , as last amended by Laws of Utah 2012, Chapter 274
             34           75-5-415 , as last amended by Laws of Utah 2012, Chapter 274
             35           75-5-416 , as enacted by Laws of Utah 1975, Chapter 150
             36           75-5-424 , as last amended by Laws of Utah 2012, Chapter 274
             37           75-7-508 , as last amended by Laws of Utah 2009, Chapter 388
             38      ENACTS:
             39           75-5-310.5 , Utah Code Annotated 1953
             40     
             41      Be it enacted by the Legislature of the state of Utah:
             42          Section 1. Section 75-2-114 is amended to read:
             43           75-2-114. Parent and child relationship.
             44          (1) Except as provided in Subsections (2) and (3), for purposes of intestate succession
             45      by, through, or from a person, an individual is the child of the individual's natural parents,
             46      regardless of their marital status. The parent and child relationship may be established as
             47      provided in Title 78B, Chapter 15, Utah Uniform Parentage Act.
             48          (2) An adopted individual is the child of the adopting parent or parents and not of the
             49      natural parents, but adoption of a child by the spouse of either natural parent has no effect on[:]
             50      the relationship between the child and that natural parent.
             51          [(a) the relationship between the child and that natural parent; or]
             52          [(b) the right of the child or a descendant of the child to inherit from or through the
             53      other natural parent.]
             54          (3) Inheritance from or through a child by either natural parent or [his] the child's
             55      kindred is precluded unless that natural parent has openly treated the child as [his] the natural
             56      parent's, and has not refused to support the child.


             57          Section 2. Section 75-3-107 is amended to read:
             58           75-3-107. Probate and testacy proceedings -- Ultimate time limit -- Presumption
             59      and order of intestacy.
             60          (1) No informal probate proceeding or formal testacy proceeding, other than a
             61      proceeding to probate a will previously probated at the testator's domicile [and appointment
             62      proceedings relating to an estate in which there has been a prior appointment], may be
             63      commenced more than three years after the decedent's death, except:
             64          (a) If a previous proceeding was dismissed because of doubt about the fact of the
             65      decedent's death, appropriate probate[, appointment,] or testacy proceedings may be maintained
             66      at any time thereafter upon a finding that the decedent's death occurred prior to the initiation of
             67      the previous proceeding and the applicant or petitioner has not delayed unduly in initiating the
             68      subsequent proceeding.
             69          (b) Appropriate probate[, appointment,] or testacy proceedings may be maintained in
             70      relation to the estate of an absent, disappeared, or missing person for whose estate a
             71      conservator has been appointed, at any time within three years after the conservator becomes
             72      able to establish the death of the protected person.
             73          (c) A proceeding to contest an informally probated will and to secure appointment of
             74      the person with legal priority for appointment in the event the contest is successful, may be
             75      commenced within the later of 12 months from the informal probate or three years from the
             76      decedent's death.
             77          (2) The limitations provided in Subsection (1) do not apply to proceedings to construe
             78      probated wills or determine heirs of an intestate. In cases under Subsection (1)(a) or (b), the
             79      date on which a testacy [or appointment] proceeding is properly commenced shall be deemed
             80      to be the date of the decedent's death for purposes of other limitations provisions of this title
             81      which relate to the date of death.
             82          (3) If no will is probated within three years from death, the presumption of intestacy is
             83      final and the court shall upon filing a proper petition enter an order to that effect. [The court
             84      also has continuing jurisdiction to:]
             85          (4) Notwithstanding the time restriction in Subsection (1), the court has continuing
             86      jurisdiction to:
             87          (a) determine what property was owned by the decedent at the time of death; and


             88          (b) appoint, formally or informally, a personal representative or special administrator to
             89      administer the decedent's estate.
             90          Section 3. Section 75-3-301 is amended to read:
             91           75-3-301. Informal probate or appointment proceedings -- Application --
             92      Contents.
             93          (1) Applications for informal probate or informal appointment shall be directed to the
             94      registrar, and verified by the applicant to be accurate and complete to the best of [his] the
             95      applicant's knowledge and belief as to the appropriate information required under this section.
             96          (2) Every application for informal probate of a will or for informal appointment of a
             97      personal representative, other than a special or successor representative, shall contain the
             98      following:
             99          (a) a statement of the interest of the applicant;
             100          (b) the name and date of death of the decedent, [his] the decedent's age, the county and
             101      state of [his] the decedent's domicile at the time of death, and the names and addresses of the
             102      spouse, children, heirs, and devisees and the ages of any who are minors so far as known or
             103      ascertainable with reasonable diligence by the applicant;
             104          (c) if the decedent was not domiciled in the state at the time of [his] the decedent's
             105      death, a statement showing venue;
             106          (d) a statement identifying and indicating the address of any personal representative of
             107      the decedent appointed in this state or elsewhere whose appointment has not been terminated;
             108      and
             109          (e) a statement indicating whether the applicant has received a demand for notice or is
             110      aware of any demand for notice of any probate or appointment proceeding concerning the
             111      decedent that may have been filed in this state or elsewhere[; and].
             112          [(f) that the time limit for informal probate or appointment as provided in this chapter
             113      has not expired either because three years or less have passed since the decedent's death, or if
             114      more than three years from death have passed, that circumstances as described by Section
             115      75-3-107 authorizing tardy probate or appointment have occurred.]
             116          (3) An application for informal probate of a will shall state the following in addition to
             117      the statements required by Subsection (2):
             118          (a) that the original of the decedent's last will [is]:


             119          (i) is in the possession of the court;
             120          (ii) was [presented to] filed with the [court for electronic storage and] court's electronic
             121      filing system and is now in the possession of the applicant or the applicant's attorney; or
             122          (iii) [accompanies the application, or that] is an authenticated copy of a will probated
             123      in another jurisdiction accompanies the application[;] or was filed with the court's electronic
             124      filing system and the authenticated copy is now in the possession of the applicant or the
             125      applicant's attorney;
             126          (b) that the applicant, to the best of [his] the applicant's knowledge, believes the will to
             127      have been validly executed; [and]
             128          (c) that after the exercise of reasonable diligence, the applicant is unaware of any
             129      instrument revoking the will, and that the applicant believes that the instrument which is the
             130      subject of the application is the decedent's last will[.]; and
             131          (d) that the time limit for informal probate as provided in this chapter has not expired
             132      either because three years or less have passed since the decedent's death, or if more than three
             133      years have passed since the decedent's death, circumstances as described by Section 75-3-107
             134      authorizing tardy probate have occurred.
             135          (4) An application for informal appointment of a personal representative to administer
             136      an estate under a will shall describe the will by date of execution and state the time and place of
             137      probate or the pending application or petition for probate. The application for appointment
             138      shall adopt the statements in the application or petition for probate, state the name, address and
             139      priority for appointment of the person whose appointment is sought, state whether or not bond
             140      is required, and, if required, unless specified by the will, state the estimated value of the
             141      personal and real estate of the decedent and of the income expected from the personal and real
             142      estate during the next year.
             143          (5) An application for informal appointment of an administrator in intestacy shall state
             144      in addition to the statements required by Subsection (2):
             145          (a) That after the exercise of reasonable diligence, the applicant is unaware of any
             146      unrevoked testamentary instrument relating to property having a situs in this state under
             147      Section 75-1-301 , or, a statement why any such instrument of which he may be aware is not
             148      being probated;
             149          (b) The priority of the person whose appointment is sought and the names of any other


             150      persons having a prior or equal right to the appointment under Section 75-3-203 ;
             151          (c) If bond is required, the estimated value of the personal and real estate of the
             152      decedent and of the income expected from the personal and real estate during the next year.
             153          (6) An application for appointment of a personal representative to succeed a personal
             154      representative appointed under a different testacy status shall refer to the order in the most
             155      recent testacy proceeding, state the name and address of the person whose appointment is
             156      sought and of the person whose appointment will be terminated if the application is granted,
             157      and describe the priority of the applicant.
             158          (7) An application for appointment of a personal representative to succeed a personal
             159      representative who has tendered a resignation as provided in Subsection 75-3-610 (3), or whose
             160      appointment has been terminated by death or removal, shall adopt the statements in the
             161      application or petition which led to the appointment of the person being succeeded, except as
             162      specifically changed or corrected, state the name and address of the person who seeks
             163      appointment as successor, and describe the priority of the applicant.
             164          Section 4. Section 75-5-310 is amended to read:
             165           75-5-310. Emergency guardians.
             166          (1) If an incapacitated person has no guardian and an emergency exists or if an
             167      appointed guardian is not effectively performing [his] the guardian's duties and the court
             168      further finds that the welfare of the incapacitated person requires immediate action, it may,
             169      without notice, appoint an [appropriate official as temporary] emergency guardian for the
             170      person for a specified period not to exceed 30 days pending notice and hearing.
             171          (2) The court shall, in all cases in which [a temporary] an emergency guardian is
             172      appointed, hold a hearing within [five] 14 days pursuant to Section 75-5-303 . [Unless the
             173      allegedly incapacitated person has already obtained counsel, the court may appoint an
             174      appropriate official or attorney to represent that person in the proceeding. Until the full hearing
             175      and order of the court, the temporary guardian shall be charged with the care and custody of the
             176      ward and shall not permit the ward to be removed from this state. The authority of any
             177      permanent guardian previously appointed by the court is suspended so long as a temporary
             178      guardian has authority. A temporary guardian may be removed at any time, and shall obey such
             179      orders and make such reports as the court requires.]


             180          Section 5. Section 75-5-310.5 is enacted to read:
             181          75-5-310.5. Temporary guardians.
             182          (1) If, after notice and hearing as required by Section 75-5-303 , the court finds good
             183      cause, the court may:
             184          (a) appoint a temporary guardian;
             185          (b) convert an emergency guardian to a temporary guardian if an emergency guardian
             186      has been appointed under Section 75-5-310 ; or
             187          (c) appoint a different person as temporary guardian to replace an emergency guardian
             188      appointed under Section 75-5-310 .
             189          (2) Unless the allegedly incapacitated person has already obtained counsel in this
             190      proceeding or an attorney has been already appointed for the person, the court H. [ may ] shall .H
             190a      appoint an
             191      attorney to represent the person in the proceeding.
             192          (3) Until a full hearing and further order of the court, the temporary guardian shall be
             193      charged with the care and custody of the ward and may not permit the ward to be removed
             194      from the state. The authority of any permanent guardian previously appointed by the court is
             195      suspended so long as a temporary guardian has authority.
             196          (4) A temporary guardian may be removed at any time, and shall obey all orders and
             197      make any reports required by the court.
             198          (5) A temporary guardian has all of the powers and duties of a permanent guardian as
             199      set forth in Section 75-5-312 .
             200          Section 6. Section 75-5-312 is amended to read:
             201           75-5-312. General powers and duties of guardian -- Penalties.
             202          (1) A guardian of an incapacitated person has only the powers, rights, and duties
             203      respecting the ward granted in the order of appointment under Section 75-5-304 .
             204          (2) Absent a specific limitation on the guardian's power in the order of appointment,
             205      the guardian has the same powers, rights, and duties respecting the ward that a parent has
             206      respecting the parent's unemancipated minor child except that a guardian is not liable to third
             207      persons for acts of the ward solely by reason of the parental relationship. In particular, and
             208      without qualifying the foregoing, a guardian has the following powers and duties, except as
             209      modified by order of the court:
             210          (a) To the extent that it is consistent with the terms of any order by a court of


             211      competent jurisdiction relating to detention or commitment of the ward, the guardian is entitled
             212      to custody of the person of the ward and may establish the ward's place of abode within or
             213      without this state.
             214          (b) If entitled to custody of the ward the guardian shall provide for the care, comfort,
             215      and maintenance of the ward and, whenever appropriate, arrange for the ward's training and
             216      education. Without regard to custodial rights of the ward's person, the guardian shall take
             217      reasonable care of the ward's clothing, furniture, vehicles, and other personal effects and
             218      commence protective proceedings if other property of the ward is in need of protection.
             219          (c) A guardian may give any consents or approvals that may be necessary to enable the
             220      ward to receive medical or other professional care, counsel, treatment, or service.
             221          (d) If no conservator for the estate of the ward has been appointed, the guardian may:
             222          (i) institute proceedings to compel any person under a duty to support the ward or to
             223      pay sums for the welfare of the ward to perform that duty; [or]
             224          (ii) compel the production of the ward's estate documents, including the ward's will,
             225      trust, power of attorney, and any advance health care directive; and
             226          [(ii)] (iii) receive money and tangible property deliverable to the ward and apply the
             227      money and property for support, care, and education of the ward; but the guardian may not use
             228      funds from the ward's estate for room and board which the guardian, the guardian's spouse,
             229      parent, or child have furnished the ward unless a charge for the service is approved by order of
             230      the court made upon notice to at least one adult relative in the nearest degree of kinship to the
             231      ward in which there is an adult. The guardian [must] shall exercise care to conserve any excess
             232      for the ward's needs.
             233          (e) (i) A guardian is required to report the condition of the ward and of the estate which
             234      has been subject to the guardian's possession or control, as required by the court or court rule.
             235          (ii) A guardian is required to immediately notify all interested persons if the guardian
             236      reasonably believes that the ward's death is likely to occur within the next 30 days, based on:
             237          (A) the guardian's own observations; or
             238          (B) information from the ward's physician or other medical care providers.
             239          (iii) A guardian is required to immediately notify all interested persons of the ward's
             240      death.
             241          (iv) Unless emergency conditions exist, a guardian is required to file with the court a


             242      notice of the guardian's intent to move the ward and to serve the notice on all interested persons
             243      at least 10 days before the move. The guardian shall take reasonable steps to notify all
             244      interested persons and to file the notice with the court as soon as practicable following the
             245      earlier of the move or the date when the guardian's intention to move the ward is made known
             246      to the ward, the ward's care giver, or any other third party.
             247          (v) The guardian shall, for all estates in excess of $50,000, excluding the residence
             248      owned by the ward, send a report with a full accounting to the court on an annual basis. For
             249      estates less than $50,000, excluding the residence owned by the ward, the guardian shall fill out
             250      an informal annual report and mail the report to the court. The report shall include the
             251      following: a statement of assets at the beginning and end of the reporting year, income received
             252      during the year, disbursements for the support of the ward, and other expenses incurred by the
             253      estate. The guardian shall also report the physical conditions of the ward, the place of
             254      residence, and a list of others living in the same household. The court may require additional
             255      information. The forms for both the informal report for estates under $50,000, excluding the
             256      residence owned by the ward, and the full accounting report for larger estates shall be approved
             257      by the Judicial Council. This annual report shall be examined and approved by the court. If
             258      the ward's income is limited to a federal or state program requiring an annual accounting
             259      report, a copy of that report may be submitted to the court in lieu of the required annual report.
             260          (vi) Corporate fiduciaries are not required to petition the court, but shall submit their
             261      internal report annually to the court. The report shall be examined and approved by the court.
             262          (vii) The guardian shall also render an annual accounting of the status of the person to
             263      the court which shall be included in the petition or the informal annual report as required under
             264      Subsection (2)(e). If a fee is paid for an accounting of an estate, no fee shall be charged for an
             265      accounting of the status of a person.
             266          (viii) If a guardian:
             267          (A) makes a substantial misstatement on filings of annual reports;
             268          (B) is guilty of gross impropriety in handling the property of the ward; or
             269          (C) willfully fails to file the report required by this subsection, after receiving written
             270      notice from the court of the failure to file and after a grace period of two months has elapsed,
             271      the court may impose a penalty in an amount not to exceed $5,000. The court may also order
             272      restitution of funds misappropriated from the estate of a ward. The penalty shall be paid by the


             273      guardian and may not be paid by the estate.
             274          (ix) These provisions and penalties governing annual reports do not apply if the
             275      guardian is the parent of the ward.
             276          (x) For the purposes of Subsections (2)(e)(i), (ii), (iii), and (iv), "interested persons"
             277      means those persons required to receive notice in guardianship proceedings as set forth in
             278      Section 75-5-309 .
             279          (f) If a conservator has been appointed, all of the ward's estate received by the guardian
             280      in excess of those funds expended to meet current expenses for support, care, and education of
             281      the ward shall be paid to the conservator for management as provided in this code; and the
             282      guardian shall account to the conservator for funds expended.
             283          (3) Any guardian of one for whom a conservator also has been appointed shall control
             284      the custody and care of the ward and is entitled to receive reasonable sums for services and for
             285      room and board furnished to the ward as agreed upon between the guardian and the
             286      conservator, if the amounts agreed upon are reasonable under the circumstances. The guardian
             287      may request the conservator to expend the ward's estate by payment to third persons or
             288      institutions for the ward's care and maintenance.
             289          Section 7. Section 75-5-408 is amended to read:
             290           75-5-408. Permissible court orders.
             291          (1) The court has the following powers which may be exercised directly or through a
             292      conservator in respect to the estate and affairs of protected persons:
             293          (a) While a petition for appointment of a conservator or other protective order is
             294      pending and after preliminary hearing and without notice to others, the court has power to
             295      preserve and apply the property of the person to be protected as may be required for the
             296      person's benefit or the benefit of the person's dependents.
             297          (b) After hearing and upon determining that a basis for an appointment or other
             298      protective order exists with respect to a minor without other disability, the court has all those
             299      powers over the estate and affairs of the minor which are or might be necessary for the best
             300      interests of the minor, the minor's family, and the members of the minor's household.
             301          (c) After hearing and upon determining that a basis for an appointment or other
             302      protective order exists with respect to a person for reasons other than minority, the court has,
             303      for the benefit of the person and members of the person's household, all the powers over the


             304      person's estate and affairs that the person could exercise if present and not under disability,
             305      except the power to make a will. These powers include the power to:
             306          (i) make gifts;
             307          (ii) convey or release the person's contingent and expectant interests in property
             308      including marital property rights and any right of survivorship incident to joint tenancy or
             309      tenancy by the entirety;
             310          (iii) exercise or release the person's powers as personal representative, custodian for
             311      minors, conservator, or donee of a power of appointment;
             312          (iv) enter into contracts;
             313          (v) create revocable or irrevocable trusts of property of the estate that may extend
             314      beyond the person's disability or life;
             315          (vi) exercise options of the person with a disability to purchase securities or other
             316      property;
             317          (vii) exercise the person's rights to elect options and change beneficiaries under
             318      insurance and annuity policies and to surrender the policies for their cash value;
             319          (viii) exercise the person's right to an elective share in the estate of the person's
             320      deceased spouse; and
             321          (ix) renounce any interest by testate or intestate succession or by inter vivos transfer.
             322          (d) The court may exercise, or direct the exercise of, its authority to exercise or release
             323      powers of appointment of which the protected person is donee, to renounce interests, to make
             324      gifts in trust or otherwise exceeding 20% of any year's income of the estate, or to change
             325      beneficiaries under insurance and annuity policies, only if satisfied, after notice and hearing,
             326      that it is in the best interests of the protected person, and that the person either is incapable of
             327      consenting or has consented to the proposed exercise of power.
             328          (2) An order made pursuant to this section determining that a basis for appointment of
             329      a conservator or other protective order exists has no effect on the capacity of the protected
             330      person.
             331          (3) If the court elects to appoint a conservator under Subsection (1), the court may
             332      appoint a temporary conservator to serve until further order of the court. A temporary
             333      conservator, if appointed, has all of the powers and duties of a conservator as set forth in
             334      Sections 75-5-417 , 75-5-418 , 75-5-419 , and 75-5-424 .


             335          Section 8. Section 75-5-415 is amended to read:
             336           75-5-415. Death, resignation, or removal of conservator.
             337          (1) The court may remove a conservator for good cause, upon notice and hearing, or
             338      accept the resignation of a conservator. After the death, resignation, or removal of a
             339      conservator, the court may appoint another conservator. A conservator so appointed succeeds
             340      to the title and powers of the preceding conservator.
             341          (2) Before removing a conservator, accepting the resignation of a conservator, or
             342      ordering that a protected person's incapacity has terminated, the court shall follow the same
             343      procedures to safeguard the rights of the protected person as apply to a petition for appointment
             344      of a conservator as provided in Section 75-5-407 . The court is not required to appoint an
             345      attorney to represent the ward if the case is uncontested and the protected person's capacity is
             346      not at issue.
             347          Section 9. Section 75-5-416 is amended to read:
             348           75-5-416. Petitions for orders subsequent to appointment.
             349          (1) Any person interested in the welfare of a person for whom a conservator has been
             350      appointed may file a petition in the appointing court for an order:
             351          (a) requiring bond or security or additional bond or security, or reducing bond;
             352          (b) requiring an accounting for the administration of the [trust] conservatorship estate;
             353          (c) directing distribution;
             354          (d) removing the conservator and appointing a temporary or successor conservator; or
             355          (e) granting other appropriate relief, including any relief available under Title 75,
             356      Chapter 7, Utah Uniform Trust Code, if the protected person is a grantor, settlor, trustor, or
             357      beneficiary of a trust.
             358          (2) A conservator may petition the appointing court for instructions concerning [his]
             359      the conservator's fiduciary responsibility.
             360          (3) Upon notice and hearing the court may give appropriate instructions or make any
             361      appropriate order.
             362          Section 10. Section 75-5-424 is amended to read:
             363           75-5-424. Powers of conservator in administration.
             364          (1) A conservator has all of the powers conferred in this chapter and any additional
             365      powers conferred by law on trustees in this state. In addition, a conservator of the estate of an


             366      unmarried minor as to whom no one has parental rights, has the duties and powers of a
             367      guardian of a minor described in Section 75-5-209 until the minor attains majority or marries,
             368      but the parental rights so conferred on a conservator do not preclude appointment of a guardian
             369      as provided by Part 2 of this chapter.
             370          (2) A conservator has the power to compel the production of the protected person's
             371      estate documents, including the protected person's will, trust, power of attorney, and any
             372      advance health care directives.
             373          [(2)] (3) A conservator has power without court authorization or confirmation to invest
             374      and reinvest funds of the estate as would a trustee.
             375          [(3)] (4) A conservator, acting reasonably in efforts to accomplish the purpose for
             376      which the conservator was appointed, may act without court authorization or confirmation, to:
             377          (a) collect, hold, and retain assets of the estate, including land in another state, until, in
             378      his judgment, disposition of the assets should be made, and the assets may be retained even
             379      though they include an asset in which he is personally interested;
             380          (b) receive additions to the estate;
             381          (c) continue or participate in the operation of any business or other enterprise;
             382          (d) acquire an undivided interest in an estate asset in which the conservator, in any
             383      fiduciary capacity, holds an undivided interest;
             384          (e) invest and reinvest estate assets in accordance with Subsection (2);
             385          (f) deposit estate funds in a bank including a bank operated by the conservator;
             386          (g) acquire or dispose of an estate asset, including land in another state, for cash or on
             387      credit, at public or private sale; and to manage, develop, improve, exchange, partition, change
             388      the character of, or abandon an estate asset;
             389          (h) make ordinary or extraordinary repairs or alterations in buildings or other
             390      structures, demolish any improvements, and raze existing or erect new party walls or buildings;
             391          (i) subdivide, develop, or dedicate land to public use; make or obtain the vacation of
             392      plats and adjust boundaries; adjust differences in valuation on exchange or partition by giving
             393      or receiving considerations; and dedicate easements to public use without consideration;
             394          (j) enter for any purpose into a lease as lessor or lessee with or without option to
             395      purchase or renew for a term within or extending beyond the term of the conservatorship;
             396          (k) enter into a lease or arrangement for exploration and removal of minerals or other


             397      natural resources or enter into a pooling or unitization agreement;
             398          (l) grant an option involving disposition of an estate asset or take an option for the
             399      acquisition of any asset;
             400          (m) vote a security, in person or by general or limited proxy;
             401          (n) pay calls, assessments, and any other sums chargeable or accruing against or on
             402      account of securities;
             403          (o) sell or exercise stock subscription or conversion rights; consent, directly or through
             404      a committee or other agent, to the reorganization, consolidation, merger, dissolution, or
             405      liquidation of a corporation or other business enterprise;
             406          (p) hold a security in the name of a nominee or in other form without disclosure of the
             407      conservatorship so that title to the security may pass by delivery, but the conservator is liable
             408      for any act of the nominee in connection with the stock so held;
             409          (q) insure the assets of the estate against damage or loss and the conservator against
             410      liability with respect to third persons;
             411          (r) borrow money to be repaid from estate assets or otherwise; and advance money for
             412      the protection of the estate or the protected person, and for all expenses, losses, and liabilities
             413      sustained in the administration of the estate or because of the holding or ownership of any
             414      estate assets, and the conservator has a lien on the estate as against the protected person for
             415      advances so made;
             416          (s) pay or contest any claim; settle a claim by or against the estate or the protected
             417      person by compromise, arbitration, or otherwise; and release, in whole or in part, any claim
             418      belonging to the estate to the extent that the claim is uncollectible;
             419          (t) pay taxes, assessments, compensation of the conservator, and other expenses
             420      incurred in the collection, care, administration, and protection of the estate;
             421          (u) allocate items of income or expense to either estate income or principal, as
             422      provided by law, including creation of reserves out of income for depreciation, obsolescence,
             423      or amortization, or for depletion in mineral or timber properties;
             424          (v) pay any sum distributable to a protected person or dependent without liability to the
             425      conservator, by paying the sum to the distributee or by paying the sum for the use of the
             426      distributee either to the distributee's guardian, or if none, to a relative or other person with
             427      custody of the person;


             428          (w) employ persons, including attorneys, auditors, investment advisors, or agents, even
             429      though they are associated with the conservator, to advise or assist in the performance of
             430      administrative duties; act upon their recommendation without independent investigation; and
             431      instead of acting personally, employ one or more agents to perform any act of administration,
             432      whether or not discretionary;
             433          (x) prosecute or defend actions, claims, or proceedings in any jurisdiction for the
             434      protection of estate assets and of the conservator in the performance of the conservator's duties;
             435          (y) act as a qualified beneficiary of any trust in which the protected person is a
             436      qualified beneficiary; and
             437          (z) execute and deliver all instruments which will accomplish or facilitate the exercise
             438      of the powers vested in the conservator.
             439          Section 11. Section 75-7-508 is amended to read:
             440           75-7-508. Notice to creditors.
             441          (1) (a) A trustee for an inter vivos revocable trust, upon the death of the settlor, may
             442      publish a notice to creditors:
             443          (i) once a week for three successive weeks in a newspaper of general circulation in the
             444      county where the settlor resided at the time of death; and
             445          (ii) in accordance with Section 45-1-101 for three weeks.
             446          (b) The notice required by Subsection (1)(a) [must] shall:
             447          (i) provide the trustee's name and address; and
             448          (ii) notify creditors:
             449          (A) of the deceased settlor; and
             450          (B) to present their claims within three months after the date of the first publication of
             451      the notice or be forever barred from presenting the claim.
             452          (2) A trustee shall give written notice by mail or other delivery to any known creditor
             453      of the deceased settlor, notifying the creditor to present his claim within 90 days from the
             454      published notice if given as provided in Subsection (1) or within 60 days from the mailing or
             455      other delivery of the notice, whichever is later, or be forever barred. Written notice shall be the
             456      notice described in Subsection (1) or a similar notice.
             457          (3) (a) If the deceased settlor received medical assistance, as defined in Section
             458      26-19-2 , at any time after the age of 55, the trustee for an inter vivos revocable trust, upon the


             459      death of the settlor, shall mail or deliver written notice to the Director of the Office of
             460      Recovery Services, on behalf of the Department of Health, to present any claim under Section
             461      26-19-13.5 within 60 days from the mailing or other delivery of notice, whichever is later, or
             462      be forever barred.
             463          (b) If the trustee does not mail notice to the director of the Office of Recovery Services
             464      on behalf of the department in accordance with Subsection (3)(a), the department shall have
             465      one year from the death of the settlor to present its claim.
             466          (4) The trustee [shall] is not [be] liable to any creditor or to any successor of the
             467      deceased settlor for giving or failing to give notice under this section.
             468          (5) The notice to creditors shall be valid against any creditor of the trust and also
             469      against any creditor of the estate of the deceased settlor.


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