(1) A fiduciary, without court approval, by complying with Subsections (2) and (6), may:

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Terms Used In Utah Code 75A-5-303

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Beneficiary: includes :
         (3)(a) for a trust:
              (3)(a)(i) a current beneficiary, including a current income beneficiary and a beneficiary that may receive only principal;
              (3)(a)(ii) a remainder beneficiary; and
              (3)(a)(iii) any other successor beneficiary;
         (3)(b) for an estate, an heir and devisee; and
         (3)(c) for a life estate or term interest, a person that holds a life estate, term interest, or remainder, or other interest following a life estate or term interest. See Utah Code 75A-5-102
  • Court: means a court in this state with jurisdiction over a trust or estate, or a life estate or other term interest described in Subsection 75A-5-103(2). See Utah Code 75A-5-102
  • Fiduciary: A trustee, executor, or administrator.
  • Fiduciary: includes :
         (8)(a) a trustee, trust director as defined in Section 75-12-102, personal representative, life tenant, holder of a term interest, and person acting under a delegation from a fiduciary;
         (8)(b) a person that holds property for a successor beneficiary whose interest may be affected by an allocation of receipts and expenditures between income and principal; and
         (8)(c) if there are two or more co-fiduciaries, all co-fiduciaries acting under the terms of the trust and applicable law. See Utah Code 75A-5-102
  • Income: includes a part of receipts from a sale, exchange, or liquidation of a principal asset to the extent provided in Part 4, Allocation of Receipts. See Utah Code 75A-5-102
  • Income trust: means a trust that is not a unitrust. See Utah Code 75A-5-301
  • Net income: includes an adjustment from principal to income under Section 75A-5-203. See Utah Code 75A-5-102
  • Person: means :
         (14)(a) an individual;
         (14)(b) an estate;
         (14)(c) a trust;
         (14)(d) a business or nonprofit entity;
         (14)(e) a public corporation, government or governmental subdivision, agency, or instrumentality; or
         (14)(f) any other legal entity. See Utah Code 75A-5-102
  • Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. See Utah Code 75A-5-102
  • Settlor: means the same as that term is defined in Section 75-7-103. See Utah Code 75A-5-102
  • Trust: includes :
              (23)(a)(i) an express trust, private or charitable, with additions to the trust, wherever and however created; and
              (23)(a)(ii) a trust created or determined by judgment or decree under which the trust is to be administered in the manner of an express trust. See Utah Code 75A-5-102
  • Unitrust: includes an express unitrust. See Utah Code 75A-5-301
  • Unitrust amount: means :
         (6)(a) an amount computed by multiplying a determined value of a trust by a determined percentage; and
         (6)(b) for a unitrust administered under a unitrust policy, the applicable value multiplied by the unitrust rate. See Utah Code 75A-5-301
  • Unitrust policy: means a policy described in Sections 75A-5-305 through 75A-5-309 and adopted under Section 75A-5-303. See Utah Code 75A-5-301
     (1)(a) convert an income trust to a unitrust if the fiduciary adopts, in a record, a unitrust policy for the trust providing:

          (1)(a)(i) that, in administering the trust, the net income of the trust will be a unitrust amount rather than net income determined without regard to this part; and
          (1)(a)(ii) the percentage and method used to calculate the unitrust amount;
     (1)(b) change the percentage or method used to calculate a unitrust amount for a unitrust if the fiduciary adopts in a record a unitrust policy or an amendment or replacement of a unitrust policy providing changes in the percentage or method used to calculate the unitrust amount; or
     (1)(c) convert a unitrust to an income trust if the fiduciary adopts, in a record, a determination that, in administering the trust, the net income of the trust will be net income determined without regard to this part rather than a unitrust amount.
(2) A fiduciary may take an action under Subsection (1) if:

     (2)(a) the fiduciary determines that the action will assist the fiduciary to administer a trust impartially;
     (2)(b) the fiduciary sends a notice in a record, in the manner required by Section 75A-5-304, describing and proposing to take the action;
     (2)(c) the fiduciary sends a copy of the notice under Subsection (2)(b) to each settlor of the trust which is:

          (2)(c)(i) if an individual, living; or
          (2)(c)(ii) if not an individual, in existence;
     (2)(d) at least one member of each class of the qualified beneficiaries determined under Subsection 75-7-103(1)(h) receiving the notice under Subsection (2)(b) is:

          (2)(d)(i) if an individual, legally competent;
          (2)(d)(ii) if not an individual, in existence; or
          (2)(d)(iii) represented in the manner provided in Subsection 75A-5-304(2); and
     (2)(e) the fiduciary does not receive, by the date specified in the notice under Subsection 75A-5-304(4)(e), an objection in a record to the action proposed under Subsection (2)(b) from a person to which the notice under Subsection (2)(b) is sent.
(3)

     (3)(a) If a fiduciary receives, not later than the date stated in the notice under Subsection 75A-5-304(4)(e), an objection in a record described in Subsection 75A-5-304(4)(d) to a proposed action, the fiduciary or a beneficiary may request that the court:

          (3)(a)(i) require the fiduciary to take the proposed action;
          (3)(a)(ii) require the fiduciary to take the proposed action with modifications; or
          (3)(a)(iii) prevent the proposed action.
     (3)(b) A person described in Subsection 75A-5-304(1) may oppose the proposed action in the proceeding under Subsection (3)(a), regardless of whether the person:

          (3)(b)(i) consented under Subsection 75A-5-304(3); or
          (3)(b)(ii) objected under Subsection 75A-5-304(4)(d).
(4) If, after sending a notice under Subsection (2)(b), a fiduciary decides not to take the action proposed in the notice, the fiduciary shall notify each person described in Subsection 75A-5-304(1) in a record of the decision not to take the action and the reasons for the decision.
(5) If a beneficiary requests in a record that a fiduciary take an action described in Subsection (1) and the fiduciary declines to act or does not act within 90 days after receiving the request, the beneficiary may request the court to direct the fiduciary to take the action requested.
(6) In deciding whether and how to take an action authorized by Subsection (1), or whether and how to respond to a request by a beneficiary under Subsection (5), a fiduciary shall consider all factors relevant to the trust and the beneficiaries, including the relevant factors in Subsection 75A-5-201(5).
(7) For a reason described in Subsection 75A-5-203(7), and in the manner described in Subsection 75A-5-203(8), a fiduciary may:

     (7)(a) release or delegate the power to convert an income trust to a unitrust under Subsection (1)(a);
     (7)(b) change the percentage or method used to calculate a unitrust amount under Subsection (1)(b); or
     (7)(c) convert a unitrust to an income trust under Subsection (1)(c).
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