Utah Code 75A-5-602. Distribution to successor beneficiary
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Terms Used In Utah Code 75A-5-602
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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
- Decedent: A deceased person.
- Distribution: means a payment or transfer by a fiduciary to a beneficiary in the beneficiary's capacity as a beneficiary, made under the terms of the trust, without consideration other than the beneficiary's right to receive the payment or transfer under the terms of the trust. See Utah Code 75A-5-102
- Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: includes :
(8)(a) a trustee, trust director as defined in Section75-12-102 , 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 interest: includes the right of a current beneficiary to use property held by a fiduciary. See Utah Code 75A-5-102
- Net income: includes an adjustment from principal to income under Section
75A-5-203 . See Utah Code 75A-5-102- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Principal: means property held in trust for distribution to, production of income for, or use by a current or successor beneficiary. See Utah Code 75A-5-102
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- 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(1)(a) Except to the extent Part 3, Unitrust, applies for a beneficiary that is a trust, each beneficiary described in Subsection75A-5-601 (6) is entitled to receive a share of the net income equal to the beneficiary’s fractional interest in undistributed principal assets, using values of the undistributed principal assets as of the distribution date.(1)(b) If a fiduciary makes more than one distribution of assets to beneficiaries to which this section applies, each beneficiary, including a beneficiary that does not receive part of the distribution, is entitled, as of each distribution date, to a share of the net income the fiduciary received after the decedent‘s death, an income interest‘s other terminating event, or the preceding distribution by the fiduciary.(2) In determining a beneficiary’s share of net income under Subsection (1):(2)(a) the beneficiary is entitled to receive a share of the net income equal to the beneficiary’s fractional interest in the undistributed principal assets immediately before the distribution date;(2)(b) the beneficiary’s fractional interest under Subsection (2)(a) shall be calculated:(2)(b)(i) on the aggregate value of the assets as of the distribution date without reducing the value by any unpaid principal obligation; and(2)(b)(ii) without regard to:(2)(b)(ii)(A) property specifically given to a beneficiary under the decedent’s will or the terms of the trust; and(2)(b)(ii)(B) property required to pay pecuniary amounts not in trust; and(2)(c) the distribution date under Subsection (2)(a) may be the date on which the fiduciary calculates the value of the assets if that date is reasonably near the date on which the assets are distributed.(3) To the extent that a fiduciary does not distribute under this section all the collected but undistributed net income to each beneficiary on or before a distribution date, the fiduciary shall maintain records showing the interest of each beneficiary in the net income.(4) If this section applies to income from an asset, a fiduciary may apply Subsection (2) to net gain or loss realized from the disposition of the asset after the decedent’s death, an income interest’s terminating event, or the preceding distribution by the fiduciary.