All Roll Calls
Yes: 114 • No: 9
UtahH.B. 1762026 General SessionHouseWALLET
Trust Business Modifications
Sponsored By: Anthony E. Loubet (Republican)
Signed by Governor
BusinessFiduciaries and TrustsDivision of Finance
Your PRIA Score
Score Hidden
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
13 provisions identified: 5 benefits, 2 costs, 6 mixed.
Safer handling of title escrow money
Beginning May 6, 2026, title insurance licensees are trustees for money they collect to forward to insurers or insureds and must not mix those funds with their own, except for bank charges or their earned fees. If they do not send the money by the next business day, they must deposit it in an authorized trust account and keep it there until paid out. Trust accounts may earn interest that goes to the licensee if contracts and law are followed. Wrongfully taking trust funds is theft. It is not a violation if trust account balances exceed federal deposit insurance, and banks cannot take trust funds to cover the licensee’s debts.
Stronger protections for trust assets
The law requires trust companies to invest or distribute trust money as soon as allowed by the trust and not hold cash longer than needed. If a bank‑affiliated trust company deposits trust funds into its own bank and the balance exceeds federal insurance, it must provide collateral as federal rules require. Trust assets must be kept separate from company assets, recorded on separate books, and are not available to the company’s creditors. Trust companies must keep fiduciary account communications confidential and adopt policies that ban using inside information when trading securities for trusts.
New tax breaks for estates and trusts
Beginning May 6, 2026, estates and trusts can subtract more items from Utah taxable income. Examples include interest or dividends on U.S. government obligations and certain income of qualifying irrevocable resident trusts that have a trust company as trustee and first became resident on or after Jan 1, 2004. They can also subtract charitable gifts deducted under federal law by a nongrantor charitable lead trust, refunds of state taxes reported federally, and railroad retirement benefits reported federally. Amounts tied to deceased American Indian or Ute tribal members are subtracted when state law may not tax them. Interest on bonds that state law makes tax‑exempt is subtracted, and FDIC premiums disallowed federally are subtracted for tax years that begin in 2019 (including certain 2018 amounts) and for years that begin on or after 2020.
Stronger oversight of trust companies
The commissioner may revoke a trust company’s authority for unlawful or unsound conduct or rule violations. The notice must state facts and set a hearing. If proven or by default, the order can stop new trust accounts and revoke authority while existing accounts are wound down. Revocation takes effect 30 days after service unless stayed. Complaints about attorneys go to the Utah State Bar, and about CPAs go to the Division of Professional Licensing.
Stronger safeguards for real estate escrow
Money held by a title insurance producer for a real estate deal must go into a federally insured trust account at a depository authorized for trust business. If the depositing licensee is a Utah resident, the bank must have a Utah branch. The funds must be kept in a separate trust account and remain the property of the people entitled to them. Beginning May 6, 2026, the commissioner may also approve other accounts that provide comparable safety. Nonresident licensees may follow their home state’s trust‑account rules, and some entities (like authorized trust companies, depository institutions, certain state entities, and insurance licensees) are exempt from the escrow chapter.
Who can offer trust services in Utah
Only entities with a permit from the commissioner may accept fiduciary appointments in Utah, with narrow exemptions for some pre‑1981 and nonprofit or employee‑benefit cases. Applicants must meet standards on capital, management, need for services, and more; the commissioner may set conditions and must not treat state‑chartered banks worse than similar federal banks. Approved trust companies can merge or reorganize with commissioner approval, and successors take over trust duties after notice; interested persons have 30 days to ask a court to appoint a different trust company. The law updates definitions and exclusions, bars foreign depository institutions from doing trust business here, and revokes the right to use “trust” in a name after withdrawal. Misuse of restricted names or transacting without authority is a class A misdemeanor and can draw fines up to $500 per day after a cease‑and‑desist order.
No self-dealing with trust assets
A trust company may not invest trust money in its own stock or debts. It may not buy from or sell trust property to the company or its insiders. Limited exceptions apply only if allowed by the governing instrument or specific statutes.
New add-backs for estates and trusts
Beginning May 6, 2026, Utah adds several items to estate and trust income. These include certain lump‑sum retirement distributions that reduce federal income, interest from other states’ municipal bonds bought on or after Jan 1, 2003 if that interest was not in federal income, and S‑corporation income held through an electing small business trust. Nonqualified withdrawals from Utah Education Savings accounts are added back when they were previously subtracted or used for a Utah credit and not used for allowed education costs. Fiduciary adjustments required by Utah law are also added.
New exam and license fees for firms
Entities under the department that do not pay other listed fees must pay $200 each year plus per‑exam assessments. Exams are billed at $55 per hour for each examiner; for exams outside Utah, firms also pay reasonable travel and lodging. Registrants under the listed sections and applicants for a money transmitter license must pay a $300 original fee, on top of any other fees.
New rules for trust directors
Beginning May 6, 2026, a trust director is treated like a trustee when using a power of direction for Medicaid payback clauses and charitable interests, including required notice to the attorney general. A trust director may not engage in “trust business.” Utah’s trust code also updates who counts as a beneficiary, who is a settlor, who is a minor, and what a trust includes.
Only licensed firms use bank or trust names
It is illegal to act as or claim to be a bank, credit union, or trust company without authorization from Utah or a federal agency. Only authorized entities may use words like “bank,” “credit union,” “trust,” “trustee,” or “trust company” in a business name. The commissioner may grant narrow, written exemptions only if the use is not misleading.
New state fees for banks and trusts
Depository institutions pay an annual supervision fee based on average total assets, using tiered rates: the first $5 million is charged the greater of $0.65 per $1,000 or $500, and the rate steps down to $0.02 per $1,000 on amounts over $600 million. Institutions with trust departments also pay per‑examination fees. Non‑depository trust companies pay a $500 annual fee plus per‑exam fees. New credit unions pay a $25 basic fee in their first year instead of the regular asset‑based fee.
Who can run trust businesses
Only specific entities may be a trust company in Utah, such as Utah‑chartered or authorized depository institutions (and certain subsidiaries), corporations owned by federally insured depositories, some holding‑company subsidiaries, and long‑standing firms from before July 1, 1981. Only a trust company may do trust business in Utah, with narrow exceptions for some out‑of‑state or federal institutions and state agencies acting under law.
Free Policy Watch
You just read the policy. Now see what it costs you.
Pick a topic. PRIA runs your household against live legislation and sends you a free personalized readout.
Pick a topic to get started
Sponsors & Cosponsors
Sponsor
Anthony E. Loubet
Republican • House
Cosponsors
Todd Weiler
Republican • Senate
Roll Call Votes
Senate vote • 3/6/2026
Senate/ passed 2nd & 3rd readings/ suspension
Yes: 25 • No: 0
House vote • 3/3/2026
Senate Comm - Favorable Recommendation
Yes: 6 • No: 0
House vote • 2/27/2026
House/ passed 3rd reading
Yes: 65 • No: 1
House vote • 2/27/2026
House/ uncircled
Yes: 0 • No: 0
House vote • 2/27/2026
House/ substituted
Yes: 0 • No: 0
House vote • 2/24/2026
House/ circled
Yes: 0 • No: 0
House vote • 2/18/2026
House Comm - Substitute Recommendation
Yes: 10 • No: 3
House vote • 2/18/2026
House Comm - Favorable Recommendation
Yes: 8 • No: 5
Actions Timeline
Governor Signed
3/18/2026House/ to Governor
3/16/2026HouseHouse/ received enrolled bill from Printing
3/16/2026HouseHouse/ enrolled bill to Printing
3/12/2026HouseEnrolled Bill Returned to House or Senate
3/12/2026Draft of Enrolled Bill Prepared
3/10/2026Bill Received from House for Enrolling
3/10/2026House/ signed by Speaker/ sent for enrolling
3/6/2026HouseHouse/ received from Senate
3/6/2026HouseSenate/ to House
3/6/2026SenateSenate/ signed by President/ returned to House
3/6/2026SenateSenate/ passed 2nd & 3rd readings/ suspension
3/6/2026SenateSenate/ 2nd & 3rd readings/ suspension
3/6/2026SenateSenate/ Rules to 2nd Reading Calendar
3/6/2026SenateSenate/ 2nd Reading Calendar to Rules
3/4/2026SenateSenate/ placed on 2nd Reading Calendar
3/4/2026SenateSenate/ committee report favorable
3/4/2026SenateSenate Comm - Favorable Recommendation
3/3/2026Senate/ to standing committee
2/27/2026SenateSenate/ 1st reading (Introduced)
2/27/2026SenateSenate/ received from House
2/27/2026SenateHouse/ to Senate
2/27/2026HouseHouse/ passed 3rd reading
2/27/2026HouseHouse/ substituted
2/27/2026HouseHouse/ uncircled
2/27/2026House
Bill Text
Enrolled
3/12/2026
Substitute #3
2/27/2026
Substitute #2
2/25/2026
Substitute #1
2/18/2026
Introduced
1/7/2026
Related Bills
Take It Personal
Get Your Personalized Policy View
Take the PRIA Score to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in