All Roll Calls
Yes: 156 • No: 0
UtahS.B. 1002025 General SessionSenateWALLET
Estate Planning Recodification
Sponsored By: Todd Weiler (Republican)
Signed by Governor
RecodificationFiduciaries and TrustsJudicial OperationsProbateLegislative Operations
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Bill Overview
Analyzed Economic Effects
17 provisions identified: 4 benefits, 1 costs, 12 mixed.
College savings gain protection from creditors
Beginning May 7, 2025, individuals can protect up to $200,000 in qualifying Section 529 education savings from creditors. The cap covers all qualifying accounts saved for a particular person's higher education. Protected deposits must have been made more than 18 months before the bankruptcy petition or creditor action.
Inherited retirement savings keep creditor protection
Beginning May 7, 2025, previously exempt retirement funds stay protected when moved into an inherited individual retirement account after the owner's death. The money must move directly or through an eligible rollover. This protection covers inherited accounts regardless of when they were created, subject to the law's existing exceptions.
Creditors face limits challenging trust transfers
Only creditors whose claims predate a transfer can bring the covered challenges to qualifying asset-protection trusts. Claims must meet the applicable two-year or discovery deadline, including required proof of a pre-transfer claim or a qualifying related action. Alternatively, notice starts a 120-day deadline: mailing for known creditors or first publication for unknown creditors, published for three consecutive weeks. For trusts with the required protective terms, specified claims against trustees and people who helped create or fund them are barred. Recovery is limited to the trust and its assets, plus the creator where the law otherwise allows.
Trust owners gain limited creditor shields
An irrevocable trust can shield assets from certain creditors even when its creator also receives trust benefits. It must use Utah law, continuously have a Utah-resident or Utah trust-company trustee, and restrict transfers and the creator's control. Each transfer requires a sworn statement, lawful assets, no support default, no resulting insolvency, and no intent to defraud known creditors. Support claimants must receive written notice stating the date and amount at least 30 days before a distribution. Creditors cannot force or seize unpaid distributions, but can pursue them after payment.
Beneficiaries can object to trust moves
Trustees must notify qualified beneficiaries at least 60 days before starting to move the trust's main place of administration. The notice must explain the proposed move and give at least 60 days to object. A qualified beneficiary's timely objection ends the trustee's authority to make the move.
Health savings accounts get earlier start
For someone with a federally qualifying high-deductible health plan, a health savings account counts as established when coverage starts. No initial deposit is needed. The account must be opened with a trustee or custodian by the applicable federal tax filing deadline, without extensions. A signed agreement is needed only if the trustee or custodian requires one.
Clearer limits on personal decision authority
Under the revised guardian definition, a court appointment is required; a will or written designation alone does not qualify. The definition includes people serving together as guardians. Health care decisions cover choosing or discharging providers and facilities, tests, treatments, medicines, do-not-resuscitate orders, and artificial nutrition or hydration. That authority excludes an adult's finances and social relationships, except for indirect effects of health care choices.
Clearer staffing and safeguards for trustees
A named trustee who does not accept within a reasonable time after learning of the role is treated as declining. Vacancies need filling only when no trustee remains. Courts can set, change, or end trustee bonds; qualified regulated financial institutions need no bond unless trust terms require one. The trust pays required bond costs. Trustees cannot delegate tasks intended for joint action, but investment delegation to a qualified institutional cotrustee is presumed allowed unless trust terms say otherwise; delegation is revocable unless made irrevocable.
Estate counterclaims can reduce creditor payouts
When a court decides a claim against a deceased trust creator's estate, it must subtract any counterclaims. If counterclaims exceed the allowed claim, the court must enter judgment against the claimant for the difference.
Trust contests affect inheritance payment liability
After a revocable trust's creator dies, the trustee can distribute property under the trust's terms. Distribution liability depends on knowing a contest is pending, or receiving proper notice followed by a case within 60 days after notice is sent. Notice must identify the trust or creator, contestant, and grounds, using registered or certified return-receipt mail to the main administration address or civil-summons service. For responses to a possible contest, the liability rule reaches only actions taken at least two business days after actual notice receipt.
Trust creators get clearer change options
Trusts signed on or after May 1, 2004, can be changed or canceled unless their terms expressly make them irrevocable. This default does not cover earlier trust documents. For a noncharitable irrevocable trust, an agent can consent to termination only with express authority in the trust or power of attorney. Without an authorized agent, a conservator can act with court approval; without a conservator, a guardian can act with court approval. A charitable trust's creator can also ask a court to modify that trust.
Trust directors get defined decision powers
Beginning May 7, 2025, trust terms can give directors decision powers, including related powers and majority voting unless the trust says otherwise. Appointment powers, trustee or director selection and removal, creator revocation, and specified beneficiary and tax powers fall outside this framework. Unless trust terms differ, a recipient-selection power usable while not serving as trustee counts as an appointment power. Accepting a covered director role submits that person to Utah courts for related duties and powers. Unless trust terms differ, trustee rules govern acceptance, bonds, reasonable pay, resignation, removal, vacancies, and successors.
Trust managers share facts without monitoring
Beginning May 7, 2025, trustees and directors must share information reasonably related to both parties' powers or duties. They are protected from resulting breach liability when relying on that information, except for willful misconduct. Unless trust terms differ, they need not monitor each other or advise about decisions they would have handled differently. Voluntarily monitoring or giving that advice does not by itself create an ongoing duty.
Trust roles share duties and liability limits
Beginning May 7, 2025, directors generally have comparable trustee duties and liability, including Medicaid-payback and charitable-interest rules and attorney-general notice. Trust terms can vary duties within trustee-law limits; qualified health providers acting professionally are exempt unless the trust says otherwise. Directed trustees must reasonably follow directors and are protected for compliance, but cannot engage in willful misconduct. Trust terms can similarly limit cotrustee responsibility; releases fail for willful misconduct, improper procurement, or missing material facts. Directors face comparable trustee claim deadlines, report and accounting effects, and defenses.
Updated rules for wills and inheritances
The general will definition covers writings or other records directing estate transfers at death and taking effect only then. It also includes codicils and specified records naming estate representatives, nominating guardians, changing wills, or limiting inheritance rights. The law removes separate express definitions covering codicils and related records from electronic-will and appointment-power rules. A general estate-transfer clause in a will or revocable trust exercises a power to choose recipients only when all listed conditions hold. The power must be general and exercisable for the holder's estate, with no contrary intent, effective default gift, or release of the power.
Utah courts handle defined trust disputes
Beneficiaries of Utah-administered trusts are subject to Utah courts for trust matters to the extent of their trust interests. Accepting a distribution also submits the recipient personally to Utah court authority for trust matters. Cases generally belong where the trust is or will be administered; will-created trusts can also use the estate's county while it remains open. If no trustee serves, appointment cases can use a beneficiary's county, the property's county, or where the estate was or is administered. These county-filing rules do not apply in the Business and Chancery Court.
Shared safe-deposit leases do not transfer ownership
A safe-deposit box lease cannot create joint ownership of its contents or give them to a surviving lessee after death. Ownership depends on other applicable law. The provider can deliver contents on request to someone authorized by the lease without liability under this rule. Permission to collect the contents does not itself establish ownership.
Sponsors & Cosponsors
Sponsor
Todd Weiler
Republican • Senate
Cosponsors
Anthony E. Loubet
Republican • House
Roll Call Votes
Senate vote • 2/21/2025
Senate/ circled
Yes: 0 • No: 0
Senate vote • 2/21/2025
Senate/ concurs with House amendment
Yes: 23 • No: 0
Senate vote • 2/21/2025
Senate/ uncircled
Yes: 0 • No: 0
House vote • 2/20/2025
House/ passed 3rd reading
Yes: 69 • No: 0
House vote • 2/14/2025
House Comm - Favorable Recommendation
Yes: 8 • No: 0
Senate vote • 2/4/2025
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • 2/4/2025
Senate/ passed 3rd reading
Yes: 24 • No: 0
Senate vote • 2/3/2025
Senate/ circled
Yes: 0 • No: 0
Senate vote • 1/31/2025
Senate/ passed 2nd reading
Yes: 26 • No: 0
Senate vote • 1/23/2025
Senate Comm - Favorable Recommendation
Yes: 6 • No: 0
Senate vote • Unknown
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ circled
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ circled
Yes: 0 • No: 0
Actions Timeline
Governor Signed
3/25/2025Senate/ to Governor
3/17/2025SenateSenate/ received enrolled bill from Printing
3/17/2025SenateSenate/ enrolled bill to Printing
3/13/2025SenateEnrolled Bill Returned to House or Senate
3/13/2025Draft of Enrolled Bill Prepared
2/25/2025Bill Received from Senate for Enrolling
2/25/2025Senate/ signed by President/ sent for enrolling
2/24/2025SenateSenate/ received from House
2/24/2025SenateHouse/ to Senate
2/21/2025HouseHouse/ signed by Speaker/ returned to Senate
2/21/2025HouseHouse/ received from Senate
2/21/2025HouseSenate/ to House
2/21/2025SenateSenate/ concurs with House amendment
2/21/2025SenateSenate/ uncircled
2/21/2025SenateSenate/ circled
2/21/2025SenateSenate/ placed on Concurrence Calendar
2/20/2025SenateSenate/ received from House
2/20/2025SenateHouse/ to Senate
2/20/2025HouseHouse/ passed 3rd reading
2/20/2025HouseHouse/ 3rd reading
2/20/2025HouseHouse/ 2nd reading
2/14/2025HouseHouse/ committee report favorable
2/14/2025HouseHouse Comm - Favorable Recommendation
2/14/2025HouseHouse/ to standing committee
2/10/2025House
Bill Text
Enrolled
3/13/2025
Substitute #1
2/7/2025
Introduced
1/10/2025