Title 75B, Trusts

75B-2-802. Duty of loyalty. (1) A trustee shall administer the trust solely in the interests of the beneficiaries. (2) Subject to the rights of persons dealing with or assisting the trustee as provided in Section 75B-2-1012, a sale, encumbrance, or other transaction involving the…

75B-2-803. Impartiality. If a trust has two or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests.

75B-2-804. Prudent administration. (1) A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. (2) In satisfying this standard, the trustee shall exercise reasonable car…

75B-2-805. Costs of administration. In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee.

75B-2-806. Trustee's skills. A trustee who is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, shall use those special skills or expertise.

75B-2-807. Control and protection of trust property. A trustee shall take reasonable steps to take control of and protect the trust property.

75B-2-808. Recordkeeping and identification of trust property. (1) A trustee shall keep adequate records of the administration of the trust. (2) A trustee shall keep trust property separate from the trustee's own property. (3) Except as otherwise provided in Subsection (4), a tru…

75B-2-809. Enforcement and defense of claims. A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust.

75B-2-810. Collecting trust property. A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee, and to redress a breach of trust known to the trustee to have been committed by a former trustee, unless the terms of t…

75B-2-811. Duty to inform and report. (1)(a) Except to the extent the terms of the trust provide otherwise, a trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and of the material facts necessary for the qualifie…

75B-2-812. Discretionary powers -- Tax savings. (1) Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as "absolute," "sole," or "uncontrolled," the trustee shall exercise a discretionary power in good faith a…

75B-2-812.5. Discretionary power -- Decanting a trust. (1) As used in this section: (a) "Current income beneficiary" means the same as that term is defined in Section 75A-5-102. (b) "Decanting power" means the power of a trustee as described in Subsection (2)(a): (i) to distribut…

75B-2-813. General powers of trustee. (1) A trustee, without authorization by the court, may exercise: (a) powers conferred by the terms of the trust; or (b) except as limited by the terms of the trust: (i) all powers over the trust property that an unmarried competent owner has …

75B-2-814. Specific powers of trustee. (1) Without limiting the authority conferred by Section 75B-2-813, a trustee may: (a) collect trust property and accept or reject additions to the trust property from a settlor or any other person; (b) acquire or sell property, for cash or o…

75B-2-815. Distribution upon termination. (1)(a) Upon termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution. (b) The right of any beneficiary to object to the proposed distribution terminates if the beneficiary does n…

75B-2-816. Recitals when title to real property is in trust -- Failure. (1) When title to real property is granted to a person as trustee, the terms of the trust may be given either: (a) in the deed of transfer; or (b) in an instrument signed by the grantor and recorded in the sa…

75B-2-817. Marital deduction formulas -- Trusts. (1) For estates of decedents dying after December 31, 1981, where a decedent's trust executed before September 13, 1981, contains a formula expressly providing that the decedent's spouse is to receive the maximum amount of property…

75B-2-901. Prudent investor rule. (1)(a) Except as otherwise provided in Subsection (2), a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule described in this chapter. (b) If a trustee is named on t…

75B-2-902. Standard of care -- Portfolio strategy -- Risk and return objectives. (1)(a) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. (b) In satisfyi…

75B-2-903. Diversification. A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying.

75B-2-904. Duties at inception of trusteeship. Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the trus…

75B-2-905. Reviewing compliance. (1) Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight. (2) This section does not require a specific outcome in investing.

75B-2-906. Investment direction. (1) As used in this section, "investment direction" means a direction that is binding on the trustee, except for an investment direction given by a settlor as described in Subsection (2) to do any of the following with respect to an investment: (a…

75B-2-907. Language invoking standard of chapter. The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under this chapter: "investments permissible by law for investment of t…

75B-3-102. Definitions. As used in this chapter: (1) "Breach of trust" includes a violation by a trust director or trustee of a duty imposed on the director or trustee by the terms of the trust, this chapter, or the law of this state other than this chapter pertaining to trusts. …

75B-3-103. Application -- Principal place of administration. (1) This chapter applies to a trust, whenever created, that has the trust's principal place of administration in this state, subject to the following rules: (a) if the trust was created before May 14, 2019, this chapter…

75B-3-104. Common law and principles of equity. The common law and principles of equity supplement this chapter, except to the extent modified by this chapter or the law of this state other than this chapter.

75B-3-105. Exclusions. (1) As used in this section, "power of appointment" means a power that enables a person acting in a nonfiduciary capacity to designate a recipient of an ownership interest in, or another power of appointment over, trust property. (2) This chapter does not a…

75B-3-106. Powers of trust director. (1) Subject to Section 75B-3-107, the terms of a trust may grant a power of direction to a trust director. (2) Unless the terms of a trust provide otherwise: (a) a trust director may exercise any further power appropriate to the exercise or no…

75B-3-107. Limitations on trust director. (1) A trust director is subject to the same rules as a trustee in a like position and under similar circumstances in the exercise or nonexercise of a power of direction or further power under Subsection 75B-3-106(2)(a) regarding: (a) a pa…

75B-3-108. Duty and liability of trust director. (1) Subject to Subsection (2), with respect to a power of direction or further power under Subsection 75B-3-106(2)(a): (a) a trust director has the same fiduciary duty and liability in the exercise or nonexercise of the power: (i) …

75B-3-109. Duty and liability of directed trustee. (1) Subject to Subsection (2), a directed trustee shall take reasonable action to comply with a trust director's exercise or nonexercise of a power of direction or further power under Subsection 75B-3-106(2)(a), and the trustee i…

75B-3-110. Duty to provide information to trust director or trustee. (1) Subject to Section 75B-3-111, a trustee shall provide information to a trust director to the extent the information is reasonably related both to: (a) the powers or duties of the trustee; and (b) the powers …

75B-3-111. No duty to monitor, inform, or advise. (1) Unless the terms of a trust provide otherwise: (a) a trustee does not have a duty to: (i) monitor a trust director; or (ii) inform or give advice to a settlor, beneficiary, trustee, or trust director concerning an instance in …

75B-3-112. Application to cotrustee. The terms of a trust may relieve a cotrustee from duty and liability with respect to another cotrustee's exercise or nonexercise of a power of the other cotrustee to the same extent that, in a directed trust, a directed trustee is relieved fro…

75B-3-113. Limitation of action against trust director. (1) An action against a trust director for a breach of trust must be commenced within the same limitation period as described in Section 75B-2-1005 for an action for a breach of trust against a trustee in a like position and…

75B-3-114. Defenses in action against trust director. In an action against a trust director for a breach of trust, the director may assert the same defenses a trustee in a like position and under similar circumstances could assert in an action for a breach of trust against the tr…

75B-3-115. Jurisdiction over trust director. (1) By accepting appointment as a trust director of a trust subject to this chapter, the director submits to personal jurisdiction of the courts of this state regarding any matter related to a power or duty of the director. (2) This se…

75B-3-116. Office of trust director. Unless the terms of a trust provide otherwise, the rules applicable to a trustee apply to a trust director regarding the following matters: (1) acceptance under Section 75B-2-701; (2) giving of bond to secure performance under Section 75B-2-70…

75B-3-117. Uniformity of application and construction. In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to this chapter's subject matter among states that enact this chapter.

75B-3-118. Electronic records and signatures. This chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. Sec. 7001(c), or a…