Title 75B, Title 75B: Trusts

75B-2-305. Appointment of guardian ad litem or other representative. (1) If the court determines that an interest is not represented under this part, or that the otherwise available representation might be inadequate, the court may appoint a guardian ad litem or other representat…

75B-2-401. Methods of creating trust. (1) A trust may be created by: transfer of property to another person as trustee during the settlor's lifetime or by will or other disposition taking effect upon the settlor's death; declaration by the owner of property that the owner holds i…

75B-2-402. Requirements for creation. (1) A trust is created only if: the settlor has capacity to create a trust, which standard of capacity shall be the same as for a person to create a will; the settlor indicates an intention to create the trust or a statute, judgment, or decre…

75B-2-403. Trusts created in other jurisdictions. A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation: (1) the settlor…

75B-2-404. Trust purposes. (1) A trust may be created only to the extent the trust's purposes are lawful, not contrary to public policy, and possible to achieve. (2) A trust and the trust's terms must be for the benefit of the trust's beneficiaries.

75B-2-405. Charitable purposes -- Enforcement. (1) A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or other purposes the achievement of which is beneficial to the c…

75B-2-406. Creation of trust induced by fraud, duress, or undue influence. A trust is void to the extent the trust's creation was induced by fraud, duress, or undue influence.

75B-2-407. Evidence of oral trust. Except as required by a statute other than this chapter, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and the trust's terms may be established only by clear and convincing evidence.

75B-2-408. Trust for care of animal. A trust may be created to provide for the care of a pet or animal as provided in Section.

75B-2-409. Noncharitable trust without ascertainable beneficiary. A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee as provided in Section.…

75B-2-410. Modification or termination of trust -- Proceedings for approval or disapproval. (1) In addition to the methods of termination prescribed by Sectionsthrough, a trust terminates to the extent the trust is revoked or expires pursuant to the trust's terms, no purpose of t…

75B-2-411. Modification or termination of noncharitable irrevocable trust by consent. (1) A noncharitable, irrevocable trust may be modified or terminated upon consent of the settlor and all beneficiaries, even if the modification or termination is inconsistent with a material pu…

75B-2-412. Modification or termination because of unanticipated circumstances or inability to administer trust effectively. (1) The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settl…

75B-2-413. Cy pres. (1) Except as otherwise provided in Subsection, if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful: (2) the trust does not fail, in whole or in part; the trust property does not revert to the settlor or the s…

75B-2-414. Modification or termination of uneconomic trust. (1) After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than $100,000 may terminate the trust if the trustee concludes that the value of the trust pr…

75B-2-415. Reformation to correct mistakes. The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's intention if it is proved by clear and convincing evidence that both the settlor's intent and the terms of the trust were affected by …

75B-2-416. Modification to achieve settlor's tax objectives. (1) To achieve the settlor's tax objectives, the court may modify the terms of a trust in order to achieve the settlor's tax objectives. (2) The court may provide that the modification has retroactive effect.

75B-2-417. Combination and division of trusts. After notice to the qualified beneficiaries, a trustee may combine two or more trusts into a single trust or divide a trust into two or more separate trusts if the result does not impair rights of any beneficiary or adversely affect …

75B-2-501. Rights of beneficiary's creditor or assignee. (1) To the extent a beneficiary's interest is not protected by a spendthrift provision or Chapter 1, Part 3, Asset Protection Trust, the court may authorize a creditor or assignee of the beneficiary to reach the beneficiary…

75B-2-502. Spendthrift provisions for beneficiaries other than the settlor. (1) A spendthrift provision for a beneficiary other than the settlor is valid only if the spendthrift provision restrains both voluntary and involuntary transfer of a beneficiary's interest, even if the b…

75B-2-503. Exceptions to spendthrift provision. (1) As used in this section: "Child" includes any person for whom an order or judgment for child support has been entered in this or another state. "Civil accounts receivable" means the same as that term is defined in Section. 77-32…

75B-2-504. Discretionary trusts -- Effect of standard. (1) As used in this section, "child" includes any person for whom an order or judgment for child support has been entered in this or another state. (2) Except as otherwise provided in Subsection, whether or not a trust contai…

75B-2-505. Creditor's claim against settlor. Regardless of whether the terms of a trust contain a spendthrift provision, the following rules apply: (1) During the lifetime of the settlor, the property of a revocable trust is subject to the claims of the settlor's creditors. If a …

75B-2-506. Overdue distribution. Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the dis…

75B-2-507. Personal obligations of trustee. Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt.

75B-2-508. Notice to creditors. (1) A trustee for an inter vivos revocable trust, upon the death of the settlor, may publish a notice to creditors: once a week for three successive weeks in a newspaper of general circulation in the county where the settlor resided at the time of …

75B-2-509. Limitations on presentation of claims. (1) All claims against a deceased settlor which arose before the death of the deceased settlor, whether due or to become due, absolute or contingent, liquidated or unliquidated, founded on contract, tort, or other legal basis, if …

75B-2-510. Manner of presentation of claims. (1) Claims against a deceased settlor's estate or inter vivos revocable trust shall be presented as follows: The claimant may deliver or mail to the trustee, or the trustee's attorney of record, a written statement of the claim indicat…

75B-2-511. Classification of claims. (1) If the applicable assets of the deceased settlor's estate or trust estate are insufficient to pay all claims in full, the trustee shall make payment in the following order: reasonable funeral expenses; costs and expenses of administration;…

75B-2-512. Allowance of claims. (1) As to claims presented in the manner described in Sectionand within the time limit prescribed in Section, the trustee may mail a notice to any claimant stating that the claim has been allowed or disallowed. 75B-2-510 75B-2-509 If, after allowin…

75B-2-513. Payment of claims. (1) Upon the expiration of the earliest of the time limitations provided in Sectionfor the presentation of claims, the trustee shall pay the claims allowed against the deceased settlor's estate in the order of priority prescribed, after making provis…

75B-2-514. Secured claims. Payment of a secured claim shall be upon the basis of the amount allowed if the creditor surrenders the creditor's security, but otherwise payment shall be based upon one of the following: (1) if the creditor exhausts the creditor's security before rece…

75B-2-515. Claims not due and contingent or unliquidated claims. (1) If a claim which will become due at a future time or a contingent or unliquidated claim becomes due or certain before the distribution of the trust estate, and if the claim has been allowed or established by a p…

75B-2-516. Counterclaims. (1) In allowing a claim, the trustee may deduct any counterclaim which the deceased settlor's estate has against the claimant. In determining a claim against a deceased settlor's estate, a court shall reduce the amount allowed by the amount of any counte…

75B-2-517. Execution and levies prohibited. (1) No execution may issue upon nor may any levy be made against any property of the deceased settlor's estate under any judgment against a deceased settlor or a trustee. (2) This section may not be construed to prevent the enforcement …

75B-2-518. Compromise of claims. When a claim against a deceased settlor's estate has been presented in any manner, the trustee may, if the claim appears in the best interest of the deceased settlor's estate, compromise the claim, whether due or not due, absolute or contingent, l…

75B-2-519. Encumbered assets. (1) If any assets of the deceased settlor's estate are encumbered by mortgage, pledge, lien, or other security interest, the trustee may pay the encumbrance or any part thereof, renew or extend any obligation secured by the encumbrance, or convey or …

75B-2-601. Capacity of settlor of revocable trust. The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will.

75B-2-602. Revocation or amendment of revocable trust. (1) Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. This Subsectiondoes not apply to a trust created under an instrument executed before May 1, 2004. (1)…

75B-2-603. Settlor's powers -- Powers of withdrawal. (1) To the extent a trust is revocable by a settlor, a trustee may follow a direction of the settlor that is contrary to the terms of the trust. To the extent a trust is revocable by a settlor in conjunction with a person other…

75B-2-604. Limitation on action contesting validity of revocable trust -- Distribution of trust property. (1) A person shall commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor's death within the earlier of: three years after the se…

75B-2-701. Accepting or declining trusteeship. (1) Except as otherwise provided in Subsection, a person designated as trustee accepts the trusteeship: (3) by substantially complying with a method of acceptance provided in the terms of the trust; or if the terms of the trust do no…

75B-2-702. Trustee's bond. (1) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the req…

75B-2-703. Cotrustees. (1) Cotrustees who are unable to reach a unanimous decision may act by majority decision. (2) If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust. (3) Subject to Section, a cotrustee must participate in the performance of …

75B-2-704. Vacancy in trusteeship -- Appointment of successor. (1) A vacancy in a trusteeship occurs if: a person designated as trustee rejects the trusteeship; a person designated as trustee cannot be identified or does not exist; a trustee resigns; a trustee is disqualified or …

75B-2-705. Resignation of trustee. (1) A trustee may resign: upon at least 30 days' notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or with the approval of the court. (2) In approving a resignation, the court may issue orders and impose conditio…