Title 4 — Title 4 — Trusts

Modification or termination of trust; proceedings for approval or disapproval. (a) In addition to the methods of termination prescribed by W.S. 4-10-412 through 4-10-415, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no material purpose o…

Modification or termination of noncharitable irrevocable trust by consent. (a) If upon petition the court finds that the settlor and all qualified beneficiaries consent to the modification or termination of a noncharitable irrevocable trust, the court may enter an order approving…

Modification or termination because of unanticipated circumstances or inability to administer trust effectively. (a) The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modific…

Cy pres. (a) Except as otherwise provided in the terms of the trust, if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve or wasteful: (i) The trust does not fail, in whole or in part; (ii) The trust property does not revert to the settlor or …

Modification or termination of uneconomic trust. (a) If the fair market value of a trust is less than one hundred fifty thousand dollars ($150,000.00), the trustee may terminate the trust by the following procedure: (i) The trustee shall determine a plan of distribution that agre…

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 a mistake o…

objectives. Modification to achieve settlor's tax To achieve the settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention as proved by a preponderance of the evidence. The court may provide that the m…

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

Rights of beneficiary's creditor or assignee. To the extent a beneficiary's interest in trust income or principal, or both, is not subject to a spendthrift provision or the exercise of the trustee's discretion, the court may authorize an assignee or a judgment creditor of the ben…

(a) Spendthrift provision. Repealed By Laws 2007, Ch. 155, § 5. (b) A term of a trust providing that the interest of a beneficiary is held subject to a "spendthrift trust," or words of similar import, is sufficient to restrain both voluntary and involuntary transfers of the benef…

Exceptions to spendthrift provision. (a) 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. (b) Even if a trust contains a spendthrift provision, a person who has a judgment or court orde…

(b) If the trust includes a spendthrift provision, a creditor or assignee of a beneficiary may not compel a mandatory distribution or attach a mandatory distribution until it is received by the beneficiary. (c) If a trust providing for a mandatory distribution does not include a …

Standards of distribution. (a) Regardless of whether a beneficiary's interest in trust income or principal or both is subject to a spendthrift provision, if the terms of the trust direct the trustee to make distributions of trust income or principal or both according to a standar…

Power of appointment or withdrawal; claims of power holder's creditors. (a) Property of a trust that the holder of a power of appointment is authorized to appoint may not be reached or attached by creditors or assignees of the power holder except to the extent that the power hold…

Creditor's claim against settlor. (a) Whether or not the terms of a trust contain a spendthrift provision, the following rules apply: (i) During the lifetime of the settlor, the property of a revocable trust contributed by the settlor, and all income and appreciation thereon and …

Limitation on action by creditors. (a) Subject to the rights of persons dealing with a fiduciary as provided in W.S. 4-10-1013, a creditor may file a claim against the assets of the trust or commence a judicial proceeding to contest the validity of a trust that was revocable at t…

for compliance. Enforcement of foreign judgments; liability (a) Notwithstanding any other provision of law, no judgment, decree or order of a court of the United States, a court of another state or any other court other than a Wyoming court shall be enforced against the property …

Overdue mandatory distribution. (a) In this section, "mandatory distribution" means a distribution of income or principal which the trustee is required to make to a beneficiary under the terms of the trust, including a distribution on termination of the trust. The term does not i…

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

Creation of qualified spendthrift trust. (a) A settlor may create a qualified spendthrift trust with a trust instrument appointing a qualified trustee for qualified trust property, which instrument: (i) States that the trust is a qualified spendthrift trust under this section; (i…

Qualified trust property. (a) Qualified trust property includes real property, personal property and interests in real or personal property and all gains, appreciation and income thereon which: (i) Are the subject of a qualified transfer; and (ii) Are acquired with the proceeds o…

Qualified transfers; exception. (a) Except as otherwise provided in this section, "qualified transfer" means a transfer, conveyance or assignment of property, by or from a settlor, with or without consideration, to a qualified trustee, under a trust instrument which meets the req…

Other qualified transfers. (a) In the case of a transfer to more than one (1) trustee, the transfer will be a qualified transfer if at least one (1) of the trustees is a qualified trustee. (b) A transfer by a trustee that is not a qualified trustee to a trustee that is a qualifie…

Action brought pursuant to provisions of Uniform Fraudulent Transfer Act. Except as provided in W.S. 4-10-518, no action of any kind, including an action to enforce a judgment entered by a court or other body having adjudicative authority, may be brought at law or in equity for a…

Transfer by a trustee; time of transfer. (a) A qualified transfer by a trustee of a qualified spendthrift trust to a qualified trustee of another qualified spendthrift trust shall relate back to the date of the original qualified transfer. (b) A transfer of trust property from th…

Election to become a qualified spendthrift trust by existing trust. (a) The settlor, trustee or trust protector of an existing irrevocable trust may elect in writing to treat the trust as a qualified spendthrift trust under this article, and the protection accorded under this art…

Rights of creditors or others with respect to qualified spendthrift trust. (a) Notwithstanding any law to the contrary, a creditor or assignee of a settlor of a qualified spendthrift trust, or an agent of a creditor or settlor, has only those rights with respect to the qualified …

be barred. Actions prohibited if action by creditor would Notwithstanding any other provision of law, no judgment or order upon an action to enforce a judgment, or for relief for conspiracy to commit a fraudulent conveyance, aiding and abetting a fraudulent conveyance or particip…

instrument. Multiple qualified transfers in same trust (a) If more than one (1) qualified transfer is made to the same qualified spendthrift trust: (i) The making of a subsequent qualified transfer shall be disregarded in determining whether a creditor's claim with respect to a p…

Limitations on qualified trust property. (a) The provisions of W.S. 4-10-510 through 4-10-523, do not apply in any respect to: (i) Any person to whom a settlor is indebted on account of an agreement or order of court for the payment of support in favor of the settlor's children i…

Avoidance of qualified transfer. (a) A qualified transfer to a qualified spendthrift trust is avoided only to the extent necessary to satisfy the settlor's debt to the creditor at whose instance the qualified transfer had been avoided, together with costs, including attorney's fe…

Limitation or termination of authority of trustee upon court decision not to apply Wyoming law. If, in any action brought against a trustee of a qualified spendthrift trust, a court takes any action whereby the court declines to apply the law of this state in determining the vali…

Qualified transfer affidavit. (a) A qualified transfer affidavit shall be in writing, sworn to by the settlor, and shall include each of the following statements: (i) The settlor has full right, title and authority to transfer the property to the qualified spendthrift trust; (ii)…

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.

Revocation or amendment of revocable trust. (a) Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. (b) If a revocable trust is created or funded by more than one (1) settlor: (i) To the extent the trust consists…

Settlor's powers; powers of withdrawal. (a) While a trust is revocable and the settlor has capacity to revoke the trust, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor. (b) If a revocable trust has mor…

Limitation on action contesting validity of revocable trust; distribution of trust property. (a) Subject to the rights of persons dealing with a fiduciary as provided in W.S. 4-10-1013, a person may commence a judicial proceeding to contest the validity of a trust that is revocab…

Accepting or declining trusteeship. (a) Except as otherwise provided in subsection (c) of this section, a person designated as trustee accepts the trusteeship: (i) By substantially complying with a method of acceptance provided in the terms of the trust; or (ii) If the terms of t…

Trustee's bond. (a) 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 requirement. (…

Cotrustees. (a) Cotrustees who are unable to reach a unanimous decision may act by majority decision. (b) If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust. (c) A cotrustee shall participate in the performance of a trustee's function unless th…

successor. (a) Vacancy in trusteeship; appointment of A vacancy in a trusteeship occurs if: (i) trusteeship; A person designated as trustee rejects the (ii) A person designated as trustee cannot be identified or does not exist; (iii) A trustee resigns; (iv) A trustee is disqualif…

Resignation of trustee. (a) For a revocable living trust, a trustee may resign: (i) Upon at least thirty (30) days notice to the settlor, if living, and all other cotrustees; or (ii) With the approval of the court. (b) For an irrevocable, testamentary or charitable trust, a trust…

Removal of trustee. (a) The settlor, a cotrustee or a qualified beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative as outlined in subsection (b) of this section. (b) trust; The court may remove a trustee if: (i) T…

Delivery of property by former trustee. (a) Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee …

Compensation of trustee. (a) If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances. The trustee shall notify the qualified beneficiaries, in writing, of any change in the method or rate …

Reimbursement of expenses. (a) A trustee is entitled to be reimbursed out of the trust property, with interest, as appropriate, for: (i) Expenses that were properly incurred in the administration of the trust; (ii) Expenses that were properly incurred in responding to an objectio…

Trust protector. (a) The powers and discretions of a trust protector shall be provided in the trust instrument or may be established or modified by a judicial order, and may, in the best interests of the trust, be exercised or not exercised. The powers and discretions may include…

Trust protector as a fiduciary. Trust protectors are fiduciaries to the extent of the powers, duties and discretions granted to them under the terms of the trust instrument.

Trust advisor. (a) The powers and discretions of a trust advisor shall be provided in the trust instrument and may, in the best interests of the trust, be exercised or not exercised in the sole and absolute discretion of the trust advisor and shall be binding on all other persons…

Trust advisor as a fiduciary. Trust advisors are fiduciaries to the extent of the powers, duties and discretions granted to them under the terms of the trust instrument.