Utah Trust

In Utah, trusts are governed by the Utah Uniform Trust Code (Utah Code 75-7). A trust is governed under Utah State laws if the trust specifically states that it is under Utah law or if the place of business where the fiduciary transacts a major portion of the trust is in Utah. (Utah Code 75-7-107). You can set up a trust so that it is governed by the laws of other states.

The terms of a trust may prevail over state laws except for the following: the requirements for creating a trust; the requirement that a trust and its terms be for the benefit of its beneficiaries; the power of the court to modify or terminate a trust; the effect of a spendthrift provision, and the rights of certain creditors and assignees to reach a trust; the power of the court to require, dispense with, or modify or terminate a bond; the effect of an exculpatory term for the trustee; the rights of a person other than a trustee or beneficiary; periods of limitation for commencing a judicial proceeding; and the subject-matter jurisdiction of the court and venue for commencing a proceeding. (Utah Code 75-7-105 Default and mandatory rules).

Can a Trust Be Amended

A trust can be amended by the interested parties, subject to certain conditions. It may or may not require judicial approval. Nonjudicial settlement agreements are permitted by interested persons, or persons whose consent would be required in order to achieve a binding settlement were the settlement to be approved by the court. A nonjudicial settlement agreement may not violate a material purpose of the trust and must include terms and conditions that could be properly approved by the court. Matters that may be resolved by a nonjudicial settlement agreement include: the interpretation or construction of the terms of the trust; the approval of a trustee’s report or accounting; direction to a trustee to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power; the resignation or appointment of a trustee and the determination of a trustee’s compensation; transfer of a trust’s principal place of administration; and liability of a trustee for an action relating to the trust. Any interested person may request the court to approve a nonjudicial settlement agreement, to determine whether the representation was adequate, and to determine whether the agreement contains terms and conditions the court could have properly approved. (Utah Code 75-7-110)

Types of Trusts

There are many different types of trusts that may be used for avoiding probate, asset protection, tax reduction, gifting strategies, charity, guns, medicaid, etc.

Share This