State Codes and Statutes

Statutes > Utah > Title-22 > Chapter-03 > 22-3-107

22-3-107. Notice of proposed action -- Objections by beneficiary -- Liability oftrustee -- Proceedings.
(1) A trustee may give a notice of proposed action regarding a matter governed by thischapter as provided in this section. For the purpose of this section, a proposed action includes acourse of action and a decision not to take action.
(2) The trustee shall mail notice of the proposed action to all adult beneficiaries who arereceiving, or are entitled to receive, income under the trust or to receive a distribution ofprincipal if the trust were terminated at the time the notice is given.
(3) Notice of proposed action need not be given to any person who consents in writing tothe proposed action. The consent may be executed at any time before or after the proposedaction is taken.
(4) The notice of proposed action shall state that it is given pursuant to this section andthe following:
(a) the name and mailing address of the trustee;
(b) the name and telephone number of a person who may be contacted for additionalinformation;
(c) a description of the action proposed to be taken and an explanation of the reasons forthe action;
(d) the time within which objections to the proposed action can be made, which shall beat least 30 days from the mailing of the notice of proposed action; and
(e) the date on or after which the proposed action may be taken or is effective.
(5) A beneficiary may object to the proposed action by mailing a written objection to thetrustee at the address stated in the notice of proposed action within the time period specified inthe notice of proposed action.
(6) A trustee is not liable to a beneficiary for an action regarding a matter governed bythis chapter if the trustee does not receive a written objection to the proposed action from abeneficiary within the applicable period and the other requirements of this section are satisfied. If no beneficiary entitled to notice objects under this section, the trustee is not liable to anycurrent or future beneficiary with respect to the proposed action.
(7) If the trustee receives a written objection within the applicable period, either thetrustee or a beneficiary may petition the court to have the proposed action taken as proposed,taken with modifications, or denied. In the proceeding, a beneficiary objecting to the proposedaction has the burden of proving that the trustee's proposed action should not be taken. Abeneficiary who has not objected is not estopped from opposing the proposed action in theproceeding.
(8) If the trustee decides not to implement the proposed action, the trustee shall notify thebeneficiaries of the decision not to take the action and the reasons for the decision. The trustee'sdecision not to implement the proposed action does not give rise to liability to any current orfuture beneficiary.
(9) A beneficiary may petition the court to have the action taken, and has the burden ofproving that it should be taken.

Enacted by Chapter 285, 2004 General Session