Effective 5/9/2017 75-7-501. Rights of beneficiary’s creditor or assignee. To the extent a beneficiary’s interest is not protected by a spendthrift provision or Section 25-6-502, the court may authorize a creditor or assignee of the beneficiary to reach the beneficiary’s interest by attachment of present or future distributions to or for the benefit of the […]
75-7-502. Spendthrift provisions for beneficiaries other than the settlor. (1) A spendthrift provision for a beneficiary other than the settlor is valid only if it restrains both voluntary and involuntary transfer of a beneficiary’s interest, even if the beneficiary is the trustee or cotrustee of the trust. (2) A term of a trust providing that […]
Effective 7/1/2021 75-7-503. Exceptions to spendthrift provision. (1) As used in this section: (a) “Child” includes any person for whom an order or judgment for child support has been entered in this or another state. (b) “Civil accounts receivable” means the same as that term is defined in Section 77-32b-102. (c) “Civil restitution of judgment” […]
75-7-504. Discretionary trusts — Effect of standard. (1) 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 (3), whether or not a trust contains a spendthrift provision, a creditor of a beneficiary may […]
Effective 5/9/2017 75-7-505. Creditor’s claim against settlor. Whether or not 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 trust has more than one settlor, the amount […]
75-7-506. 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 distribution to the beneficiary within a reasonable time after the required distribution […]
75-7-507. Personal obligations of trustee. Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. Enacted by Chapter 89, 2004 General Session
Effective 5/8/2018 75-7-508. Notice to creditors. (1) (a) A trustee for an inter vivos revocable trust, upon the death of the settlor, may publish a notice to creditors: (i) once a week for three successive weeks in a newspaper of general circulation in the county where the settlor resided at the time of death; and […]
75-7-509. 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 not barred earlier by other statute of limitations, are barred against the […]
75-7-510. Manner of presentation of claims. (1) Claims against a deceased settlor’s estate or inter vivos revocable trust shall be presented as follows: (a) The claimant may deliver or mail to the trustee, or the trustee’s attorney of record, a written statement of the claim indicating its basis, the name and address of the claimant, […]
Effective 5/8/2018 75-7-511. 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: (a) reasonable funeral expenses; (b) costs and expenses of administration; (c) debts and taxes with preference under federal law; […]
75-7-512. Allowance of claims. (1) As to claims presented in the manner described in Section 75-7-510 and within the time limit prescribed in Section 75-7-509, the trustee may mail a notice to any claimant stating that the claim has been allowed or disallowed. If, after allowing or disallowing a claim, the trustee changes the decision […]
75-7-513. Payment of claims. (1) Upon the expiration of the earliest of the time limitations provided in Section 75-7-509 for 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 provision for claims already presented which have not yet been allowed […]
75-7-514. Secured claims. Payment of a secured claim shall be upon the basis of the amount allowed if the creditor surrenders his security; but otherwise payment shall be based upon one of the following: (1) if the creditor exhausts his security before receiving payment, unless precluded by another provision of the law, upon the amount […]
75-7-515. 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 proceeding, it shall be paid in […]
75-7-516. 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 counterclaims and, if the counterclaims exceed the claim, render a judgment against […]
75-7-517. 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 of mortgages, pledges, or liens upon real or personal […]
75-7-518. Compromise of claims. When a claim against a deceased settlor’s estate has been presented in any manner, the trustee may, if it appears in the best interest of the deceased settlor’s estate, compromise the claim, whether due or not due, absolute or contingent, liquidated or unliquidated. Renumbered and Amended by Chapter 89, 2004 General […]
75-7-519. 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 transfer the assets to the creditor in satisfaction of his lien, […]
