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19-3B-701
Section 19-3B-701 Accepting or declining trusteeship. (a) Except as otherwise provided in subsection
(c), a person designated as trustee accepts the trusteeship: (1) by substantially complying
with a method of acceptance provided in the terms of the trust; or (2) if the terms of the
trust do not provide a method or the method provided in the terms is not expressly made exclusive,
by accepting delivery of the trust property, exercising powers or performing duties as trustee,
or otherwise indicating acceptance of the trusteeship. (b) A person designated as trustee
who has not yet accepted the trusteeship may reject the trusteeship. A designated trustee
who does not accept the trusteeship within a reasonable time after knowing of the designation
is deemed to have rejected the trusteeship. (c) A person designated as trustee, without accepting
the trusteeship, may: (1) act to preserve the trust property if, within a reasonable time
after acting, the person sends a rejection of the...
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19-3D-11
Section 19-3D-11 Decanting power under expanded distributive dicretion. (a) In this section
the following terms have the following meanings: (1) NONCONTINGENT RIGHT. A right that is
not subject to the exercise of discretion or the occurrence of a specified event that is not
certain to occur. The term does not include a right held by a beneficiary if any person has
discretion to distribute property subject to the right to any person other than the beneficiary
or the beneficiary's estate. (2) PRESUMPTIVE REMAINDER BENEFICIARY. A qualified beneficiary
other than a current beneficiary. (3) SUCCESSOR BENEFICIARY. A beneficiary that is not a qualified
beneficiary on the date the beneficiary's qualification is determined. The term does not include
a person that is a beneficiary only because the person holds a nongeneral power of appointment.
(4) VESTED INTEREST. (A) A right to a mandatory distribution that is a noncontingent right
as of the date of the exercise of the decanting power; (B) a...
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19-3D-7
Section 19-3D-7 THIS SECTION WAS ASSIGNED BY THE CODE COMMISSIONER IN THE 2018 REGULAR SESSION,
EFFECTIVE JANUARY 1, 2019. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT. NOTICE; EXERCISE OF
DECANTING POWER. (a) In this section, a notice period begins on the day notice is given under
subsection (c) and ends 59 days after the day notice is given. (b) Except as otherwise provided
in this chapter, an authorized fiduciary may exercise the decanting power without the consent
of any person and without court approval. (c) Except as otherwise provided in subsection (f),
an authorized fiduciary shall not exercise the decanting power prior to 60 days after giving
record notice of the intended exercise of the decanting power to: (1) each settlor of the
first trust, if living or then in existence; (2) each qualified beneficiary of the first trust;
(3) each holder of a presently exercisable power of appointment over any part or all of the
first trust; (4) each person that currently has the right to...
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19-3D-25
Section 19-3D-25 THIS SECTION WAS ASSIGNED BY THE CODE COMMISSIONER IN THE 2018 REGULAR SESSION,
EFFECTIVE JANUARY 1, 2019. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT. SETTLOR. (a) For purposes
of laws of this state other than this chapter and subject to subsection (b), a settlor of
a first trust is deemed to be the settlor of the second trust with respect to the portion
of the principal of the first trust subject to the exercise of the decanting power. (b) In
determining settlor intent with respect to a second trust, the intent of a settlor of the
first trust, a settlor of the second trust, and the authorized fiduciary may be considered.
(Act 2018-519, ยง25.)...
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19-3D-26
Section 19-3D-26 THIS SECTION WAS ASSIGNED BY THE CODE COMMISSIONER IN THE 2018 REGULAR SESSION,
EFFECTIVE JANUARY 1, 2019. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT. LATER-DISCOVERED PROPERTY.
(a) Except as otherwise provided in subsection (c), if exercise of the decanting power was
intended to distribute all the principal of the first trust to one or more second trusts,
later-discovered property belonging to the first trust and property paid to or acquired by
the first trust after the exercise of the power is part of the trust estate of the second
trust or trusts. (b) Except as otherwise provided in subsection (c), if exercise of the decanting
power was intended to distribute less than all the principal of the first trust to one or
more second trusts, later-discovered property belonging to the first trust or property paid
to or acquired by the first trust after exercise of the power remains part of the trust estate
of the first trust. (c) An authorized fiduciary may provide in an...
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19-3B-902
Section 19-3B-902 Standard of care; portfolio strategy; risk and return objectives. (a) A trustee
shall invest and manage trust assets as a prudent investor would, by considering the purposes,
terms, distribution requirements, and other circumstances of the trust. In satisfying this
standard, the trustee shall exercise reasonable care, skill, and caution. (b) A trustee's
investment and management decisions respecting individual assets must be evaluated not in
isolation but in the context of the trust portfolio as a whole and as a part of an overall
investment strategy having risk and return objectives reasonably suited to the trust. (c)
Among circumstances that a trustee may consider in investing and managing trust assets are
such of the following as are relevant to the trust or its beneficiaries: (1) general economic
conditions; (2) the possible effect of inflation or deflation; (3) the expected tax consequences
of investment decisions or strategies; (4) the role that each investment...
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19-3D-3
Section 19-3D-3 THIS SECTION WAS ASSIGNED BY THE CODE COMMISSIONER IN THE 2018 REGULAR SESSION,
EFFECTIVE JANUARY 1, 2019. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT. SCOPE. (a) Except as
otherwise provided in subsections (b) and (c), this chapter applies to an express trust that
is irrevocable, or revocable by the settlor only with the consent of the trustee or a person
holding an adverse interest. (b) This chapter does not apply to a trust held solely for charitable
purposes. (c) Subject to Section 19-3D-15, a trust instrument may restrict or prohibit exercise
of the decanting power. (d) This chapter does not limit the power of a trustee, powerholder,
or other person to distribute or appoint property in further trust or to modify a trust under
the trust instrument, laws of this state other than this chapter, common law, a court order,
or a nonjudicial settlement agreement. (e) This chapter does not affect the ability of a settlor
to provide in a trust instrument for the distribution...
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19-3B-807
Section 19-3B-807 Delegation by trustee. (a) A trustee may delegate duties and powers that
a prudent trustee could properly delegate under the circumstances. The trustee shall exercise
reasonable care, skill, and caution in: (1) selecting an agent; (2) establishing the scope
and terms of the delegation, consistent with the purposes and terms of the trust; and (3)
periodically reviewing the agent's actions in order to monitor the agent's performance and
compliance with the terms of the delegation. (b) In performing a delegated function, an agent
owes a duty to the trust to exercise reasonable care, skill, and caution to comply with the
terms of the delegation. (c) A trustee who complies with subsection (a) is not liable to the
beneficiaries or to the trust for an action of the agent to whom the function was delegated.
(d) By accepting a delegation of powers or duties from the trustee of a trust that is subject
to the law of this state, an agent submits to the jurisdiction of the courts...
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19-3B-504
Section 19-3B-504 Discretionary trusts; effect of standard. (a) In this section, the terms
"child", "spouse", or "former spouse" include any person for
whom an order or judgment for child or spousal support has been entered in this or another
state. (b) Except as otherwise provided in subsection (c), whether or not a trust contains
a spendthrift provision, a creditor of a beneficiary may not compel a distribution that is
subject to the trustee's discretion, even if: (1) the discretion is expressed in the form
of a standard of distribution; or (2) the trustee has abused the discretion. (c) To the extent
a trustee has not complied with a standard of distribution or has abused a discretion: (1)
a distribution may be ordered by the court to satisfy a judgment or court order against the
beneficiary for support or maintenance of the beneficiary's child, spouse, or former spouse;
and (2) the court shall direct the trustee to pay to the child, spouse, or former spouse such
amount as is...
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19-3B-413
Section 19-3B-413 Cy pres. (a) Except as otherwise provided in subsection (b), if a particular
charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful: (1)
the trust does not fail, in whole or in part; (2) the trust property does not revert to the
settlor or the settlor's successors in interest; and (3) the court may apply cy pres to modify
or terminate the trust by directing that the trust property be applied or distributed, in
whole or in part, in a manner consistent with the settlor's charitable purposes. (b) A provision
in the terms of a charitable trust that would result in distribution of the trust property
to a noncharitable beneficiary prevails over the power of the court under subsection (a) to
apply cy pres to modify or terminate the trust only if, when the provision takes effect: (1)
the trust property is to revert to the settlor and the settlor is still living; or (2) fewer
than 21 years have elapsed since the date of the trust's creation....
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