75A-5-202. Judicial review of exercise of discretionary power -- Request for instruction.

442 words·~2 min read·/ut/title-75a/chapter-5/75a-5-202

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/7/2025

(1)In this section, "fiduciary decision" means:

(a)a fiduciary's allocation between income and principal or other determination regarding income and principal required or authorized by the terms of the trust or this chapter;

(b)the fiduciary's exercise or nonexercise of a discretionary power regarding income and principal granted by the terms of the trust or this chapter, including the power to:

(i)adjust under Section 75A-5-203 ;

(ii)convert an income trust to a unitrust under Subsection 75A-5-303 (1)(a);

(iii)change the percentage or method used to calculate a unitrust amount under Subsection 75A-5-303 (1)(b); or

(iv)convert a unitrust to an income trust under Subsection 75A-5-303 (1)(c); or

(c)the fiduciary's implementation of a decision described in Subsection (1)(a) or (b).

(2)The court may not order a fiduciary to change a fiduciary decision, unless the court determines that the fiduciary decision was an abuse of the fiduciary's discretion.

(a)If the court determines that a fiduciary decision was an abuse of the fiduciary's discretion, the court may order a remedy authorized by law, including a remedy authorized in Section 75B-2-1001 .

(b)To place the beneficiaries in the positions that the beneficiaries would have occupied if there had not been an abuse of the fiduciary's discretion, the court may order:

(i)the fiduciary to exercise or refrain from exercising the power to adjust under Section 75A-5-203 ;

(ii)the fiduciary to exercise or refrain from exercising the power to:

(A)convert an income trust to a unitrust under Subsection 75A-5-303 (1)(a);

(B)change the percentage or method used to calculate a unitrust amount under Subsection 75A-5-303 (1)(b); or

(C)convert a unitrust to an income trust under Subsection 75A-5-303 (1)(c);

(iii)the fiduciary to distribute an amount to a beneficiary;

(iv)a beneficiary to return some or all of a distribution; or

(v)the fiduciary to withhold an amount from one or more future distributions to a beneficiary.

(a)On petition by a fiduciary for instruction, the court may determine whether a proposed fiduciary decision will result in an abuse of the fiduciary's discretion.

(b)A beneficiary that opposes the proposed decision has the burden to establish that the proposed decision will result in an abuse of the fiduciary's discretion if the petition:

(i)describes the proposed decision;

(ii)contains sufficient information to inform the beneficiary of the reasons for making the proposed decision and the facts on which the fiduciary relies; and

(iii)explains how the beneficiary will be affected by the proposed decision.

Amended by Chapter 310 , 2025 General Session