75B-2-519. Encumbered assets.
145 words·~1 min read·
/ut/title-75b/chapter-2/75b-2-519A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Effective 5/7/2025
75B-2-519. 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 the creditor's lien, in whole or in part, whether or not the holder of the encumbrance has presented a claim, if it appears to be in the best interest of the deceased settlor's estate.
(2)Payment of an encumbrance does not increase the share of the beneficiary entitled to the encumbered assets unless the beneficiary is entitled to exoneration or unless the terms of the deceased settlor's trust, under which the beneficiary is entitled to the encumbered assets, provides otherwise.
Renumbered and Amended by Chapter 310 , 2025 General Session