Uniform Trust Code.

ORIGINAL
House
Bill No.
HB0146

ENROLLED ACT NO. 59,

HOUSE OF REPRESENTATIVES

SIXTY-THIRD
LEGISLATURE OF THE STATE OF WYOMING
2015 General Session

AN ACT relating to the Uniform Trust Code; providing protection against liability for a trustee who consents to a modification or termination of a trust in good faith; providing that a distribution from a discretionary trust to a beneficiary does not create an interest in property; amending creditor's claims against settlor as specified; amending powers of the trustee as specified; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S.
4
‑
10
‑
504 by creating a new subsection (g), 4
‑
10
‑
506(c), 4
‑
10
‑
816(a) by creating new paragraphs (xxix) through (xxxii)
, by creating a new subsection (b) and
by renumbering (b) as (c) are amended to read:

4
‑
10
‑
504
.

Discretionary trusts; effect of standard.

(g)

Terms of a trust providing a trustee may make discretionary distributions to a beneficiary, whether or not the discretionary distributions are pursuant to a standard of distribution, create no property interest in the beneficiary.

4
‑
10
‑
506
.

Creditor
'
s claim against settlor.

(c)

With respect to irrevocable trusts providing that the trustee may only make discretionary distributions to the settlor, a creditor or assignee of the right of a settlor are limited by W.S. 4
‑
10
‑
504(b) if
:

(i)

T
he transfer of property to the trust by the settlor was not in violation of the Uniform Fraudulent Transfers Act
and the trustee is a regulated financial institution
qualified trustee.
by
applying the same standard of proof as provided in
W.S. 4
‑
10
‑
517
;

(ii)

A
t least one
(1)
trustee of the irrevocable trust
is
a
qualified trustee
;

and

(iii)

T
he trustee with authority to make distributions to the settlor
is
not a trust beneficiary
,
related
to
the settlor
or

subordinate to the settlor under Internal Revenue
Code

section
672(c).

4
‑
10
‑
816
.

Specific powers of trustee.

(a)

Without limiting the authority conferred by W.S. 4
‑
10
‑
815, a trustee may:

(xxix)

Make a distribution of trust income to or for the benefit of a beneficiary or pay trust expenses from a trust with two
(2)
or more subtrusts or shares for the beneficiary from any subtrust or share requiring or permitting income distributions to the beneficiary;

(xxx)

Separate a trust for the benefit of more than one
(1)
beneficiary into separate trusts or shares for each beneficiary, unless the trust instrument requires the trust property
to
be held in one
(1)
trust for the beneficiaries;

(xxxi)

Exercise elections
with respect to federal, state
and local taxes; and

(xxxii)

Decide each trust taxable year whether principal distributions made from a trust to a beneficiary include net realized capital gains and losses in section 643(a) of the Internal Revenue Code distributable net income.

(b)

The power provided in
paragraph

(a)
(xxviii)
of this section

shall not be exercised in any manner that would prevent qualification for a federal estate or gift tax marital deduction, federal estate or gift tax charitable deduction, or other federal income, estate, gift or generation
‑
skipping transfer tax benefit claimed for the trust from which the distribution in further trust is made. A trustee
shall not be liable for
exercising the power permitted under
paragraph

(a)
(xxviii)
of this section

if
the power is exercised in
good faith.

(b)
(c)

This section may be cited as the Uniform Trustee Powers Act.

Section
2
.

This
act is effective July 1,
2015
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the
House
.

Chief Clerk

1