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2020 Utah Code
Title 75 - Utah Uniform Probate Code
Chapter 7 - Utah Uniform Trust Code
Part 5 - Creditor's Claims - Spendthrift and Discretionary Trusts
Section 505 - Creditor's claim against settlor.
Universal Citation: UT Code § 75-7-505 (2020)
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:
Amended by Chapter 125, 2017 General Session
Amended by Chapter 204, 2017 General Session
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 the creditor or assignee of a particular settlor may reach may not exceed the settlor's interest in the portion of the trust attributable to that settlor's contribution.
- (2) With respect to an irrevocable trust other than an irrevocable trust that meets the requirements of Section 25-6-502, a creditor or assignee of the settlor may reach the maximum amount that can be distributed to or for the settlor's benefit. If the trust has more than one settlor, the amount the creditor or assignee of a particular settlor may reach may not exceed the settlor's interest in the portion of the trust attributable to that settlor's contribution.
- (3) After the death of a settlor, and subject to the settlor's right to direct the source from which liabilities will be paid, the property of a trust that was revocable at the settlor's death, but not property received by the trust as a result of the death of the settlor which is otherwise exempt from the claims of the settlor's creditors, is subject to claims of the settlor's creditors, costs of administration of the settlor's estate, the expenses of the settlor's funeral and disposal of remains, and statutory allowances to a surviving spouse and children to the extent the settlor's probate estate is inadequate to satisfy those claims, costs, expenses, and allowances.
Amended by Chapter 125, 2017 General Session
Amended by Chapter 204, 2017 General Session
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