Bill No.: HB0069                  Drafter:  JHR

LSO No.:  07LSO-0005              Effective Date:  7/1/2007

Enrolled Act No.:  HEA0080

Chapter No.:

Prime Sponsor:     Joint Judiciary Interim Committee

Catch Title:       Uniform Trust Code-amendments.

Subject:  Amending procedures relating to spendthrift trusts.

Summary/Major Elements:

· This act amends the Uniform Trust Code (UTC) by:

· Providing procedures for the creation of spendthrift trusts;

· Specifying powers of settlors in the creation of a spendthrift trust;

· Requiring a settlor to maintain personal liability insurance of $1 million, or coverage equal to the fair market value of qualified transfers to a spendthrift trust, unless the transfer is to a trust created by court order under W.S. 3-3-607;

· Specifying standards for distribution from, or transfers to, a spendthrift trust;

· Specifying protections provided under spendthrift trust;

· Defining a "qualified transfer" under the Act;

· Specifying that the Uniform Fraudulent Transfers Act is the only means to bring an action to avoid a transfer to a spendthrift trust;

· Specifying rights of creditors and others regarding a qualified spendthrift trust or qualified transfers to a trust;

· Providing for burden of proof and standard of evidence necessary to prevail when challenging the actions of a trustee or beneficiary of a spendthrift trust;

· Allowing a trustee to resign and beneficiaries to petition a court with appropriate jurisdiction for appointment of a successor trustee;

· Providing definitions;

· Specifying factors to determine the law governing the meaning and effect of the terms of a trust;

· Allowing an assignee or judgment creditor to attach distributions made to a beneficiary from a spendthrift trust under specified conditions;

· Amending the information that is necessary on a certification or affidavit of trust;

· Specifying that a Wyoming court shall not consider cases relating to Article 5 of the UTC from a jurisdiction that has not modified Article 5 of that state's UTC in a manner similar to Wyoming;

· Providing that trusts containing mandatory distributions without a spendthrift provision may allow a creditor or assignee to compel the trustee to make the distribution where it was not made within a reasonable time;

· Conforming and repealing provisions.

Comments:

· Popular Name- Uniform Trust Code