SB 233: Probate Amendments - Utah

Amended Excerpts 2/24/2025 08:02:978 → Amended 2/24/2025 08:02:978 · 5 edits

MODERATE

This bill amends Utah's probate code to establish a specific process for third-party purchases of a beneficiary's interest in a decedent's estate. It adds new requirements for written agreements, defines prohibited contract terms, and creates exemptions for certain family members and professional heir locators.

Scope change

The bill expands the Utah Uniform Probate Code to include a separate process for transferring beneficiary interests purchased by third parties, with specific requirements and exclusions.

DEFINITION

Added new definitions for 'interest' and 'purchaser of interest' to clarify who is subject to the new rules.

REQUIREMENT

Established requirements for written agreements including minimum font size, disclosure of consideration amount, and description of transferred interest.

Added prohibited provisions that cannot appear in purchase agreements, such as indemnification clauses and agency powers beyond the transferred interest.

EXEMPTIONS

Created exemptions for beneficiaries, heirs by intestate succession, family members, registered domestic partners, consumer credit transactions, and professional heir locators.

ENFORCEMENT

Added provisions for optional hearings related to transfers and penalties for willful violations of the process.

Enrolled → Amended Excerpts 2/24/2025 08:02:978 · 1 edit

MINOR

The bill adds the personal representative and other claimants to the list of parties who can file a motion in opposition to a transfer of a beneficiary's interest, expanding who can challenge these transactions. This change ensures that parties with a financial stake in the estate distribution have the opportunity to object to third-party purchases of beneficiary interests.

Scope change

The bill's scope of who can challenge a beneficiary interest transfer was expanded to include the personal representative and other persons with claims to estate distributions, in addition to the beneficiary.

ELIGIBILITY

Added the personal representative and other persons with claims to estate distributions to the list of parties eligible to file a motion in opposition to a transfer of a beneficiary's interest.

Introduced → Enrolled · 9 edits · Mar 26, 2025

MAJOR

This bill adds a new section (75-3-918) to Utah's probate code that creates a regulated process for third parties to purchase a beneficiary's interest in a decedent's estate. The legislation establishes requirements for written agreements, filing procedures, and court oversight to prevent exploitation of vulnerable beneficiaries. It also includes penalties for willful violations.

Scope change

The bill adds a new substantive section (75-3-918) to the Utah Uniform Probate Code that did not previously exist. The rest of the document appears to be formatting changes between versions.

SCOPE

New section 75-3-918 establishes a separate process for transferring a beneficiary's interest when purchased by a third party

DEFINITION

Defines 'interest' and 'purchaser of interest' to clarify who the law applies to

ELIGIBILITY

Exempts certain parties including beneficiaries themselves, family members, domestic partners, and those helping locate missing heirs

REQUIREMENT

Requires written agreements to be in 10-point type or larger, state consideration amount, describe the transferred interest, and prohibit certain unfair provisions

Requires redaction of personally identifying information from agreements before public filing

TIMELINE

Sets deadlines for providing agreement copies (30 days after execution) and filing with the court (within 30 days of administration or 15 days before final distribution hearing)

ENFORCEMENT

Allows courts to schedule hearings and orders distribution terms if requirements aren't substantially met

Imposes penalty of up to twice the payment value for willful violations committed in bad faith

TECHNICAL

Exempts estates already subject to probate proceedings in other states from certain filing requirements

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