Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 233 (2025GS)

Sponsor

Sen. Cullimore, Kirk A.

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• enacts within the Utah Uniform Probate Code a separate process for transferring a beneficiary's interest that is purchased by a third party in certain circumstances;
• provides a process for the transfer and requirements for written agreements to purchase a beneficiary's interest;
• provides for an optional hearing in relation to the transfer; and
• provides a penalty for a willful violation of the process.

Every vote on this bill

Bill text

3
75-3-918
75-3-918
0
Probate Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Kirk A. Cullimore
House Sponsor: Jordan D. Teuscher
LONG TITLE
General Description:
This bill modifies provisions of the Utah Uniform Probate Code.
Highlighted Provisions:
This bill:
enacts within the Utah Uniform Probate Code a separate process for transferring a 
beneficiary's interest that is purchased by a third party in certain circumstances;
provides a process for the transfer and requirements for written agreements to purchase a 
beneficiary's interest;
provides for an optional hearing in relation to the transfer; and
provides a penalty for a willful violation of the process.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
75-3-918
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
75-3-918
 is enacted to read:
75-3-918
. Distribution to a purchaser of interest in a decedent's estate -- 
Exclusions -- Requirements for filing and agreement contents and form -- Redactions 
required -- Hearing -- Probate action in another state.
(1)
As used in this section:
(a)
"Interest" has the same meaning as "estate, trust, or other beneficial interest" as 
defined in Section 
75A-2-211
.
(b)
"Purchaser of interest" means a person who:
(i)
purchases, by means of a written agreement, an interest from a beneficiary in 
exchange for consideration; and
(ii)
regularly engages in, either directly or indirectly, the purchase of beneficial 
interests in estates in exchange for consideration.
(2)
The requirements of this section apply to a distribution from a decedent's estate that is 
made to a purchaser of interest.
(3)
This section does not apply to:
(a)
a transferee who is a beneficiary of the estate;
(b)
a person who has a claim to distribution from the estate under another instrument or 
by intestate succession;
(c)
a transferee who is the registered domestic partner of the beneficiary, or who is 
related by blood, marriage, or adoption to the beneficiary or the decedent;
(d)
a transaction made under Title 70C, Utah Consumer Credit Code; or
(e)
a transferee who is engaged in the business of locating missing or unknown heirs and 
who acquires an interest from a beneficiary solely in exchange for providing 
information or services associated with locating the heir or beneficiary.
(4)
(a)
A written agreement under this section shall:
(i)
be printed in 10-point type or larger, including any accompanying documents 
provided by the purchaser of interest in relation to the written agreement;
(ii)
state the amount of consideration paid to the beneficiary;
(iii)
provide a description of the transferred interest; and
(iv)
if the written agreement so provides, state the amount by which the transferee for 
value would have its distribution reduced if the beneficial interest assigned is 
distributed prior to a specified date.
(b)
A written agreement under this section may not contain any of the following 
provisions, and if any such provision is included, the prohibited provision is null and 
void:
(i)
a provision that holds the purchaser of interest harmless, other than for liability 
arising out of fraud by the beneficiary;
(ii)
a provision granting the purchaser of interest agency powers to represent the 
beneficiary's interest in the decedent's estate beyond the interest to be transferred;
(iii)
a provision requiring the beneficiary to pay the purchaser of interest for services 
that are not related to the written agreement or for services other than the transfer 
of interest under the written agreement; or
(iv)
a provision permitting the purchaser of interest to have recourse against the 
beneficiary if the distribution from the estate in satisfaction of the beneficial 
interest is less than the beneficial interest assigned to the purchaser of interest, 
other than recourse for any expense or damage arising out of the material breach 
of the agreement or fraud by the beneficiary.
(c)
Before a copy of a written agreement under this section is filed, served, or otherwise 
publicly distributed as may be required by law, the purchaser of interest shall redact 
from that copy all information that personally identifies the beneficiary, other than 
the name and address of the beneficiary.
(5)
To request a transfer of the interest as provided under this section, the purchaser of 
interest shall, not later than 30 days following the date of execution of the written 
agreement or, if administration of the decedent's estate has not commenced, then within 
30 days of issuance of the letters of administration or letters testamentary, but in no 
event later than 15 days prior to the hearing on the petition for final distribution:
(a)
provide a copy of the written agreement to the beneficiary, and if all or some of the 
negotiation or discussion that resulted in the execution of the written agreement by 
the beneficiary was conducted in a language other than English, provide the 
beneficiary with a copy of the written agreement in English, together with a copy of 
the written agreement translated into the language in which the written agreement 
was negotiated or discussed;
(b)
file a copy of the written agreement that meets the requirements of this section, and 
that is redacted in accordance with the requirements of Subsection 
(4)(c)
, with the 
court; and
(c)
provide notice of the assignment on the personal representative or the attorney of 
record for the personal representative.
(6)
(a)
The beneficiary may file a motion in opposition, which motion may also request 
that the court schedule a hearing, within 10 calendar days of receipt of the written 
agreement.
(b)
The court on its own motion, or in response to a motion under Subsection 
(6)(a)
, may 
inquire into the circumstances surrounding the execution of, and the consideration 
for, the written agreement to determine that the requirements of this section have 
been satisfied.
(c)
Notice of a hearing on any motion brought under this section shall be served on the 
beneficiary and on the purchaser of interest at least 15 days before the date of the 
hearing.
(7)
(a)
Except as provided in Subsections 
(7)
(b) and (7)(c), if no motion in opposition has 
been filed under Subsection 
(6)(a)
, the court shall allow the transfer.
(b)
The court may order distribution under the written agreement, or may order 
distribution on any terms that the court considers equitable, if the court finds that the 
purchaser of interest did not substantially comply with the requirements of this 
section, or if the court finds that any of the following conditions existed at the time of 
transfer:
(i)
fees, charges, or consideration paid or agreed to be paid by the beneficiary were 
grossly unreasonable; or
(ii)
the transfer of the beneficial interest was obtained by duress, fraud, or undue 
influence.
(c)
In addition to any remedy specified in this section, for any willful violation of the 
requirements of this section found to be committed in bad faith, the court may require 
the purchaser of interest to pay to the beneficiary up to twice the value paid for the 
assignment.
(8)
If the decedent's estate is not subject to a pending court proceeding under Title 75, Utah 
Uniform Probate Code, but is the subject of a probate proceeding in another state, the 
purchaser of interest shall not be required to submit to the court a copy of the written 
agreement as required under Subsection 
(5)
.
Section 2. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-12-25 4:24 PM