75-2-1001 - Honorary trusts -- Trusts for pets.
75-2-1001. Honorary trusts -- Trusts for pets.
(1) Subject to Subsection (3), if a trust is for a specific lawful noncharitable purpose orfor a lawful noncharitable purpose to be selected by the trustee and there is no definite ordefinitely ascertainable beneficiary designated, the trust may be performed by the trustee for 21years but no longer whether or not the terms of the trust contemplate a longer duration.
(2) Subject to this Subsection (2) and Subsection (3), a trust for the care of a designateddomestic or pet animal is valid. The trust terminates when no living animal is covered by thetrust. A governing instrument shall be liberally construed to bring the transfer within thissubsection, to presume against the merely precatory or honorary nature of the disposition, and tocarry out the general intent of the transferor. Extrinsic evidence is admissible in determining thetransferor's intent.
(3) In addition to the provisions of Subsection (1) or (2), a trust covered by either ofthose subsections is subject to the following provisions:
(a) Except as expressly provided otherwise in the trust instrument, no portion of theprincipal or income may be converted to the use of the trustee or to any use other than for thetrust's purposes or for the benefit of a covered animal.
(b) Upon termination, the trustee shall transfer the unexpended trust property in thefollowing order:
(i) as directed in the trust instrument;
(ii) if the trust was created in a nonresiduary clause in the transferor's will or in a codicilto the transferor's will, under the residuary clause in the transferor's will; and
(iii) if no taker is produced by the application of Subsection (3)(b)(i) or (ii), to thetransferor's heirs under Section 75-2-711.
(c) For the purposes of Section 75-2-707, the residuary clause is treated as creating afuture interest under the terms of a trust.
(d) The intended use of the principal or income can be enforced by an individualdesignated for that purpose in the trust instrument or, if none, by an individual appointed by acourt upon application to it by an individual.
(e) Except as ordered by the court or required by the trust instrument, no filing, report,registration, periodic accounting, separate maintenance of funds, appointment, or fee is requiredby reason of the existence of the fiduciary relationship of the trustee.
(f) A court may reduce the amount of the property transferred, if it determines that thatamount substantially exceeds the amount required for the intended use. The amount of thereduction, if any, passes as unexpended trust property under Subsection (3)(b).
(g) If no trustee is designated or no designated trustee is willing or able to serve, a courtshall name a trustee. A court may order the transfer of the property to another trustee, if requiredto assure that the intended use is carried out and if no successor trustee is designated in the trust instrument or if no designated successor trustee agrees to serve or is able to serve. A court mayalso make such other orders and determinations as shall be advisable to carry out the intent of thetransferor and the purpose of this section.
Amended by Chapter 131, 2003 General Session