Chapter 3 - Fiduciaries
CHAPTER 3 - FIDUCIARIES
ARTICLE 1 - IN GENERAL
2-3-101. Oath.
Beforeletters testamentary or of administration are issued, the personalrepresentative shall take and subscribe an oath before some officer authorizedto administer oaths, that he will perform according to law the duties ofexecutor or administrator, which oath shall be attached to the letters.
2-3-102. Bond required; sureties; form; amount; ascertaining value ofproperty.
Exceptas provided by W.S. 2-3-111, every person to whom letters testamentary or ofadministration are issued shall, before receiving them, execute a bond to thestate of Wyoming with two (2) or more sufficient individual sureties or one (1)sufficient corporate surety approved by the district court or the commissioneror clerk. The bond shall be joint and several and the penalty shall not be lessthan the value of the personal property, and the probable value of the annualrents, profits and issues of real property belonging to the estate. The valueshall be ascertained by the district court or the above named officers byexamining on oath the party applying and any other person. The sureties shalljustify on written oath attached to the bond in an amount equal in theaggregate to the penalty thereof.
2-3-103. Letters and bonds to be recorded.
Allletters testamentary or of administration issued to, and all bonds executed bypersonal representatives, with the affidavits and certificates thereon, shallbe recorded by the clerk of the court.
2-3-104. Appointment orders to state qualification time; lapses.
Wheneveran order appointing a personal representative is made by any district court orofficer having authority to make the appointment, the order shall state thetime within which the personal representative shall qualify by giving the bondand taking the oath required by law. Upon failure of any personal representativeto qualify within the time fixed, his appointment shall lapse and anotherappointment shall be made.
2-3-105. Additional bond required upon sale of real estate; whenrequired.
Thedistrict court may require an additional bond whenever the sale of any realestate belonging to the estate is ordered, unless it satisfactorily appearsthat the penalty of the bond given before receiving letters or any bond givenin place thereof is equal to the value of the personal property remaining withor that will come into the possession of the personal representative, includingthe annual rents, profits and issues of real estate, and the probable amount tobe realized on the sale of real estate ordered sold.
2-3-106. Additional bond required upon sale of real estate;conditions.
Theadditional bond shall be conditioned that the personal representative shallfaithfully execute the duties of the trust according to law, and the suretiesshall justify as provided in W.S. 2-3-102.
2-3-107. Separate bond required from each personal representative.
Whentwo (2) or more persons are appointed personal representatives, a separate bondis required from each of them in the same amount as would be required from one.
2-3-108. Several recoveries on same bond allowed.
Thebond shall not be void upon the first recovery. It may be used and recoveredupon from time to time by any person aggrieved, in his own name, until thewhole penalty is exhausted.
2-3-109. Ordering sureties to appear for property value examination; noticeto personal representatives; requiring additional security.
Beforeany bond is approved and after its approval, the officer whose duty it is toapprove the same, of his own motion or upon the motion of any person interestedin the estate, supported by affidavit that the sureties or one (1) or more ofthem are not worth as much as they have justified to, may order the sureties toappear before him at a designated time and place to be examined touching theirproperty and its value. The officer shall, at the same time, cause a notice tobe issued to the personal representative requiring his appearance at theexamination. If, upon examination of the sureties and the witnesses who appear,the officer is satisfied that the bond is insufficient, he shall requireadditional security.
2-3-110. When sufficient security not given in time.
Ifsufficient security is not given within the time fixed by the order, the rightof the personal representative to the administration shall cease, and theperson next entitled to the administration of the estate, shall be appointed tothe administration upon execution of a sufficient bond.
2-3-111. When no bond required; generally.
(a) When it is expressly provided in the will or by statutethat no bond be required of the personal representative or when thedistributees waive in writing the requirement that a bond be executed, letterstestamentary or of administration may issue without the execution and filing ofa bond as provided by W.S. 2-3-102.
(b) When a bond is waived by will, by statute or by thedistributees, sales of real estate may be made and confirmed without a bondunless the court for good cause requires one to be executed.
(c) If it appears necessary for any reason at any timeafterward, the personal representative may be required to file a bond as inother cases.
2-3-112. When no bond required; suspension of powers upon allegationof waste.
Whena petition is presented praying that a personal representative be required togive further security, or to give bond, where by the terms of the will no bondwas originally required, and it is alleged on oath that the personalrepresentative is wasting the property of the estate, the judge or commissionermay by order suspend his powers until the matter can be heard and determined.
2-3-113. Requiring further security; petition.
Anyperson interested in any estate may, by verified petition, represent to thecourt or commissioner that the sureties of a personal representative havebecome or are becoming insolvent, or that they have removed or are about toremove from the state, or that from any other cause the bond is insufficient,and ask that further security be required.
2-3-114. Requiring further security; citation to personalrepresentative; service.
Ifthe court or commissioner is satisfied that the matter requires investigation,a citation shall be issued to the personal representative requiring him toappear at a time and place specified to show cause why he should not givefurther security. The citation shall be served personally on the personalrepresentative at least five (5) days before the return day. If he hasabsconded or cannot be found it may be served by leaving a copy of it at hisplace of residence or by such publication as may be ordered.
2-3-115. Requiring further security; hearing; order therefor or newbond.
Atthe time appointed the court shall hear the proofs and allegations of theparties. If it satisfactorily appears that the security is insufficient, anorder may be made requiring the personal representative to give furthersecurity, or to file a new bond in the usual form within a reasonable time, notless than five (5) days.
2-3-116. Requiring further security; failure to comply.
Ifthe personal representative neglects to comply with the order within the timeprescribed, the court shall revoke his letters and his authority shall cease.
2-3-117. Ordering further security without application.
Whenit comes to his knowledge that the bond of a personal representative isinsufficient, the court or commissioner, without any application, shall causehim to be cited to appear and show cause why he should not give furthersecurity, and shall proceed as upon the application of any person interested.
2-3-118. Relief of sureties; application; citation and service.
Whena surety of any personal representative desires to be released fromresponsibility on account of future acts, he may apply to the court orcommissioner for relief. Citation shall be issued to the personal representativeand served personally, requiring him to appear at a time and place specified,and to give other security. If he has absconded, left or removed from the stateor if he cannot be found after due diligence and inquiry, service may be madeas provided in W.S. 2-3-114.
2-3-119. Relief of sureties; release order.
Ifnew sureties are given to the satisfaction of the court or commissioner, he mayorder that the sureties who applied for relief shall not be liable on theirbond for any subsequent act, default or misconduct of the personalrepresentative.
2-3-120. Relief of sureties; revocation of letters.
Ifthe personal representative neglects or refuses to give new sureties to thesatisfaction of the court or commissioner, unless the surety making theapplication shall consent to a longer extension of time, the court orcommissioner shall by order revoke his letters.
2-3-121. Revoking intestacy administration if will later allowed;generally.
If,after granting letters of administration on the ground of intestacy, a will ofthe decedent is duly proved and allowed, the letters of administration shall berevoked and the power of the administrator shall cease, and he shall render anaccount of his administration within the time directed.
2-3-122. Revoking intestacy administration if will later allowed;authority of personal representative.
Insuch case, the personal representative with the will annexed is entitled todemand, sue for, recover and collect all the rights, goods, chattels, debts andeffects of the decedent remaining unadministered. He may prosecute to finaljudgment any suit commenced by the administrator before the revocation of hisletters of administration.
2-3-123. Remaining personal representatives to continue if onedisqualified.
Ifany one (1) of several personal representatives to whom letters are granteddies, becomes incompetent, is convicted of an infamous crime or otherwisebecomes incapable of executing the trust, or if letters testamentary or ofadministration are revoked or annulled with respect to any one (1) personalrepresentative, the remaining personal representative shall complete theexecution of the will or administration.
2-3-124. New appointment to be made if all personal representativesdie; bond; authority.
Ifall personal representatives die or become incapable, or the authority of allof them is revoked, letters testamentary or letters of administration thenshall be issued in the same order of preference and manner as provided for theissuance of original letters testamentary or original letters ofadministration. The personal representative so appointed shall give bond inlike penalty, with like sureties and conditions as required of personalrepresentatives, and shall have like authority.
2-3-125. Resignation of personal representative; revocation ofletters for delay or other cause and new appointment; liability afterdischarge.
Anypersonal representative may, by writing filed in the district court, resign hisappointment at any time, having first settled his accounts and delivered up allthe estate to the person appointed to receive the same. If by reason of anydelays in such settlement and delivery of the estate or for any other cause thecircumstances of the estate or the rights of those interested therein requireit, the court may, before settlement of accounts and delivering up of theestate is completed, revoke the letters of the personal representative, andappoint another personal representative, either special or general, in the samemanner as for original letters of administration. The personal representativedischarged and released, and the sureties on his bonds are not responsible forany act or liability incurred after his discharge, but shall not be relieved ofany liability occurring on his bonds prior to his discharge.
2-3-126. Acts valid until power revoked.
Allacts of a personal representative before the revocation of his letterstestamentary or of administration are as valid as if the personalrepresentative had continued lawfully to execute the duties of his trust.
2-3-127. Suspension of personal representative's powers for waste;order.
Wheneverthe court, commissioner or clerk of court has reason to believe from his ownknowledge or from credible information that any personal representative haswasted, embezzled or mismanaged, or is about to waste or embezzle the propertyof the estate committed to his charge, or has committed or is about to commit afraud upon the estate, is incompetent to act, has permanently removed from thestate, has wrongfully neglected the estate, or has long neglected to performany act as personal representative, he shall by order suspend the powers of thepersonal representative until the matter is investigated.
2-3-128. Suspension of personal representative's powers for waste;notice to show cause.
Whensuspension is ordered, the personal representative shall be cited to appear andshow cause why his letters should not be revoked. If he fails to appear or ifupon appearance the court or officer is satisfied there exists cause for hisremoval, his letters shall be revoked and letters of administration grantedanew as the case may require.
2-3-129. Suspension of personal representative's powers for waste;hearing and determination.
Atthe hearing any person interested in the estate or the officer making thecharge may appear and file his allegations in writing, showing that thepersonal representative should be removed. The personal representative mayanswer. The issue raised shall be heard and determined by the court.
2-3-130. Suspension of personal representative's powers for waste;notice by publication.
Ifthe personal representative has absconded, conceals himself or has absentedhimself from the state, notice by publication may be given him of the pendencyof the proceedings.
2-3-131. Suspension of personal representative's powers for waste;compelling attendance and answers.
Inthe proceedings for the removal of a personal representative, the court maycompel his attendance by attachment, and may compel him to answer questions onoath touching his administration. Upon his refusal, the court may commit himuntil he obeys, revoke his letters, or both.
2-3-132. Petition for revocation by prior claimant; generally.
Whenletters of administration are granted to any person other than the survivinghusband or wife, child, father, mother, brother or sister of the intestate, anyone (1) of them who is competent, or any competent person at the writtenrequest of any one (1) of them, may obtain the revocation of the letters and beentitled to administration by presenting to the court a petition so praying.
2-3-133. Petition for revocation by prior claimant; citation topersonal representative.
Whensuch petition is filed, the clerk shall issue a citation to the personalrepresentative to appear and answer at the time appointed for the hearing.
2-3-134. Petition for revocation by prior claimant; hearing anddisposition.
Atthe time appointed, the citation having been duly served and returned, thecourt shall proceed to hear the allegations and proofs of the parties. If theright of the applicant is established and he is competent, letters ofadministration shall be granted to him and the letters of the former personalrepresentative revoked.
2-3-135. Petition for revocation by prior claimant; prior right ofsurviving spouse.
Whenletters of administration have been granted to a child, father, brother orsister of the intestate, the surviving spouse may assert his or her prior rightand obtain letters of administration and have the letters before grantedrevoked.
2-3-136. Hearing upon affidavit of interested person; authority toorder.
Whenit appears by the affidavit of any person interested in the estate that anypersonal representative, guardian, receiver, assignee or trustee has failed torender his accounts in the manner prescribed by law or as required by the orderof the court, or has removed from the state, the court may order a hearing ashereinafter prescribed.
2-3-137. Hearing upon affidavit of interested person; citation andservice thereof.
Thecourt shall make an order fixing the time and place of the hearing. The clerkshall issue citation to be served upon the officer charged as delinquent andupon the heirs, ward, cestui que trust or bondsmen. The citation shall beserved by the sheriff upon the person or persons to be served, or by registeredmail if personal service cannot be made in the county. The citation shallnotify the persons served of the time and place of the hearing.
2-3-138. Hearing upon affidavit of interested person; proceedings anddisposition.
Atthe hearing the court shall proceed in a summary way to ascertain the facts andthe course best calculated to protect the interests of all parties. Uponfinding of default or removal from the state, the court may remove the personalrepresentative, guardian, receiver, assignee or trustee and appoint anotherqualified person to administer the estate, who shall qualify according to law.
ARTICLE 2 - UNIFORM PROVISIONS
2-3-201. Short title.
W.S.2-3-201 through 2-3-211 may be cited as the "Uniform FiduciariesAct".
2-3-202. Definitions.
(a) In this act unless the context or subject matter otherwiserequires:
(i) "Bank" includes any person or association ofpersons, whether incorporated or not, carrying on the business of banking;
(ii) "Fiduciary" includes a trustee under any trust,expressed, implied, resulting or constructive, personal representative,guardian, conservator, curator, receiver, trustee in bankruptcy, assignee forthe benefit of creditors, partner, agent, officer of a corporation, public orprivate, public officer or any other person acting in a fiduciary capacity forany person, trust or estate;
(iii) "Person" includes a corporation, partnership orother association or two (2) or more persons having a joint or common interest;
(iv) "Principal" includes any person to whom afiduciary as such owes an obligation;
(v) A thing is done "in good faith" within themeaning of this act, when it is in fact done honestly, whether it be donenegligently or not;
(vi) As used in the Uniform Fiduciaries Act, "thisact" means W.S. 2-3-201 through 2-3-211.
2-3-203. Responsibility and rights of persons dealing withfiduciaries.
Aperson who in good faith pays or transfers to a fiduciary any money or otherproperty which the fiduciary as such is authorized to receive is notresponsible for the proper application thereof by the fiduciary; and any rightor title acquired from the fiduciary in consideration of the payment ortransfer is not invalid in consequence of a misapplication by the fiduciary.
2-3-204. Liability of bank; payment of checks signed by fiduciary.
Ifa deposit is made in a bank to the credit of a fiduciary as such, the bank isauthorized to pay the amount of the deposit or any part thereof upon the checkof the fiduciary, signed with the name in which such deposit is entered,without being liable to the principal, unless the bank pays the check withactual knowledge that the fiduciary is committing a breach of his obligation asfiduciary in drawing the check or with knowledge that its action in paying thecheck amounts to bad faith. If a check is payable to the drawee bank and isdelivered to it in payment of or as security for a personal debt of thefiduciary to it, the bank is liable to the principal if the fiduciary in factcommits a breach of his obligation as fiduciary in drawing or delivering thecheck.
2-3-205. Liability of bank; when check drawn on principal byfiduciary.
Ifa check is drawn upon the account of his principal in a bank by a fiduciary whois empowered to draw checks upon his principal's account, the bank isauthorized to pay the check without being liable to the principal, unless thebank pays the check with actual knowledge that the fiduciary is committing abreach of his obligation as fiduciary in drawing the check, or with knowledgethat its action in paying the check amounts to bad faith. If a check is payableto the drawee bank and is delivered to it in payment of or as security for apersonal debt of the fiduciary to it, the bank is liable to the principal ifthe fiduciary in fact commits a breach of his obligation as fiduciary indrawing or delivering the check.
2-3-206. Liability of bank; receiving deposit from fiduciary.
Ifa fiduciary makes a deposit in a bank to his personal credit of checks drawn byhim upon an account in his own name as fiduciary, or of checks payable to himas fiduciary, or of checks drawn by him upon an account in the name of hisprincipal if he is empowered to draw checks thereon, or of checks payable tohis principal and endorsed by him, if he is empowered to endorse the checks, orif he otherwise makes a deposit of funds held by him as fiduciary, the bank receivingthe deposit is not bound to inquire whether the fiduciary is committing therebya breach of his obligation as fiduciary; and the bank is authorized to pay theamount of the deposit or any part thereof upon the personal check of thefiduciary without being liable to the principal, unless the bank receives thedeposit or pays the check with actual knowledge that the fiduciary iscommitting a breach of his obligation as fiduciary in making the deposit or indrawing the check, or with knowledge that its action in receiving the depositor paying the check amounts to bad faith.
2-3-207. Liability of bank; when check drawn by trustee.
Whena deposit is made in a bank in the name of two (2) or more persons as trusteesand a check is drawn upon the trust account by any trustee or trusteesauthorized by the other trustee or trustees to draw checks upon the trustaccount, neither the payee nor other holder nor the bank is bound to inquirewhether it is a breach of trust to authorize the trustee or trustees to drawchecks upon the trust account, and is not liable unless the circumstances aresuch that the action of the payee or other holder or the bank amounts to badfaith.
2-3-208. Succession of fiduciary powers when bank consolidates withanother.
Inthe event of the merger or the consolidation of any bank, banking association,loan and trust company, named as personal representative, trustee under trustagreement, guardian of minors or incompetents, trustee for bond issue, escrowagent, holder of real estate titles, receiver or agent, the successor of thebank, banking association, or loan and trust company, shall by virtue of themerger, consolidation or succession, succeed to all the fiduciary powers,privileges, benefits, obligations, duties and liabilities of its predecessor,and shall carry out all the duties and obligations imposed upon its predecessoras the personal representative, trustee under trust agreement, guardian ofminors or incompetents, trustee for bond issue, escrow agent, holder of realestate titles, receiver or agent, as if it had been originally named in theinstrument or instruments creating the fiduciary relation.
2-3-209. Applicability; generally.
Theprovisions of this act shall not apply to transactions taking place prior tothe time when it takes effect.
2-3-210. Applicability; rules of law and equity.
Inany case not provided for in this act, the rules of law and equity, includingthe law merchant and those rules of law and equity relating to trusts, agency,negotiable instruments and banking, shall continue to apply.
2-3-211. Interpretation and construction.
Thisact shall be so interpreted and construed as to effectuate its general purposeto make uniform the law of those states which enact it.
ARTICLE 3 - HANDLING OF PROPERTY AND INVESTMENTS
2-3-301. Standard for fiduciaries; authority to acquire and retainproperty and investments.
(a) In acquiring, investing, reinvesting, exchanging,retaining, selling and managing property for the benefit of another, a fiduciaryshall exercise the judgment and care of a prudent investor as specified underW.S. 4-10-901 through 4-10-913.
(b) Within the limitations of the foregoing standard, afiduciary may:
(i) Acquire and retain every kind of property, real, personal ormixed, and every kind of investment, specifically including bonds, debenturesand other corporate obligations, and stocks, preferred or common, which personsof prudence, discretion and intelligence acquire or retain for their ownaccount;
(ii) Retain property properly acquired, without limitation as totime and without regard to its suitability for original purchase.
(c) Any bank as defined by W.S. 13-1-101 or any trust companyformed under W.S. 13-5-102, that is acting as a fiduciary or agent may, in itsdiscretion or at the direction of another person who is authorized to directthe investment of money held by the bank or trust company, invest in thesecurities of an open end or closed end management investment company orinvestment trust that is registered under the federal Investment Company Act of1940, as amended. The bank or trust company, or any affiliate thereof, mayprovide services to the investment trust or investment company, includingacting as an investment advisor, manager, sponsor, distributor, custodian,transfer agent or registrar, and may receive reasonable compensation for theservices. Provided, however, that with respect to any funds invested, the bankor trust company or its affiliate shall disclose to the persons to whom statementsof the account are rendered consistent with the requirements of W.S.4-10-802(f).
2-3-302. Departures from express terms of wills not authorized;"legal investment" or "authorized investment" construed.
Nothingcontained in W.S. 2-3-301 through 2-3-305 shall be construed as authorizing anydeparture from, or variation of, the express terms or limitations set forth inany will, agreement, court order or other instrument creating or defining thefiduciary's duties and powers, but the terms "legal investment" or"authorized investment" or words of similar import, as used in anyinstrument, shall be taken to mean any investment which is permitted by theterms of W.S. 2-3-301.
2-3-303. Authority of court to allow deviation from terms.
Nothingcontained in this act shall be construed as restricting the power of a court ofproper jurisdiction to permit a fiduciary to deviate from the terms of anywill, agreement or other instrument relating to the acquisition, investment,reinvestment, exchange, retention, sale or management of fiduciary property.
2-3-304. Applicability; generally.
Theprovisions of this act shall govern fiduciaries acting under wills, agreements,court orders and other instruments now existing or hereafter made.
2-3-305. Applicability; state funds excepted.
Nothingcontained in this act shall apply to any funds belonging to the state ofWyoming.
ARTICLE 4 - TRUST FUNDS
2-3-401. Short title.
W.S.2-3-401 through 2-3-403 may be cited as the "Uniform Common Trust FundAct".
2-3-402. Authority to establish; purpose.
(a) Any bank or trust company qualified to act as fiduciary inthis state may establish and administer common trust funds composed of propertypermitted by law for investment in trust funds for the purpose of furnishinginvestments to:
(i) Itself as fiduciary;
(ii) Itself and others as cofiduciaries;
(iii) Any affiliated bank or trust company including any foreignaffiliated bank or trust company as fiduciary;
(iv) Any affiliated bank or trust company including any foreignaffiliated bank or trust company and others as cofiduciaries; or
(v) Any combination of the entities listed in paragraphs (i)through (iv) of this subsection.
(b) Any bank or trust company may as fiduciary or cofiduciaryinvest funds which it lawfully holds for investment in interests in commontrust funds administered by itself or by any affiliated bank or trust company,if such investment is not prohibited by the instrument, judgment, decree,order, or statute creating or governing the fiduciary relationship, and if, inthe case of a cofiduciary, the bank or trust company procures the consent ofits cofiduciary in such investment.
2-3-403. Accounting.
Unlessordered by a court of competent jurisdiction, the bank or trust companyoperating common trust funds is not required to render a court accounting withregard to these funds, but it may by application to the court secure approvalof an accounting on such conditions as the court may establish.
2-3-404. Common trust fund distinct from participating fiduciaries.
(a) Each common trust fund established hereunder is a separateand distinct entity from the fiduciaries participating in the fund. Nofiduciary in administering its and other fiduciaries participation in a commontrust fund may be required to make any apportionment or allocation between theprincipal and income of the fund between the participating fiduciariesdifferent from that made for the common trust fund.
(b) No fiduciary participating in a common trust fund, orperson having an interest in property invested in the common trust fund, mayhave or be considered to have any ownership in any particular property of thecommon trust fund. Each participating fiduciary shall have a proportionateundivided interest in the fund and its income. The ownership of all propertyof the common trust fund shall be in the trustee of the fund.
2-3-405. "Affiliated" defined.
Forpurposes of this article, two (2) or more banks or trust companies areaffiliated if they are members of the same affiliated group, within the meaningof section 1504 of the United States Internal Revenue Code.
2-3-406. Exemption.
Theestablishment and maintenance of common trust funds under this article areexempt from the provisions of title 17, chapter 4.
ARTICLE 5 - MORTGAGE, LEASE OR SALE
2-3-501. Authorization by court; generally.
Wheneverin any estate or guardianship now being administered or that may hereafter beadministered, it appears to the court to be for the advantage of the estate orward to raise money upon a note or notes secured by a mortgage of the real orpersonal property of any decedent or ward or to make a lease of such realproperty, or it appears to the court that the homestead of a minor orincompetent is mortgaged and the mortgage thereon is subject to foreclosure,and the guardian does not have sufficient money in the estate of the person topay the mortgage, the court may as often as occasion therefor shall arise inthe administration of the estate or guardianship, on petition, notice andhearing as provided in this article, authorize and direct the executor,administrator or guardian to mortgage the personal or real property, includingrelease and waiver of homestead of the ward, and to execute a note or notes securedby the mortgage, or to lease the real estate, or any part thereof.
2-3-502. Authorization by court; contents of petition; hearing;objections; terms, etc., of order.
(a) A petition to mortgage or lease under W.S. 2-3-501, or apetition to transfer, sell or assign royalty, overriding royalty, leasehold orother mineral interest, or to lease the mineral interest in the property underW.S. 2-3-503, shall show:
(i) The advantage that may accrue to the estate from the lease,mortgage, transfer, sale or assignment;
(ii) A general description of the property to be leased,mortgaged, sold or assigned;
(iii) The term, rental and general conditions of the proposedlease, transfer, sale or assignment, or the amount, maturity and rate ofinterest of the proposed mortgage;
(iv) The names of the legatees and devisees, if any, and of theheirs of the deceased, or of the minor or incompetent person, lessee, assigneeor purchaser, so far as known to the petitioner.
(b) Upon the filing of the petition, the court, if it deems thepetition sufficient, shall set the matter for hearing and shall direct to whatpersons and in what manner notice of the hearing shall be given. At the hearingany person interested in the estate may appear and present objections to theproposed lease, mortgage, sale or assignment. If objections are filed to thepetition, the court may adjourn the hearing to enable the parties objecting tofully present their reasons and evidence for and against the proposed lease,mortgage, sale or assignment. If no objections are filed, or if upon hearingthe objections are deemed insufficient, the court may order the lease,mortgage, transfer, sale or assignment of royalty, overriding royalty, lease orother mineral interest, or lease of the mineral interest in the property, uponthe terms, in the amount and for the period as is deemed proper by the court.
2-3-503. Authorization by court; transfer of mineral interests;terms.
Proceedingsmay be had in the district court of each Wyoming county in which an estate inprobate is being administered or a guardianship proceeding is pending, whichinvolves real property, for authority to transfer, sell or assign royalty,overriding royalty, leasehold or other mineral interest and to lease the mineralcontent ownership interest in the property of any then deceased person or ofany then minor or incompetent person, as distinguished from realty surfaceleases referred to in W.S. 2-3-501. If it appears to the court that thetransfer, sale or assignment of royalty, overriding royalty, leasehold or othermineral interest or execution and delivery of a lease or contract forexploration and development of the affected real property mineral interest ofthe decedent, minor or incompetent person, will be advantageous to the estateof the decedent, minor or incompetent person the court, may authorize anddirect the trustee, executor or administrator of the probate estate or theguardian of the estate of the minor or incompetent person, to transfer, sell orassign the royalty, overriding royalty, leasehold or other mineral interest orto lease the real estate interest or any part thereof for the mineral contentpurposes stated. Leases may be for primary terms of five (5) years or less asmutually agreed by the parties thereto and for so long thereafter as themineral content, including but not restricted to oil, gas or otherhydrocarbons, shall or can be produced in commercial quantities from theleasehold premises, or for the term of each unit or cooperative agreement towhich the lease may be committed with the consent and approval of the court.The lease is not invalid or voidable because its effectiveness may or willextend beyond the term in office of the lessor, trustee, executor,administrator or guardian, or beyond the time of final settlement of theprobate estate, or beyond the minority of the minor or the period ofincompetency of the incompetent involved. With the consent and approval of thecourt any royalty, overriding royalty or other mineral interest or a lease maybe committed to a unit or cooperative agreement, or to a secondary recoveryagreement, for a like term and with like effect.
2-3-504. Authorization by court; transfer of mineral interests; priorleases validated.
Allproceedings of the type herein authorized, which have been heretofore concludedin any court aforesaid, substantially consistent with the procedure hereinauthorized, and all unexpired leases of the kind specified, previously executedand delivered pursuant to each prior proceeding, substantially in conformitywith the provisions hereof, are hereby declared valid, as effectively as ifthis act had been in force upon the date of each prior proceeding and lease.
ARTICLE 6 - PRINCIPAL AND INCOME
2-3-601. Repealed By Laws 2001, Ch. 11, 2.
2-3-602. Repealed By Laws 2001, Ch. 11, 2.
2-3-603. Repealed By Laws 2001, Ch. 11, 2.
2-3-604. Repealed By Laws 2001, Ch. 11, 2.
2-3-605. Repealed By Laws 2001, Ch. 11, 2.
2-3-606. Repealed By Laws 2001, Ch. 11, 2.
2-3-607. Repealed By Laws 2001, Ch. 11, 2.
2-3-608. Repealed By Laws 2001, Ch. 11, 2.
2-3-609. Repealed By Laws 2001, Ch. 11, 2.
2-3-610. Repealed By Laws 2001, Ch. 11, 2.
2-3-611. Repealed By Laws 2001, Ch. 11, 2.
2-3-612. Repealed By Laws 2001, Ch. 11, 2.
2-3-613. Repealed By Laws 2001, Ch. 11, 2.
2-3-614. Repealed By Laws 2001, Ch. 11, 2.
ARTICLE 7 - SECURITY TRANSFERS
2-3-701. Repealed By Laws 1996, ch. 65, 4.
2-3-702. Repealed By Laws 1996, ch. 65, 4.
2-3-703. Repealed By Laws 1996, ch. 65, 4.
2-3-704. Repealed By Laws 1996, ch. 65, 4.
2-3-705. Repealed By Laws 1996, ch. 65, 4.
2-3-706. Repealed By Laws 1996, ch. 65, 4.
2-3-707. Repealed By Laws 1996, ch. 65, 4.
2-3-708. Repealed By Laws 1996, ch. 65, 4.
2-3-709. Repealed By Laws 1996, ch. 65, 4.
2-3-710. Repealed By Laws 1996, ch. 65, 4.
2-3-711. Repealed By Laws 1996, ch. 65, 4.
ARTICLE 8 - PRINCIPAL AND INCOME
2-3-801. Short title.
This act shall be known and may be cited asthe "Wyoming Uniform Principal and Income Act".
2-3-802. Definitions.
(a) As used in this act:
(i) "Accounting period" means a calendar year unlessanother twelve-month period is selected by a fiduciary. The term includes aportion of a calendar year or other twelve-month period that begins when anincome interest begins or ends when an income interest ends;
(ii) "Beneficiary" includes, in the case of adecedent's estate, an heir, legatee and devisee and, in the case of a trust, anincome beneficiary and a remainder beneficiary;
(iii) "Fiduciary" means a personal representative or atrustee. The term includes an executor, administrator, successor personalrepresentative, special administrator and a person performing substantially thesame function;
(iv) "Income" means money or property that a fiduciaryreceives as current return from a principal asset. The term includes a portionof receipts from a sale, exchange or liquidation of a principal asset, to theextent provided in W.S. 2-3-811 through 2-3-825;
(v) "Income beneficiary" means a person to whom netincome of a trust is or may be payable;
(vi) "Income interest" means the right of an incomebeneficiary to receive all or part of net income, whether the terms of thetrust require it to be distributed or authorize it to be distributed in thetrustee's discretion;
(vii) "Mandatory income interest" means the right of anincome beneficiary to receive net income that the terms of the trust requirethe fiduciary to distribute;
(viii) "Net income" means the total receipts allocatedto income during an accounting period minus the disbursements made from incomeduring the period, plus or minus transfers under this act to or from incomeduring the period;
(ix) "Person" means an individual, corporation,business trust, estate, trust, partnership, limited liability company,association, joint venture; government, governmental subdivision, agency orinstrumentality; public corporation; or any other legal or commercial entity;
(x) "Principal" means property held in trust fordistribution to a remainder beneficiary when the trust terminates;
(xi) "Remainder beneficiary" means a person entitledto receive principal when an income interest ends;
(xii) "Terms of a trust" means the manifestation of theintent of a settlor or decedent with respect to the trust, expressed in amanner that admits of its proof in a judicial proceeding, whether by written orspoken words or by conduct;
(xiii) "Trustee" includes an original, additional orsuccessor trustee, whether or not appointed or confirmed by a court;
(xiv) "This act" means W.S. 2-3-801 through 2-3-834.
2-3-803. Fiduciary duties; general principles.
(a) In allocating receipts and disbursements to or betweenprincipal and income, and with respect to any matter within the scope of W.S.2-3-806 through 2-3-810, a fiduciary:
(i) Shall administer a trust or estate in accordance with theterms of the trust or the will, even if there is a different provision in thisact;
(ii) May administer a trust or estate by the exercise of adiscretionary power of administration given to the fiduciary by the terms ofthe trust or the will, even if the exercise of the power produces a resultdifferent from a result required or permitted by this act, and no inferencethat the fiduciary has improperly exercised the discretion arises from the factthat the fiduciary has made an allocation contrary to a provision of this act;
(iii) Shall administer a trust or estate in accordance with thisact if the terms of the trust or the will do not contain a different provisionor do not give the fiduciary a discretionary power of administration; and
(iv) Shall add a receipt or charge a disbursement to principalto the extent that the terms of the trust and this act do not provide a rulefor allocating the receipt or disbursement to or between principal and income.
(b) In exercising the power to adjust under W.S. 2-3-804(a) ora discretionary power of administration regarding a matter within the scope ofthis act, whether granted by the terms of a trust, a will, or this act, afiduciary shall administer a trust or estate impartially, based on what is fairand reasonable to all of the beneficiaries, except to the extent that the termsof the trust or the will clearly manifest an intention that the fiduciary shallor may favor one (1) or more of the beneficiaries. A determination inaccordance with this act is presumed to be fair and reasonable to all of thebeneficiaries.
2-3-804. Trustee's power to adjust; liability of trustee.
(a) Subject to subsections (b) and (c) of this section, atrustee may adjust between principal and income to the extent the trusteeconsiders necessary if the trustee invests and manages trust assets as aprudent investor, the terms of the trust describe the amount that may or mustbe distributed to a beneficiary by referring to the trust's income, and thetrustee determines, after applying the rules in W.S. 2-3-803(a), andconsidering any power the trustee may have under the trust to invade principalor accumulate income, that the trustee is unable to comply with W.S.2-3-803(b).
(b) In deciding whether and to what extent to exercise thepower conferred by subsection (a) of this section, a trustee shall consider allfactors relevant to the trust and its beneficiaries, including the followingfactors to the extent they are relevant:
(i) The nature, purpose and expected duration of the trust;
(ii) The intent of the settlor;
(iii) The identity and circumstances of the beneficiaries;
(iv) The needs for liquidity, regularity of income andpreservation and appreciation of capital;
(v) The assets held in the trust; the extent to which theyconsist of financial assets, interests in closely held enterprises, tangibleand intangible personal property, or real property; the extent to which anasset is used by a beneficiary; and whether an asset was purchased by thetrustee or received from the settlor;
(vi) The net amount allocated to income under the other sectionsof this act and the increase or decrease in the value of the principal assets,which the trustee may estimate as to assets for which market values are notreadily available;
(vii) Whether and to what extent the terms of the trust give thetrustee the power to invade principal or accumulate income or prohibit thetrustee from invading principal or accumulating income, and the extent to whichthe trustee has exercised a power from time to time to invade principal oraccumulate income;
(viii) The actual and anticipated effect of economic conditions onprincipal and income and effects of inflation and deflation; and
(ix) The anticipated tax consequences of an adjustment.
(c) A trustee may not make an adjustment:
(i) That diminishes the income interest in a trust thatrequires all of the income to be paid at least annually to a spouse and forwhich an estate tax or gift tax marital deduction would be allowed, in whole orin part, if the trustee did not have the power to make the adjustment;
(ii) That reduces the actuarial value of the income interest ina trust to which a person transfers property with the intent to qualify for agift tax exclusion;
(iii) That changes the amount payable to a beneficiary as a fixedannuity or a fixed fraction of the value of the trust assets;
(iv) From any amount that is permanently set aside forcharitable purposes under a will or the terms of a trust unless both income andprincipal are so set aside;
(v) If possessing or exercising the power to make an adjustmentcauses an individual to be treated as the owner of all or part of the trust forincome tax purposes, and the individual would not be treated as the owner ifthe trustee did not possess the power to make an adjustment;
(vi) If possessing or exercising the power to make an adjustmentcauses all or part of the trust assets to be included for estate tax purposesin the estate of an individual who has the power to remove a trustee or appointa trustee, or both, and the assets would not be included in the estate of theindividual if the trustee did not possess the power to make an adjustment;
(vii) If the trustee is a beneficiary of the trust; or
(viii) If the trustee is not a beneficiary, but the adjustmentwould benefit the trustee directly or indirectly.
(d) If paragraph (c)(v), (vi), (vii) or (viii) of this sectionapplies to a trustee and there is more than one (1) trustee, a cotrustee towhom the provision does not apply may make the adjustment unless the exerciseof the power by the remaining trustee or trustees is not permitted by the termsof the trust.
(e) A trustee may release the entire power conferred bysubsection (a) of this section or may release only the power to adjust fromincome to principal or the power to adjust from principal to income if thetrustee is uncertain about whether possessing or exercising the power willcause a result described in paragraphs (c)(i) through (vi) or (viii) of thissection or if the trustee determines that possessing or exercising the powerwill or may deprive the trust of a tax benefit or impose a tax burden notdescribed in subsection (c) of this section. The release may be permanent orfor a specified period, including a period measured by the life of anindividual.
(f) Terms of a trust that limit the power of a trustee to makean adjustment between principal and income do not affect the application ofthis section unless it is clear from the terms of the trust that the terms areintended to deny the trustee the power of adjustment conferred by subsection(a) of this section.
(g) Nothing in this section or in this act is intended tocreate or imply a duty to make an adjustment, and a trustee is not liable fornot considering whether to make an adjustment or for choosing not to make anadjustment.
2-3-805. Notice of proposed action; objections of beneficiary;liability of trustee; proceedings.
(a) Unless a trust instrument requires otherwise, a trustee maygive notice of proposed action regarding a matter governed by this act asprovided in this section. For the purpose of this section, a proposed actionincludes a course of action and a decision not to take action.
(b) If a trustee elects to give notice under this section, thetrustee shall mail notice of the proposed action to all beneficiaries who arereceiving, or are entitled to receive, income under the trust or to receive adistribution of principal if the trust were terminated at the time the noticeis given.
(c) Notice of proposed action need not be given to any personwho consents in writing to the proposed action. The consent may be executed atany time before or after the proposed action is taken.
(d) The notice of proposed action shall state that it is givenpursuant to this section and shall state all of the following:
(i) The name and mailing address of the trustee;
(ii) The name and telephone number of a person who may becontacted for additional information;
(iii) A description of the action proposed to be taken and anexplanation of the reasons for the action;
(iv) The time within which objections to the proposed action canbe made, which shall be at least thirty (30) days from the mailing of thenotice of proposed action; and
(v) The date on or after which the proposed action may be takenor is effective.
(e) A beneficiary may object to the proposed action by mailinga written objection to the trustee at the address stated in the notice ofproposed action within the time period specified in the notice of proposedaction.
(f) Except for good cause shown, a trustee is not liable to abeneficiary for an action regarding a matter governed by this act if thetrustee does not receive a written objection to the proposed action from thebeneficiary within the applicable period and the other requirements of thissection are satisfied. If no beneficiary entitled to notice objects under thissection, the trustee is not liable to any current or future beneficiary withrespect to the proposed action.
(g) If the trustee receives a written objection within theapplicable period, either the trustee or a beneficiary may petition the courtto have the proposed action taken as proposed, taken with modifications, ordenied. In the proceeding, a beneficiary objecting to the proposed action hasthe burden of proving that the trustee's proposed action should not be taken. Abeneficiary who has not objected is not estopped from opposing the proposedaction in the proceeding. If the trustee decides not to implement the proposedaction, the trustee shall notify the beneficiaries of the decision not to takethe action and the reasons for the decision, and the trustee's decision not toimplement the proposed action does not itself give rise to liability to anycurrent or future beneficiary. A beneficiary may petition the court to have theaction taken, and has the burden of proving that it should be taken.
2-3-806. Determination and distribution of net income.
(a) After a decedent dies, in the case of an estate, or afteran income interest in a trust ends, the following rules apply:
(i) A fiduciary of an estate or of a terminating incomeinterest shall determine the amount of net income and net principal receiptsreceived from property specifically given to a beneficiary under the rules inW.S. 2-3-808 through 2-3-831 which apply to trustees and the rules in paragraph(v) of this subsection. The fiduciary shall distribute the net income and netprincipal receipts to the beneficiary who is to receive the specific property;
(ii) A fiduciary shall determine the remaining net income of adecedent's estate or a terminating income interest under the rules in W.S.2-3-808 through 2-3-831 which apply to trustees and by:
(A) Including in net income all income from property used todischarge liabilities;
(B) Paying from income or principal, in the fiduciary'sdiscretion, fees of attorneys, accountants and fiduciaries; court costs andother expenses of administration; and interest on death taxes, but thefiduciary may pay those expenses from income of property passing to a trust forwhich the fiduciary claims an estate tax marital or charitable deduction onlyto the extent that the payment of those expenses from income will not cause thereduction or loss of the deduction; and
(C) Paying from principal all other disbursements made orincurred in connection with the settlement of a decedent's estate or thewinding up of a terminating income interest, including debts, funeral expenses,disposition of remains, family allowances and death taxes and related penaltiesthat are apportioned to the estate or terminating income interest by the will,the terms of the trust or applicable law.
(iii) A fiduciary shall distribute to a beneficiary who receivesa pecuniary amount outright the interest or any other amount provided by thewill, the terms of the trust, or applicable law from net income determinedunder paragraph (ii) of this subsection or from principal to the extent thatnet income is insufficient. If a beneficiary is to r