The duty to inform and report under Utah law

Who is kept informed

Except to the extent the terms of the trust provide otherwise, a trustee keeps the qualified beneficiaries reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests, and promptly responds to a qualified beneficiary's request for information related to the administration unless unreasonable under the circumstances (Utah Code § 75B-2-811(1)). On request, the trustee promptly furnishes a copy of the portions of the trust instrument which describe or affect the beneficiary's interest (§ 75B-2-811(2)(a)).

The terms may modify the duty: the duty to inform and report is not among the mandatory rules of Utah Code § 75B-2-105, so a trust's own words decide how far it applies — a question for a licensed Utah attorney of your choosing where the instrument speaks to it.

The notices

Within 60 days after accepting a trusteeship, the trustee notifies the qualified beneficiaries of the acceptance and of the trustee's name, address and telephone number (Utah Code § 75B-2-811(2)(b)). Within 60 days after acquiring knowledge of the creation of an irrevocable trust, or that a formerly revocable trust has become irrevocable, the trustee notifies them of the trust's existence, the identity of the settlor or settlors, the right to request a copy of the trust instrument and the right to a trustee's report (§ 75B-2-811(2)(c)). The trustee also notifies them in advance of any change in the method or rate of compensation; the statute states no number of days (§ 75B-2-811(2)(d)).

The second notice counts from the trustee's knowledge, not from the death. While a trust is revocable and the settlor has capacity, the trustee's duties are owed exclusively to the settlor, so no beneficiary notice is due before the trust becomes irrevocable (Utah Code § 75B-2-603).

The trustee's report

At least annually and at the termination of the trust, the trustee sends the qualified beneficiaries who request it a report of the trust property, liabilities, receipts and disbursements, including the amount of the trustee's compensation or a fee schedule or other writing showing how it was determined, a listing of the trust assets and, if feasible, their respective market values (Utah Code § 75B-2-811(3)(a)). On a vacancy with no cotrustee in office, the former trustee sends it; a personal representative, conservator or guardian may send it for a deceased or incapacitated trustee (§ 75B-2-811(3)(b), (c)).

A qualified beneficiary may waive the right to a report or other information and may withdraw the waiver as to future reports (Utah Code § 75B-2-811(4)).

The period a report can start

A beneficiary may not commence a proceeding against a trustee for breach of trust more than six months after being sent a report that adequately disclosed the existence of a potential claim and informed the beneficiary of the time allowed; a report adequately discloses a claim if it provides sufficient information so that the beneficiary knows of the claim or should have inquired into its existence (Utah Code § 75B-2-1005). Where that rule does not apply, the proceeding is commenced within one year after the first of the trustee's removal, resignation or death, the end of the beneficiary's interest and the trust's termination. Whether a particular report adequately disclosed a particular claim is a question of fact the statute leaves open.

The statutes, verbatim

• Limitation of action against trustee

  Utah Code § 75B-2-1005 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Definitions for chapter

  Utah Code § 75B-2-103 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Default and mandatory rules

  Utah Code § 75B-2-105 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Duty to inform and report

  Utah Code § 75B-2-811 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

Common questions

Frequently asked questions

Who receives a Utah trustee's report?

The qualified beneficiaries who request it — at least annually and at the trust's termination (Utah Code § 75B-2-811(3)(a)); the existence notice tells each qualified beneficiary of the right to request one (§ 75B-2-811(2)(c)).

Can the trust's terms change the duty to inform in Utah?

Yes, to the extent they provide otherwise: every duty of Utah Code § 75B-2-811 applies except to the extent the terms of the trust provide otherwise, and the duty is not among the mandatory rules of § 75B-2-105.

What starts the six-month period against a Utah trustee?

A report sent to the beneficiary, or a person who may represent and bind the beneficiary, that adequately disclosed the existence of a potential claim for breach of trust and informed the beneficiary of the time allowed for commencing a proceeding (Utah Code § 75B-2-1005).

General information about Utah law, not legal advice.