§ 75A-5-202 — Judicial review of exercise of discretionary power -- Request for instruction.

(1) In this section, "fiduciary decision" means:
(1)(a) a fiduciary's allocation between income and principal or other determination regarding income and principal required or authorized by the terms of the trust or this chapter;
(1)(b) the fiduciary's exercise or nonexercise of a discretionary power regarding income and principal granted by the terms of the trust or this chapter, including the power to:
(1)(b)(i) adjust under Section 75A-5-203;
(1)(b)(ii) convert an income trust to a unitrust under Subsection 75A-5-303(1)(a);
(1)(b)(iii) change the percentage or method used to calculate a unitrust amount under Subsection 75A-5-303(1)(b); or
(1)(b)(iv) convert a unitrust to an income trust under Subsection 75A-5-303(1)(c); or
(1)(c) the fiduciary's implementation of a decision described in Subsection (1)(a) or (b).
(2) The court may not order a fiduciary to change a fiduciary decision, unless the court determines that the fiduciary decision was an abuse of the fiduciary's discretion.
(3) (3)(a) If the court determines that a fiduciary decision was an abuse of the fiduciary's discretion, the court may order a remedy authorized by law, including a remedy authorized in Section 75B-2-1001.
(3)(b) To place the beneficiaries in the positions that the beneficiaries would have occupied if there had not been an abuse of the fiduciary's discretion, the court may order:
(3)(b)(i) the fiduciary to exercise or refrain from exercising the power to adjust under Section 75A-5-203;
(3)(b)(ii) the fiduciary to exercise or refrain from exercising the power to:
(3)(b)(ii)(A) convert an income trust to a unitrust under Subsection 75A-5-303(1)(a);
(3)(b)(ii)(B) change the percentage or method used to calculate a unitrust amount under Subsection 75A-5-303(1)(b); or
(3)(b)(ii)(C) convert a unitrust to an income trust under Subsection 75A-5-303(1)(c);
(3)(b)(iii) the fiduciary to distribute an amount to a beneficiary;
(3)(b)(iv) a beneficiary to return some or all of a distribution; or
(3)(b)(v) the fiduciary to withhold an amount from one or more future distributions to a beneficiary.
(4) (4)(a) On petition by a fiduciary for instruction, the court may determine whether a proposed fiduciary decision will result in an abuse of the fiduciary's discretion.
(4)(b) A beneficiary that opposes the proposed decision has the burden to establish that the proposed decision will result in an abuse of the fiduciary's discretion if the petition:
(4)(b)(i) describes the proposed decision;
(4)(b)(ii) contains sufficient information to inform the beneficiary of the reasons for making the proposed decision and the facts on which the fiduciary relies; and
(4)(b)(iii) explains how the beneficiary will be affected by the proposed decision.

Legislative History

Amended by Chapter 310, 2025 General Session