(1)A fiduciary, without court approval, by complying with Subsections (2) and (6), may:
(1)(a) convert an income trust to a unitrust if the fiduciary adopts, in a record, a unitrust policy for the trust providing:
(1)(a)(i) that, in administering the trust, the net income of the trust will be a unitrust amount rather than net income determined without regard to this part; and
(1)(a)(ii) the percentage and method used to calculate the unitrust amount;
(1)(b) change the percentage or method used to calculate a unitrust amount for a unitrust if the fiduciary adopts in a record a unitrust policy or an amendment or replacement of a unitrust policy providing changes in the percentage or method used to calculate the unitrust amount; or
(1)(c) convert a unitrust to an income trust if the fiduciar
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(1) A fiduciary, without court approval, by complying with Subsections (2) and (6), may:
(1)(a) convert an income trust to a unitrust if the fiduciary adopts, in a record, a unitrust policy for the trust providing:
(1)(a)(i) that, in administering the trust, the net income of the trust will be a unitrust amount rather than net income determined without regard to this part; and
(1)(a)(ii) the percentage and method used to calculate the unitrust amount;
(1)(b) change the percentage or method used to calculate a unitrust amount for a unitrust if the fiduciary adopts in a record a unitrust policy or an amendment or replacement of a unitrust policy providing changes in the percentage or method used to calculate the unitrust amount; or
(1)(c) convert a unitrust to an income trust if the fiduciary adopts, in a record, a determination that, in administering the trust, the net income of the trust will be net income determined without regard to this part rather than a unitrust amount.
(2) A fiduciary may take an action under Subsection (1) if:
(2)(a) the fiduciary determines that the action will assist the fiduciary to administer a trust impartially;
(2)(b) the fiduciary sends a notice in a record, in the manner required by Section 75A-5-304, describing and proposing to take the action;
(2)(c) the fiduciary sends a copy of the notice under Subsection (2)(b) to each settlor of the trust which is:
(2)(c)(i) if an individual, living; or
(2)(c)(ii) if not an individual, in existence;
(2)(d) at least one member of each class of the qualified beneficiaries determined under Subsection 75B-2-103(8) receiving the notice under Subsection (2)(b) is:
(2)(d)(i) if an individual, legally competent;
(2)(d)(ii) if not an individual, in existence; or
(2)(d)(iii) represented in the manner provided in Subsection 75A-5-304(2); and
(2)(e) the fiduciary does not receive, by the date specified in the notice under Subsection 75A-5-304(4)(e), an objection in a record to the action proposed under Subsection (2)(b) from a person to which the notice under Subsection (2)(b) is sent.
(3) (3)(a) If a fiduciary receives, not later than the date stated in the notice under Subsection 75A-5-304(4)(e), an objection in a record described in Subsection 75A-5-304(4)(d) to a proposed action, the fiduciary or a beneficiary may request that the court:
(3)(a)(i) require the fiduciary to take the proposed action;
(3)(a)(ii) require the fiduciary to take the proposed action with modifications; or
(3)(a)(iii) prevent the proposed action.
(3)(b) A person described in Subsection 75A-5-304(1) may oppose the proposed action in the proceeding under Subsection (3)(a), regardless of whether the person:
(3)(b)(i) consented under Subsection 75A-5-304(3); or
(3)(b)(ii) objected under Subsection 75A-5-304(4)(d).
(4) If, after sending a notice under Subsection (2)(b), a fiduciary decides not to take the action proposed in the notice, the fiduciary shall notify each person described in Subsection 75A-5-304(1) in a record of the decision not to take the action and the reasons for the decision.
(5) If a beneficiary requests in a record that a fiduciary take an action described in Subsection (1) and the fiduciary declines to act or does not act within 90 days after receiving the request, the beneficiary may request the court to direct the fiduciary to take the action requested.
(6) In deciding whether and how to take an action authorized by Subsection (1), or whether and how to respond to a request by a beneficiary under Subsection (5), a fiduciary shall consider all factors relevant to the trust and the beneficiaries, including the relevant factors in Subsection 75A-5-201(5).
(7) For a reason described in Subsection 75A-5-203(7), and in the manner described in Subsection 75A-5-203(8), a fiduciary may:
(7)(a) release or delegate the power to convert an income trust to a unitrust under Subsection (1)(a);
(7)(b) change the percentage or method used to calculate a unitrust amount under Subsection (1)(b); or
(7)(c) convert a unitrust to an income trust under Subsection (1)(c).