§ 2-3-903 — Unitrust election by trustee; requirements to make unitrust election

(a) A trustee, other than an interested trustee, or where
two (2) or more persons are acting as trustees, a majority of
the trustees who are not interested trustees may, in its sole
discretion and without the approval of the district court:
(i) Elect to release the power to adjust described in
W.S. 2-3-804 and to convert an income trust to a total return
unitrust;
(ii) Reconvert a total return unitrust to an income
trust and reinstate the power to adjust described in W.S.
2-3-804; or
(iii) Change the percentage used to calculate the
unitrust amount or the method used to determine the fair market
value of the trust if the following requirements are completed:
(A) The trustee adopts a written policy for the
trust providing:
(I) In the case of a trust being
administered as an income trust, that future distributions from
the trust will be unitrust amounts rather than net income;
(II) In the case of a trust being
administered as a total return unitrust, that future
distributions from the trust will be net income rather than
unitrust amounts; or
(III) That the percentage used to calculate
the unitrust amount or the method used to determine the fair
market value of the trust will be changed as stated in the
policy.
(b) The trustee shall mail notice of the proposed action
to all beneficiaries who are receiving, or are entitled to
receive, income under the trust or to receive a distribution of
principal if the trust were terminated at the time the notice is
given assuming nonexercise of all powers of appointment.
(c) Notice of proposed action need not be given to any
person who consents in writing to the proposed action. The
consent may be executed at any time before or after the proposed
action is taken.
(d) The written notice of its intention to take action
shall include the following:
(i) The name and mailing address of the trustee;
(ii) The name and telephone number of a person who
may be contacted for additional information;
(iii) A description of the action proposed to be
taken and an explanation of the reasons for the action;
(iv) A copy of the trustee's written policy discussed
in subparagraph (a)(iii)(A) of this section;
(v) The time within which objections to the proposed
action can be made, which shall be at least thirty (30) days
from the mailing of the notice of proposed action; and
(vi) The date on or after which the proposed action
may be taken or is effective.
(e) A beneficiary may object to the proposed action by
mailing a written objection to the trustee stating the objection
and the basis or reason for the objection at the address stated
in the notice of proposed action within the time period
specified in the notice of proposed action.
(f) If the trustee receives a written objection stating
the basis or reason for the objection within the applicable
period, either the trustee or a beneficiary may petition the
court to have the proposed action taken as proposed, taken with
modifications, or denied.
(g) A beneficiary who has not objected is not estopped
from opposing the proposed action in the proceeding.
(h) If the trustee decides not to implement the proposed
action, the trustee shall notify the beneficiaries of the
decision not to take the action and the reasons for the
decision, and the trustee's decision not to implement the
proposed action shall not itself give rise to liability to any
current or future beneficiary.