75-2-807. Effect of disqualifying felony offense on intestate succession, wills, trusts, joint assets, life insurance, beneficiary designations — Forfeiture — Revocation.
(1)
As used in this section:
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Terms Used In Utah Code 75-2-807
Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
Conviction: A judgement of guilt against a criminal defendant.
Decedent: A deceased person.
Fiduciary: A trustee, executor, or administrator.
Intestate: Dying without leaving a will.
Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
Legatee: A beneficiary of a decedent
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
Right of survivorship: The ownership rights that result in the acquisition of title to property by reason of having survived other co-owners.
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
Summons: Another word for subpoena used by the criminal justice system.
Tenancy in common: A type of property ownership in which two or more individuals have an undivided interest in property. At the death of one tenant in common, his (her) fractional percentage of ownership in the property passes to the decedent
Trustee: A person or institution holding and administering property in trust.
United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
(a)
“Abuser” means a person who is convicted of committing a disqualifying felony offense against a vulnerable adult.
(b)
“Dependent adult” means the same as that term is defined in Section 76-5-111.
(c)
“Disposition or apportionment of property” means a transfer of an item of property or any other benefit to a beneficiary designated in a governing instrument.
(d)
“Disqualifying felony offense” means a felony offense against a vulnerable adult that meets the elements of:
(i)
felony financial exploitation of a vulnerable adult, as described in Section 76-5-111.4;
(ii)
felony aggravated abuse of a vulnerable adult, as described in Section 76-5-111.2;
(iii)
felony abuse of a vulnerable adult based on isolation, as described in Subsection 76-5-111(3); or
(iv)
any felony offense in another state, territory, or district of the United States that, if committed in Utah, would constitute a felony offense described in this Subsection (1)(d).
(e)
“Elder adult” means the same as that term is defined in Section 76-5-111.
(f)
“Governing instrument” means a governing instrument executed by a vulnerable adult.
(g)
“Vulnerable adult” means the same as that term is defined in Section 76-5-111.
(2)
(a)
An abuser who is convicted of a disqualifying felony offense against a vulnerable adult forfeits any benefit under this chapter with respect to the vulnerable adult’s estate:
(i)
that the vulnerable adult made to the abuser in a governing instrument; or
may not inherit, take, enjoy, receive, or otherwise benefit from the estate of the vulnerable adult described in Subsection (2)(a), including by any:
(A)
intestate share;
(B)
elective share;
(C)
omitted spouse’s or child’s share;
(D)
homestead allowance;
(E)
exempt property;
(F)
family allowance;
(G)
banknote or other form of physical currency;
(H)
deposit account;
(I)
interest-bearing account;
(J)
contents of a safe deposit box;
(K)
investment;
(L)
retirement benefit or account;
(M)
pension;
(N)
annuity; or
(O)
insurance proceed; and
(ii)
is considered to have predeceased the vulnerable adult with respect to any intestate property or governing instrument belonging to the vulnerable adult.
(3)
Conviction of a disqualifying felony offense against a vulnerable adult:
(a)
revokes any revocable:
(i)
disposition or apportionment of property that the vulnerable adult made to the abuser in a governing instrument;
(ii)
provision in a governing instrument conferring a general or nongeneral power of appointment on the abuser; and
(iii)
nomination of the abuser in a governing instrument nominating or appointing the abuser to serve in any fiduciary or representative capacity, including a personal representative, representative payee, executor, trustee, or agent; and
(b)
(i)
severs any interest in property held by the abuser and the vulnerable adult as joint tenants with the right of survivorship; and
(ii)
transforms the interests described in Subsection (3)(b)(i) to a tenancy in common.
(4)
A wrongful acquisition of property or interest by an abuser under circumstances not covered by this section shall be treated in accordance with the principle that one cannot profit from one’s own wrongdoing.
(5)
Revocation by the court of an abuser’s interest in the property of the vulnerable adult and of an abuser’s powers and appointments in the estate of the vulnerable adult as established by any governing instrument is final.
(6)
Conviction of a disqualifying felony offense against a vulnerable adult:
(a)
prevents any revocable interest or share an abuser has or may have in the estate of the vulnerable adult, under Subsection (2), from vesting into a right of property upon the death of the vulnerable adult; and
(b)
is the triggering event for action under this section.
(7)
As a consequence of bringing an action under this section, a court may not reduce or eliminate the rights, interest, or share in the estate of a vulnerable adult belonging to any interested person who:
(a)
petitions the court under this section; and
(b)
retains a property or other interest in the estate of a vulnerable adult, either as an heir, devisee, legatee, beneficiary, survivor, appointee, or claimant, notwithstanding any no-contest provision which appears in any governing instrument of the vulnerable adult.
(8)
(a)
A payor or other third party is not liable for having made a payment or transferred an item of property or any other benefit to a beneficiary designated in a governing instrument that a disqualifying felony offense affects, or for having taken any other action in good faith reliance on the validity of the governing instrument, upon request and satisfactory proof of the decedent‘s death, before the payor or other third party received written notice of a claimed forfeiture or revocation under this section.
(b)
A payor or other third party is liable for a payment made or other action taken after the payor or other third party received written notice of a claimed forfeiture or revocation under this section.
(c)
(i)
An individual seeking enforcement of this section shall mail a written notice of a claimed forfeiture or revocation to the payor’s or other third party’s main office or home by registered or certified mail, return receipt requested, or served upon the payor or other third party in the same manner as a summons in a civil action.
(ii)
Upon receipt of a written notice of a claimed forfeiture or revocation described in Subsection (8)(c)(i), a payor or other third party may pay any amount owed or transfer or deposit any item of property the payor or third party holds to or with:
(A)
the court having jurisdiction of the probate proceedings relating to the vulnerable adult’s estate; or
(B)
if the individual who gave notice has not brought an action under this section, to or with the court having jurisdiction of probate proceedings relating to the decedent’s estate located in the county of the decedent’s residence.
(d)
A court described in Subsection (8)(c)(ii) shall:
(i)
hold the funds or item of property; and
(ii)
upon the court’s determination under this section, order disbursement in accordance with the determination.
(e)
A payor’s or third party’s payment, transfer, or deposit made to or with the court discharges the payor or third party from all claims for the value of the paid amounts or transferred or deposited items of property.
(9)
(a)
A person who purchases property for value and without notice, or who receives a payment or other item of property in partial or full satisfaction of a legally enforceable obligation:
(i)
may retain the payment, item of property, or benefit; and
(ii)
is not liable under this section for the amount of the payment or the value of the item of property or benefit.
(b)
A person who, not for value, receives a payment, item of property, or any other benefit to which the person is not entitled under this section:
(i)
shall return the payment, item of property, or benefit to the person who is entitled to the payment or the item of property or benefit under this section; or
(ii)
is personally liable for the amount of the payment or the value of the item of property or benefit, to the person who is entitled to the payment or the item of property or benefit under this section.
(c)
If this section, or any part of this section, is preempted by federal law with respect to a payment, an item of property, or any other benefit that this section addresses, a person who, not for value, receives the payment, item of property, or any other benefit to which the person is not entitled under this section:
(i)
shall return the payment, item of property, or benefit to the person who would have been entitled to the payment or the item of property or benefit if this section or the relevant part of this section was not preempted; or
(ii)
is personally liable for the amount of the payment, or the value of the item of property or benefit, to the person who would have been entitled to the payment or the item of property or benefit if this section or the relevant part of this section was not preempted.
(10)
Notwithstanding Subsections (2) through (6), and notwithstanding an abuser’s conviction for a disqualifying felony offense, the abuser may inherit, take, enjoy, receive, or otherwise benefit from the estate of the vulnerable adult if:
(a)
(i)
after the abuser’s conviction, the vulnerable adult executes a new governing instrument or amends or affirms an existing governing instrument under which the abuser receives a benefit; and
(ii)
the vulnerable adult is not incapacitated, as that term is defined in Section 75-1-201, at the time the vulnerable adult makes the execution, amendment, or affirmation described in Subsection (10)(a)(i); or
(b)
the court reviewing a petition under this section determines that a manifest injustice would result if the abuser is disinherited by operation of this section.
(11)
This section:
(a)
does not operate retrospectively;
(b)
except as provided in Subsection (11)(c), does not apply to a disqualifying felony offense that occurred prior to May 5, 2021; and
(c)
applies to a disqualifying felony offense described in Subsection (10)(b) if any portion of the offense persists after May 5, 2021.
