Definitions

15-5-103. Definitions. As used in this article 5, unless the context otherwise requires: (1) Action, with respect to an act of a trustee, includes a failure to act. (2) Alternative dispute resolution means a method of nonjudicial dispute resolution as set forth in the trust instrument, which may include but is not limited to a method prescribed pursuant to the uniform arbitration act, part 2 of article 22 of title 13. (3) Ascertainable standard means a standard relating to an individual's health, education, support, or maintenance within the meaning of section 2041 (b)(1)(A) or 2514 (c)(1) of the federal Internal Revenue Code of 1986, as amended. (4) (a) Beneficiary means a person who: (I) Has a present or future beneficial interest in a trust, vested or contingent; or (II) In a capacity other than that of trustee, holds a power of appointment over trust property. (b) Beneficiary does not include an appointee under a power of appointment unless and until the power is exercised and the trustee has knowledge of the exercise and the identity of the appointee. (5) Business trust has the same meaning as set forth in section 15-10-201 (6.5). (6) Charitable trust means a trust, or a portion of a trust, created for a charitable purpose described in section 15-5-405 (1). (7) Conservator means a person appointed by a court to administer the estate of a minor or adult individual. (8) Environmental law means a federal, state, or local law, rule, regulation, or ordinance relating to protection of the environment. (9) Guardian means a person appointed by a court to make decisions regarding the support, care, education, health, and welfare of a minor or adult individual. The term does not include a guardian ad litem. (10) Interested person means a qualified beneficiary or other person having a property right in or claim against a trust estate, which right or claim may reasonably and materially be affected by a judicial proceeding pursuant to this code. The term also includes fiduciaries and other persons having authority to act under the terms of the trust. (11) Interests of the beneficiaries means the beneficial interests provided in the terms of the trust. (12) Jurisdiction, with respect to a geographical area, includes a state or country. (13) Person means an individual; corporation; business trust; estate; trust; partnership; limited liability company; association; joint venture; government; governmental subdivision, agency, or instrumentality; public corporation; or any other legal or commercial entity. (14) Power of withdrawal means a presently exercisable general power of appointment other than a power: (a) Exercisable by a trustee and limited by an ascertainable standard; or (b) Exercisable by another person only upon consent of the trustee or a person holding an adverse interest. (15) Property means anything that may be the subject of ownership, whether real or personal, legal or equitable, or any interest therein. (16) Qualified beneficiary means a beneficiary who, on the date the beneficiary's qualification is determined: (a) Is a distributee or permissible distributee of trust income or principal; (b) Would be a distributee or permissible distributee of trust income or principal if the interests of the distributees described in subsection (16)(a) of this section terminated on that date without causing the trust to terminate; or (c) Would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date. (17) Revocable, as applied to a trust, means revocable by the settlor without the consent of the trustee or a person holding an adverse interest. (18) Settlor means a person, including a testator, who creates, or contributes property to, a trust. If more than one person creates or contributes property to a trust, each person is a settlor of the portion of the trust property attributable to that person's contribution except to the extent another person has the power to revoke or has a power of withdrawal over that portion. (19) Spendthrift provision means a term of a trust that restrains both voluntary and involuntary transfer of a beneficiary's interest. (20) State means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. The term includes an Indian tribe or band recognized by federal law or formally acknowledged by a state. (21) Terms of a trust means the manifestation of the settlor's intent regarding a trust's provisions, as expressed in the trust instrument, or as may be established by other evidence in a judicial proceeding, or in a nonjudicial settlement agreement pursuant to section 15-5-111 or by alternative dispute resolution pursuant to section 15-5-113. (22) Trust instrument means an instrument executed by the settlor that contains terms of the trust, including any amendments thereto. (23) Trustee includes an original, an additional, and a successor trustee or a cotrustee. Source: L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1144, � 1, effective January 1, 2019.