75-2-205 - Decedent's nonprobate transfers to others. - Utah Statutes

75-2-205. Decedent's nonprobate transfers to others.
Unless excluded under Section 75-2-208, the value of the augmented estate includes thevalue of the decedent's nonprobate transfers to others, not included under Section 75-2-204, ofany of the types described in this section, in the amount provided respectively for each type oftransfer:
(1) Property owned or owned in substance by the decedent immediately before death thatpassed outside probate at the decedent's death. Property included under this category consists ofthe property described in this Subsection (1).
(a) (i) Property over which the decedent alone, immediately before death, held apresently exercisable general power of appointment.
(ii) The amount included is the value of the property subject to the power, to the extentthe property passed at the decedent's death, by exercise, release, lapse, in default, or otherwise, toor for the benefit of any person other than the decedent's estate or surviving spouse.
(b) (i) The decedent's fractional interest in property held by the decedent in joint tenancywith the right of survivorship.
(ii) The amount included is the value of the decedent's fractional interest, to the extentthe fractional interest passed by right of survivorship at the decedent's death to a surviving jointtenant other than the decedent's surviving spouse.
(c) (i) The decedent's ownership interest in property or accounts held in POD, TOD, orco-ownership registration with the right of survivorship.
(ii) The amount included is the value of the decedent's ownership interest, to the extentthe decedent's ownership interest passed at the decedent's death to or for the benefit of any personother than the decedent's estate or surviving spouse.
(d) (i) Proceeds of insurance, including accidental death benefits, on the life of thedecedent, if the decedent owned the insurance policy immediately before death or if and to theextent the decedent alone and immediately before death held a presently exercisable generalpower of appointment over the policy or its proceeds.
(ii) The amount included:
(A) is the value of the proceeds, to the extent they were payable at the decedent's death toor for the benefit of any person other than the decedent's estate or surviving spouse; and
(B) may not exceed the greater of the cash surrender value of the policy immediatelyprior to the death of the decedent or the amount of premiums paid on the policy during thedecedent's life.
(2) Property transferred in any of the forms described in this Subsection (2) by thedecedent during marriage:
(a) (i) Any irrevocable transfer in which the decedent retained the right to the possessionor enjoyment of, or to the income from, the property if and to the extent the decedent's rightterminated at or continued beyond the decedent's death.
(ii) An irrevocable transfer in trust which includes a restriction on transfer of thedecedent's interest as settlor and beneficiary as described in Section 25-6-14.
(iii) The amount included is the value of the fraction of the property to which the right orrestriction related, to the extent the fraction of the property passed outside probate to or for thebenefit of any person other than the decedent's estate or surviving spouse.
(b) (i) Any transfer in which the decedent created a power over income or property,exercisable by the decedent alone or in conjunction with any other person, or exercisable by a

nonadverse party, to or for the benefit of the decedent, creditors of the decedent, the decedent'sestate, or creditors of the decedent's estate.
(ii) The amount included with respect to a power over property is the value of theproperty subject to the power, and the amount included with respect to a power over income isthe value of the property that produces or produced the income, to the extent the power in eithercase was exercisable at the decedent's death to or for the benefit of any person other than thedecedent's surviving spouse or to the extent the property passed at the decedent's death, byexercise, release, lapse, in default, or otherwise, to or for the benefit of any person other than thedecedent's estate or surviving spouse.
(iii) If the power is a power over both income and property and Subsection (2)(b)(ii)produces different amounts, the amount included is the greater amount.
(3) Property that passed during marriage and during the two-year period next precedingthe decedent's death as a result of a transfer by the decedent if the transfer was of any of the typesdescribed in this Subsection (3).
(a) (i) Any property that passed as a result of the termination of a right or interest in, orpower over, property that would have been included in the augmented estate under Subsection(1)(a), (b), or (c), or under Subsection (2), if the right, interest, or power had not terminated untilthe decedent's death.
(ii) The amount included is the value of the property that would have been includedunder Subsection (1)(a), (b), (c), or Subsection (2) if the property were valued at the time theright, interest, or power terminated, and is included only to the extent the property passed upontermination to or for the benefit of any person other than the decedent or the decedent's estate,spouse, or surviving spouse.
(iii) (A) As used in this Subsection (3)(a), "termination," with respect to a right orinterest in property, occurs when the right or interest terminated by the terms of the governinginstrument or the decedent transferred or relinquished the right or interest, and, with respect to apower over property, occurs when the power terminated by exercise, release, lapse, default, orotherwise.
(B) With respect to a power described in Subsection (1)(a), "termination" occurs whenthe power terminated by exercise or release, but not otherwise.
(b) (i) Any transfer of or relating to an insurance policy on the life of the decedent if theproceeds would have been included in the augmented estate under Subsection (1)(d) had thetransfer not occurred.
(ii) The amount included:
(A) is the value of the insurance proceeds to the extent the proceeds were payable at thedecedent's death to or for the benefit of any person other than the decedent's estate or survivingspouse; and
(B) may not exceed the greater of the cash surrender value of the policy immediatelyprior to the death of the decedent or the amount of premiums paid on the policy during thedecedent's life.
(c) (i) Any transfer of property, to the extent not otherwise included in the augmentedestate, made to or for the benefit of a person other than the decedent's surviving spouse.
(ii) The amount included is the value of the transferred property to the extent theaggregate transfers to any one donee in either of the two years exceeded $10,000.

Amended by Chapter 3, 2003 Special Session 2