75-7-519 - Encumbered assets. - Utah Statutes

75-7-519. Encumbered assets.
(1) If any assets of the deceased settlor's estate are encumbered by mortgage, pledge, lien,or other security interest, the trustee may pay the encumbrance or any part thereof, renew orextend any obligation secured by the encumbrance, or convey or transfer the assets to the creditorin satisfaction of his lien, in whole or in part, whether or not the holder of the encumbrance haspresented a claim, if it appears to be in the best interest of the deceased settlor's estate.
(2) Payment of an encumbrance does not increase the share of the beneficiary entitled tothe encumbered assets unless the beneficiary is entitled to exoneration or unless the terms of thedeceased settlor's trust, under which the beneficiary is entitled to the encumbered assets, providesotherwise.

Renumbered and Amended by Chapter 89, 2004 General Session