SF0097

Amends Wyoming's Uniform Trust Code to clarify the definition of qualified trustees, modify notice requirements for trust proceedings, eliminate perpetuities rules for noncharitable purpose trusts, and expand trustee powers regarding tax distributions.

• Clarifies the definition of 'qualified trustee' to exclude settlors (directly or indirectly through entities lacking independent approval requirements), nonresident natural persons, and entities not authorized to act as trustees or regulated financial institutions in Wyoming. (W.S. 4-10-103(a)(xxxv))
• Specifies that notice in judicial actions or proceedings concerning trusts is only required to be provided to interested persons as defined in W.S. 4-10-201(d), rather than to all persons who might have an interest. (W.S. 4-10-109(e))
• Provides that no common law rule of perpetuities applies to noncharitable purpose trusts in Wyoming. (W.S. 4-10-410(a)(iv))
• Authorizes trustees to exercise elections with respect to federal, state, and local taxes. (W.S. 4-10-816(a)(xxxi))
• Permits trustees to decide each trust taxable year whether principal distributions to beneficiaries include net realized capital gains and losses in Internal Revenue Code section 643(a) distributable net income. (W.S. 4-10-816(a)(xxxii))
• Allows trustees to reimburse or pay a person's income tax liability attributable to trust income when the person is treated as the trust owner under federal tax law, except for settlor-trustees or those related or subordinate to the settlor. Specifies that this power does not affect the settlor's estate or creditor status. (W.S. 4-10-816(a)(xxxiii))
• Provides that trustee powers cannot be exercised in a manner that would prevent qualification for federal estate, gift, or income tax benefits, and that trustees exercising these powers in good faith are not liable. (W.S. 4-10-816(b))
• Specifies that the amendments apply to all trusts created or that become subject to the Uniform Trust Code on or after July 1, 2025. (Sec. 2)

Effective: July 1, 2025