Bill Summary – FastDemocracy

LEGISLATIVE GENERAL COUNSEL                                                H.B. 569
Approved for Filing: E.N. Weeks 6
          6 02-19-24 9:41 AM 6
           UNIFORM PREMARITAL AGREEMENT ACT AMENDMENTS
                                       2024 GENERAL SESSION
                                            STATE OF UTAH
                                  Chief Sponsor: Brett Garner
                                  Senate Sponsor: ____________
 6
 LONG TITLE
 General Description:
        This bill modifies provisions of the Uniform Premarital Act in relation to criminal acts
 between the parties.
 Highlighted Provisions:
        This bill:
        < permits a court to amend or revoke a premarital agreement if one of the parties to
 the marriage is responsible for the death or incapacitation of the other; and
        < modifies provisions in Utah's "slayer statute," which governs homicide or a
 criminal, incapacitating injury in relation to inheritance and beneficiary status.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        None
 Utah Code Sections Affected:
 AMENDS:
        30-8-5, as enacted by Laws of Utah 1994, Chapter 105
        75-2-803, as last amended by Laws of Utah 2022, Chapters 116, 157 and 430 and last
 amended by Coordination Clause, Laws of Utah 2022, Chapter 157
                                                                                                       H.B. 569
26
 Be it enacted by the Legislature of the state of Utah:
     *HB0569*
      H.B. 569                                                                     02-19-24 9:41 AM
        Section 1. Section 30-8-5 is amended to read:
        30-8-5. Effect of marriage -- Amendment -- Revocation.
        (1) A premarital agreement becomes effective upon marriage.
        (2) (a) After marriage, a premarital agreement may be amended or revoked only by:
        (i) a written agreement signed by the parties[. The amended agreement or the
 revocation]; or
        (ii) upon the conviction of one party to the agreement for causing the homicide or total
 incapacitation of the other party, by a court as provided under Section 75-2-803.
        (b) An amendment or revocation made under Subsection (2)(a) is enforceable without
 consideration.
        Section 2. Section 75-2-803 is amended to read:
        75-2-803. Definitions -- Effect of homicide or disqualifying crime on intestate
 succession, wills, trusts, joint assets, life insurance, beneficiary designations, and
 premarital agreements -- Petition -- Forfeiture -- Revocation.
        (1) As used in this section:
        (a) "Conviction" means the same as that term is defined in Section 77-38b-102.
        (b) "Decedent" means:
        (i) a deceased individual; or
        (ii) as relates to a premarital agreement, an individual who is totally incapacitated as
 described in Subsection (1)(d)(i)(B).
        (c) "Disposition or appointment of property" includes a transfer of an item of property
 or any other benefit to a beneficiary designated in a governing instrument.
        (d) (i) [Except as provided in Subsection (1)(d)(ii), "disqualifying homicide"]
 "Disqualifying crime" means:
        (A) any felony homicide offense described in Title 76, Chapter 5, Offenses Against the
 Individual, against the decedent for which the elements are established by a preponderance of
 the evidence and by applying the same principles of culpability and defenses described in Title
 76, Utah Criminal Code[.]; or
        (B) for the purposes of a premarital agreement, conviction of a party to the premarital
 agreement of a misdemeanor or felony that proximately causes the death or total incapacitation
 of the other party to the premarital agreement.
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       02-19-24 9:41 AM                                                                            H.B. 569
          (ii) "Disqualifying [homicide] crime" does not include an offense for:
          (A) negligently operating a vehicle resulting in death, as described in Section 76-5-207;
 and
          (B) automobile homicide involving using a handheld wireless communication device
 while driving, as described in Section 76-5-207.5.
          (e) "Governing instrument" means a governing instrument executed by the decedent.
          (f) "Killer" means an individual who commits a disqualifying [homicide] crime.
          (g) "Revocable" means a disposition, appointment, provision, or nomination under
 which the decedent, at the time of or immediately before death, was alone empowered, by law
 or under the governing instrument, to cancel the designation in favor of the killer regardless of
 whether at the time or immediately before death:
          (i) the decedent was empowered to designate the decedent in place of the decedent's
 killer; or
          (ii) the decedent had the capacity to exercise the power.
          (2) (a) An individual who commits a disqualifying [homicide of the decedent] crime
 forfeits all benefits under this chapter with respect to the decedent's estate and benefits
 associated with a premarital agreement, including an intestate share, an elective share, an
 omitted spouse's or child's share, a homestead allowance, any exempt property, an inheritance,
 a financial benefit, and a family allowance.
          (b) If the decedent died intestate, the decedent's intestate estate passes as if the killer
 disclaimed the killer's intestate share.
          (3) The [killing of the decedent by means] commission of a disqualifying [homicide]
 crime:
          (a) revokes any revocable:
          (i) disposition or appointment of property made by the decedent to the killer in a
 governing instrument;
          (ii) provision in a governing instrument conferring a general or nongeneral power of
 appointment on the killer; and
          (iii) nomination of the killer in a governing instrument, nominating or appointing the
 killer to serve in any fiduciary or representative capacity, including a personal representative,
 executor, trustee, or agent; [and]
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        H.B. 569                                                                      02-19-24 9:41 AM
         (b) severs the interests of the decedent and killer in property held by them at the time of
 the killing as joint tenants with the right of survivorship, transforming the interests of the
 decedent and killer into tenancies in common[.]; and
         (c) revokes any benefit available to the killer in relation to a premarital agreement
 existing between the decedent and the killer.
         (4) A severance under Subsection (3)(b) does not affect any third-party interest in
 property acquired for value and in good faith reliance on an apparent title by survivorship in the
 killer unless a writing declaring the severance has been noted, registered, filed, or recorded in
 records appropriate to the kind and location of the property which are relied upon, in the
 ordinary course of transactions involving such property, as evidence of ownership.
         (5) Provisions of a governing instrument are given effect as if the killer disclaimed all
 provisions revoked by this section or, in the case of a revoked nomination in a fiduciary or
 representative capacity, as if the killer predeceased the decedent.
         (6) A wrongful acquisition of property or interest by one who kills another under
 circumstances not covered by this section shall be treated in accordance with the principle that
 a killer cannot profit from the killer's wrong.
         (7) (a) An interested person may petition the court to determine whether an individual
 has committed a disqualifying [homicide of the decedent] crime.
         (b) An individual has committed a disqualifying [homicide of the decedent] crime for
 purposes of this section if:
         (i) unless the court finds that disinheritance would create a manifest injustice, the court
 finds that, by a preponderance of the evidence, the individual has committed a disqualifying
 [homicide of the decedent] crime; or
         (ii) the court finds that a judgment of conviction has been entered against the
 individual for a disqualifying [homicide of the decedent] crime and all direct appeals for the
 judgment have been exhausted.
         (8) (a) Before a court determines whether an individual committed a disqualifying
 [homicide of the decedent] crime under Subsection (7), the decedent's estate may petition the
 court to:
         (i) enter a temporary restraining order, an injunction, or a temporary restraining order
 and an injunction, to preserve the property or assets of the killer or the killer's estate;
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        02-19-24 9:41 AM                                                                             H.B. 569
           (ii) require the execution of a trustee's bond under Section 75-7-702 for the killer's
 estate;
           (iii) establish a constructive trust on any property or assets of the killer or the killer's
 estate that is effective from the time the killer's act caused the death of the decedent; or
           (iv) take any other action necessary to preserve the property or assets of the killer or the
 killer's estate:
           (A) until a court makes a determination under Subsection (7); or
           (B) for the payment of all damages and judgments for conduct resulting in the
 disqualifying [homicide of the decedent] crime.
           (b) Upon a petition for a temporary restraining order or an injunction under Subsection
 (8)(a)(i), a court may enter a temporary restraining order against an owner's property in
 accordance with Rule 65A of the Utah Rules of Civil Procedure, without notice or opportunity
 of a hearing, if the court determines that:
           (i) there is a substantial likelihood that the property is, or will be, necessary to satisfy a
 judgment or damages owed by the killer for conduct resulting in the disqualifying [homicide of
 the decedent] crime; and
           (ii) notice of the hearing would likely result in the property being:
           (A) sold, distributed, destroyed, or removed; and
           (B) unavailable to satisfy a judgment or damages owed by the killer for conduct
 resulting in the disqualifying [homicide of the decedent] crime.
           (9) (a) (i) 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 affected by a disqualifying [homicide] crime, 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.
           (ii) 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.
           (b) (i) Written notice of a claimed forfeiture or revocation under Subsection (9)(a) shall
 be mailed to the payor's or other third party's main office or home by registered or certified
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        H.B. 569                                                                    02-19-24 9:41 AM
 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 written notice of a claimed forfeiture or revocation under this
 section, a payor or other third party may pay any amount owed or transfer or deposit any item
 of property held by the payor or third party to or with:
         (A) the court having jurisdiction of the probate proceedings relating to the decedent's
 estate; or
         (B) if no proceedings have been commenced, the court having jurisdiction of probate
 proceedings relating to the decedent's estates located in the county of the decedent's residence.
         (iii) The court shall hold the funds or item of property and, upon the court's
 determination under this section, shall order disbursement in accordance with the
 determination.
         (iv) Payments, transfers, or deposits made to or with the court discharge the payor or
 other third party from all claims for the value of amounts paid to or items of property
 transferred to or deposited with the court.
         (10) (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, is:
         (i) not obligated under this section to return the payment, item of property, or benefit;
 and
         (ii) not liable under this section for the amount of the payment or the value of the item
 of property or benefit.
         (b) Notwithstanding Subsection (10)(a), 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 is:
         (i) obligated to return the payment, item of property, or benefit to the person who is
 entitled to the payment, property, or benefit under this section; and
         (ii) 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, 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 covered by this section, a person who, not
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        02-19-24 9:41 AM                                                                      H.B. 569
 for value, receives the payment, item of property, or any other benefit to which the person is
 not entitled under this section is:
         (i) obligated to return the payment, item of property, or benefit to the person who
 would have been entitled to the payment, property, or benefit if this section or part were not
 preempted; and
         (ii) 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, property, or benefit if
 this section or part were not preempted.
         Section 3. Effective date.
         This bill takes effect on May 1, 2024.
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Statutes affected: 
Introduced: 30-8-5, 75-2-803