Was $350K Irrevocable Trust Valid for Tax Saving or Dissipation in Utah Divorce? EP B102 HIlliam
A husband moved $350,000 in marital stock options into a Nevada irrevocable trust — telling his wife it was tax planning. Four years later, he filed for divorce in Utah. Could the divorce court reach those options, or had the irrevocable trust put them beyond equitable distribution for good?
In this Wealth Litigated Brief-ly (Episode B102), we forensically analyze the Utah Court of Appeals decision in Hillam, a 2024 divorce appeal where the same transfer into an irrevocable trust was argued two ways at once: legitimate tax planning, and dissipation of marital assets. The trial court granted summary judgment to the Investment Trustee, ruling the irrevocable trust — with its spendthrift provision — was a separate, non-marital entity that owned the stock options. On appeal, the wife's arguments to reach the assets inside the trust hit a procedural wall: issues raised for the first time on appeal, after the governing statute was excluded at trial, were unpreserved — and barred from review on the merits. That left one path: dissipation, framed as a credit against the marital estate, not a claim against the trust. But denied dissipation rulings are reviewed for abuse of discretion — one of the most deferential standards in appellate law. Did the wife clear it? Join us to see
HOW IT LITIGATED. IN THIS EPISODE: How omitting the controlling statute at trial can block substantive appellate review — even when caselaw was cited Whether a single transfer to an irrevocable trust can be valid tax planning AND dissipation of marital assets What it takes to overturn a denied dissipation ruling under the abuse-of-discretion standard If you advise clients who hold assets in irrevocable trusts, or you litigate divorces where marital property sits inside one, the Hillam result affects your client files — not just this family. This week, review your client files to identify which clients to call. CASE: Hillam v. Hillam,Utah Ct. App. 2024
HOST: Kelly Lise Murray, JD — Stanford A.B., Phi Beta Kappa; Harvard J.D., Vanderbilt Law faculty 2005–2023 (18 years). This episode is educational legal analysis of a published appellate decision. It is not legal advice, creates no attorney-client relationship, and does not predict how any future court will rule. Consult a licensed attorney in your jurisdiction. Subscribe so you don't miss an episode. #IrrevocableTrust #DivorceLaw #Dissipation #MaritalAssets #EstatePlanning #FamilyLaw #AssetProtection #SpendthriftTrust #WealthLitigated #EquitableDistribution #UtahDivorce
