The Trust Explained
How It All Started
At statehood in 1896, Congress placed land in trust to support public education and other essential public institutions. The State of Utah must generate revenue from these lands for the designated beneficiaries.
Who Benefits From the School and Institutional Trust?
Trust revenues benefit K–12 schools, universities, hospitals, youth services, and other public programs across Utah.
What is a trust?
A trust is a legal relationship where one party manages property or assets for the benefit of another. It involves three roles: the grantor who provides the assets to establish the trust, the trustee who manages the assets, and the beneficiary who receives the benefits.
Who Manages the Trust?
When the United States granted land in trust, the State of Utah became the trustee to manage the trust assets for the benefit of the designated beneficiaries.
Trust Duties and Responsibilities
The Utah Legislature has delegated trust responsibilities to three state agencies:
- The Trust Lands Administration (TLA) is the administrative trustee with a fiduciary duty to manage the trust land assets to generate revenue and protect long-term value of the land.
- The Trust Funds Office (SITFO) is the administrative trustee with a fiduciary duty to invest trust revenues, manage the permanent funds, and protect the capacity for perpetual distributions.
- The Advocacy Office represents the beneficiaries of the trust and advocates for their rights and interests
Central principles guide trust management: