Decision near on trust
 Plan would put the FLDS fund under control of trustee
 
By Ben Winslow
Deseret Morning News
 
The Fundamentalist LDS Church's United Effort Plan Trust will never be the same again.

A 3rd District Court judge said Wednesday that she is close to deciding how to best reform the UEP Trust, with its estimated $110 million in assets and property in the polygamous border towns of Hildale, Utah, and Colorado City, Ariz.

"I will be scheduling a hearing on the proposed reformation of the trust," said Judge Denise Lindberg. During a hearing on attorney's fees, court-appointed special fiduciary Bruce Wisan talked about the proposed reformation, which could include turning the UEP Trust into a new "spend thrift trust."

Such a trust would place the UEP's assets in the control of a trustee until the recipients are judged to be able to control the money themselves, Wisan said. It would also keep millions of dollars out of the hands of fugitive FLDS leader Warren Jeffs.

"In this case, what we're concerned about is that the FLDS receive title to their homes, and Warren says 'Great, give it back to me,' and you've got UEP two," Wisan said outside of court. "A spend thrift trust would allow the property to go outside of the trust but still have some other control other than UEP."

Jeffs is on the FBI's Ten Most Wanted list, facing criminal charges in Utah and Arizona accusing him of forcing teenage girls into polygamous marriages with older men. Federal prosecutors have charged Jeffs with unlawful flight to avoid prosecution.

In 2005, the state of Utah took control of the UEP amid allegations that Jeffs and some of his followers were fleecing the trust, which controls homes, businesses and property in Hildale and Colorado City.

Since Wisan was placed in charge of the trust, he has been pushing to have property taxes paid in the twin towns. His efforts have been met with some resistance. The taxes have only been paid when people were served with notices by hand. Despite an edict from Jeffs telling his flock not to pay, the 2005 taxes for Hildale were recently paid. The Washington County treasurer's office declined to say who paid them.

"I've only been able to accomplish what I've been able to accomplish through force," Wisan testified in court. He said people once kicked out of the polygamous communities want to move back, and there are signs of economic progress. He is in talks to bring a major employer to the area.

As part of reforming the trust, Wisan and his lawyers suggested selling off homes, perhaps to the people living in them. Right now, everything belongs to the UEP.

"Ultimately, the trust is going to have to downsize and not be responsible for all these homes," said Wisan's lawyer, Jeffrey L. Shields.

However, most FLDS faithful — who make up the majority of residents in the border towns — may stick by Jeffs' edict. They will not sign paperwork or have anything to do with a reformed UEP Trust. Wisan testified that he has been told privately by some FLDS members, "We cannot deal with you."

Lindberg found the lack of information reaching FLDS members troubling.

"My greatest frustration is as there's attempts to communicate and share information," she said. "Those attempts are rebuffed."

E-mail: bwinslow@desnews.com
 
deseretnews.com
Originally published Thursday, June 29, 2006
 
Back