Oklahoma 2022 Regular Session

Oklahoma House Bill HB3449 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 3449 Page 1 1
	3	+	HB3449 HFLR Page 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 3449 By: O'Donnell of the House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	2nd Session of the 58th Legislature (2022)
	34	+
	35	+	HOUSE BILL 3449 By: O'Donnell of the House
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31	37		and
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33	39		Daniels of the Senate
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	41	+	AS INTRODUCED
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40	43		An Act relating to trusts; amending 60 O.S. 2021,
41	44		Section 175.23, which relates to district courts '
42	45		jurisdiction to construe trust instr uments; providing
43	46		that courts shall have the ability to modify or
44	47		terminate trusts created on or aft er November 1,
45	48		2022, for excessive administrative costs a nd for
46	49		failure of trust purpose; providing guidance to
47	50		courts modifying or terminating trusts; and providing
48	51		an effective date.
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52	55		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
53	56		SECTION 1. AMENDATORY 60 O.S. 2021, Section 175.23, is
54	57		amended to read as follows:
55	58		Section 175.23 A. The district court shall have orig inal
56	59		jurisdiction to construe the provisions of any trust instrument; to
57	60		determine the law applicable thereto ; the powers, duties, and
58	61		liability of trustee; the existence or nonexistence of facts
59	62		affecting the administration of the trust estate; to require
60	63		accounting by trustees; to surcharge trustee; and in its discretion
61	64		to supervise the administration of trust s; and all actions hereunder
62	65		are declared to be proceedings in rem.
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64		-	ENGR. H. B. NO. 3449 Page 2 1
	67	+	HB3449 HFLR Page 2
	68	+	BOLD FACE denotes Committee Amendments. 1
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89	93		B. The venue of such actions shall be in the county where the
90	94		trustees or any cotrustee resides. Upon obtaining jurisdiction the
91	95		same shall not be divested by the removal of the trustee from the
92	96		county where the action is commenced.
93	97		C. Actions hereunder may be brought by a trustee, beneficiary,
94	98		or any person affected by the admini stration of the trust estate.
95	99		If the action is predicated upon any act or obligation of any
96	100		beneficiary, the beneficiary shall be a necessary party to the
97	101		proceedings. The only necessary parties to such actions shall be
98	102		those persons designated as benefi ciaries by name or class in the
99	103		instrument creating the trust and who have a vested interest in the
100	104		trust which is the subject of the action, those persons currently
101	105		serving as trustees of the trust, and any persons who may be
102	106		actually receiving distributi ons from the trust estate at the time
103	107		the action is filed. Contingent beneficiaries designated by name or
104	108		class shall not be necessary parties.
105	109		D. The provisions of the statutes governing civil procedure,
106	110		commencement of action, process, process by publi cation, appointment
107	111		of guardians ad litem, supersedeas and appeal, shall govern all
108	112		actions and proceedings b rought under provisions of this act.
109	113		E. A court of competent jurisdiction may, for cause shown and
110	114		upon notice to the beneficiaries, relieve a tru stee from any or all
111	115		of the duties and restrictions which would otherwise be placed upon
112	116		the trustee by this act, or wholly or partly excuse a trustee who
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114		-	ENGR. H. B. NO. 3449 Page 3 1
	118	+	HB3449 HFLR Page 3
	119	+	BOLD FACE denotes Committee Amendments. 1
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139	144		has acted honestly and reasonably from liability for violations of
140	145		the provisions of this act.
141	146		F. For trusts created on or after November 1, 2022 , a court,
142	147		upon application of a trustee or any qualified benefi ciary, may:
143	148		1. Modify or terminate a trust or remove the trus tee and
144	149		appoint a different trustee if the court determines that the value
145	150		of the trust property is insufficient to justify the cost of
146	151		administration.
147	152		Upon termination of a trust under this paragraph, the trustee
148	153		shall distribute the trust property in a m anner consistent with the
149	154		purposes of the trust. The trustee may enter into agreemen ts or
150	155		make such other provisions that the trustee deems necessary or
151	156		appropriate to protect the interests of the beneficiaries and the
152	157		trustee and to carry out the intent and purposes of the trust.
153	158		In the event of a dispute between a trustee or a beneficiary of
154	159		a trust, the court may determine the ultimate disposition of the
155	160		assets remaining in the trust.
156	161		This paragraph does not apply to an easement for conservation or
157	162		preservation; and
158	163		2. Modify the terms of an irrevocable trust if:
159	164		a. the purposes of the trust have been fulfilled or have
160	165		become illegal, impossible, wastef ul, or impracticable
161	166		to fulfill,
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163		-	ENGR. H. B. NO. 3449 Page 4 1
	168	+	HB3449 HFLR Page 4
	169	+	BOLD FACE denotes Committee Amendments. 1
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188	194		b. because of circumstances not anticipated by the
189	195		settlor, compliance with the terms of the trust would
190	196		defeat or substantially impair the accomplishment of a
191	197		material purpose of the trust, or
192	198		c. a material purpose of the trust no longer exists.
193	199		G. In modifying or terminating a trust under subsection F of
194	200		this section, a court may:
195	201		1. Amend or change the terms of the trust, including terms
196	202		governing distribution of the trust income or principal or terms
197	203		governing administration of the trust;
198	204		2. Terminate the trust in whole or in part;
199	205		3. Direct or permit the trustee to perform acts that are not
200	206		authorized or that are prohibited by the terms of the trust ; or
201	207		4. Prohibit the trustee from performing acts that are permitted
202	208		or required by the terms of the trust.
203	209		In exercising discretion to modify a trust under subsection F of
204	210		this section, the court shall consider the terms and purposes of the
205	211		trust, the facts and circumstances surrounding the creation of the
206	212		trust, and extrinsic evidence relevant to the proposed modification.
207	213		SECTION 2. This act shall becom e effective November 1, 2022.
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235		-	Passed the House of Representatives the 15th day of March, 2022.
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240		-	Presiding Officer of the House
241		-	of Representatives
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244		-	Passed the Senate the ___ day of __________, 2022.
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249		-	Presiding Officer of the Senate
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	215	+	COMMITTEE REPORT BY: COMMITTEE ON RULES, dated 03/03/2022 - DO PASS,
	216	+	As Coauthored.