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SENATE FLOOR VERSION
April 8, 2025
AS AMENDED
ENGROSSED HOUSE
BILL NO. 1850 By: Schreiber of the House
and
Howard of the Senate
An Act relating to trusts; creating the Oklahoma
Uniform Trust Code; providing short title; providing
scope of act; defining terms; providing when person
or organization has knowledge of a fact; providing
when this act governs the duties and power of
trustee, relations among trustees, and the rights and
interests of a beneficiary; providing that terms of
trust prevail over provisions of this act; providing
exceptions; providing that the common law of trusts
and principles equity supplement this act in most
circumstances; providing what governing law applies
for determining the meaning and effect of the terms
of a trust; providing guidelines for the principal
place of administration; providing methods of
notices; providing for waiver of notice; providing
for rules of construction the interpretation of and
disposition of property by will also apply to the
interpretation of the terms of a trust and the
disposition of the trust property; defining term;
providing for insurable interests of trustees;
providing guidelines on who may receive an insurable
interest of a trustee; providing the role of a court
in administration of a trust; providing who shall
have jurisdiction over the trust; providing for venue
location for legal proceedings; providing that notice
to certain representatives has the same effect as if
notice were given directly to the other person;
providing that consent by a representative is binding
on the person they represent in certain
circumstances; providing that a settlor may not
represent and be a beneficiary in certain
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circumstances; providing representation power by a
holder of general testamentary power of appointment;
providing representation powers by fiduciaries and
parents; providing for representation in certain
instances by a person having substantiality identical
interests; providing for appointment of a
representative; providing power and duties of
representative; providing methods of creating a
trust; providing requirements for creating a trust;
providing when a trust created in another s tate is
valid; providing trust purpose; providing purpose of
a charitable trust; providing a court select purpose
or beneficiary for a charitable trust in certain
circumstances; providing who may maintain a
proceeding to enforce a charitable trust; providing
that a trust is void if the creation was induced by
fraud, duress, or undue influence; providing
requirements for an oral trust; providing rules for
noncharitable trust created without ascertainable
beneficiary; providing when a trust terminates;
providing who may commence a proceeding for the
modification and termination of a trust; providing
procedure for the mod ification or termination of a
noncharitable irrevocable trust; providing that the
court may modify or terminate a trust in certain
circumstances; providing that a court may apply cy
pres to modify or terminate charitable trust in
certain circumstances; pro viding for modification or
termination of uneconomic trusts in certain
circumstances; providing for manner of distribution
if uneconomic trust is terminated; providing trust
that are exempt from modification or termination if
they are uneconomical; providi ng that a court may
reform a trust to correct certain mistakes; providing
that a court may modify a trust to achieve a settlors
tax objectives; providing that a trustee may combine
multiple trusts into a single trust; providing that a
trustee may divide a single trust into multiple
trusts; providing that whether or not the terms the
trust contain a spend thrift certain rules apply for
creditors claim against a settlor; providing rules
for a creditors claims against a settlor; providing
required capacity of settlor of a revocable trust;
providing power of settlor in a revocable trust;
providing power of settlor has power of withdrawal
for a revocable trust; providing limitations on
actions contesting the validity of a revocable trust;
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providing for a benefici ary of a trust to return any
distributions in certain circumstances; providing for
accepting or declining of trusteeship; providing when
a trustee is required to post a bond; providing
procedures and requirements for co -trustees of a
trust; providing when a vacancy in a trusteeship
occurs; providing for appointment of successor
trustees; providing procedure for the resignation of
a trustee; providing for the removal of a trustee by
the court; requiring former trustees to deliver
property held to a successor trustee; providing for
compensation of trustees; providing for reimbursement
of expenses by a trustee; providing duty of trustees
to administer trust; providing for a duty of loyalty
by a trustee; providing for impartiality by a trustee
when a trust has more than one beneficiary; requiring
a trustee to administer trust prudently; providing
what costs a trustee may incur in administering the
trust; requiring trustees who were selected because
of a special skill or expertise to use such skill or
expertise in administering the trust; providing that
a trustee may delegate duties and powers; providing
requirements for delegating duties and powers;
providing that trustee shall take reasonable steps to
take control of and protect the trust property;
providing requirements for recordkeeping and
identification of trust property by a trustee;
requiring that a trustee shall take reasonable steps
to enforce claim of the trust and to defend claims
against the trust; requiring a trustee to collect
trust property from form er trustees and to redress a
breach of trust committed by a former trustee;
providing that a trustee has a duty to inform and
make reports to certain individuals; providing
trustee has certain discretionary powers; providing
general powers of a trustee; pr oviding specific
powers of trustee; providing procedure and
requirements for distribution of a trust upon
termination; providing when a trustee is entitled to
a contribution by a co -trustee; providing that a
trustee is accountable to a beneficiary for any
profit made by the trustee, even absent a breach of
trust; providing that absent a breach of trust, a
trustee is not liable to a beneficiary f or a loss or
deprivation in the value of the trust or for not
making a profit; providing that a trustee is not
liable for a breach of trust if reasonably relying
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upon the terms of the trust; providing that a trustee
is not liable for certain events that occur that
affect administration or distribution of a trust;
providing limitation on personal liability of a
trustee; providing that trustees who hold an interest
as a general partner in a general or limited
partnership is not personally liable for certain
actions and events; providing that a trustee may
provide a certification of trust in certain
circumstances; providi ng requirements of a
certification of trust; providing exemptions for a
certification of trust may be used; providing
requirements for electronic records and signatures;
providing for severability of act for provisions that
are held invalid; providing appl ication to existing
relationships; providing for codification; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
ARTICLE 1
GENERAL PROVISIONS AND DEFINITIONS
SECTION 1. NEW LAW A new secti on of law to be codified
in the Oklahoma Statutes as Section 1601.1 of Title 60, unless there
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Oklahoma
Uniform Trust Code".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1601.2 of Title 60, unless there
is created a duplication in numbering, reads as follows:
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The Oklahoma Uniform Trust Code applies to express trusts,
charitable or noncharitable, and trusts created pursuant to a
statute, judgment, or decree that requires the trust to be
administered in the manner of an express trust.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes a s Section 1601.3 of Title 60, unless there
is created a duplication in numbering, reads as foll ows:
As used in this act:
1. "Action", with respect to an act of a trustee, includes a
failure to act;
2. "Ascertainable standard" means a standard relating to an
individual's health, education, support, or maintenance within the
meaning of Section 2041(b)(1)(A) or 2514(c)(1) of the Internal
Revenue Code of 1986, as in effect on the effective date of this
act, or as later amended;
3. "Beneficiary" means a perso n who:
a. has a present or future beneficial interest in a
trust, vested or contingent, or
b. in a capacity other than that of trustee, holds a
power of appointment over trust property;
4. "Charitable trust" means a trust, or portion of a trust,
created for a charitable purpose described in subsection A of
Section 24 of this act;
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5. "Environmental law" means a federal, state, or local law,
rule, regulation, or ordinance relating to the protection of the
environment;
6. "Guardian of the property" means a person appointed by the
court to administer the estate of a minor or adult individual;
7. "Guardian of the person" means a person appointed by the
court to make decisions regarding the support, care, education,
health, and welfare of a minor or adult indi vidual. The term does
not include a guardian ad litem;
8. "Interests of the beneficiaries" means the beneficial
interests provided in the terms of the trust;
9. "Jurisdiction", with respect to a geographic area, includes
a state or country;
10. "Person" means an individual, corporation, business trust,
estate, trust, partnership, limited liabili ty company, association,
joint venture, government, governmental subdivision, agency, or
instrumentality, public corporation, or any other legal or
commercial entity;
11. "Power of withdrawal" means a presently exercisable general
power of appointment other than a power:
a. exercisable by a trustee and limited by an
ascertainable standard, or
b. exercisable by another person only upon consent of the
trustee or a person holding an adverse interest;
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12. "Property" means anything that may be the subject of
ownership, whether real or personal, legal or equitable, or any
interest therein;
13. "Qualified beneficiary" means a beneficiary who, on the
date the beneficiary's qualification is determined:
a. is a distributee or permissible distributee of a
present interest in the trust income or principal, or
has a vested remainder in the trust,
b. is a charitable organization expressly entitled to
receive benefits under the terms of a charitable
trust, or
c. is the Attorney General of this state with respect to
a charitable trust having its principal place of
administration in this state;
14. "Revocable", as applied to a trust, means revocable by the
settlor without the con sent of the trustee or a person holding an
adverse interest;
15. "Settlor" means a person, including a testator, who
creates, or contributes property to, a trust. If more than one
person creates or contributes property to a trust, each person is a
settlor of the portion of the trust property attributable to that
person's contribution except to the extent another person has the
power to revoke or withdraw that portion;
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16. "Spendthrift provision" means a term of a trust which
restrains both voluntary and involuntary transfer of a beneficiary's
interest;
17. "State" means a state of the United States, the District of
Columbia, Puerto Rico, the United States Virgin Islands, or any
territory or insular possession subject to the jurisdiction of the
United States. The term includes an Indian tribe or band recognized
by federal law or formally acknowled ged by a state;
18. "Terms of a trust" means:
a. except as otherwise provided in subparagraph b of this
paragraph, the manifestation of the settlor's intent
regarding a trust's provisions as:
(1) expressed in the trust instrument, or
(2) established by other evidence that would be
admissible in a judicial proceeding, or
b. the trust's provisions, as established, determined, or
amended by:
(1) a trustee or other p erson in accordance with
applicable law,
(2) a court order, or
(3) a nonjudicial settlement agr eement under Section
1402 of Title 60 of the Oklahoma Statutes;
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19. "Trust instrument" means an instrument executed by the
settlor that contains terms of the tr ust, including any amendments
thereto; and
20. "Trustee" includes an original, additional, and successor
trustee, and a co-trustee.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1601.4 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. Subject to subsection B of this section, a person has
knowledge of a fact if the person:
1. Has actual knowledge of it;
2. Has received a notice or notification of it; or
3. From all the facts and circumstances known to the person at
the time in question, has reason to know it.
B. An organization that conducts activities through employees
has notice or knowledge of a fact involving a trust only from the
time the information was received by an employee having
responsibility to act for the trust, or would have bee n brought to
the employee's attention if the organization had exercised
reasonable diligence. An organization exercises reasonable
diligence if it maintains rea sonable routines for communicating
significant information to the employee having responsibility to act
for the trust and there is reasonable compliance with the routines.
Reasonable diligence does not require an employee of the
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organization to communicat e information unless the communication is
part of the individual's regular duties or the indivi dual knows a
matter involving the trust would be materially affected by the
information.
SECTION 5. NEW LAW A new section of law to be co dified
in the Oklahoma Statutes as Section 1601.5 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. Except as otherwise provided in the terms of the trust, this
act governs the duties and powers of a trustee, relations among
trustees, and the rights and interests of a beneficiary.
B. The terms of a trust prevail over any provision of this act
except:
1. The requirements for creating a trust;
2. Subject to the Oklahoma Uniform Directed Trust Act, Sections
1209, 1211, and 1212 of Title 60 of the Oklahoma Statutes, the duty
of a trustee to act in good faith and in accordance with the terms
and purposes of the trust and the interests of the beneficiaries;
3. The requirement that a trust and its terms be for the
benefit of its beneficiaries, and that the trust have a purpose that
is lawful, not contrary to public po licy, and possible to achieve;
4. The power of the court to modify or terminate a trust under
Sections 28 through 34 of this act;
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5. The effect of a spendthrif t provision and the rights of
certain creditors and assignees to reach a trust as provided in
Section 36 of this act;
6. The power of the court under Section 41 of this act to
require, dispense with, or modify or terminate a bond;
7. The power of the cou rt under subsection B of Section 47 of
this act to adjust a trustee's compensation specified in the terms
of the trust which is unreasonably low or high;
8. The duty under paragraphs 2 and 3 of Section 60 of this act
to notify qualified beneficiaries of a n irrevocable trust who have
attained twenty-five (25) years of age of the existence of the
trust, of the identity of the trustee, and of their right to request
trustee's reports;
9. The duty under subsection A of Section 60 of this act to
respond to the request of a qualified beneficiary of an irrevocable
trust for trustee's reports and other info rmation reasonably related
to the administration of a trust;
10. The rights under Sections 68 through 71 of this act of a
person other than a trustee or benefic iary;
11. Periods of limitation for commencing a judicial proceeding;
12. The power of the court to take such action and exercise
such jurisdiction as may be necessary in the interests of justice;
and
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13. The subject matter jurisdiction of the court and venue for
commencing a proceeding as provided in Section 14 of this act.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1601.6 of Title 60, unless there
is created a duplication in number ing, reads as follows:
The common law of trusts and principles of equity supplement
this act, except to the extent modified by this act or another
statute of this state.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1601.7 of Title 60, unless there
is created a duplication in numbe ring, reads as follows:
The meaning and effect of the terms of a trust are determined
by:
1. The law of the jurisdiction designated in the terms unless
the designation of that jurisdiction's law is contrary to a strong
public policy of the jurisdiction having the most significant
relationship to the matter at issue; or
2. In the absence of a controlling designation in the terms of
the trust, the law of the juris diction having the most significant
relationship to the matter at issue.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1601.8 of Title 60, unless there
is created a duplication in numberi ng, reads as follows:
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A. Without precluding other means for establishing a sufficient
connection with the designated jurisdiction, terms of a trust
designating the principal place of administration are valid and
controlling if:
1. A trustee's principal p lace of business is located in or a
trustee is a resident of the designated jurisdiction; or
2. All or part of the administration occurs in the designated
jurisdiction.
B. A trustee is under a continuing duty to administer the trust
at a place appropriat e to its purposes, its administration, and the
interests of the beneficiaries.
C. Without precluding the right of the court to order, approve,
or disapprove a transfer, the trustee, in furtherance of the duty
prescribed by subsection B of this section, ma y transfer the trust's
principal place of administration to another state or to a
jurisdiction outside of the United States.
D. The trustee shall notify the qualified beneficiaries of a
proposed transfer of a trust's principal place of administration not
less than sixty (60) days before initiating the transfer. The
notice of proposed transfer must include:
1. The name of the jurisdiction to which the principal place of
administration is to be transferred;
2. The address and telephone number at the new l ocation at
which the trustee can be contacted;
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3. An explanation of the reasons for the propos ed transfer;
4. The date on which the proposed transfer is anticipated to
occur; and
5. The date, not less than sixty (60) days after the giving of
the notice, by which the qualified beneficiary must notify the
trustee of an objection to the proposed transfer.
E. The authority of a trustee under this section to transfer a
trust's principal place of administration terminates if a qualified
beneficiary notifies t he trustee of an objection to the proposed
transfer on or before the date specified in the noti ce.
F. In connection with a transfer of the trust's principal place
of administration, the trustee may transfer some or all of the trust
property to a successor trustee designated in the terms of the trust
or appointed pursuant to Section 43 of this act.
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1601.9 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. Notice to a person under this act or the sendin g of a
document to a person under this act must be accomplished in a manner
reasonably suitable under the circumstances and likely to result in
receipt of the notice or document. Permissible methods of notice or
for sending a document include first -class mail, personal delivery,
delivery to the person's last known place of residence or place of
business, or a properly directed electronic message.
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B. Notice otherwise required under this act or a document
otherwise required to be sent under this act need no t be provided to
a person whose identity or location is unknown to and not reasonably
ascertainable by the trustee.
C. Notice under this act or the sending of a document under
this act may be waived by the person to be notified or sent the
document.
D. Notice of a judicial proceeding must be given as provided in
the applicable rules of civil procedure.
SECTION 10. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1601.10 of Title 60, unless
there is created a duplication in numbering, reads as follows:
The rules of construction that apply in this state to the
interpretation of and disposition of property by wil l also apply as
appropriate to the interpretation of the terms of a trust and the
disposition of the trust property.
SECTION 11. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1601.11 of Title 60, unless
there is created a duplication in numbering, reads as follows:
A. In this section, "settlo r" means a person that executes a
trust instrument. The term includes a person for which a fiduciary
or agent is acting.
B. A trustee of a trust has an insurab le interest in the life
of an individual insured under a life insurance policy that is owned
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by the trustee of the trust acting in a fiduciary capacity or that
designates the trust itself as the owner if, on the date the policy
is issued:
1. The insured is:
a. a settlor of the trust, or
b. an individual in whom a settlor of the trust has, or
would have had if living at the time the policy was
issued, an insurable interest; and
2. The life insurance proceeds are primarily for the benefit of
one or more trust beneficiaries that have:
a. an insurable interest in the life of the insured, or
b. a substantial interest engendered by love and
affection in the continuation of the life of the
insured and, if not already included under
subparagraph a of this paragrap h, who are:
(1) related within the third degree or closer, as
measured by the civil law system of determining
degrees of relation, either by blood or law, to
the insured, or
(2) stepchildren of the insured.
The following table identifies the relatives of a n insured
within three degrees of lineal and collateral consanguinity using
the civil law method, with each row representing a generation.
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Great-
Grandparents
(3)
Grandparents
(2)
Parents
(1)
Aunts and Uncles
(3)
INSURED Sisters and
Brothers
(2)
Children
(1)
Nieces and
Nephews
(3)
Grandchildren
(2)
Great-
Grandchildren
(3)
ARTICLE 2
JUDICIAL PROCEEDINGS
SECTION 12. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1602.1 of Title 60, unless there
is created a duplication in numbering, reads as follows:
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A. The court may intervene in the administration or
construction of a trust to the extent its jurisdiction is invoked by
an interested person or as provided by law.
B. A trust is not subject to continuing judicial supervision
unless ordered by the court.
C. A judicial proceeding involving a trust may relate to any
matter involving the trust's administration or construction,
including a request for instructions and an action to dec lare
rights.
SECTION 13. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1602.2 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. By accepting the trusteeship of a trust having its principal
place of administration in this state or by moving the principal
place of administration to this state, the trustee submits
personally to the jurisdiction of the courts of this state regarding
any matter involving the trust.
B. With respect to their interests in the trust, the
beneficiaries of a trust having its principal place of
administration in this state are subject to the jurisdiction of the
courts of this state regarding any matter involving the trust. By
accepting a distribution from such a trust, the recipient submits
personally to the jurisdiction of the courts of this state regarding
any matter involving the trust.
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C. This section does not preclude other methods of obtaining
jurisdiction over a trustee, beneficiary, o r other person receiving
property from the trust.
SECTION 14. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1602.3 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. Except as otherwise provided in subsection B of this
section, venue for a judicial proceedin g involving a trust is proper
in the county of this state in which the trust's principal place of
administration is or will be located and, if the trust is creat ed by
will and the estate is not yet closed, in the county in which the
decedent's estate is being administered.
B. If a trust has no trustee, venue for a judicial proceeding
for the appointment of a trustee may be in a county of this state in
which a beneficiary resides, in a county in which any trust property
is located, and if the trust is creat ed by will, in the county in
which the decedent's estate was or is being administered.
ARTICLE 3
REPRESENTATION
SECTION 15. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1603.1 of Title 60, unless there
is created a duplication in numbering, reads as follows:
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A. Notice to a person who may represent and bind another person
under this article has the same eff ect as if notice were given
directly to the other person.
B. The consent of a person who may r epresent and bind another
person under this article is binding on the person represented
unless the person represented objects to the representation before
the consent would otherwise have become effective.
C. Except as otherwise provided in Section 29 of this act, a
person who under this article may represent a settlor who lacks
capacity may receive notice and give a binding consent on the
settlor's behalf.
D. A settlor may not represent and bind a beneficiary under
this article with respect to the termi nation or modification of a
trust under subsection A of Section 29 of this act.
SECTION 16. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1603.2 of Title 60, unless there
is created a duplication in numbering, reads as follows:
To the extent there is no conflict of interest between the
holder of a general testamentary power of appointment and the
persons represented with respect to the particular question or
dispute, the holder may represent and bind persons whose interests,
as permissible appointees, takers in default, or otherwise, are
subject to the power.
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SECTION 17. NEW LAW A new s ection of law to be codified
in the Oklahoma Statutes as Section 1603.3 of Title 60, unless there
is created a duplication in numbering, reads as follows:
To the extent there is no conflict of interest between the
representative and the person represented or among those being
represented with respect to a particular question or dispute:
1. A guardian of the property may represent and bind the estate
that the guardian controls;
2. A guardian of the person may represent and bind the ward if
a guardian of the property of the ward's estate has not been
appointed;
3. An agent having authority to act with respect to the
particular question or dispute may represent and bind the principal;
4. A trustee may represent and bind the beneficiaries of the
trust;
5. A personal representative of a decedent's estate may
represent and bind persons interested in th e estate; and
6. A parent may represent and bind the parent's minor or unborn
child if a guardian of the property or guardian of the person for
the child has not been appointed.
SECTION 18. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1603.4 of Title 60, unless there
is created a duplication in numbering, reads as follows:
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Unless otherwise represented, a m inor, incapacitated, or unborn
individual, or a person whose identity or location is unknown an d
not reasonably ascertainable, may be represented by and bound by
another having a substantially identical interest with respect to
the particular question or d ispute, but only to the extent there is
no conflict of interest between the representative and the person
represented.
SECTION 19. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1603.5 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. If the court determines that an interest is not represented
under this act, or that the otherwise available representation might
be inadequate, the court may appoint a representative t o receive
notice, give consent, and otherwise represent, bind, and act on
behalf of a minor, incapacitated, or unborn individual, or a person
whose identity or location is unknown, in the same manner as
appointment of a guardian ad litem. A representative may be
appointed to represent several persons or interests.
B. A representative may act on be half of the individual
represented with respect to any matter arising under this act,
whether or not a judicial proceeding concerning the trust is
pending.
C. In making decisions, a representative may consider general
benefit accruing to the living members of the individual's family.
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ARTICLE 4
CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST
SECTION 20. NEW LAW A new section of la w to be codified
in the Oklahoma Statutes as Section 1604.1 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A trust may be created by:
1. Transfer of property to another person as trustee during the
settlor's lifetime or by will or other disposition taking effect
upon the settlor's death;
2. Declaration by the owner of property that the owner holds
identifiable property as trustee; or
3. Exercise of a power of appointment in favor of a trustee.
SECTION 21. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1604.2 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. A trust is created only if:
1. The settlor has capacity to create a tru st;
2. The settlor indicates an intention to create the trust;
3. The trust has a definite beneficiary or is:
a. a charitable trust, or
b. a trust for a noncharitable purpose, as provided in
Section 27 of this act;
4. The trustee has duties to perform; and
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5. The same person is not the sole trustee and sole
beneficiary.
B. A beneficiary is defi nite if the beneficiary can be
ascertained now or in the future.
C. A power in a trustee to select a beneficiary from an
indefinite class is valid. If the powe r is not exercised within a
reasonable time, the power fails and the property subject to the
power passes to the persons who would have taken the property had
the power not been conferred.
SECTION 22. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1604.3 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A trust not created by will is validly created if its creation
complies with the law of the jurisdiction in which the trust
instrument was executed, or the law of the jurisdiction in which, at
the time of creation:
1. The settlor was domiciled, had a place of abode, or was a
national;
2. A trustee was domiciled or had a place of business; or
3. Any trust property was l ocated.
SECTION 23. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1604.4 of Title 60, unless there
is created a duplication in numbering, reads as follows:
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A trust may be created only to the extent i ts purposes are
lawful, not contrary to public policy, and possible to achieve. A
trust and its terms must be for the benefit of its beneficiaries.
SECTION 24. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1604.5 of Title 60, unless there
is created a duplication in numbering, reads as follow s:
A. A charitable trust may be created for the relief of poverty,
the advancement of education or religion, the promotion of health,
governmental or municipal purposes, or other purposes the
achievement of which is beneficial to the community.
B. If the terms of a charitable trust do not indicate a
particular charitable purpose or beneficiary, the court may select
one or more charitable purposes or beneficiarie s. The selection
must be consistent with the settlor's intention to the extent it can
be ascertained.
C. The settlor of a charitable trust, among others, may
maintain a proceeding to enforce the trust.
SECTION 25. NEW LAW A new sec tion of law to be codified
in the Oklahoma Statutes as Section 1604.6 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A trust is void to the extent its creation was induced by fraud,
duress, or undue influence.
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SECTION 26. NEW LAW A new section of law to be codified
in the Oklahoma Statutes a s Section 1604.7 of Title 60, unless there
is created a duplication in numbering, reads as follows:
Except as required by a statute other than this act, a trust
need not be evidenced by a trust instrument, but the creation of an
oral trust and its terms may be established only by clear and
convincing evidence.
SECTION 27. NEW LAW A new section of law to be codified
in the Oklahoma Statutes a s Section 1604.8 of Title 60, unless there
is created a duplication in numbering, reads as foll ows:
Except as otherwise provided in this act or by another statute,
the following rules apply:
1. A trust may be created for a noncharitable purpose without a
definite or definitely ascertainable beneficiary or for a
noncharitable but otherwise valid purpose to be selected by the
trustee;
2. A trust authorized by this section may be enforced by a
person appointed in the terms of the trust or, if no person is so
appointed, by a person appointed by the court; and
3. Property of a trust authorized by this section may be
applied only to its intended use, except to the extent the court
determines that the value of the trust property exceeds the amount
required for the intended use. Except as otherwise provided in the
terms of the trust, property not required for the intended use must
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be distributed to the settlor, if then living, otherwise to the
settlor's successors in interest.
SECTION 28. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1604.9 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. In addition to the methods of termination prescribed by
Sections 29 through 32 of t his act, a trust terminates to the extent
the trust is revoked or expires pursuant to its terms, no purpose of
the trust remains to be achieved, or the purposes of the trust have
become unlawful, contrary to public policy, or impossible to
achieve.
B. A proceeding to approve or disapprove a proposed
modification or termination under Sections 29 thr ough 34 of this
act, or trust combination or division under Section 35 of this act,
may be commenced by a trustee or beneficiary, and a proceeding to
approve or disapprove a proposed modification or termination under
Section 29 of this act may be commenced by the settlor. The settlor
of a charitable trust may maintain a proceeding to modify the trust
under Section 31 of this act.
SECTION 29. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1604.10 of Title 60, unless
there is created a duplication in numbering, reads as follows:
A. If, upon petition, the court finds that the settlor and all
beneficiaries consent to the modification or termination of a
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noncharitable irrevocable trust, the court shall approve the
modification or termination even if the modification or termination
is inconsistent with a material purpose of the trust. A settlor's
power to consent to a trust's modification or termination may be
exercised by an agent under a power of attorney only to the extent
expressly authorized by the power of attorney or the terms of the
trust; by the settlor's guardian of the property with the approval
of the court supervising the guardianship if an agent is not so
authorized; or by the settlor's guardian of the person with the
approval of the court supervising the guardianship if an agent is
not so authorized and a guardian of the property has not been
appointed. This subsection does not apply to irrevocable trusts
created before or to revocable trusts that become irrevocable before
the effective date of this act.
B. A noncharitable irrevocable trust may be terminated upon
consent of all of the beneficiaries i f the court concludes that
continuance of the trust is not necessary to achieve any material
purpose of the trust. A noncharitable irrevocable trust may be
modified upon consent of all of the beneficiaries if the court
concludes that modification is not i nconsistent with a material
purpose of the trust.
C. A spendthrift provision in the terms of t he trust is not
presumed to constitute a material purpose of the trust.
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D. Upon termination of a trust under subsection A or B of this
section, the trustee shal l distribute the trust property as agreed
by the beneficiaries.
E. If not all of the beneficiaries consent to a proposed
modification or termination of the trust under subsection A or B of
this section, the modification or termination may be approved by t he
court if the court is satisfied that:
1. If all of the beneficiaries had consented, the tru st could
have been modified or terminated under this section; and
2. The interests of a beneficiary who does not consent will be
adequately protected.
SECTION 30. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1604.11 of Title 60, unless
there is created a duplication in numbering, reads as follows:
A. The court may modify the administrative or dispositive terms
of a trust or terminate the trust if, because of circumstances not
anticipated by the set tlor, modification or termination will further
the purposes of the trust. To the extent practicable, the
modification must be made in accordance with the settlo r's probable
intention.
B. The court may modify the administrative terms of a trust if
continuation of the trust on its existing terms would be
impracticable or wasteful or impair the trust's administration.
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C. Upon termination of a trust under this sect ion, the trustee
shall distribute the trust property in a manner consistent with the
purposes of the trust.
SECTION 31. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1604.12 of Title 60, unless
there is created a duplication in numbering, reads as follows:
A. Except as otherwise provided in subsection B of this
section, if a particular charitable purpose becomes unlawful,
impracticable, impossible to achieve, or wasteful:
1. The trust does not fail, in whole or in part;
2. The trust property does not revert to the settlor or the
settlor's successors in interest; and
3. The court may apply cy pres to modify or terminate the trust
by directing that the trust property be applied or distributed, in
whole or in part, in a manner consistent with the settlor's
charitable purposes.
B. A provision in the terms of a charitable trust that would
result in distribution of the trust property to a noncharitable
beneficiary prevails over the power of the court und er subsection A
of this section to apply cy pres to modify or terminate the trust
only if, when the provision takes effect, the trust property is to
revert to the settlor and the settlor is still living.
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SECTION 32. NEW LAW A new sec tion of law to be codified
in the Oklahoma Statutes as Section 1604.13 of Title 60, unless
there is created a duplication in numbering, reads as follows:
A. After notice to the qualified beneficiaries, the trustee of
a trust consisting of trust property h aving a total value less than
Fifty Thousand Dollars ($50,000.00) may terminate the trust if th e
trustee concludes that the value of the trust property is
insufficient to justify the cost of administration.
B. The court may modify or terminate a trust or remove the
trustee and appoint a different trustee if it determines that the
value of the trust property is insufficient to justify the cost of
administration.
C. Upon termination of a trust under this section, the trustee
shall distribute the trust prope rty in a manner consistent with the
purposes of the trust.
D. This section does not apply to a n easement for conservation
or preservation.
SECTION 33. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1604.14 of Title 60, unless
there is created a duplication in numbering, reads as follows:
The court may reform the terms of a trust, even if unambiguous,
to conform the terms to the settlor's intention if it is proved by
clear and convincing evidence what the settlor's intention was and
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that the terms of the trust were affected by a mistake of fact or
law, whether in expression or inducement.
SECTION 34. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1604.15 of Title 60, unless
there is created a duplication in numbering, reads as follows:
To achieve the settlor's tax objectives, the court may modify
the terms of a trust in a manner that is not contrary to the
settlor's probable intention. The court ma y provide that the
modification has retroactive effect.
SECTION 35. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1604.16 of Title 60, unless
there is created a duplication in numbering, reads as fol lows:
After notice to the qualified beneficiaries, a trustee may
combine two or more trusts into a single trust or divide a trust
into two or more separate trusts, if the result does not impair the
rights of any beneficiary or adversely affect achievement of the
purposes of the trust.
ARTICLE 5
CREDITOR’S CLAIM AGAINST SETTLOR
SECTION 36. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1605.1 of Title 60, unless there
is created a duplication in numberi ng, reads as follows:
A. Whether or not the terms of a trust contain a spendthrift
provision, the following rules apply:
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1. Except as provided by the laws of this state, during the
lifetime of the settlor, the property of a revocable trust is
subject to claims of the settlor's creditors; and
2. Except as provided by the laws of this state, after the
death of a settlor, and subject to the settlor's right to direct the
source from which liabilities will be paid, the property of a trust
that was revocable a t the settlor's death is subject to claims of
the settlor's creditors, costs of administration of the settlor's
estate, the expenses of the settlor's funeral and disposal of
remains, and statutory allowances to a surviving spouse and children
to the extent the settlor's probate estate is inadequate to satisfy
those claims, costs, expenses, and allow ances.
B. For purposes of this section:
1. During the period the power may be exercised, the holder of
a power of withdrawal is treated in the same manner as t he settlor
of a revocable trust to the extent of the property subject to the
power; and
2. Upon the lapse, release, or waiver of the power, the holder
is treated as the settlor of the trust only to the extent the value
of the property affected by the laps e, release, or waiver exceeds
the greater of the amount specified in Section 2041(b)(2) or 2514 (e)
of the Internal Revenue Code of 1986, or Section 2503(b) of the
Internal Revenue Code of 1986, in each case as in effect on the
effective date of this act, o r as later amended.
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ARTICLE 6
REVOCABLE TRUSTS
SECTION 37. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1606.1 of Title 60, unless there
is created a duplication in numbering, reads as follows:
The capacity required to create, amend, revoke, or add property
to a revocable trust, or to direct the actions of the trustee of a
revocable trust, is the same as that required to make a will.
SECTION 38. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1606.2 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. To the extent a trust is revocable by a settlor, a trustee
may follow a direction of the settlor that is contrary to the terms
of the trust. To the extent a trust is revocable by a settlor in
conjunction with a person other than a trustee or person holding an
adverse interest, the trustee may follow a direction from the
settlor and the other person holding the power to revoke even if the
direction is contrary to the terms of the trust.
B. To the extent a trust is revocable and the settlor has
capacity to revoke the trust, rights of the beneficiaries are
subject to the control of, and the duties of the trustee are owe d
exclusively to, the settlor.
C. During the period the power may be exercised, the holder of
a power of withdrawal has the rights of a settlor of a revocable
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trust under this section to the extent of the property subject to
the power.
SECTION 39. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1606.3 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. A person may commence a judicial proceeding to contest the
validity of a trust that was revocable at the settlor's death within
three (3) years after the later o f either the settlor's death or
actual or constructive notice of the existence and terms of the
trust.
B. Upon the death of the settlor of a trust that was revo cable
at the settlor's death, the trustee may proceed to distribute the
trust property in accordance with the terms of the trust. The
trustee is not subject to liability for doing so unless:
1. The trustee knows of a pending judicial proceeding
contesting the validity of the trust;
2. The trustee knows of claims, costs, expenses, or allowances
that would be payable from the trust pursuant to paragraph 2 of
subsection A of Section 36 of this act; or
3. A potential contestant has notified the trustee of a
possible judicial proceeding to contest the trust and a judicial
proceeding is commenced within sixty (60) days after the contestant
sent the notification.
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C. A beneficiary of a trust that is determined to have been
invalid or which is subject to claims, costs, expenses, or
allowances under paragraph 2 of subsection B of this section is
liable to return any distribution received.
ARTICLE 7
OFFICE OF TRUSTEE
SECTION 40. NEW LAW A new section of law to be codified
in the Oklahoma Stat utes as Section 1607.1 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. Except as otherwise provided in subsection C of this
section, a person designated as trustee accepts the trusteeship:
1. By substantially complyi ng with a method of acceptance
provided in the terms of the trust; or
2. If the terms of the t rust do not provide a method or the
method provided in the terms is not expressly made exclusive, by
accepting delivery of the trust property, exercising powers or
performing duties as trustee, or otherwise indicating acceptance of
the trusteeship.
B. A person designated as trustee who has not yet accepted the
trusteeship may reject the trusteeship. A designated trustee who
does not accept the trusteeship within a reasonable time after
knowing of the designation is deemed to have rejected the
trusteeship.
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C. A person designated as trustee, without accepting the
trusteeship, may:
1. Act to preserve the trust property if, within a reasonable
time after acting, th e person sends a rejection of the trusteeship
to the settlor or, if the settlor is dead or lacks capacity, to a
qualified beneficiary; and
2. Inspect or investigate trust property to determine potential
liability under environmental or other law or for an y other purpose.
SECTION 41. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1607.2 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. A trustee shall give bond to s ecure performance of the
trustee's duties only if the court finds that a bond is needed to
protect the interests of the beneficiaries or is required by the
terms of the trust and the court has not dispensed with the
requirement.
B. The court may specify t he amount of a bond, its liabilities,
and whether sureties are necessary. The court may modify or
terminate a bond at any time.
C. A regulated financial service institution qualified to do
trust business in this state need not give bond, even if required by
the terms of the trust.
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SECTION 42. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1607.3 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. Co-trustees who are unable to reach a unanimous decision may
act by majority decision.
B. If a vacancy occurs in a co-trusteeship, the remaining co -
trustees may act for the trust.
C. Subject to Section 1212 of Title 60 of the Oklahoma
Statutes, a co-trustee must participat e in the performance of a
trustee's function unless the co -trustee is unavailable to perform
the function because of absence, illness, disqualification under
other law, or other temporary incapacity or the co -trustee has
properly delegated the performance of the function to another
trustee.
D. If a co-trustee is unavailable to perform duties becaus e of
absence, illness, disqualification under other law, or other
temporary incapacity, and prompt action is necessary to achieve the
purposes of the trust or to avoid injury to the trust property, the
remaining co-trustee or a majority of the remaining co -trustees may
act for the trust.
E. A trustee may not delegate to a co -trustee the performance
of a function the settlor reasonably expected the trustees to
perform jointly. Unless a delegation was irrevocable, a trustee may
revoke a delegation previousl y made.
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F. Except as otherwise provided in subsection G of this
section, a trustee who does not join in an action of another trustee
is not liable for the actio n.
G. Subject to Section 1212 of Title 60 of the Oklahoma
Statutes, each trustee shall exercise reasonable care to:
1. Prevent a co-trustee from committing a serious breach of
trust; and
2. Compel a co-trustee to redress a serious breach of trust.
H. A dissenting trustee who joins in an action at the direction
of the majority of the trustees and who notified any co-trustee of
the dissent at or before the time of the action is not liable for
the action unless the action is a serious breach of trust.
SECTION 43. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1607.4 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. A vacancy in a trusteeship occurs if:
1. A person designated as trustee rejects the trusteeship;
2. A person designated as trustee cannot be ide ntified or does
not exist;
3. A trustee resigns;
4. A trustee is disqualified or removed;
5. A trustee dies; or
6. A guardian is appointed for an individual serving as
trustee.
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B. If one or more co -trustees remain in office, a vacancy in a
trusteeship need not be filled. A vacancy in a trusteeship must be
filled if the trust has no remaining trustee.
C. A vacancy in a trusteeship of a noncharitable trust th at is
required to be filled must be filled in the following order of
priority:
1. By a person designated in the terms of the trust to act as
successor trustee;
2. By a person appointed by unanimous agreement of the
qualified beneficiaries; or
3. By a person appointed by the court.
D. A vacancy in a trusteeship of a charitable trust that is
required to be filled must be filled in the following order of
priority:
1. By a person designated in the terms of the trust to act as
successor trustee;
2. By a person selected by the charitable organizations
expressly designated to receive distributions und er the terms of the
trust if the Office of the Attorney General concurs in the
selection; or
3. By a person appointed by the court.
E. Whether or not a vacancy in a trusteeship exists or is
required to be filled, the court may appoint an additional trustee
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or special fiduciary whenever the court considers the appointment
necessary for the administration of the trust.
SECTION 44. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1607.5 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. A trustee may resign:
1. Upon at least thirty (30) days' notice to the qualified
beneficiaries, the settlor, if living, and all co -trustees; or
2. With the approval of the court.
B. In approving a resignation, the court may issue orders and
impose conditions reasonably necessary for the protection of the
trust property.
C. Any liability of a resigning trustee or of any sureties on
the trustee's bond for acts or omissions of the trustee is not
discharged or affected by the trustee's resignation, but may be
discharged by court order upon notice to the qualified
beneficiaries, the settlor, if liv ing, and all co-trustees.
SECTION 45. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1607.6 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. The settlor, a co -trustee, or a beneficiary may request the
court to remove a trustee, or a trustee may be removed b y the court
on its own initiative.
B. The court may remove a trustee if:
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1. The trustee has committed a serious breach of trust;
2. Lack of cooperation among co-trustees substantially impairs
the administration of the trust;
3. Due to unfitness, unwillingness, or persistent failure of
the trustee to administer the trust effectively, the court
determines that removal of the trustee best serves the interests of
the beneficiaries; or
4. There has been a substantial change of circumstances or
removal is requested by all of the qualified beneficiaries, the
court finds that removal of the trustee best serves the interests of
all of the beneficiaries and is not incon sistent with a material
purpose of the trust, and a suitable co -trustee or successor trustee
is available.
C. Pending a final decision on a request to remove a trustee,
or in lieu of or in addition to removing a trustee, the court may
order such appropria te relief under subsection B of Section 175.57
of Title 60 of the Oklahoma Statutes as may be n ecessary to protect
the trust property or the interests of the beneficiaries.
SECTION 46. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1607.7 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. Unless a co-trustee remains in office or the court otherwise
orders, and until the trust property is delivered to a successor
trustee or other person entitled to it, a trustee who has resigned
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or been removed has the duties o f a trustee and the powers necessary
to protect the trust property.
B. A trustee who has resigned or been removed shall proceed
expeditiously to deliver the tru st property within the trustee's
possession to the co -trustee, successor trustee, or other person
entitled to it.
SECTION 47. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1607.8 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. If the terms of a trust do n ot specify the trustee's
compensation, a trustee is entitled to compensation that is
reasonable under the circumstances.
B. If the terms of a trust specify the trustee's compensation,
the trustee is entitled to be compensated as specified, but the
court may allow more or less compensation if:
1. The duties of the trustee are substantially different from
those contemplated when the trust was created; or
2. The compensation specified by the terms of the trust would
be unreasonably low or high.
SECTION 48. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1607.9 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. A trustee is entitled to be reimbursed out of the trust
property, with interest as appropriate, for:
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1. Expenses that were properly incurred in the administration
of the trust; and
2. To the extent necessary to prevent unjust enrichment of the
trust, expenses that were not properly incurred in the
administration of the trust.
B. An advance by the trustee of money for the protection of the
trust gives rise to a lien against trust property to secure
reimbursement with re asonable interest.
ARTICLE 8
DUTIES AND POWERS OF TRUSTEE
SECTION 49. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1608.1 of Title 60, unless there
is created a duplication in numbering, reads as fo llows:
Upon acceptance of a trusteeship, the trustee shall administer
the trust in good faith, in accordance with its terms and purposes
and the interests of the beneficiaries, and in accordance with this
act.
SECTION 50. NEW LAW A n ew section of law to be codified
in the Oklahoma Statutes as Section 1608.2 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. A trustee shall administer the trust solely in the interests
of the beneficiaries.
B. Subject to the rights of persons dealing with or assisting
the trustee as provided in subsection I of Section 175.57 of Title
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60 of the Oklahoma Statutes, a sale, encumbrance, or other
transaction involving the investment or management of trust property
entered into by the trustee for the trustee's own personal account
or which is otherwise affected by a conflict between the trustee's
fiduciary and personal interests is voidable by a beneficiary
affected by the transaction unless:
1. The transaction was authoriz ed by the terms of the trust;
2. The transaction was approved by the court;
3. The beneficiary did not commence a judicial proceeding
within the time allowed by subsection E of Section 175.57 of Title
60 of the Oklahoma Statutes;
4. The beneficiary cons ented to the trustee's conduct, ratified
the transaction, or released the trustee in compliance with
subsection G of Section 175.57 of Title 60 of the Oklahoma Statutes;
or
5. The transaction involves a contract entered into or claim
acquired by the trust ee before the person became or contemplated
becoming trustee.
C. A sale, encumbrance, or other transaction involving the
investment or management of trust property is presumed to be
affected by a conflict between personal and fiduciary interests if
it is entered into by the trustee with:
1. The trustee's spouse;
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2. The trustee's descendants, siblings, parents, or their
spouses;
3. An agent or attorney of the trustee; or
4. A corporation or other person or enterprise in which the
trustee, or a person th at owns a significant interest in the
trustee, has an interest that might affect the trustee's best
judgment.
D. A transaction between a trustee and a beneficiary that does
not concern trust property but that occurs during the existence of
the trust or while the trustee retains significant influence over
the beneficiary and from which the trustee obtains an advantage is
voidable by the beneficiary unless the trustee establishes that the
transaction was fair to the beneficiary.
E. A transaction not concern ing trust property in which the
trustee engages in the trustee's individual capacity involves a
conflict between personal and fiduciary interests if the transaction
concerns an opportunity properly belonging to the trust.
F. An investment by a trustee in securities of an investment
company or investment trust to which the trustee, or its affiliate,
provides services in a capacity other than as trustee is not
presumed to be affected by a conflict between personal and fiduciary
interests if the investment ot herwise complies with the prudent
investor rule of the Oklahoma Uniform Prudent Investor Act. In
addition to its compensation for acting as trustee, the trustee may
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be compensated by the investment company or investment trust for
providing those services out of fees charged to the trust. If the
trustee receives compensation from the investment company or
investment trust for providing investment advisory or investment
management services, the trustee must at least annually notify the
persons entitled unde r Section 60 of this act to receive a copy of
the trustee's annual report of the rate and metho d by which that
compensation was determined.
G. In voting shares of stock or in exercising powers of control
over similar interests in other forms of enterprise , the trustee
shall act in the best interests of the beneficiaries. If the trust
is the sole owner of a corporation or other form of enterprise, the
trustee shall elect or appoint directors or other managers who will
manage the corporation or enterprise i n the best interests of the
beneficiaries.
H. This section does not preclude the following tra nsactions,
if fair to the beneficiaries:
1. An agreement between a trustee and a beneficiary relating to
the appointment or compensation of the trustee;
2. Payment of reasonable compensation to the trustee;
3. A transaction between a trust and another trust, decedent's
estate, or conservatorship of which the trustee is a fiduciary or in
which a beneficiary has an interest;
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4. A deposit of trust money in a regu lated financial-service
institution operated by the trustee; or
5. An advance by the trustee o f money for the protection of the
trust.
I. The court may appoint a special fiduciary to make a decision
with respect to any proposed transaction that might vio late this
section if entered into by the trustee.
SECTION 51. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1608.3 of Title 60, unless there
is created a duplication in numbering, reads as follows:
If a trust has two or more beneficiaries, the trustee shall act
impartially in investing, managi ng, and distributing the trust
property, giving due regard to the beneficiaries' respective
interests.
SECTION 52. NEW LAW A new section o f law to be codified
in the Oklahoma Statutes as Section 1608.4 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A trustee shall administer the trust as a prudent person would,
by considering the purposes, terms, distribut ional requirements, and
other circumstances of the trust. In satisfying this standard, the
trustee shall exercise reasonable care, skill, and caution.
SECTION 53. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1608.5 of Title 60, unless there
is created a duplication in numbering, reads as follows:
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In administering a trust, the trustee may incur only costs that
are reasonable in relation to the trust property, the purposes of
the trust, and the skills of the trustee.
SECTION 54. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1608.6 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A trustee who has special skills o r expertise, or is named
trustee in reliance upon the trustee's representation that the
trustee has special skills or expertise, shall use those special
skills or expertise.
SECTION 55. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1608.7 of Title 60, unless there
is created a duplication in n umbering, reads as follows:
A. A trustee may delegate duties and powers that a prudent
trustee of comparable skills could properly delegate under the
circumstances. The trustee shall exercise reasonable care, skill,
and caution in:
1. Selecting an agent;
2. Establishing the scope and terms of the delegation,
consistent with the purposes and terms of the trust; and
3. Periodically reviewing the agent's actions in order to
monitor the agent's performance and compliance with the terms of the
delegation.
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B. In performing a delegated function, an agent owes a duty to
the trust to exercise reasonable care to comply with the terms of
the delegation.
C. A trustee who complies with subsection A of this section is
not liable to the beneficiaries or to the trust for an action of the
agent to whom the function was delegated.
D. By accepting a delegation of powers or duties from the
trustee of a trust that is subject to the law of this state, an
agent submits to the jurisdiction of the courts of this state.
SECTION 56. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1608.8 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A trustee shall take reasonable steps to take control of and
protect the trust property.
SECTION 57. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1608.9 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. A trustee shall keep adequate records of the administration
of the trust.
B. A trustee shall keep trust property separate from the
trustee's own property.
C. Except as otherw ise provided in subsection D of this
section, a trustee shall cause the trust property to be designated
so that the interest of the trust, to the extent feasible, appears
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in records maintained by a party other than a trustee or
beneficiary.
D. If the trustee maintains records clearly indicating the
respective interests, a trustee may invest as a wh ole the property
of two or more separate trusts.
SECTION 58. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Secti on 1608.10 of Title 60, unless
there is created a duplication in numbering, reads as follows:
A trustee shall take reasonable steps to enforce claims of the
trust and to defend claims against the trust.
SECTION 59. NEW LAW A new sect ion of law to be codified
in the Oklahoma Statutes as Section 1608.11 of Title 60, unless
there is created a duplication in numbering, reads as follows:
A trustee shall take reasonable steps to compel a former trustee
or other person to deliver trust prope rty to the trustee, and to
take reasonable steps to redress a breach of trust known to the
trustee to have been committed by a former trustee.
SECTION 60. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Sectio n 1608.12 of Title 60, unless
there is created a duplication in numbering, reads as follows:
A. A trustee shall keep the qualified beneficiaries of the
trust reasonably informed about the administration of the trust and
of the material facts necessary for them to protect their interests.
Unless unreasonable under the circumstances, a trustee shall
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promptly respond to a beneficiary's request for information related
to the administration of the trust.
B. A trustee:
1. Upon request of a qualified beneficia ry, shall promptly
furnish to the qualified beneficiary a copy of the trust instrument;
2. Within sixty (60) days after accepting a trusteeship, shall
notify the qualified beneficiaries of the acceptance and of the
trustee's name, address, and telephone n umber;
3. Within sixty (60) days after the date the trustee acquires
knowledge of the creation of an irrevocable trust, or the date the
trustee acquires knowledge that a formerly revocable trust has
become irrevocable, whether by the death of the settlor or
otherwise, shall notify the qualified beneficiaries of the trust's
existence, of the identit y of the settlor or settlors, of the right
to request a copy of the trust instrument, and of the right to a
trustee's report as provided in subsection C of this section; and
4. Shall notify the qualified beneficiaries in advance of any
change in the method or rate of the trustee's compensation.
C. A trustee shall send to the distributees or permissible
distributees of trust income or principal, and to other qual ified
beneficiaries who request it, at least annually and at the
termination of the trust, a re port of the trust property,
liabilities, receipts, and disbursements, including the source and
amount of the trustee's compensation, a listing of the trust asset s
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and, if feasible, their respective market values. Upon a vacancy in
a trusteeship, unless a co -trustee remains in office, a report must
be sent to the qualified beneficiaries by the former trustee. A
personal representative or guardian may send the qua lified
beneficiaries a report on behalf of a deceased or incapacitated
trustee.
D. A beneficiary may waive the right to a trustee's report or
other information otherwise required to be furnished under this
section. A beneficiary, with respect to future r eports and other
information, may withdraw a waiver previously given.
E. Paragraphs 2 and 3 of subsection B of this section do not
apply to a trustee who accepts a trusteeship before the effective
date of this act, to an irrevocable trust created before t he
effective date of this act, or to a revocable trust that becomes
irrevocable before the effe ctive date of this act.
SECTION 61. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1608.13 of Title 60, unless
there is created a duplication in numbering, reads as follows:
A. Notwithstanding the breadth of discretion granted to a
trustee in the terms of the trust, including the use of such terms
as "absolute", "sole", or "uncontrolled", the trustee shall e xercise
a discretionary power in good faith and in accordance with the terms
and purposes of the trust and the interests of the beneficiaries.
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B. Subject to subsection D of this section, and unless the
terms of the trust expressly indicate that a rule in this subsection
does not apply:
1. A person other than a settlor who is a beneficiary and
trustee of a trust that confers on the trustee a power to make
discretionary distributions to or for the trustee's personal benefit
may exercise the power only in ac cordance with an ascertainable
standard; and
2. A trustee may not exercise a power to make dis cretionary
distributions to satisfy a legal obligation of support that the
trustee personally owes another person.
C. A power whose exercise is limited or prohi bited by
subsection B of this section may be exercised by a majority of the
remaining trustees whose exercise of the power is not so limited or
prohibited. If the power of all trustees is so limited or
prohibited, the court may appoint a special fiduciary with authority
to exercise the power.
D. Subsection B of this section does not apply to:
1. A power held by the settlor's spouse who is the trustee of a
trust for which a marital deduction, as defined in Section
2056(b)(5) or 2523(e) of the Internal Rev enue Code of 1986, as in
effect on the effective date of this act, or as later amended, was
previously allowed;
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2. Any trust during any period that the trust may be revoked or
amended by its settlor; or
3. A trust if contributions to the trust qualify fo r the annual
exclusion under Section 2503(c) of the Internal Revenue Code of
1986, as in effect on the effective date of this act, or as later
amended.
E. If a distribution to a beneficiary is subject to the
exercise of the trustee’s discretion, whether o r not the terms of a
trust include a standard to guide the trustee in making
distributions, then the interest is neither a property interest nor
an enforceable right, but a mere expectancy.
SECTION 62. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1608.14 of Title 60, unless
there is created a duplication in numbering, reads as follows:
A. A trustee, without authorization by the court, may exercise:
1. Powers conferred by the terms of the trust; and
2. Except as limited by the terms of the trust:
a. all powers over the trust property which an unmarried
competent owner has over individually owned property,
b. any other powers appropriate to achieve the proper
investment, management, and distribution of the trust
property, and
c. any other powers conferred by this act.
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B. The exercise of a pow er is subject to the fiduciary duties
prescribed by this article.
SECTION 63. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1608.15 of Title 60, unless
there is created a duplication in numbering, reads as follows:
Without limiting the authority conferred by Section 62 of this
act, a trustee may:
1. Collect trust property and accept or reject additions to t he
trust property from a settlor or any other person;
2. Acquire or sell property, for cash or on credit, at public
or private sale;
3. Exchange, partition, or otherwise change the character of
trust property;
4. Deposit trust money in an account in a r egulated financial-
service institution;
5. Borrow money, with or without security, and mortgage or
pledge trust property for a period within or extending beyond the
duration of the trust;
6. With respect to an interest in a proprietorship,
partnership, limited liability company, business trust, corporation,
or other form of business or enterprise, continue the business or
other enterprise and take any action that may be taken by
shareholders, members, or property owners, including merging,
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dissolving, or otherwise changing the form of business organization
or contributing additional capital;
7. With respect to stocks or other securities, exercise the
rights of an absolute owner, including the right to:
a. vote, or give proxies to vote, with or without pow er
of substitution, or enter into or continue a voting
trust agreement,
b. hold a security in t he name of a nominee or in other
form without disclosure of the trust so that title may
pass by delivery,
c. pay calls, assessments, and other sums chargeable or
accruing against the securities, and sell or exercise
stock subscription or conversion rights, and
d. deposit the securities with a depositary or other
regulated financial-service institution;
8. With respect to an interest in real property, construct, o r
make ordinary or extraordinary repairs to, alterations to, or
improvements in, buildings or o ther structures, demolish
improvements, raze existing or erect new party walls or buildings,
subdivide or develop land, dedicate land to public use or grant
public or private easements, and make or vacate plats and adjust
boundaries;
9. Enter into a lease for any purpose as lessor or lessee,
including a lease or other arrangement for exploration and removal
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of natural resources, with or without the option to purc hase or
renew, for a period within or extending beyond the duration of the
trust;
10. Grant an option involving a sale, lease, or other
disposition of trust property or acquire an option for the
acquisition of property, including an option exercisable bey ond the
duration of the trust, and exercise an option so acquired;
11. Insure the property of the trust against damage or loss and
insure the trustee, the trustee's agents, and beneficiaries against
liability arising from the administration of the trust;
12. Abandon or decline to administer property of no value or of
insufficient value to justify its collection or continued
administration;
13. With respect to possible liability for violation of
environmental law:
a. inspect or investigate property the tr ustee holds or
has been asked to hold, or property owned or operated
by an organization in which the trustee holds or has
been asked to hold an interest, for the purpose of
determining the application of environmental law with
respect to the property,
b. take action to prevent, abate, or otherwise remedy any
actual or potential violation of any envi ronmental law
affecting property held directly or indirectly by the
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trustee, whether taken before or after the assertion
of a claim or the initiation of governme ntal
enforcement,
c. decline to accept property into trust or disclaim any
power with respect to property that is or may be
burdened with liability for violation of environmental
law,
d. compromise claims against the trust which may be
asserted for an alle ged violation of environmental
law, and
e. pay the expense of any inspection, review, abatement ,
or remedial action to comply with environmental law;
14. Pay or contest any claim, settle a claim by or against the
trust, and release, in whole or in part, a claim belonging to the
trust;
15. Pay taxes, assessments, compensation of the trustee and of
employees and agents of the trust, and other expenses incurred in
the administration of the trust;
16. Exercise elections with respect to federal, state, and
local taxes;
17. Select a mode of payment under any employee benefit or
retirement plan, annuity , or life insurance payable to the trustee,
exercise rights thereunder, including exercise of the right to
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indemnification for expenses and against liabilities, and take
appropriate action to collect the proceeds;
18. Make loans out of trust property, including loans to a
beneficiary on terms and conditions the trustee considers to be fair
and reasonable under the circumstances, and the trustee has a lien
on future distributions for repayment of those loans;
19. Pledge trust property to guarantee loans ma de by others to
the beneficiary;
20. Appoint a trustee to act in another jurisdiction with
respect to trust property located in the other jurisdiction, confer
upon the appointed trustee all of the powers and duties of the
appointing trustee, require that the appointed trustee furnish
security, and remove any trustee so appointed;
21. Pay an amount distributable to a beneficiary who is under a
legal disability or who the trustee reasonably believes is
incapacitated, by paying it directly to the beneficiary or applying
it for the beneficiary's benefit, or by:
a. paying it to the beneficiary's guardian of the
property or, if the beneficiary does not have a
guardian of the property, the beneficiary's guardian
of the person,
b. paying it to the beneficiary's custodian under the
Oklahoma Uniform Transfers to Minors Act, and, for
that purpose, creating a custodianship,
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c. if the trustee does not know of a guardian of the
property, guardian of the person, or custodian, paying
it to an adult relative or other person having legal
or physical care or custody of the beneficiary, to be
expended on the beneficiary's behalf, or
d. managing it as a separate fund on the beneficiary 's
behalf, subject to the beneficiary's continuing right
to withdraw the distribution;
22. On distribution of trust property or the division or
termination of a trust, make distributions in divided or undivided
interests, allocate particular assets in pro portionate or
disproportionate shares, value the trust property for those
purposes, and adjust for resulting differences in valuation;
23. Resolve a dispute concerning the interpretation of the
trust or its administration by mediation, arbitration, or oth er
procedure for alternative dispute resolution;
24. Prosecute or defend an action, claim, or judicial
proceeding in any jurisdiction to protect trust property and the
trustee in the performance of the trustee's duties;
25. Sign and deliver contracts and other instruments that are
useful to achieve or facilitate the exercise of the trustee's
powers; and
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26. On termination of the trust, exercise the powers
appropriate to wind up the administration of the trust and
distribute the trust property to the pers ons entitled to it.
SECTION 64. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1608.16 of Title 60, unless
there is created a duplication in numbering, reads as follows:
A. Upon termination or partia l termination of a trust, the
trustee may send to the beneficiaries a proposal for distribution .
The right of any beneficiary to object to the proposed distribution
terminates if the beneficiary does not notify the trustee of an
objection within thirty (3 0) days after the proposal was sent but
only if the proposal informed the beneficiary of the right to object
and of the time allowed for objection.
B. Upon the occurrence of an event terminating or partially
terminating a trust, the trustee shall proceed reasonably to
distribute the trust property to the persons entitled to it, subject
to the right of the trustee to retain a reasonable reserve for the
payment of debts, expenses, and taxes.
C. A release by a beneficiary of a trustee from liability for
breach of trust is invalid to the extent:
1. It was induced by improper conduct of the trustee; or
2. The beneficiary, at the time of the release, did not know of
the beneficiary's rights or of the material facts relating to the
breach.
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ARTICLE 10
LIABILITY OF TRUSTEES AND RIGHTS OF PERSONS DEALING WITH TRUSTEE
SECTION 65. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1610.1 of Title 60, unless there
is created a duplication in numbering, reads as follo ws:
Except as otherwise provided in subsections A and B of Section
175.57 of Title 60 of the Oklahoma Statutes, if more than one
trustee is liable to the beneficiaries for a breach of trust, a
trustee is entitled to contribution from the other trustee or
trustees. A trustee is not entitled to contribution if the trustee
was substantially more at fa ult than another trustee or if the
trustee committed the breach of trust in bad faith or with reckless
indifference to the purposes of the trust or the interests of the
beneficiaries. A trustee who received a benefit from the breach of
trust is not entitled to contribution from another trustee to the
extent of the benefit received.
SECTION 66. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1610.2 of Title 60, unless there
is created a duplication in n umbering, reads as follows:
A. A trustee is accountable to an affected beneficiary for any
profit made by the trustee arising from the administration of the
trust, even absent a breach of trust.
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B. Absent a breach of trust, a trustee is not liable to a
beneficiary for a loss or depreciation in the value of trust
property or for not having made a profit.
SECTION 67. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1610.3 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A trustee who acts in reasonable reliance on the terms of the
trust as expressed in the trust instrument is no t liable to a
beneficiary for a breach of trust to the extent the breach resulted
from the reliance.
SECTION 68. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1610.4 of Title 60, unless there
is created a duplication in numbering, reads as follows:
If the happening of an event, including marri age, divorce,
performance of educational requirements, or death, affects the
administration or distribution of a trust, a trustee who has
exercised reasonable ca re to ascertain the happening of the event is
not liable for a loss resulting from the trustee's lack of
knowledge.
SECTION 69. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1610.5 of Title 60, unless there
is created a duplication in numbering, reads as follows:
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A. The limitations on persona l liability of a trustee as set
forth in subsection H of Section 175.57 of Title 60 of the Oklahoma
Statutes and in subsection H of Section 42 of this act shall apply.
B. A claim based on a contract entered into by a trustee in the
trustee's fiduciary capacity, on an obligation arising from
ownership or control of trust property, or on a tort committed in
the course of administering a trust, may be asserted in a judicial
proceeding against the trustee in the trustee's fiduciary capacity,
whether or not the trustee is personally liable for the claim.
SECTION 70. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1610.6 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. Except as otherwise provided in subsection C of this section
or unless personal liability is imposed in the contract, a trustee
who holds an interest as a general partner in a general or limited
partnership is not personally liable on a contract entered into by
the partnership after the trust's acquisition of the interest if the
fiduciary capacity was disclosed in the contract or in a statement
previously filed purs uant to the Oklahoma Revised Uniform
Partnership Act or Oklahoma Uniform Limited Partnership Act of 2010.
B. Except as otherwise provided in subsection C of this
section, a trustee who holds an interest as a general partner is not
personally liable for to rts committed by the partnership or for
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obligations arising from ownership or control of the in terest unless
the trustee is personally at fault.
C. The immunity provided by this section does not apply if an
interest in the partnership is held by the trust ee in a capacity
other than that of trustee or is held by the trustee's spouse or one
or more of the trustee's descendants, siblings, or parents, or the
spouse of any of them.
D. Except as otherwise provided by Oklahoma law, if the trustee
of a revocable trust holds an interest as a general partner, the
settlor is personally liable for contracts an d other obligations of
the partnership as if the settlor were a general partner.
SECTION 71. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1610.7 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. Instead of furnishing a copy of the trust instrument to a
person other than a beneficiary, and in lieu of or in addition to a
memorandum of trust under subsection A of Section 175.6 of Title 60
of the Oklahoma Statutes, th e trustee may furnish to the person a
certification of trust containing the following information:
1. That the trust exists and the date the trust instrument wa s
executed;
2. The identity of the settlor;
3. The identity and address of the currently acting trustee;
4. The powers of the trustee;
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5. The revocability or irrevocability of the trust and the
identity of any person holding a power to revoke the trust ;
6. The authority of co -trustees to sign or otherwise
authenticate and whether all or less th an all are required in order
to exercise powers of the trustee;
7. The trust's taxpayer identification number; and
8. The manner of taking title to trust prope rty.
B. A certification of trust under this section may be signed or
otherwise authenticated by any trustee.
C. A certification of trust under this section must state that
the trust has not been revoked, modified, or amended in any manner
that would cause the representations contained in the certification
of trust to be incorrect.
D. A certification of trust under this section need not contain
the dispositive terms of a trust.
E. A recipient of a certification of trust under this section
may require the trustee to furnish copies of those excerpts from the
original trust instrument and later amendments which designate the
trustee and confer upon the trustee the power to act in the pending
transaction.
F. A person who acts in reliance upon a certification of trust
under this section without knowledge that the representations
contained therein are i ncorrect is not liable to any person for so
acting and may assume without inquiry the existence of the facts
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contained in the certification. Knowledge of the te rms of the trust
may not be inferred solely from the fact that a copy of all or part
of the trust instrument is held by the person relying upon the
certification.
G. A person who in good faith enters into a transaction in
reliance upon a certification of trust under this section may
enforce the transaction against the trust property as if the
representations contained in the certification were correct.
H. A person making a demand for the trust instrument in
addition to a certification of trust under this section, or excerpts
of the trust instrument, is liable for damages if the court
determines that the person did not act in good faith in demanding
the trust instrument.
I. This section does not limit the right of a person to obtain
a copy of the trust ins trument in a judicial proceeding concerning
the trust.
ARTICLE 11
MISCELLANEOUS PROVISIONS
SECTION 72. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1611.1 of Title 60, unless there
is created a duplication in numbering, reads as follows:
The provisions of this act governing the legal effect, validity,
or enforceability of electronic records or electronic signatures,
and of contracts formed or performed with the use of such records or
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signatures, conform to the requirements of Section 102 of the
Electronic Signatures in Global and National Comm erce Act (15
U.S.C., Section 7002) and supersede, modify, and limit the
requirements of the Electronic Signatures in Global and National
Commerce Act.
SECTION 73. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1611.2 of Title 60, unless there
is created a duplication in numbering, reads as follows:
If any provision of this act or its application to any person or
circumstances is held invalid, the invalidity does not affect other
provisions or applicati ons of this act which can be given effect
without the invalid provision or application, and to this end the
provisions of this act are severable.
SECTION 74. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1611.3 of Title 60, unless there
is created a duplication in numbering, reads as follows:
A. Except as otherwise provided in this act, on the effective
date of this act:
1. This act applies to all trusts created before, on, or after
its effective date;
2. This act applies to all judicial proceedings concerning
trusts commenced on or after its effective date;
3. This act applies to judicial proceedings con cerning trusts
commenced before its effective date unless the court finds that
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application of a particular provision of this act would
substantially interfere with the effective conduct of the judicial
proceedings or prejudice the rights of the parties, in which case
the particular provision of this act does not apply and the
superseded law applies;
4. Any rule of construction or presumption provided in this act
applies to trust instruments executed before the effective date of
the act unless there is a cl ear indication of a contrary intent in
the terms of the trust; and
5. An act enacted before the effective date of the act is not
affected by this act.
B. If a right is acquired, extinguished, or barred upon the
expiration of a prescribed period that has commenced to run under
any other statute before the effective date of the act, that statute
continues to apply to the right even if it has been repealed or
superseded.
C. The applicable provisions of the Oklahoma Trust Act shall
continue to apply, unless such provision is inconsistent with an
express provision of this act, and further, except as expressly
provided in this act.
SECTION 75. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON JUDICIARY
April 8, 2025 - DO PASS AS AMENDED