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Oklahoma House Bill HB1850

Oklahoma 2025 Regular Session

Oklahoma House Bill HB1850 Compare Versions

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3227
3328 ENGROSSED HOUSE
3429 BILL NO. 1850 By: Schreiber of the House
3530
3631 and
3732
3833 Howard of the Senate
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4136
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4538 An Act relating to trusts; creating the Oklahoma
46-Uniform Trust Code; providing short title; providing
47-scope of act; defining terms; providing when person
48-or organization has knowledge of a fact; providing
49-when this act governs the duties and power of
50-trustee, relations among trustees, and the rights and
51-interests of a beneficiary; providing that terms of
52-trust prevail over provisions of this act; providing
53-exceptions; providing that the common law of trusts
54-and principles equity supplement this act in most
39+Uniform Trust Code; providing scope of act; defining
40+terms; providing when person or organization has
41+knowledge of a fact; providing when this act governs
42+the duties and power of trustee, relations among
43+trustees, and the rights and interests of a
44+beneficiary; providing that terms of trust prevail
45+over provisions of this act; providing exceptions;
46+providing that the common law of trusts and
47+principles equity supplement this act in most
5548 circumstances; providin g what governing law applies
5649 for determining the meaning and effect of the terms
5750 of a trust; providing guidelines for the principal
5851 place of administration; provi ding methods of
5952 notices; providing for waiver of notice; providing
6053 for rules of construction the interpretation of and
6154 disposition of property by will also apply to the
6255 interpretation of the terms of a trust and the
6356 disposition of the trust property; defin ing term;
6457 providing for insurable interests of trustees;
6558 providing guidelines on who may recei ve an insurable
6659 interest of a trustee; providing the role of a court
6760 in administration of a trust; providing who shall
6861 have jurisdiction over the trust; providing for venue
6962 location for legal proceedings; providing that notice
7063 to certain representatives has the same effect as if
7164 notice were given directly to the other person;
7265 providing that consent by a representative is binding
7366 on the person they represent in cert ain
7467 circumstances; providing that a settlor may not
7568 represent and be a beneficiary in certain
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10369 circumstances; providing representation power by a
10470 holder of general testamentary power of appointment;
10571 providing representation powers by fiduciaries and
10672 parents; providing for representation in certain
10773 instances by a person having substantiality identical
10874 interests; providing for appointment of a
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109101 representative; providing power and duties of
110102 representative; providing methods of creating a
111103 trust; providing require ments for creating a trust;
112104 providing when a trust created in another state is
113105 valid; providing trust purpose; providing purpose of
114106 a charitable trust; providing a court select purpose
115107 or beneficiary for a charitable trust in certain
116108 circumstances; providi ng who may maintain a
117109 proceeding to enforce a charitable trust; providing
118110 that a trust is void if the creation was induced by
119111 fraud, duress, or undue influence; providing
120112 requirements for an oral trust; providing rules for
121113 noncharitable trust created witho ut ascertainable
122114 beneficiary; providing when a trust terminates;
123115 providing who may commence a proceeding for the
124116 modification and termination of a trust; providing
125117 procedure for the modification or termination of a
126118 noncharitable irrevocable trust; providin g that the
127119 court may modify or terminate a trust in certain
128120 circumstances; providing that a court may apply cy
129121 pres to modify or terminate charitable trust in
130122 certain circumstances; providing for modification or
131123 termination of uneconomic trusts in certain
132124 circumstances; providing for manner of distribution
133125 if uneconomic trust is terminated; providi ng trust
134126 that are exempt from modification or termination if
135127 they are uneconomical; providing that a court may
136128 reform a trust to correct certain mistakes; providi ng
137129 that a court may modify a trust to achieve a settlors
138130 tax objectives; providing that a trustee may combine
139131 multiple trusts into a single trust; providing that a
140132 trustee may divide a single trust into multiple
141133 trusts; providing that whether or not the te rms the
142134 trust contain a spend thrift certain rules apply for
143135 creditors claim against a settlor ; providing rules
144136 for a creditors claims against a settlor; providing
145137 required capacity of settlor of a revocable trust;
146138 providing power of settlor in a revocable trust;
147139 providing power of settlor has power of withdrawal
148140 for a revocable trust; providing limitations on
149141 actions contesting the validity of a revocable trust;
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177142 providing for a beneficiary of a trust to return any
178143 distributions in certain circumstances; pr oviding for
179144 accepting or declining of trusteeship; providing when
180145 a trustee is required to pos t a bond; providing
181146 procedures and requirements for co -trustees of a
182147 trust; providing when a vacancy in a trusteeship
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183174 occurs; providing for appointment of success or
184175 trustees; providing procedure for the resignation of
185176 a trustee; providing for the removal of a trustee by
186177 the court; requiring former trustees to deliver
187178 property held to a successor trustee; providing for
188179 compensation of trustees; providing for reimbur sement
189180 of expenses by a trustee; providing duty of trustees
190181 to administer trust; providing for a duty of loyalty
191182 by a trustee; providing for impartiality by a trustee
192183 when a trust has more than one beneficiary; requiring
193184 a trustee to administer trust prude ntly; providing
194185 what costs a trustee may incur in administering the
195186 trust; requiring trustees who were selected because
196187 of a special skill or expertise to use such skill or
197188 expertise in administering the trust; providing that
198189 a trustee may delegate duties and powers; providing
199190 requirements for delegating duties and powers;
200191 providing that trustee sh all take reasonable steps to
201192 take control of and protect the trust property;
202193 providing requirements for recordkeeping and
203194 identification of trust property by a tr ustee;
204195 requiring that a trustee shall take reasonable steps
205196 to enforce claim of the trust and to defend claims
206197 against the trust; requiring a trustee to collect
207198 trust property from former trustees and to redress a
208199 breach of trust committed by a former trus tee;
209200 providing that a trustee has a duty to inform and
210201 make reports to certain individuals; pr oviding
211202 trustee has certain discretionary powers; providing
212203 general powers of a trustee; providing specific
213204 powers of trustee; providing procedure and
214205 requirements for distribution of a trust upon
215206 termination; providing when a trustee is entitled to
216207 a contribution by a co -trustee; providing that a
217208 trustee is accountable to a beneficiary for any
218209 profit made by the trustee, even absent a breach of
219210 trust; providing that absent a breach of trust, a
220211 trustee is not liable to a beneficiary for a loss or
221212 deprivation in the value of the trust or for not
222213 making a profit; providing that a trustee is not
223214 liable for a breach of trust if reasonably relying
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251215 upon the terms of the t rust; providing that a trustee
252216 is not liable for certain events that occur that
253217 affect administration or distribution of a trust;
254218 providing limitation on personal liability of a
255219 trustee; providing that trustees who hold an interest
256220 as a general partner in a general or limited
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257247 partnership is not personally liable for certain
258248 actions and events; prov iding that a trustee may
259249 provide a certification of trust in certain
260250 circumstances; providing requirements of a
261251 certification of trust; providing exemptions for a
262252 certification of trust may be used; providing
263253 requirements for electronic records and signatures;
264254 providing for severability of act for provisions that
265255 are held invalid; providing application to existing
266256 relationships; providing for codification; and
267257 providing an effective date.
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275263 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
276-ARTICLE 1
277-GENERAL PROVISIONS AND DEFINITIONS
278264 SECTION 1. NEW LAW A new section of law to be codified
279-in the Oklahoma Statutes as Section 1601.1 of Title 60, unless there
265+in the Oklahoma Statutes as Section 1501 of Title 60, unless there
280266 is created a duplication i n numbering, reads as follows:
281267 This act shall be known and may be cited as the "Oklahoma
282268 Uniform Trust Code".
283269 SECTION 2. NEW LAW A new section of law to be codified
284-in the Oklahoma Statutes as Section 1601.2 of Title 60, unless there
285-is created a duplication in numbering, reads as follows:
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313-The Oklahoma Uniform Trust Code applies to express trusts,
270+in the Oklahoma Statutes as Section 1502 of Title 60, unless there
271+is created a duplication in numbering, reads as follows:
272+The Oklahoma Uniform Trust Act applies to express trusts,
314273 charitable or noncharitable, and trusts created pursuant to a
315274 statute, judgment, or decree that requires the trust to be
316275 administered in the manner of an express trust.
317276 SECTION 3. NEW LAW A new section of law to be codified
318-in the Oklahoma Statutes a s Section 1601.3 of Title 60, unless there
319-is created a duplication in numbering, reads as foll ows:
277+in the Oklahoma Statutes as Section 1503 of Title 60, unless there
278+is created a duplication in numbering, reads as follows:
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320305 As used in this act:
321306 1. "Action", with respect t o an act of a trustee, includes a
322307 failure to act;
323308 2. "Ascertainable standard" means a standard relating to an
324309 individual's health, education, support, or maintenance within the
325310 meaning of Section 2041(b)(1)(A) or 2514(c)(1) of the Internal
326311 Revenue Code of 1986, as in effect on the effective date of this
327312 act, or as later amended;
328313 3. "Beneficiary" means a person who:
329314 a. has a present or future beneficial interest in a
330315 trust, vested or contingent, or
331316 b. in a capacity other than that o f trustee, holds a
332317 power of appointment over trust property;
333318 4. "Charitable trust" means a trust, or portion of a trust,
334319 created for a charitable purpose described in subsection A of
335320 Section 24 of this act;
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363321 5. "Environmental law" means a federal, state, or local law,
364322 rule, regulation, or ordinance relating to the protection of the
365323 environment;
366324 6. "Guardian of the property" means a person appointed by the
367325 court to administer the estate of a minor or adult individual;
368326 7. "Guardian of the person" means a p erson appointed by the
369327 court to make decisions regarding the support, care, education,
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370354 health, and welfare of a minor or adult individual. The term does
371355 not include a guardian ad litem;
372356 8. "Interests of the beneficiaries" means the beneficial
373357 interests provided in the terms of the trust;
374358 9. "Jurisdiction", with respect to a geographic area, includes
375359 a state or country;
376360 10. "Person" means an individual, corporation, business trust,
377361 estate, trust, partnership, limited liability company, association,
378362 joint venture, government, go vernmental subdivision, agency, or
379363 instrumentality, public corporation, or any other legal or
380364 commercial entity;
381365 11. "Power of withdrawal" means a presently exercisable general
382366 power of appointment other than a power:
383367 a. exercisable by a trustee and limited by an
384368 ascertainable standard, or
385369 b. exercisable by another person only upon consent of the
386370 trustee or a person holding an adverse interest;
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414371 12. "Property" means anything that may be the subject of
415372 ownership, whether real or pers onal, legal or equitable , or any
416373 interest therein;
417374 13. "Qualified beneficiary" means a beneficiary who, on the
418375 date the beneficiary's qualification is determined:
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419402 a. is a distributee or permissible distributee of a
420403 present interest in the trust income or principal, or
421404 has a vested remainder in the trust,
422405 b. is a charitable organization expressly entitled to
423406 receive benefits under the terms of a charitable
424407 trust, or
425408 c. is the Attorney General of this state with respect to
426409 a charitable trust having its princ ipal place of
427410 administration in this state;
428411 14. "Revocable", as applied to a trust, means revocable by the
429412 settlor without the consent of the trustee or a person holding an
430413 adverse interest;
431414 15. "Settlor" means a person, including a testator, who
432415 creates, or contributes property to, a trust. If more than one
433416 person creates or contributes property to a trust, each person is a
434417 settlor of the portion of the trust property attributable to that
435418 person's contribution except to the extent another person has the
436419 power to revoke or with draw that portion;
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464420 16. "Spendthrift provision" means a term of a trust which
465421 restrains both voluntary and involuntary transfer of a beneficiary's
466422 interest;
467423 17. "State" means a state of the United States, the District of
468424 Columbia, Puerto Rico, the United States Virgin Islands, or any
469425 territory or insular possession subject to the jurisdiction of the
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470452 United States. The term includes an Indian tribe or band recognized
471453 by federal law or formally acknowledged by a state;
472454 18. "Terms of a trust" means:
473455 a. except as otherwise provided in subparagraph b of this
474456 paragraph, the manifestation of the settlor's intent
475457 regarding a trust's provisions as:
476458 (1) expressed in the trust instrument, or
477459 (2) established by other evidence that would be
478460 admissible in a judicial proceeding, or
479461 b. the trust's provisions, as established, determined, or
480462 amended by:
481463 (1) a trustee or other person in accordance with
482464 applicable law,
483465 (2) a court order, or
484466 (3) a nonjudicial settlement agreement under Section
485467 1402 of Title 60 of the Oklahoma Statutes;
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513468 19. "Trust instrument" means an instrument executed by the
514469 settlor that contains terms of the trust, including any amendments
515470 thereto; and
516471 20. "Trustee" includes an original, additional, and successor
517472 trustee, and a co-trustee.
518473 SECTION 4. NEW LAW A new section of law to be codified
519-in the Oklahoma Statutes as Section 1601.4 of Title 60, unless there
520-is created a duplication in numbering, reads as follows:
474+in the Oklahoma Statutes as Section 1504 of Title 60, unless there
475+is created a duplication in numbering, reads as follows:
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521502 A. Subject to subsection B of this section, a person has
522503 knowledge of a fact if the person:
523504 1. Has actual knowledge of it;
524505 2. Has received a notice or notification of it; or
525506 3. From all the facts and circumstances known to the person at
526507 the time in question, has reason to know it.
527508 B. An organization that conducts activities through employees
528509 has notice or knowledge of a fact involving a trust only from the
529510 time the information was received by an employee having
530511 responsibility to act for the trust, or would have been brought to
531512 the employee's attention if the organizatio n had exercised
532513 reasonable diligence. An organization exercises reasonable
533514 diligence if it maintains reasonable routines for communicating
534515 significant information to the employee having responsibility to act
535516 for the trust and there is reasonable compliance with the routines.
536517 Reasonable diligence does not require an employee of the
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564518 organization to communicate information unless the communication is
565519 part of the individual's regular duties or the individual knows a
566520 matter involving the trust would be materia lly affected by the
567521 information.
568522 SECTION 5. NEW LAW A new section of law to be codified
569-in the Oklahoma Statutes as Section 1601.5 of Title 60, unless there
570-is created a duplication in numbering, reads as follows:
523+in the Oklahoma Statutes as Section 1505 of Title 60, unless there
524+is created a duplication in numbering, reads as follo ws:
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571551 A. Except as otherwise provided in the terms of the trust, this
572552 act governs the duties and powers of a trustee, relations among
573553 trustees, and the rights and interests of a beneficiary.
574554 B. The terms of a trust prevail over any provision of this act
575555 except:
576556 1. The requirements for creating a trust;
577557 2. Subject to the Oklahoma Uniform Directed Trust Act, Sections
578558 1209, 1211, and 1212 of Title 60 of the Oklahoma Statutes, the duty
579559 of a trustee to act in good faith and in accordance with the terms
580560 and purposes of the trust and the interests of the beneficiaries;
581561 3. The requirement that a trust and its terms be for the
582562 benefit of its beneficiaries, and that the trust have a purpose that
583563 is lawful, not contrary to public policy, and possible to achieve;
584564 4. The power of the court to modify or terminate a trust under
585565 Sections 28 through 34 of this act;
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613566 5. The effect of a spendthrift provision and the rights of
614567 certain creditors and assignees to reach a trust as provided in
615568 Section 36 of this act;
616569 6. The power of the court under Section 41 of this act to
617570 require, dispense with, or modify or terminate a bond;
618571 7. The power of the court under subsection B of Section 47 of
619572 this act to adjust a trustee's compensation specified in the terms
620573 of the trust which is u nreasonably low or high;
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621600 8. The duty under paragraphs 2 and 3 of Section 60 of this act
622601 to notify qualified beneficiaries of an irrevocable trust who have
623602 attained twenty-five (25) years of age of the existence of the
624603 trust, of the identity of the trustee , and of their right to request
625604 trustee's reports;
626605 9. The duty under subsection A of Section 60 of this act to
627606 respond to the request of a qualified beneficiary of an irrevocable
628607 trust for trustee's reports and other information reasonably related
629608 to the administration of a trus t;
630609 10. The rights under Sections 68 through 71 of this act of a
631610 person other than a trustee or beneficiary;
632611 11. Periods of limitation for commencing a judicial proceeding;
633612 12. The power of the court to take such action and exerci se
634613 such jurisdiction as may be necessary in the interests of justice;
635614 and
636-
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663615 13. The subject matter jurisdiction of the court and venue for
664616 commencing a proceeding as provided in Section 14 of this act.
665617 SECTION 6. NEW LAW A new sectio n of law to be codified
666-in the Oklahoma Statutes as Section 1601.6 of Title 60, unless there
618+in the Oklahoma Statutes as Section 1506 of Title 60, unless there
667619 is created a duplication in numbering, reads as follows:
668620 The common law of trusts and principles of equity supplement
669621 this act, except to the extent modified by this act or another
670622 statute of this state.
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671649 SECTION 7. NEW LAW A new section of law to be codified
672-in the Oklahoma Statutes as Section 1601.7 of Title 60, unless there
650+in the Oklahoma Statutes as Section 1507 of Title 60, unless there
673651 is created a duplication in numbering, reads as follows:
674652 The meaning and effect of the terms of a trust are determined
675653 by:
676654 1. The law of the jurisdiction designated in the terms unless
677655 the designation of that jurisdiction's law is contrary to a strong
678656 public policy of the jurisdiction having the most significant
679657 relationship to the matter at issue; or
680658 2. In the absence of a controlling designation in the terms of
681659 the trust, the law of the jurisdiction having the most significant
682660 relationship to the matter at issue.
683661 SECTION 8. NEW LAW A new section of law to be codified
684-in the Oklahoma Statutes as Section 1601.8 of Title 60, unless there
685-is created a duplication in numberi ng, reads as follows:
686-
687-SENATE FLOOR VERSION - HB1850 SFLR Page 13
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662+in the Oklahoma Statutes as Section 1508 of Title 60, unless there
663+is created a duplication in numbering, reads as follows:
713664 A. Without precluding other means for establishing a sufficient
714665 connection with the designated jurisdiction, ter ms of a trust
715666 designating the principal place of administration are valid and
716667 controlling if:
717668 1. A trustee's principal place of business is located in or a
718669 trustee is a resident of the designated jurisdiction; or
719670 2. All or part of the administration occu rs in the designated
720671 jurisdiction.
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721698 B. A trustee is under a continuing duty to administer the trust
722699 at a place appropriate to its purposes, its administration, and the
723700 interests of the beneficiaries.
724701 C. Without precluding the right of the court to order, approve,
725702 or disapprove a transfer, the trustee, in furtherance of the duty
726703 prescribed by subsection B of this section, may transfer the trust's
727704 principal place of administration to another state or to a
728705 jurisdiction outside of the United States.
729706 D. The trustee shall notify the q ualified beneficiaries of a
730707 proposed transfer of a trust's principal place of administration not
731708 less than sixty (60) days before initiating the transfer. The
732709 notice of proposed transfer must include:
733710 1. The name of the jurisdicti on to which the principal place of
734711 administration is to be transferred;
735712 2. The address and telephone number at the new location at
736713 which the trustee can be contacted;
737-
738-SENATE FLOOR VERSION - HB1850 SFLR Page 14
739-(Bold face denotes Committee Amendments) 1
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764714 3. An explanation of the reasons for the proposed transfer;
765715 4. The date on which the p roposed transfer is anti cipated to
766716 occur; and
767717 5. The date, not less than sixty (60) days after the giving of
768718 the notice, by which the qualified beneficiary must notify the
769719 trustee of an objection to the proposed transfer.
770720 E. The authority of a trustee un der this section to transfer a
771721 trust's principal place of administration terminates if a qualified
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772748 beneficiary notifies the trustee of an objection to the proposed
773749 transfer on or before the date specified in the notice.
774750 F. In connection with a transfer of the trust's principal p lace
775751 of administration, the trustee may transfer some or all of the trust
776752 property to a successor trustee designated in the terms of the trust
777753 or appointed pursuant to Section 43 of this act.
778754 SECTION 9. NEW LAW A new section of law to be codified
779-in the Oklahoma Statutes as Section 1601.9 of Title 60, unless there
755+in the Oklahoma Statutes as Section 1509 of Title 60, unless there
780756 is created a duplication in numbering, reads as follows:
781757 A. Notice to a person under this act or the sending of a
782758 document to a person under this act must be accomplished in a manner
783759 reasonably suitable under the circumstances and likely to result in
784760 receipt of the notice or document. Permissible methods of notice or
785761 for sending a document include first -class mail, personal delivery,
786762 delivery to the person's last known place of residence or place of
787763 business, or a properly directed electronic message.
788-
789-SENATE FLOOR VERSION - HB1850 SFLR Page 15
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815764 B. Notice otherwise required under this act or a document
816765 otherwise required to be sent under this act need not be provided to
817766 a person whose identity o r location is unknown to and not reasonably
818767 ascertainable by the trustee.
819768 C. Notice under this act or the sending of a document under
820769 this act may be waived by the person to be notified or sent the
821770 document.
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822797 D. Notice of a judicial proceeding must be giv en as provided in
823798 the applicable rules of civil procedure.
824799 SECTION 10. NEW LAW A new section of law to be codified
825-in the Oklahoma Statutes as Section 1601.10 of Title 60, unless
826-there is created a duplication in numbering, reads as follows:
800+in the Oklahoma Statutes as Section 1510 of Title 60, unless there
801+is created a duplication in numbering, reads as fol lows:
827802 The rules of construction that apply in this state to the
828803 interpretation of and disposition of property by will also apply as
829804 appropriate to the interpretation of the terms of a trust and the
830805 disposition of the trust property.
831806 SECTION 11. NEW LAW A new section of law to be codified
832-in the Oklahoma Statutes as Section 1601.11 of Title 60, unless
833-there is created a duplication in numbering, reads as follows:
807+in the Oklahoma Statutes as Section 1511 of Title 60, unless there
808+is created a duplication in numbering, reads as follows:
834809 A. In this section, "settlor" means a person that executes a
835810 trust instrument. The term includes a person for which a fiduciary
836811 or agent is acting.
837812 B. A trustee of a trust has an insurable interest in the life
838813 of an individual insured under a life insurance policy that is owned
839-
840-SENATE FLOOR VERSION - HB1850 SFLR Page 16
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865-
866814 by the trustee of the trust acting in a fiduciary capacity or that
867815 designates the trust itself as the owner if, on the date the policy
868816 is issued:
869817 1. The insured is:
870818 a. a settlor of the trust, or
819+
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871845 b. an individual in whom a settlor of the trust has, or
872846 would have had if living at the time the policy was
873847 issued, an insurable inter est; and
874848 2. The life insurance proceeds are primarily for the benefit of
875849 one or more trust beneficiaries that have:
876850 a. an insurable interest in the life of the insured, or
877851 b. a substantial interest engendered by love and
878852 affection in the continuation of the life of the
879853 insured and, if not already included under
880854 subparagraph a of this paragraph, who are:
881855 (1) related within the third degree or closer, as
882856 measured by the civil law system of determining
883857 degrees of relation, either by bl ood or law, to
884858 the insured, or
885859 (2) stepchildren of the insured.
886860 The following table identifies the relatives of an insured
887861 within three degrees of lineal and collateral consanguinity using
888862 the civil law method, with each row representing a generation.
889863
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917864
918865 Great-
919866 Grandparents
920867 (3)
921868 Grandparents
922869 (2)
923870
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924897 Parents
925898 (1)
926899 Aunts and Uncles
927900 (3)
928901
929902 INSURED Sisters and
930903 Brothers
931904 (2)
932905
933906 Children
934907 (1)
935908 Nieces and
936909 Nephews
937910 (3)
938911
939912 Grandchildren
940913 (2)
941914
942915 Great-
943916 Grandchildren
944917 (3)
945918
946919
947-ARTICLE 2
948-JUDICIAL PROCEEDINGS
949920 SECTION 12. NEW LAW A new section of law to be co dified
950-in the Oklahoma Statutes as Section 1602.1 of Title 60, unless there
951-is created a duplication in numbering, reads as follows:
952-
953-SENATE FLOOR VERSION - HB1850 SFLR Page 18
954-(Bold face denotes Committee Amendments) 1
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921+in the Oklahoma Statutes as Section 1601 of Title 60, unless there
922+is created a duplication in numbering, reads as follows:
979923 A. The court may intervene in the administration or
980924 construction of a trust to the extent its jurisd iction is invoked by
981925 an interested person or as provided by law.
982926 B. A trust is not subject to continuing judicial supervision
983927 unless ordered by the court.
984928 C. A judicial proceeding involving a trust may relate to any
985929 matter involving the trust's administr ation or construction,
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986956 including a request for instructions and an action to declare
987957 rights.
988958 SECTION 13. NEW LAW A new section of law to be codified
989-in the Oklahoma Statutes as Section 1602.2 of Title 60, unless there
959+in the Oklahoma Statutes as Section 1602 of Title 60, unless there
990960 is created a duplication in numbering, reads as follows:
991961 A. By accepting the trusteeship of a trust having its principal
992962 place of administration in this state or by moving the principal
993963 place of administration to this state, the trustee submits
994964 personally to the jurisdict ion of the courts of thi s state regarding
995965 any matter involving the trust.
996966 B. With respect to their interests in the trust, the
997967 beneficiaries of a trust having its principal place of
998968 administration in this state are subject to the jurisdiction of the
999969 courts of this state regarding any matter involving the trust. By
1000970 accepting a distribution from such a trust, the recipient submits
1001971 personally to the jurisdiction of the courts of this state regarding
1002972 any matter involving the trust.
1003-
1004-SENATE FLOOR VERSION - HB1850 SFLR Page 19
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1030973 C. This section does not p reclude other methods of obtaining
1031974 jurisdiction over a trustee, beneficiary, or other person receiving
1032975 property from the trust.
1033976 SECTION 14. NEW LAW A new section of law to be codified
1034-in the Oklahoma Statutes as Section 1602.3 of Title 60, unless there
1035-is created a duplication in numbering, reads as follows:
977+in the Oklahoma Statutes as Section 1603 of Title 60, unless there
978+is created a duplication in numbering, reads as follows:
979+
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10361005 A. Except as otherwise provided in subsection B of this
10371006 section, venue for a judicial proceeding involving a trust is proper
10381007 in the county of this state in which the trust's princi pal place of
10391008 administration is or will be located and, if the trust is created by
10401009 will and the estate is not yet closed, in the county in which the
10411010 decedent's estate is being administered.
10421011 B. If a trust has no trustee, venue for a judicial proceeding
10431012 for the appointment of a trustee may be in a county of this state in
10441013 which a beneficiary resides, in a county in which any trust property
10451014 is located, and if the trust is created by will, in the county in
10461015 which the decedent's estate was or is being administered .
1047-ARTICLE 3
1048-REPRESENTATION
10491016 SECTION 15. NEW LAW A new section of law to be codified
1050-in the Oklahoma Statutes as Section 1603.1 of Title 60, unless there
1051-is created a duplication in numbering, reads as follows:
1052-
1053-SENATE FLOOR VERSION - HB1850 SFLR Page 20
1054-(Bold face denotes Committee Amendments) 1
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1017+in the Oklahoma Statutes as Section 1701 of Title 60, unless there
1018+is created a duplication in numbering, reads as follows:
10791019 A. Notice to a person who may represent and bind a nother person
10801020 under this article has the same effect as if notice were given
10811021 directly to the other person.
10821022 B. The consent of a person who may represent and bind another
10831023 person under this article is binding on the person represented
10841024 unless the person repre sented objects to the re presentation before
10851025 the consent would otherwise have become effective.
10861026 C. Except as otherwise provided in Section 29 of this act, a
10871027 person who under this article may represent a settlor who lacks
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10881054 capacity may receive notice and giv e a binding consent on the
10891055 settlor's behalf.
10901056 D. A settlor may not represent and bind a beneficiary under
10911057 this article with respect to the termination or modification of a
10921058 trust under subsection A of Section 29 of this act.
10931059 SECTION 16. NEW LAW A new section of law to be codified
1094-in the Oklahoma Statutes as Section 1603.2 of Title 60, unless there
1060+in the Oklahoma Statutes as Section 1702 of Title 60, unless there
10951061 is created a duplication in numbering, reads as follows:
10961062 To the extent there is no conflict of interest between the
10971063 holder of a general testam entary power of appointment and the
10981064 persons represented with respect to the particular question or
10991065 dispute, the holder may represent and bind persons whose interests,
11001066 as permissible appointees, takers in default, or otherwise, are
11011067 subject to the power.
1102-
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11291068 SECTION 17. NEW LAW A new section of law to be codified
1130-in the Oklahoma Statutes as Section 1603.3 of Title 60, unless there
1069+in the Oklahoma Statutes as Section 1703 of Title 60, unless there
11311070 is created a duplication in numbering, reads as follows:
11321071 To the extent there is no conflict of interest between t he
11331072 representative and the person represented or among those being
11341073 represented with respect to a particular question or dispute:
11351074 1. A guardian of the property may represent and bind the estate
11361075 that the guardian controls;
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11371102 2. A guardian of the person may re present and bind the war d if
11381103 a guardian of the property of the ward's estate has not been
11391104 appointed;
11401105 3. An agent having authority to act with respect to the
11411106 particular question or dispute may represent and bind the principal;
11421107 4. A trustee may represent a nd bind the beneficiaries of the
11431108 trust;
11441109 5. A personal representative of a decedent's estate may
11451110 represent and bind persons interested in the estate; and
11461111 6. A parent may represent and bind the parent's minor or unborn
11471112 child if a guardian of the property o r guardian of the person for
11481113 the child has not been appointed.
11491114 SECTION 18. NEW LAW A new section of law to be codified
1150-in the Oklahoma Statutes as Section 1603.4 of Title 60, unless there
1151-is created a duplication in numbering, reads as follows:
1152-
1153-SENATE FLOOR VERSION - HB1850 SFLR Page 22
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1115+in the Oklahoma Statutes as Section 1704 of Title 60, unless there
1116+is created a duplication in numbering, reads as follows:
11791117 Unless otherwise represented, a minor, incapacitated, or unborn
11801118 individual, or a person whose identity or location is unknown and
11811119 not reasonably ascertainable, may be represented by and bound by
11821120 another having a substantially identical interest w ith respect to
11831121 the particular question or dispute, but only to the extent there is
11841122 no conflict of interest between the representative and the person
11851123 represented.
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11861150 SECTION 19. NEW LAW A new section of law to be codified
1187-in the Oklahoma Statutes as Section 1603.5 of Title 60, unless there
1151+in the Oklahoma Statutes as Section 1705 of Title 60, unless there
11881152 is created a duplication in numbering, reads as follows:
11891153 A. If the court determines that an interest is not represented
11901154 under this act, or that the otherwise available representation might
11911155 be inadequate, the court may appoint a representative to receive
11921156 notice, give consent, and otherwise represent, bind, and act on
11931157 behalf of a minor, incapacitated, or unborn individual, or a person
11941158 whose identity or location is unknown, in the same manner as
11951159 appointment of a guardian ad litem. A representative may be
11961160 appointed to represent several persons or interests.
11971161 B. A representative may act on behalf of the individual
11981162 represented with respect to any matter arising under this act,
11991163 whether or not a judicial proceedi ng concerning the trust is
12001164 pending.
12011165 C. In making decisions, a representative may consider general
12021166 benefit accruing to the living members of the individual's family.
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1230-ARTICLE 4
1231-CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST
12321167 SECTION 20. NEW LAW A new section of law to be codified
1233-in the Oklahoma Statutes as Section 1604.1 of Title 60, unless there
1168+in the Oklahoma Statutes as Section 1801 of Title 60, unless there
12341169 is created a duplication in numbering, reads as follows:
12351170 A trust may be created by:
12361171 1. Transfer of property to another person as trustee during the
12371172 settlor's lifetime or by will or other disposition taking effect
12381173 upon the settlor's death;
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12391200 2. Declaration by the owner of property that the owner holds
12401201 identifiable property as trustee; or
12411202 3. Exercise of a power of appointment in favor of a trustee.
12421203 SECTION 21. NEW LAW A new sectio n of law to be codified
1243-in the Oklahoma Statutes as Section 1604.2 of Title 60, unless there
1204+in the Oklahoma Statutes as Section 1802 of Title 60, unless there
12441205 is created a duplication in numbering, reads as follows:
12451206 A. A trust is created only if:
12461207 1. The settlor has capacity to create a trust;
12471208 2. The settlor indicates an intention to create the trust;
12481209 3. The trust has a definite beneficiary or is:
12491210 a. a charitable trust, or
12501211 b. a trust for a noncharitable purpose, as provided in
12511212 Section 27 of this act;
12521213 4. The trustee has duties to perform; and
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12801214 5. The same person is not t he sole trustee and sole
12811215 beneficiary.
12821216 B. A beneficiary is definite if the beneficiary can be
12831217 ascertained now or in the future.
12841218 C. A power in a trustee to select a beneficiary from an
12851219 indefinite class is valid. If the power is not exercised within a
12861220 reasonable time, the power f ails and the property subject to the
12871221 power passes to the persons who would have taken the property had
12881222 the power not been conferred.
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12891249 SECTION 22. NEW LAW A new section of law to be codified
1290-in the Oklahoma Statutes as Section 1604.3 of Title 60, unless there
1250+in the Oklahoma Stat utes as Section 1803 of Title 60, unless there
12911251 is created a duplication in numbering, reads as follows:
12921252 A trust not created by will is validly created if its creation
12931253 complies with the law of the jurisdiction in which the trust
12941254 instrument was executed, or the law of the jurisdict ion in which, at
12951255 the time of creation:
12961256 1. The settlor was domiciled, had a place of abode, or was a
12971257 national;
12981258 2. A trustee was domiciled or had a place of business; or
12991259 3. Any trust property was located.
13001260 SECTION 23. NEW LAW A new section of law to be codified
1301-in the Oklahoma Statutes as Section 1604.4 of Title 60, unless there
1302-is created a duplication in numbering, reads as follows:
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1261+in the Oklahoma Statutes as Section 1804 of Title 60, unless there
1262+is created a duplication in numbering, reads as follows:
13301263 A trust may be created only to the extent its purposes are
13311264 lawful, not contrary to public policy, and p ossible to achieve. A
13321265 trust and its terms must be for the benefit of its beneficiaries.
13331266 SECTION 24. NEW LAW A new section of law to be codified
1334-in the Oklahoma Statutes as Section 1604.5 of Title 60, unless there
1267+in the Oklahoma Statutes as Section 1805 of Title 60, unless the re
13351268 is created a duplication in numbering, reads as follows:
13361269 A. A charitable trust may be created for the relief of poverty,
13371270 the advancement of education or religion, the promotion of health,
13381271 governmental or municipal purposes, or other purposes the
13391272 achievement of which is benefi cial to the community.
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13401299 B. If the terms of a charitable trust do not indicate a
13411300 particular charitable purpose or beneficiary, the court may select
13421301 one or more charitable purposes or beneficiaries. The selection
13431302 must be consistent w ith the settlor's intention to the extent it can
13441303 be ascertained.
13451304 C. The settlor of a charitable trust, among others, may
13461305 maintain a proceeding to enforce the trust.
13471306 SECTION 25. NEW LAW A new section of law to be codified
1348-in the Oklahoma Statutes as Section 1604.6 of Title 60, unless there
1307+in the Oklahoma Statutes as Section 1806 of Title 60, unless there
13491308 is created a duplication in numbering, reads as follows:
13501309 A trust is void to the extent its creation was induced by fraud,
13511310 duress, or undue influence.
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13791311 SECTION 26. NEW LAW A new s ection of law to be codified
1380-in the Oklahoma Statutes a s Section 1604.7 of Title 60, unless there
1312+in the Oklahoma Statutes as Section 1807 of Title 60, unless there
13811313 is created a duplication in numbering, reads as follows:
13821314 Except as required by a statute other than this act, a trust
13831315 need not be evidenced by a trust instrumen t, but the creation of a n
13841316 oral trust and its terms may be established only by clear and
13851317 convincing evidence.
13861318 SECTION 27. NEW LAW A new section of law to be codified
1387-in the Oklahoma Statutes a s Section 1604.8 of Title 60, unless there
1319+in the Oklahoma Statutes as Section 1808 of Title 60, unless there
13881320 is created a duplication in numbering, reads as follows:
13891321 Except as otherwise provided in this act or by another statute,
13901322 the following rules apply:
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13911349 1. A trust may be created for a noncharitable purpose without a
13921350 definite or definitely ascertainable benefic iary or for a
13931351 noncharitable but otherwise valid purpose to be selected by the
13941352 trustee;
13951353 2. A trust authorized by this section may be enforced by a
13961354 person appointed in the terms of the trust or, if no person is so
13971355 appointed, by a person appointed by the cou rt; and
13981356 3. Property of a trust authorized by this section may be
13991357 applied only to its intended use, except to the extent the court
14001358 determines that the value of the trust property exceeds the amount
14011359 required for the intended use. Except as otherwise provid ed in the
14021360 terms of the trust, property not required for the intended use must
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14301361 be distributed to the settlor, if then living, otherwise to the
14311362 settlor's successors in interest.
14321363 SECTION 28. NEW LAW A new section of law to be codified
1433-in the Oklahoma Statutes as Section 1604.9 of Title 60, unless there
1364+in the Oklahoma Statutes as Section 1809 of Title 60, unless there
14341365 is created a duplication in numbering, reads as follows:
14351366 A. In addition to the methods of termination prescribed by
14361367 Sections 29 through 32 of this act, a trust terminates to the extent
14371368 the trust is revoked or expi res pursuant to its terms, no purpose of
14381369 the trust remains to be achieved, or the purposes of the trust have
14391370 become unlawful, contrary to public policy, or impossible to
14401371 achieve.
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14411398 B. A proceeding to approve or disapprove a proposed
14421399 modification or termination under Sections 29 through 34 of this
14431400 act, or trust combination or division under Section 35 of this act,
14441401 may be commenced by a trustee or beneficiary, and a proceeding to
14451402 approve or disapprove a proposed modification or terminat ion under
14461403 Section 29 of this act may be commenced by the settlor. The settlor
14471404 of a charitable trust may maintain a proceeding to modify the trust
14481405 under Section 31 of this act.
14491406 SECTION 29. NEW LAW A new section of law to be codified
1450-in the Oklahoma Statutes as Section 1604.10 of Title 60, unless
1451-there is created a duplication in numbering, reads as follows:
1407+in the Oklahoma Statutes as Section 1810 of Title 60, unless there
1408+is created a duplication in numbering, reads as follows:
14521409 A. If, upon petition, the court finds that the settlor and all
14531410 beneficiaries consent to the modification or termination of a
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14811411 noncharitable irrevocable trus t, the court shall approve the
14821412 modification or termination even if the modification or termination
14831413 is inconsistent with a material purpose of the trust. A settlor's
14841414 power to consent to a trust's modification or termination may be
14851415 exercised by an agent under a power of attorney only to the extent
14861416 expressly authorized by the power of attorney or the terms of the
14871417 trust; by the settlor's guardian of the property with the approval
14881418 of the court supervising the guardianship if an agent is not so
14891419 authorized; or by the settlor's guardian of the person with the
14901420 approval of the court supervising the guardianship if an agent is
14911421 not so authorized and a guardian of the property has not been
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14921448 appointed. This subsection does not apply to irrevocable trusts
14931449 created before or to revocable trusts that become irrevocable before
14941450 the effective date of this act.
14951451 B. A noncharitable irrevocable trust may be terminated upon
14961452 consent of all of the beneficiaries if the court concludes that
14971453 continuance of the tru st is not necessary to a chieve any material
14981454 purpose of the trust. A noncharitable irrevocable trust may be
14991455 modified upon consent of all of the beneficiaries if the court
15001456 concludes that modification is not inconsistent with a material
15011457 purpose of the trust.
15021458 C. A spendthrift provision in the terms of the trust is not
15031459 presumed to constitute a material purpose of the trust.
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15311460 D. Upon termination of a trust under subsection A or B of this
15321461 section, the trustee shall distribute the trust property as agreed
15331462 by the beneficiaries.
15341463 E. If not all of the beneficiaries consent to a proposed
15351464 modification or termination of the trust under subsection A or B of
15361465 this section, the modification or termination may be approved by the
15371466 court if the court is satisfied that:
15381467 1. If all of the beneficiaries had consented, the trust could
15391468 have been modified or terminated under this section; and
15401469 2. The interests of a beneficiary who does not consent will be
15411470 adequately protected.
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15421497 SECTION 30. NEW LAW A new section o f law to be codified
1543-in the Oklahoma Statutes as Section 1604.11 of Title 60, unless
1544-there is created a duplication in numbering, reads as follows:
1498+in the Oklahoma Statutes as Section 1811 of Title 60, unless there
1499+is created a duplication in numbering, reads as follows:
15451500 A. The court may modify the administrative or dispositive terms
15461501 of a trust or terminate the trust if, because of circumstances not
15471502 anticipated by the settlor, modification or termination will further
15481503 the purposes of the trust. To the extent practicable, the
15491504 modification must be made in accordance with the settlor's probable
15501505 intention.
15511506 B. The court may modify the administrative terms of a trust if
15521507 continuation of the trust on its existing terms would be
15531508 impracticable or wasteful or impair the trust's administration.
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15811509 C. Upon termination of a trust under this section, the trustee
15821510 shall distribute the trust property in a manner consistent with the
15831511 purposes of the trust.
15841512 SECTION 31. NEW LAW A new section of law to be codified
1585-in the Oklahoma Statutes as Section 1604.12 of Title 60, unless
1586-there is created a duplication in numbering, reads as follows:
1513+in the Oklahoma Statutes as Section 1812 of Title 60, unless there
1514+is created a duplication in numbering, reads as follow s:
15871515 A. Except as otherwi se provided in subsection B of this
15881516 section, if a particular charitable purpose becomes unlawful,
15891517 impracticable, impossible to achieve, or wasteful:
15901518 1. The trust does not fail, in whole or in part;
15911519 2. The trust property does not r evert to the settlor or the
15921520 settlor's successors in interest; and
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15931547 3. The court may apply cy pres to modify or terminate the trust
15941548 by directing that the trust property be applied or distributed, in
15951549 whole or in part, in a manner consistent with the settlor' s
15961550 charitable purposes.
15971551 B. A provision in the terms of a charitable trust that would
15981552 result in distribution of the trust property to a noncharitable
15991553 beneficiary prevails over the power of the court under subsection A
16001554 of this section to apply cy pres to mod ify or terminate the trust
16011555 only if, when the provision takes effect, the trust property is to
16021556 revert to the settlor and the settlor is still living.
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16301557 SECTION 32. NEW LAW A new section of law to be codified
1631-in the Oklahoma Statutes as Section 1604.13 of Title 60, unless
1632-there is created a duplication in numbering, reads as follows:
1558+in the Oklahoma Statutes as Section 1813 of Title 60 , unless there
1559+is created a duplication in numbering, reads as follows:
16331560 A. After notice to the qualified beneficiaries, the trustee of
16341561 a trust consisting of trust property having a total value less than
16351562 Fifty Thousand Dollars ($50, 000.00) may terminate the trust if the
16361563 trustee concludes that the value of the trust property is
16371564 insufficient to justify the cost of administration.
16381565 B. The court may modify or terminate a trust or remove the
16391566 trustee and appoint a different trustee if it d etermines that the
16401567 value of the trust property is insufficient to justify the cost of
16411568 administration.
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16421595 C. Upon termination of a trust under this section, the trustee
16431596 shall distribute the trust property in a manner consistent with the
16441597 purposes of the trust.
16451598 D. This section does not apply to an easement for conservation
16461599 or preservation.
16471600 SECTION 33. NEW LAW A new section of law to be codified
1648-in the Oklahoma Statutes as Section 1604.14 of Title 60, unless
1649-there is created a duplication in numbering, reads as follows:
1601+in the Oklahoma Statutes as Section 1814 of Title 60, unless there
1602+is created a duplication in numbering, reads as foll ows:
16501603 The court may reform the terms of a trust, even if unambiguous,
16511604 to conform the terms to the settlor's intention if it is proved by
16521605 clear and convincing evidence what the settlor's intention was and
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16801606 that the terms of the trust w ere affected by a mistake of fact or
16811607 law, whether in expression or inducement.
16821608 SECTION 34. NEW LAW A new section of law to be codified
1683-in the Oklahoma Statutes as Section 1604.15 of Title 60, unless
1684-there is created a duplication in numbering, reads as follows:
1609+in the Oklahoma Statutes as Section 1815 of Title 60, unless there
1610+is created a duplication in num bering, reads as follows :
16851611 To achieve the settlor's tax objectives, the court may modify
16861612 the terms of a trust in a manner that is not contrary to the
16871613 settlor's probable intention. The court may provide that the
16881614 modification has retroactive effect.
16891615 SECTION 35. NEW LAW A new section of law to be codified
1690-in the Oklahoma Statutes as Section 1604.16 of Title 60, unless
1691-there is created a duplication in numbering, reads as fol lows:
1616+in the Oklahoma Statutes as Section 1816 of Title 60, unless there
1617+is created a duplication in numbering, reads as follows:
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16921644 After notice to the qualified beneficiaries, a trustee may
16931645 combine two or more trusts into a single trust or divide a trust
16941646 into two or more separate trusts, if the result does not impair the
16951647 rights of any beneficiary or adversely affect achievement of the
16961648 purposes of the trust.
1697-ARTICLE 5
1698-CREDITOR’S CLAIM AGAINST SETTLOR
16991649 SECTION 36. NEW LAW A new section of law to be codified
1700-in the Oklahoma Statutes as Section 1605.1 of Title 60, unless there
1650+in the Oklahoma Statutes as Section 1901 of Title 60, unless there
17011651 is created a duplication in numbering, reads as follows:
17021652 A. Whether or not the terms of a trust contain a spendthrift
17031653 provision, the following rul es apply:
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17311654 1. Except as provided by the laws of this state, during the
17321655 lifetime of the settlor, the property of a revocable trust is
17331656 subject to claims of the settlor's creditors; and
17341657 2. Except as provided by the laws of this state, after the
17351658 death of a settlor, and subject to the settlor's right to direct the
17361659 source from which liabilities will be paid, the property of a trust
17371660 that was revocable at the settlor's death is subject to claims of
17381661 the settlor's creditors, costs of administration of the settlor's
17391662 estate, the expenses of the settlor's funeral and disposal of
17401663 remains, and statutory allowances to a surviving spouse and children
17411664 to the extent the settlor's probate estate is inadequate to satisfy
17421665 those claims, costs, expenses, and allowances.
17431666 B. For purposes of this section:
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17441693 1. During the period the power may be exercised, the holder of
17451694 a power of withdrawal is treated in the same manner as the settlor
17461695 of a revocable trust to the extent of the property subject to the
17471696 power; and
17481697 2. Upon the lapse, rele ase, or waiver of the po wer, the holder
17491698 is treated as the settlor of the trust only to the extent the value
17501699 of the property affected by the lapse, release, or waiver exceeds
17511700 the greater of the amount specified in Section 2041(b)(2) or 2514(e)
17521701 of the Internal Revenue Code of 1986, or Section 2503(b) of the
17531702 Internal Revenue Code of 1986, in each case as in effect on the
17541703 effective date of this act, or as later amended.
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1782-ARTICLE 6
1783-REVOCABLE TRUSTS
17841704 SECTION 37. NEW LAW A new section of law to be codified
1785-in the Oklahoma Statutes as Section 1606.1 of Title 60, unless there
1705+in the Oklahoma Statutes as Section 2 001 of Title 60, unless there
17861706 is created a duplication in numbering, reads as follows:
17871707 The capacity required to create, amend, revoke, or add property
17881708 to a revocable trust, or to direct the actions of the trustee of a
17891709 revocable trust, is the same as that required to make a will.
17901710 SECTION 38. NEW LAW A new section of law to be codified
1791-in the Oklahoma Statutes as Section 1606.2 of Title 60, unless there
1711+in the Oklahoma Statutes as Section 2002 of Title 60, unless there
17921712 is created a duplication in numbering, reads as follows:
17931713 A. To the extent a trust is revocable by a settlor, a trustee
17941714 may follow a direction of the settlor that is contrary to the terms
17951715 of the trust. To the extent a trust is revocable by a settlor in
17961716 conjunction with a person other than a trustee or person holding an
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17971743 adverse interest, the trustee may follow a direction from the
17981744 settlor and the other person holding the power to revoke even if the
17991745 direction is contrary to the terms of the trust.
18001746 B. To the extent a trust is revocable and the settlor has
18011747 capacity to revoke the trust, rights of the beneficiaries are
18021748 subject to the control of, and the duties of the trustee are owed
18031749 exclusively to, the settlor.
18041750 C. During the period the power may be exercised, the holder of
18051751 a power of withdrawal has the rights of a settlo r of a revocable
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18331752 trust under this section to the extent of the property subject to
18341753 the power.
18351754 SECTION 39. NEW LAW A new section of law to be codified
1836-in the Oklahoma Statutes as Section 1606.3 of Title 60, unless there
1755+in the Oklahoma Statutes as Section 2003 of Title 60, unless there
18371756 is created a duplication in numbering, r eads as follows:
18381757 A. A person may commence a judicial proceeding to contest the
18391758 validity of a trust that was revocable at the settlor's death within
18401759 three (3) years after the later of either the settlor's death or
18411760 actual or constructive notice of the existence and terms of the
18421761 trust.
18431762 B. Upon the death of the settlor of a trust that was revocable
18441763 at the settlor's death, the trustee may proceed to distribute the
18451764 trust property in accordance with the terms of the trust. The
18461765 trustee is not subject to liabilit y for doing so unless:
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18471792 1. The trustee knows of a pending judicial proceeding
18481793 contesting the validity of the trust;
18491794 2. The trustee knows of claims, costs, expenses, or allowances
18501795 that would be payable from the trust pursuant to par agraph 2 of
18511796 subsection A of Section 36 of this act; or
18521797 3. A potential contestant has notified the trustee of a
18531798 possible judicial proceeding to contest the trust and a judicial
18541799 proceeding is commenced within sixty (60) days after the contestant
18551800 sent the notification.
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18831801 C. A beneficiary of a trust that is determined to have been
18841802 invalid or which is subject to claims, costs, expenses, or
18851803 allowances under paragraph 2 of subsection B of this section is
18861804 liable to return any distribution received.
1887-ARTICLE 7
1888-OFFICE OF TRUSTEE
18891805 SECTION 40. NEW LAW A new section of law to be codified
1890-in the Oklahoma Stat utes as Section 1607.1 of Title 60, unless there
1806+in the Oklahoma Statutes as Section 2101 of Title 60, unless there
18911807 is created a duplication in numbering, reads as follows:
18921808 A. Except as otherwise provided in subsection C of this
18931809 section, a person designated as trus tee accepts the trusteeship:
18941810 1. By substantially complying with a method of acceptance
18951811 provided in the terms of the trust; or
18961812 2. If the terms of the trust do not provide a method or the
18971813 method provided in the terms is not expressl y made exclusive, by
18981814 accepting delivery of the trust property, exercising powers or
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18991841 performing duties as trustee, or otherwise indicating acceptance of
19001842 the trusteeship.
19011843 B. A person designated as trustee who has not yet accepted the
19021844 trusteeship may reject the trusteeship. A desi gnated trustee who
19031845 does not accept the trusteeship within a reasonable time after
19041846 knowing of the designation is deemed to have rejected the
19051847 trusteeship.
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19331848 C. A person designated as trustee, without accepting the
19341849 trusteeship, may:
19351850 1. Act to preserve the trust property if, within a reasonable
19361851 time after acting, the person sends a rejection of the trusteeship
19371852 to the settlor or, if the settlor is dead or lacks capacity, to a
19381853 qualified beneficiary; and
19391854 2. Inspect or investigate trust pro perty to determine poten tial
19401855 liability under environmental or other law or for any other purpose.
19411856 SECTION 41. NEW LAW A new section of law to be codified
1942-in the Oklahoma Statutes as Section 1607.2 of Title 60, unless there
1857+in the Oklahoma Statutes as Section 2102 of Title 60, unless there
19431858 is created a duplication in numbering, reads as follows:
19441859 A. A trustee shall give bond to secure performance of the
19451860 trustee's duties only if the court finds that a bond is needed to
19461861 protect the interests of the beneficiaries or is required by the
19471862 terms of the trust an d the court has not disp ensed with the
19481863 requirement.
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19491890 B. The court may specify the amount of a bond, its liabilities,
19501891 and whether sureties are necessary. The court may modify or
19511892 terminate a bond at any time.
19521893 C. A regulated financial service institution qu alified to do
19531894 trust business in this state need not give bond, even if required by
19541895 the terms of the trust.
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19821896 SECTION 42. NEW LAW A new section of law to be codified
1983-in the Oklahoma Statutes as Section 1607.3 of Title 60, unless there
1897+in the Oklahoma Statutes as Section 2103 of Title 60, unless there
19841898 is created a duplication in numbering, reads as follows:
19851899 A. Co-trustees who are unable to reach a unanimous decision may
19861900 act by majority decision.
19871901 B. If a vacancy occurs in a co -trusteeship, the remaining co -
19881902 trustees may act for the trust.
19891903 C. Subject to Section 1212 of Title 60 of the Oklahoma
19901904 Statutes, a co-trustee must participate in the performance of a
19911905 trustee's function unless the co -trustee is unavailable to perform
19921906 the function because of absence, illness, disqualification under
19931907 other law, or other t emporary incapacity or t he co-trustee has
19941908 properly delegated the performance of the function to another
19951909 trustee.
19961910 D. If a co-trustee is unavailable to perform duties because of
19971911 absence, illness, disqualification under other law, or other
19981912 temporary incapacity, and prompt action is necessary to achieve the
19991913 purposes of the trust or to avoid injury to the trust property, the
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20001940 remaining co-trustee or a majority of the remaining co -trustees may
20011941 act for the trust.
20021942 E. A trustee may not delegate to a co -trustee the performance
20031943 of a function the settlor reasonably expected the trustees to
20041944 perform jointly. Unless a delegation was irrevocable, a trustee may
20051945 revoke a delegation previously made.
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20331946 F. Except as otherwise provided in subsection G of this
20341947 section, a trustee who does not join in an action of another trustee
20351948 is not liable for the action.
20361949 G. Subject to Section 1212 of Title 60 of the Oklahoma
20371950 Statutes, each trustee shall exercise reasonable care to:
20381951 1. Prevent a co-trustee from committing a serious breach of
20391952 trust; and
20401953 2. Compel a co-trustee to redress a serious breach of trust.
20411954 H. A dissenting trustee who joins in an action at the direction
20421955 of the majority of the trustees and who notified any co -trustee of
20431956 the dissent at or before the time of the action is n ot liable for
20441957 the action unless the action is a serious breach of trust.
20451958 SECTION 43. NEW LAW A new section of law to be codified
2046-in the Oklahoma Statutes as Section 1607.4 of Title 60, unless there
1959+in the Oklahoma Statutes as Section 2104 of Title 60, unless there
20471960 is created a duplication in numbering , reads as follows:
20481961 A. A vacancy in a trusteeship occurs if:
20491962 1. A person designated as trustee rejects the trusteeship;
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20501989 2. A person designated as trustee cannot be identified or does
20511990 not exist;
20521991 3. A trustee resigns;
20531992 4. A trustee is disqualified or rem oved;
20541993 5. A trustee dies; or
20551994 6. A guardian is appointed for an individual serving as
20561995 trustee.
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20841996 B. If one or more co -trustees remain in office, a vacancy in a
20851997 trusteeship need not be filled. A vacancy in a trusteeship must be
20861998 filled if the trust has no re maining trustee.
20871999 C. A vacancy in a trusteeship of a noncharitable trust that is
20882000 required to be filled must be filled in the following order of
20892001 priority:
20902002 1. By a person designated in the terms of the trust to act as
20912003 successor trustee;
20922004 2. By a person appo inted by unanimous agreement of the
20932005 qualified beneficiaries; or
20942006 3. By a person appointed by the court.
20952007 D. A vacancy in a trusteeship of a charitable trust that is
20962008 required to be filled must be filled in the following order of
20972009 priority:
20982010 1. By a person designated in the terms of the trust to act as
20992011 successor trustee;
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21002038 2. By a person selected by the charitable organizations
21012039 expressly designated to receive distributions under the terms of the
21022040 trust if the Office of the Attorney General concurs in the
21032041 selection; or
21042042 3. By a person appointed by the court.
21052043 E. Whether or not a vacancy in a trusteeship exists or is
21062044 required to be filled, the court may appoint an additional trustee
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21342045 or special fiduciary whenever the court considers the appointment
21352046 necessary for the administration of the t rust.
21362047 SECTION 44. NEW LAW A new section of law to be codified
2137-in the Oklahoma Statutes as Section 1607.5 of Title 60, unless there
2048+in the Oklahoma Statutes as Section 2105 of Title 60, unless there
21382049 is created a duplication in numbering, reads as follows:
21392050 A. A trustee may resig n:
21402051 1. Upon at least thirty (30) days' notice to the qualified
21412052 beneficiaries, the settlor, if living, and all co -trustees; or
21422053 2. With the approval of the court.
21432054 B. In approving a resignation, the court may issue orders and
21442055 impose conditions reasonably ne cessary for the protecti on of the
21452056 trust property.
21462057 C. Any liability of a resigning trustee or of any sureties on
21472058 the trustee's bond for acts or omissions of the trustee is not
21482059 discharged or affected by the trustee's resignation, but may be
21492060 discharged by court order upon notice to the qualified
21502061 beneficiaries, the settlor, if living, and all co -trustees.
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21512088 SECTION 45. NEW LAW A new section of law to be codified
2152-in the Oklahoma Statutes as Section 1607.6 of Title 60, unless there
2089+in the Oklahoma Statutes as Section 2106 of Title 60, unless there
21532090 is created a duplication in numberi ng, reads as follows:
21542091 A. The settlor, a co -trustee, or a beneficiary may request the
21552092 court to remove a trustee, or a trustee may be removed by the court
21562093 on its own initiative.
21572094 B. The court may remove a trustee if:
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21852095 1. The trustee has committed a serious breach of trust;
21862096 2. Lack of cooperation among co -trustees substantially impairs
21872097 the administration of the trust;
21882098 3. Due to unfitness, unwillingness, or persistent failure of
21892099 the trustee to administer the trust effectively, the cou rt
21902100 determines that remov al of the trustee best serves the interests of
21912101 the beneficiaries; or
21922102 4. There has been a substantial change of circumstances or
21932103 removal is requested by all of the qualified beneficiaries, the
21942104 court finds that removal of the trustee best serves the interests of
21952105 all of the beneficiaries and is not inconsistent with a material
21962106 purpose of the trust, and a suitable co -trustee or successor trustee
21972107 is available.
21982108 C. Pending a final decision on a request to remove a trustee,
21992109 or in lieu of or in addition to removin g a trustee, the court may
22002110 order such appropriate relief under subsection B of Section 175.57
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22012137 of Title 60 of the Oklahoma Statutes as may be necessary to protect
22022138 the trust property or the interests of the beneficiaries.
22032139 SECTION 46. NEW LAW A new section of law to be codified
2204-in the Oklahoma Statutes as Section 1607.7 of Title 60, unless there
2140+in the Oklahoma Statutes as Section 2107 of Title 60, unless there
22052141 is created a duplication in numbering, reads as follows:
22062142 A. Unless a co-trustee remains in office or the court otherwise
22072143 orders, and until the tr ust property is delivered to a successor
22082144 trustee or other person entitled to it, a trustee who has resigned
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22362145 or been removed has the duties of a trustee and the powers necessary
22372146 to protect the trust property.
22382147 B. A trustee who has re signed or been removed shall proceed
22392148 expeditiously to deliver the trust property within the trustee's
22402149 possession to the co -trustee, successor trustee, or other person
22412150 entitled to it.
22422151 SECTION 47. NEW LAW A new section of law to be cod ified
2243-in the Oklahoma Statutes as Section 1607.8 of Title 60, unless there
2152+in the Oklahoma Statutes as Section 2108 of Title 60, unless there
22442153 is created a duplication in numbering, reads as follows:
22452154 A. If the terms of a trust do not specify the trustee's
22462155 compensation, a trustee is entitled to compensation that is
22472156 reasonable under the circumstances.
22482157 B. If the terms of a trust specify the trustee's compensation,
22492158 the trustee is entitled to be compensated as specified, but the
22502159 court may allow more or less compensation if:
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22512186 1. The duties of the trustee are substantially differe nt from
22522187 those contemplated when the trust was created; or
22532188 2. The compensation specified by the terms of the trust would
22542189 be unreasonably low or high.
22552190 SECTION 48. NEW LAW A new section of law to be codified
2256-in the Oklahoma Statutes as Section 1607.9 of Title 60, unless there
2191+in the Oklahoma Statutes as Section 2109 of Title 60, unless there
22572192 is created a duplication in numbering, reads as follows:
22582193 A. A trustee is entitled to be reimbursed out of the trust
22592194 property, with interest as appropriate, for:
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22872195 1. Expenses that were properly incurred in the admini stration
22882196 of the trust; and
22892197 2. To the extent necessary to prevent unjust enrichment of the
22902198 trust, expenses that were not properly incurred in the
22912199 administration of the trust.
22922200 B. An advance by the trustee of money for the protection of the
22932201 trust gives rise to a lien against trust property to secure
22942202 reimbursement with reasonable interest.
2295-ARTICLE 8
2296-DUTIES AND POWERS OF TRUSTEE
22972203 SECTION 49. NEW LAW A new section of law to be codified
2298-in the Oklahoma Statutes as Section 1608.1 of Title 60, unless there
2204+in the Oklahoma Statutes as Section 2201 of Title 60, unless there
22992205 is created a duplication i n numbering, reads as fo llows:
23002206 Upon acceptance of a trusteeship, the trustee shall administer
23012207 the trust in good faith, in accordance with its terms and purposes
23022208 and the interests of the beneficiaries, and in accordance with this
23032209 act.
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23042236 SECTION 50. NEW LAW A new section of law to be codified
2305-in the Oklahoma Statutes as Section 1608.2 of Title 60, unless there
2237+in the Oklahoma Statutes as Section 2202 of Title 60, unless there
23062238 is created a duplication in numbering, reads as follows:
23072239 A. A trustee shall administer the trust solely in the interests
23082240 of the beneficiaries.
23092241 B. Subject to the rights of persons dealing with or assisting
23102242 the trustee as provided in subsection I of Section 175.57 of Title
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23382243 60 of the Oklahoma Statutes, a sale, encumbrance, or other
23392244 transaction involving the investment or management of t rust property
23402245 entered into by the trustee for the trustee's own personal account
23412246 or which is otherwise affected by a conflict between the trustee's
23422247 fiduciary and personal interests is voidable by a beneficiary
23432248 affected by the transaction unless:
23442249 1. The transaction was authorized by the terms of the trust;
23452250 2. The transaction was approved by the court;
23462251 3. The beneficiary did not commence a judicial proceeding
23472252 within the time allowed by subsection E of Section 175.57 of Title
23482253 60 of the Oklahoma Statutes;
23492254 4. The beneficiary consented to the trustee's conduct, ratified
23502255 the transaction, or released the trustee in compliance with
23512256 subsection G of Section 175.57 of Title 60 of the Oklahoma Statutes;
23522257 or
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23532284 5. The transaction involves a contract entered into or claim
23542285 acquired by the trustee before the person became or contemplated
23552286 becoming trustee.
23562287 C. A sale, encumbrance, or other transaction involving the
23572288 investment or management of trust property is presumed to be
23582289 affected by a conflict between personal and fiducia ry interests if
23592290 it is entered into by the trustee with:
23602291 1. The trustee's spouse;
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23882292 2. The trustee's descendants, siblings, parents, or their
23892293 spouses;
23902294 3. An agent or attorney of the trustee; or
23912295 4. A corporation or other person or enterprise in which the
23922296 trustee, or a person that owns a significant interest in the
23932297 trustee, has an interest that might affect the trustee's best
23942298 judgment.
23952299 D. A transaction between a trustee and a beneficiary that does
23962300 not concern trust property but that occurs during the existe nce of
23972301 the trust or while the trustee retains significant influence over
23982302 the beneficiary and from which the trustee obtains an advantage is
23992303 voidable by the beneficiary unless the trustee establishes that the
24002304 transaction was fair to the beneficiary.
24012305 E. A transaction not concernin g trust property in which the
24022306 trustee engages in the trustee's individual capacity involves a
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24032333 conflict between personal and fiduciary interests if the transaction
24042334 concerns an opportunity properly belonging to the trust.
24052335 F. An investment by a trustee in securities of an investment
24062336 company or investment trust to which the trustee, or its affiliate,
24072337 provides services in a capacity other than as trustee is not
24082338 presumed to be affected by a conflict between personal and fiduciary
24092339 interests if the investment othe rwise complies with the prudent
24102340 investor rule of the Oklahoma Uniform Prudent Investor Act. In
24112341 addition to its compensation for acting as trustee, the trustee may
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24392342 be compensated by the investment company or investment trust for
24402343 providing those services out of fees charged to the trust. If the
24412344 trustee receives compensation from the investment company or
24422345 investment trust for providing investment advisory or investment
24432346 management services, the trustee must at least annually notify the
24442347 persons entitled under Section 60 of this act to receive a copy of
24452348 the trustee's annual report of the rate and method by which that
24462349 compensation was determined.
24472350 G. In voting shares of stock or in exercising powers of control
24482351 over similar interests in oth er forms of enterprise, the trustee
24492352 shall act in the best interests of the beneficiaries. If the trust
24502353 is the sole owner of a corporation or other form of enterprise, the
24512354 trustee shall elect or appoint directors or other managers who will
24522355 manage the corporation or enterprise in the best interests of the
24532356 beneficiaries.
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24542383 H. This section does not preclude the following transactions,
24552384 if fair to the beneficiaries:
24562385 1. An agreement between a trustee and a beneficiary relating to
24572386 the appointment or compensation o f the trustee;
24582387 2. Payment of reasonable compensation to the trustee;
24592388 3. A transaction between a trust and another trust, decedent's
24602389 estate, or conservatorship of which the trustee is a fiduciary or in
24612390 which a beneficiary has an interest;
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24892391 4. A deposit of trust money in a regula ted financial-service
24902392 institution operated by the trustee; or
24912393 5. An advance by the trustee of money for the protection of the
24922394 trust.
24932395 I. The court may appoint a special fiduciary to make a decision
24942396 with respect to any proposed tran saction that might violate this
24952397 section if entered into by the trustee.
24962398 SECTION 51. NEW LAW A new section of law to be codified
2497-in the Oklahoma Statutes as Section 1608.3 of Title 60, unless there
2399+in the Oklahoma Statutes as Section 2203 of Title 60, unless there
24982400 is created a duplication in numbering, reads as follows:
24992401 If a trust has two or more beneficiaries, the trustee shall act
25002402 impartially in investing, managing, and distributing the trust
25012403 property, giving due regard to the beneficiaries' respective
25022404 interests.
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25032431 SECTION 52. NEW LAW A new section of law to be codified
2504-in the Oklahoma Statutes as Section 1608.4 of Title 60, unless there
2432+in the Oklahoma Statutes as Section 2204 of Title 60, unless there
25052433 is created a duplication in numbering, reads as follows:
25062434 A trustee shall administer the trust as a prudent person would,
25072435 by considering the purposes , terms, distributional requirements, and
25082436 other circumstances of the trust. In satisfying this standard, the
25092437 trustee shall exercise reasonable care, skill, and caution.
25102438 SECTION 53. NEW LAW A new section of law to be codified
2511-in the Oklahoma Statutes as Section 1608.5 of Title 60, unless there
2512-is created a duplication in numbering, reads as follows:
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2439+in the Oklahoma Statutes as Section 2205 of Title 60, unless there
2440+is created a duplication in numbering, reads as follows:
25402441 In administering a trust, the trustee may incur only costs that
25412442 are reasonable in relation to the trust property, the purposes of
25422443 the trust, and the skills of the trustee.
25432444 SECTION 54. NEW LAW A new section of law to be codified
2544-in the Oklahoma Statutes as Section 1608.6 of Title 60, unless there
2445+in the Oklahoma Statutes as Section 2206 of Title 60, unless there
25452446 is created a duplication in numbering, reads as follows:
25462447 A trustee who has sp ecial skills or expertise, or is named
25472448 trustee in reliance upon the trustee's representation that the
25482449 trustee has special skills or expertise, shall use those special
25492450 skills or expertise.
25502451 SECTION 55. NEW LAW A new section of law to b e codified
2551-in the Oklahoma Statutes as Section 1608.7 of Title 60, unless there
2552-is created a duplication in n umbering, reads as follows:
2452+in the Oklahoma Statutes as Section 2207 of Title 60, unless there
2453+is created a duplication in numbering, reads as follows:
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25532480 A. A trustee may delegate duties and powers that a prudent
25542481 trustee of comparable skills could properly delegate under th e
25552482 circumstances. The trustee shall exercise reasonable care, skill,
25562483 and caution in:
25572484 1. Selecting an agent;
25582485 2. Establishing the scope and terms of the delegation,
25592486 consistent with the purposes and terms of the trust; and
25602487 3. Periodically reviewing the age nt's actions in order to
25612488 monitor the agent's performance and compliance with the terms of the
25622489 delegation.
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25902490 B. In performing a delegated function, an agent owes a duty to
25912491 the trust to exercise reasonable care to comply with the terms of
25922492 the delegation.
25932493 C. A trustee who complies with subsection A of this section is
25942494 not liable to the beneficiaries or to the trust for an action of the
25952495 agent to whom the function was delegated.
25962496 D. By accepting a delegation of powers or duties from the
25972497 trustee of a trust that is subject to the law of t his state, an
25982498 agent submits to the jurisdiction of the courts of this state.
25992499 SECTION 56. NEW LAW A new section of law to be codified
2600-in the Oklahoma Statutes as Section 1608.8 of Title 60, unless there
2500+in the Oklahoma Statutes as Section 2208 of Title 60, unless there
26012501 is created a duplication in numbering, reads as follows:
26022502 A trustee shall take reasonable steps to take control of and
26032503 protect the trust property.
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26042530 SECTION 57. NEW LAW A new section of law to be codified
2605-in the Oklahoma Statutes as Section 1608.9 of Title 60, unless there
2531+in the Oklahoma Statutes as Section 2209 of Title 60, unless the re
26062532 is created a duplication in numbering, reads as follows:
26072533 A. A trustee shall keep adequate records of the administration
26082534 of the trust.
26092535 B. A trustee shall keep trust property separate from the
26102536 trustee's own property.
26112537 C. Except as otherwise provided in subsection D of this
26122538 section, a trustee shall cause the trust property to be designated
26132539 so that the interest of the trust, to the extent feasible, appears
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26412540 in records maintained by a party other than a trustee or
26422541 beneficiary.
26432542 D. If the trustee maintains re cords clearly indicating the
26442543 respective interests, a trustee may invest as a whole the property
26452544 of two or more separate trusts.
26462545 SECTION 58. NEW LAW A new section of law to be codified
2647-in the Oklahoma Statutes as Secti on 1608.10 of Title 60, unless
2648-there is created a duplication in numbering, reads as follows:
2546+in the Oklahoma Statutes as Section 2210 of Title 60, unless there
2547+is created a duplication in numbering, reads as follows:
26492548 A trustee shall take reasonable steps to enforce claims of the
26502549 trust and to defend claims against the trust.
26512550 SECTION 59. NEW LAW A new section of law to be co dified
2652-in the Oklahoma Statutes as Section 1608.11 of Title 60, unless
2653-there is created a duplication in numbering, reads as follows:
2551+in the Oklahoma Statutes as Section 2211 of Title 60, unless there
2552+is created a duplication in numbering, reads as follows:
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26542579 A trustee shall take reasonable steps to compel a former trustee
26552580 or other person to deliver trust pro perty to the trustee, and to
26562581 take reasonable steps to redress a breach of trust known to the
26572582 trustee to have been committed by a former trustee.
26582583 SECTION 60. NEW LAW A new section of law to be codified
2659-in the Oklahoma Statutes as Sectio n 1608.12 of Title 60, unless
2660-there is created a duplication in numbering, reads as follows:
2584+in the Oklahoma Statutes as Sect ion 2212 of Title 60, un less there
2585+is created a duplication in numbering, reads as follows:
26612586 A. A trustee shall keep the qualified beneficiaries of the
26622587 trust reasonably informed about the administration of the trust and
26632588 of the material facts necessary for them to protect their interests.
26642589 Unless unreasonable under the circumstances, a trustee shall
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26922590 promptly respond to a beneficiary's request for information related
26932591 to the administration of the trust.
26942592 B. A trustee:
26952593 1. Upon request of a qualified beneficiar y, shall promptly
26962594 furnish to the qualified beneficiary a copy of the trust instrument;
26972595 2. Within sixty (60) days after accepting a trusteeship, shall
26982596 notify the qualified beneficiaries of the acceptance and of the
26992597 trustee's name, address, and telephone nu mber;
27002598 3. Within sixty (60) days after the date the trustee acquires
27012599 knowledge of the creation of an irrevocable trust, or the date the
27022600 trustee acquires knowledge that a formerly revocable trust has
27032601 become irrevocable, whether by the death of the settlor o r
27042602 otherwise, shall notif y the qualified beneficiaries of the trust's
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27052629 existence, of the identity of the settlor or settlors, of the right
27062630 to request a copy of the trust instrument, and of the right to a
27072631 trustee's report as provided in subsection C of this s ection; and
27082632 4. Shall notify the qualified beneficiaries in advance of any
27092633 change in the method or rate of the trustee's compensation.
27102634 C. A trustee shall send to the distributees or permissible
27112635 distributees of trust income or principal, and to other quali fied
27122636 beneficiaries who request it, at least annually and at the
27132637 termination of the trust, a report of the trust property,
27142638 liabilities, receipts, and disbursements, including the source and
27152639 amount of the trustee's compensation, a listing of the trust assets
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27432640 and, if feasible, their respective market values. Upon a vacancy in
27442641 a trusteeship, unless a co -trustee remains in office, a report must
27452642 be sent to the qualified beneficiaries by the former trustee. A
27462643 personal representative or guardian may send the qual ified
27472644 beneficiaries a report on behalf of a deceased or incapacitated
27482645 trustee.
27492646 D. A beneficiary may waive the right to a trustee's report or
27502647 other information otherwise required to be furnished under this
27512648 section. A beneficiary, with respect to future re ports and other
27522649 information, may withdraw a waiver previously given.
27532650 E. Paragraphs 2 and 3 of subsection B of this section do not
27542651 apply to a trustee who accepts a trusteeship before the effective
27552652 date of this act, to an irrevocable trust created before th e
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27562679 effective date of this act, or to a revocable trust that becomes
27572680 irrevocable before the effective date of this act.
27582681 SECTION 61. NEW LAW A new section of law to be codified
2759-in the Oklahoma Statutes as Section 1608.13 of Title 60, unless
2760-there is created a duplication in numbering, reads as follows:
2682+in the Oklahoma Statutes as Section 2213 of Title 60, unles s there
2683+is created a duplication in numbering, reads as follows:
27612684 A. Notwithstanding the breadth of discretion granted to a
27622685 trustee in the terms of the trust, including the use of such terms
27632686 as "absolute", "sole", or "uncontrolled", the trustee shall exerc ise
27642687 a discretionary powe r in good faith and in accordance with the terms
27652688 and purposes of the trust and the interests of the beneficiaries.
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27932689 B. Subject to subsection D of this section, and unless the
27942690 terms of the trust expressly indicate that a rule in this subsection
27952691 does not apply:
27962692 1. A person other than a settlor who is a beneficiary and
27972693 trustee of a trust that confers on the trustee a power to make
27982694 discretionary distributions to or for the trustee's personal benefit
27992695 may exercise the power only in accord ance with an ascertainab le
28002696 standard; and
28012697 2. A trustee may not exercise a power to make discretionary
28022698 distributions to satisfy a legal obligation of support that the
28032699 trustee personally owes another person.
28042700 C. A power whose exercise is limited or prohibite d by
28052701 subsection B of this section may be exercised by a majority of the
28062702 remaining trustees whose exercise of the power is not so limited or
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28072729 prohibited. If the power of all trustees is so limited or
28082730 prohibited, the court may appoint a special fiduciary wit h authority
28092731 to exercise the power.
28102732 D. Subsection B of this section does not apply to:
28112733 1. A power held by the settlor's spouse who is the trustee of a
28122734 trust for which a marital deduction, as defined in Section
28132735 2056(b)(5) or 2523(e) of the Internal Revenue Code of 1986, as in
28142736 effect on the effective date of this act, or as later amended, was
28152737 previously allowed;
2816-
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28432738 2. Any trust during any period that the trust may be revoked or
28442739 amended by its settlor; or
28452740 3. A trust if contributions to the trust qualify for th e annual
28462741 exclusion under Section 2503(c) of the Internal Revenue Code of
28472742 1986, as in effect on the effective date of this act, or as later
28482743 amended.
2849-E. If a distribution to a beneficiary is subject to the
2850-exercise of the trustee’s discretion, whether o r not the terms of a
2851-trust include a standard to guide the trustee in making
2852-distributions, then the interest is neither a property interest nor
2853-an enforceable right, but a mere expectancy.
28542744 SECTION 62. NEW LAW A new section of law to be codified
2855-in the Oklahoma Statutes as Section 1608.14 of Title 60, unless
2856-there is created a duplication in numbering, reads as follows:
2745+in the Oklahoma Statutes as S ection 2214 of Title 60, unless there
2746+is created a duplication in numbering, reads as follows:
28572747 A. A trustee, without authorization by the court, may exercise:
28582748 1. Powers conferred by the terms of the trust; and
28592749 2. Except as limited by the terms of the tr ust:
28602750 a. all powers over the trust property which an unmarried
28612751 competent owner has over individually owned property,
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28622778 b. any other powers appropriate to achieve the proper
28632779 investment, management, and distribution of the trust
28642780 property, and
28652781 c. any other powers conferred by this act.
2866-
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28932782 B. The exercise of a power is subject to the fiduciary duties
28942783 prescribed by this article.
28952784 SECTION 63. NEW LAW A new section of law to be codified
2896-in the Oklahoma Statutes as Section 1608.15 of Title 60, unless
2897-there is created a duplication in numbering, reads as follows:
2785+in the Oklahoma Statutes as Section 2215 of Title 60, unless there
2786+is created a duplication in numbering, reads as follows:
28982787 Without limiting the authority conferred by Section 62 of this
28992788 act, a trustee may:
29002789 1. Collect trust property and accept or reject additions to the
29012790 trust property from a settlor or any other pe rson;
29022791 2. Acquire or sell property, for cash or on credit, at public
29032792 or private sale;
29042793 3. Exchange, partition, or otherwise change the character of
29052794 trust property;
29062795 4. Deposit trust money in an account in a regulated financial -
29072796 service institution;
29082797 5. Borrow money, with or withou t security, and mortgage or
29092798 pledge trust property for a period within or extending beyond the
29102799 duration of the trust;
29112800 6. With respect to an interest in a proprietorship,
29122801 partnership, limited liability company, business trust, corpor ation,
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29132828 or other form of business or enterprise, continue the business or
29142829 other enterprise and take any action that may be taken by
29152830 shareholders, members, or property owners, including merging,
2916-
2917-SENATE FLOOR VERSION - HB1850 SFLR Page 57
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29432831 dissolving, or otherwise changing the form of business organiza tion
29442832 or contributing additional capital;
29452833 7. With respect to stocks or other securities, exercise the
29462834 rights of an absolute owner, including the right to:
29472835 a. vote, or give proxies to vote, with or without power
29482836 of substitution, or enter into or continue a voting
29492837 trust agreement,
29502838 b. hold a security in the name of a nominee or in other
29512839 form without disclosure of the trust so that title may
29522840 pass by delivery,
29532841 c. pay calls, assessments, and other sums chargeable or
29542842 accruing against the securities, and sell or ex ercise
29552843 stock subscription or conversion rights, and
29562844 d. deposit the securities with a depositary or other
29572845 regulated financial-service institution;
29582846 8. With respect to an interest in real property, construct, or
29592847 make ordinary or extraordinary repairs to, alt erations to, or
29602848 improvements in, buildings or other structures, demolish
29612849 improvements, raze existing or erect new party walls or buildings,
29622850 subdivide or develop land, dedicate land to public use or grant
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29632877 public or private easements, and make or vacate plat s and adjust
29642878 boundaries;
29652879 9. Enter into a lease for any purpose as lessor or lessee,
29662880 including a lease or other arrangement for exploration and removal
2967-
2968-SENATE FLOOR VERSION - HB1850 SFLR Page 58
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29942881 of natural resources, with or without the option to purchase or
29952882 renew, for a period within or extending beyond the duration of the
29962883 trust;
29972884 10. Grant an option involving a sale, lease, or other
29982885 disposition of trust property or acquire an option for the
29992886 acquisition of property, including an option exercisable beyond the
30002887 duration of the trust, and exercise an o ption so acquired;
30012888 11. Insure the property of the trust against damage or loss and
30022889 insure the trustee, the trustee's agents, and beneficiaries against
30032890 liability arising from the administration of the trust;
30042891 12. Abandon or decline to administer property o f no value or of
30052892 insufficient value to justify its collection or continued
30062893 administration;
30072894 13. With respect to possible liability for violation of
30082895 environmental law:
30092896 a. inspect or investigate property the trustee holds or
30102897 has been asked to hold, or proper ty owned or operated
30112898 by an organization in which the trustee holds or has
30122899 been asked to hold an interest, for the purpose of
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30132926 determining the application of environmental law with
30142927 respect to the property,
30152928 b. take action to prevent, abate, or otherwise remed y any
30162929 actual or potential violation of any environmental law
30172930 affecting property held directly or indirectly by the
3018-
3019-SENATE FLOOR VERSION - HB1850 SFLR Page 59
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30452931 trustee, whether taken before or after the assertion
30462932 of a claim or the initiation of governmental
30472933 enforcement,
30482934 c. decline to accept property into trust or disclaim a ny
30492935 power with respect to property that is or may be
30502936 burdened with liability for violation of environmental
30512937 law,
30522938 d. compromise claims against the trust which may be
30532939 asserted for an alleged violation of environmental
30542940 law, and
30552941 e. pay the expense of any inspection, review, abatement,
30562942 or remedial action to comply with environmental law;
30572943 14. Pay or contest any claim, settle a claim by or against the
30582944 trust, and release, in whole or in part, a claim belonging to the
30592945 trust;
30602946 15. Pay taxes, assessments, compensation of the trustee and of
30612947 employees and agents of the trust, and other expenses incurred in
30622948 the administration of the trust;
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30632975 16. Exercise elections with respect to federal, state, and
30642976 local taxes;
30652977 17. Select a mode of payment under a ny employee benefit or
30662978 retirement plan, annuity, or life insurance payable to the trustee,
30672979 exercise rights thereunder, including exercise of the right to
3068-
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30952980 indemnification for expenses and against liabilities, and take
30962981 appropriate action to collect the proce eds;
30972982 18. Make loans out of trust property, including loans to a
30982983 beneficiary on terms and conditions the trustee considers to be fair
30992984 and reasonable under the circumstances, and the trustee has a lien
31002985 on future distributions for repayment of those loans;
31012986 19. Pledge trust property to guarantee loans made by others to
31022987 the beneficiary;
31032988 20. Appoint a trustee to act in another jurisdiction with
31042989 respect to trust property located in the other jurisdiction, confer
31052990 upon the appointed trustee all of the powers and duties of the
31062991 appointing trustee, require that the appointed trustee furnish
31072992 security, and remove any trustee so appointed;
31082993 21. Pay an amount distributable to a beneficiary who is under a
31092994 legal disability or who the trustee reasonably believes is
31102995 incapacitated, by paying it directly to the beneficiary or applying
31112996 it for the beneficiary's benefit, or by:
31122997 a. paying it to the beneficiary's guardian of the
31132998 property or, if the beneficiary does not have a
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31143025 guardian of the property, the beneficiary's guardian
31153026 of the person,
31163027 b. paying it to the beneficiary's custodian under the
31173028 Oklahoma Uniform Transfers to Minors Act, and, for
31183029 that purpose, creating a custodianship,
3119-
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31463030 c. if the trustee does not know of a guardian of the
31473031 property, guardian of the person, or custodian, paying
31483032 it to an adult relative or other person having legal
31493033 or physical care or custody of the beneficiary, to be
31503034 expended on the beneficiary's behalf, or
31513035 d. managing it as a separate fund on the beneficiary's
31523036 behalf, subject to the beneficiary's continui ng right
31533037 to withdraw the distribution;
31543038 22. On distribution of trust property or the division or
31553039 termination of a trust, make distributions in divided or undivided
31563040 interests, allocate particular assets in proportionate or
31573041 disproportionate shares, value the trust property for those
31583042 purposes, and adjust for resulting differences in valuation;
31593043 23. Resolve a dispute concerning the interpretation of the
31603044 trust or its administration by mediation, arbitration, or other
31613045 procedure for alternative dispute resolution;
31623046 24. Prosecute or defen d an action, claim, or judicial
31633047 proceeding in any jurisdiction to protect trust property and the
31643048 trustee in the performance of the trustee's duties;
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31653075 25. Sign and deliver contracts and other instruments that are
31663076 useful to achieve or facilitate the exercise of the trustee's
31673077 powers; and
3168-
3169-SENATE FLOOR VERSION - HB1850 SFLR Page 62
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31953078 26. On termination of the trust, exercise the powers
31963079 appropriate to wind up the administration of the trust and
31973080 distribute the trust property to the persons entitled to it.
31983081 SECTION 64. NEW LAW A new sec tion of law to be codified
3199-in the Oklahoma Statutes as Section 1608.16 of Title 60, unless
3200-there is created a duplication in numbering, reads as follows:
3082+in the Oklahoma Statutes as Section 2216 of Title 60, unless there
3083+is created a duplication in numbering, reads as follows:
32013084 A. Upon termination or partial termination of a trust, the
32023085 trustee may send to t he beneficiaries a proposal for distribution.
32033086 The right of any beneficiary to object to the proposed distribution
32043087 terminates if the beneficiary does not notify the trustee of an
32053088 objection within thirty (30) days after the proposal was sent but
32063089 only if the proposal informed the b eneficiary of the right to object
32073090 and of the time allowed for objection.
32083091 B. Upon the occurrence of an event terminating or partially
32093092 terminating a trust, the trustee shall proceed reasonably to
32103093 distribute the trust property to the persons entitled to it, subject
32113094 to the right of the trustee to retain a reasonable reserve for the
32123095 payment of debts, expenses, and taxes.
32133096 C. A release by a beneficiary of a trustee from liability for
32143097 breach of trust is invalid to the extent:
32153098 1. It was induced by improper conduc t of the trustee; or
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32163125 2. The beneficiary, at the time of the release, did not know of
32173126 the beneficiary's rights or of the material facts relating to the
32183127 breach.
3219-
3220-SENATE FLOOR VERSION - HB1850 SFLR Page 63
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3246-ARTICLE 10
3247-LIABILITY OF TRUSTEES AND RIGHTS OF PERSONS DEALING WITH TRUSTEE
32483128 SECTION 65. NEW LAW A new section of law to be co dified
3249-in the Oklahoma Statutes as Section 1610.1 of Title 60, unless there
3129+in the Oklahoma Statutes as Section 2301 of Title 60, unless there
32503130 is created a duplication in numbering, reads as follows:
32513131 Except as otherwise provided in subsections A and B of Section
32523132 175.57 of Title 60 of the Oklahoma Statutes, if more than one
32533133 trustee is liable to the beneficiaries for a breach of trust, a
32543134 trustee is entitled to contribution from the other trustee or
32553135 trustees. A trustee is not entitled to contribution if the trustee
32563136 was substantially more at fault than another trustee or if the
32573137 trustee committed the breach of trust in bad faith or with reckless
32583138 indifference to the purposes of the trust or the interests of the
32593139 beneficiaries. A trustee who received a benefit from the breach of
32603140 trust is not entitled to contribution from another tr ustee to the
32613141 extent of the benefit received.
32623142 SECTION 66. NEW LAW A new section of law to be codified
3263-in the Oklahoma Statutes as Section 1610.2 of Title 60, unless there
3143+in the Oklahoma Statutes as Section 2302 of Title 60, unless there
32643144 is created a duplication in numbering, reads as follows:
32653145 A. A trustee is accountable to an affected beneficiary for any
32663146 profit made by the trustee arising from the administration of the
32673147 trust, even absent a breach of trust.
32683148
3269-SENATE FLOOR VERSION - HB1850 SFLR Page 64
3270-(Bold face denotes Committee Amendments) 1
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32953174 B. Absent a breach of trust, a trustee is not liable to a
32963175 beneficiary for a loss or depreciatio n in the value of trust
32973176 property or for not having made a profit.
32983177 SECTION 67. NEW LAW A new section of law to be codified
3299-in the Oklahoma Statutes as Section 1610.3 of Title 60, unless there
3178+in the Oklahoma Statutes as Section 2303 of Title 60, unless there
33003179 is created a duplication in numbering, reads as follows:
33013180 A trustee who acts in reasonable reliance on the terms of the
33023181 trust as expressed in the trust instrument is not liable to a
33033182 beneficiary for a breach of trust to the extent the breach resulted
33043183 from the reliance.
33053184 SECTION 68. NEW LAW A new section of law to be codified
3306-in the Oklahoma Statutes as Section 1610.4 of Title 60, unless there
3185+in the Oklahoma Statutes as Section 2304 of Title 60, unless there
33073186 is created a duplication in numbering, reads as follows:
33083187 If the happening of an event, including marriage, divorce,
33093188 performance of educational requirements, or death, affects the
33103189 administration or distribution of a trust, a trustee who has
33113190 exercised reasonable care to ascertain the happening of the event is
33123191 not liable for a loss resulting from the trustee's lack of
33133192 knowledge.
33143193 SECTION 69. NEW LAW A new section of law to be codified
3315-in the Oklahoma Statutes as Section 1610.5 of Title 60, unless there
3316-is created a duplication in numbering, reads as follows:
3317-
3318-SENATE FLOOR VERSION - HB1850 SFLR Page 65
3319-(Bold face denotes Committee Amendments) 1
3194+in the Oklahoma Statutes as Section 2305 of Title 60, unless there
3195+is created a duplication in numbering, reads as follows:
3196+
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33443222 A. The limitations on personal liability of a trustee as set
33453223 forth in subsection H of Section 175.57 of Title 60 of the Oklahoma
33463224 Statutes and in subsection H of Section 42 of this act shall apply.
33473225 B. A claim based on a contract entered into by a trustee in the
33483226 trustee's fiduciary capacity, on an obligation arising from
33493227 ownership or control of trust property, or on a tort committed in
33503228 the course of administering a trust, may be asserted in a judicial
33513229 proceeding against the trustee in the trustee's fiduciary capacity,
33523230 whether or not the trustee is personally liable for the clai m.
33533231 SECTION 70. NEW LAW A new section of law to be codified
3354-in the Oklahoma Statutes as Section 1610.6 of Title 60, unless there
3232+in the Oklahoma Statutes as Section 2306 of Title 60, unless there
33553233 is created a duplication in numbering, reads as follows:
33563234 A. Except as otherwise provided in subsection C o f this section
33573235 or unless personal liability is imposed in the contract, a trustee
33583236 who holds an interest as a general partner in a general or limited
33593237 partnership is not personally liable on a contract entered into by
33603238 the partnership after the trust's acquis ition of the interest if the
33613239 fiduciary capacity was disclosed in the contract or in a statement
33623240 previously filed pursuant to the Oklahoma Revised Uniform
33633241 Partnership Act or Oklahoma Uniform Limited Partnership Act of 2010.
33643242 B. Except as otherwise provided in subsection C of this
33653243 section, a trustee who holds an interest as a general partner is not
33663244 personally liable for torts committed by the partnership or for
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33943271 obligations arising from ownership or control of the interest unless
33953272 the trustee is personally at f ault.
33963273 C. The immunity provided by this section does not apply if an
33973274 interest in the partnership is held by the trustee in a capacity
33983275 other than that of trustee or is held by the trustee's spouse or one
33993276 or more of the trustee's descendants, siblings, or pa rents, or the
34003277 spouse of any of them.
34013278 D. Except as otherwise provided by Oklahoma law, if the trustee
34023279 of a revocable trust holds an interest as a general partner, the
34033280 settlor is personally liable for contracts and other obligations of
34043281 the partnership as if the settlor were a general partner.
34053282 SECTION 71. NEW LAW A new section of law to be codified
3406-in the Oklahoma Statutes as Section 1610.7 of Title 60, unless there
3283+in the Oklahoma Statutes as Section 2307 of Title 60, unless there
34073284 is created a duplication in numbering, reads as follows:
34083285 A. Instead of furnishing a copy of the trust instrument to a
34093286 person other than a beneficiary, and in lieu of or in addition to a
34103287 memorandum of trust under subsection A of Section 175.6 of Title 60
34113288 of the Oklahoma Statutes, the trustee may furnish to the person a
34123289 certification of trust containing the following information:
34133290 1. That the trust exists and the date the trust instrument was
34143291 executed;
34153292 2. The identity of the settlor;
34163293 3. The identity and address of the currently acting trustee;
34173294 4. The powers of the trustee;
34183295
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34453321 5. The revocability or irr evocability of the trust and the
34463322 identity of any person holding a power to revoke the trust;
34473323 6. The authority of co -trustees to sign or otherwise
34483324 authenticate and whether all or less than all are required in order
34493325 to exercise powers of the trustee;
34503326 7. The trust's taxpayer identification number; and
34513327 8. The manner of taking title to trust property.
34523328 B. A certification of trust under this section may be signed or
34533329 otherwise authenticated by any trustee.
34543330 C. A certification of trust un der this section must st ate that
34553331 the trust has not been revoked, modified, or amended in any manner
34563332 that would cause the representations contained in the certification
34573333 of trust to be incorrect.
34583334 D. A certification of trust under this section need not conta in
34593335 the dispositive terms of a trust.
34603336 E. A recipient of a certification of trust under this section
34613337 may require the trustee to furnish copies of those excerpts from the
34623338 original trust instrument and later amendments which designate the
34633339 trustee and confer u pon the trustee the powe r to act in the pending
34643340 transaction.
34653341 F. A person who acts in reliance upon a certification of trust
34663342 under this section without knowledge that the representations
34673343 contained therein are incorrect is not liable to any person for so
34683344 acting and may assume without inquiry the existence of the facts
34693345
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34963371 contained in the certification. Knowledge of the terms of the trust
34973372 may not be inferred solely from the fact that a copy of all or part
34983373 of the trust instrument is held by the person relying up on the
34993374 certification.
35003375 G. A person who in good faith enters into a transaction in
35013376 reliance upon a certification of trust under this section may
35023377 enforce the transaction against the trust property as if the
35033378 representations contained in the certification were correct.
35043379 H. A person making a demand for the trust instrument in
35053380 addition to a certification of trust under this section, or excerpts
35063381 of the trust instrument, is liable for damages if the court
35073382 determines that the person did not act in good faith in dema nding
35083383 the trust instrument.
35093384 I. This section does not limit the right of a person to obtain
35103385 a copy of the trust instrument in a judicial proceeding concerning
35113386 the trust.
3512-ARTICLE 11
3513-MISCELLANEOUS PROVISIONS
35143387 SECTION 72. NEW LAW A new section of law to be codified
3515-in the Oklahoma Statutes as Section 1611.1 of Title 60, unless there
3388+in the Oklahoma Statutes as Section 2401 of Title 60, unless there
35163389 is created a duplication in numbering, reads as follows:
35173390 The provisions of this act governing the legal effect, validity,
35183391 or enforceability of electronic records or electronic signatures,
35193392 and of contracts formed or perfo rmed with the use of such records or
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35473393 signatures, conform to the requirements of Section 102 of the
35483394 Electronic Signatures in Global and National Commerce Act (15
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35493421 U.S.C., Section 7002) and supersede, modify, and limit the
35503422 requirements of the Electronic Signatures in Global and National
35513423 Commerce Act.
35523424 SECTION 73. NEW LAW A new section of law to be codified
3553-in the Oklahoma Statutes as Section 1611.2 of Title 60, unless there
3425+in the Oklahoma Statutes as Section 2402 of Title 60, unless there
35543426 is created a duplication in numbering, read s as follows:
35553427 If any provision of this act or its application to any person or
35563428 circumstances is held invalid, the invalidity does not affect other
35573429 provisions or applications of this act which can be given effect
35583430 without the invalid provision or application , and to this end the
35593431 provisions of this act are severable.
35603432 SECTION 74. NEW LAW A new section of law to be codified
3561-in the Oklahoma Statutes as Section 1611.3 of Title 60, unless there
3433+in the Oklahoma Statutes as Section 2403 of Title 60, unless there
35623434 is created a duplication in numbering, reads as fo llows:
35633435 A. Except as otherwise provided in this act, on the effective
35643436 date of this act:
35653437 1. This act applies to all trusts created before, on, or after
35663438 its effective date;
35673439 2. This act applies to all judicial proceedings concerning
35683440 trusts commenced on or a fter its effective date;
35693441 3. This act applies to judicial proceedings concerning trusts
35703442 commenced before its effective date unless the court finds that
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35993444 substantially interfere with the effective condu ct of the judicial
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36003471 proceedings or prejudice the rights of the parties, in which case
36013472 the particular provision of this act does not apply and the
36023473 superseded law applies;
36033474 4. Any rule of construction or presumption provided in this act
36043475 applies to trust instr uments executed before the effective date of
36053476 the act unless there is a clear indication of a contrary intent in
36063477 the terms of the trust; and
36073478 5. An act enacted before the effective date of the act is not
36083479 affected by this act.
36093480 B. If a right is acquired, ext inguished, or barred upo n the
36103481 expiration of a prescribed period that has commenced to run under
36113482 any other statute before the effective date of the act, that statute
36123483 continues to apply to the right even if it has been repealed or
36133484 superseded.
36143485 C. The applicable provisions of the Oklahoma Trust Act shall
36153486 continue to apply, unless such provision is inconsistent with an
36163487 express provision of this act, and further, except as expressly
36173488 provided in this act.
36183489 SECTION 75. This act shall become effectiv e November 1, 2025.
3619-COMMITTEE REPORT BY: COMMITTEE ON JUDICIARY
3620-April 8, 2025 - DO PASS AS AMENDED
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3517+Passed the House of Representatives the 3rd day of March, 2025.
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3522+ Presiding Officer of the House
3523+ of Representatives
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3527+Passed the Senate the ___ day of __________, 2025.
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3532+ Presiding Officer of the Senate
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