Bill > HB1850

Introduced Session

An Act relating to trusts; creating the Oklahoma Uniform Trust Code; providing scope of act; defining terms; providing when person or organization has knowledge of a fact; specifying when this act governs the duties and power of trustee, relations among trustees, and the rights and interests of a beneficiary; declaring that the terms of a trust prevail over provisions of this act; providing exceptions; specifying that the common law of trusts and principles of equity supplement this act in most circumstances; providing what governing law applies for determining the meaning and effect of the terms of a trust; prescribing guidelines for the principal place of administration; providing methods of notices; allowing for waiver of notice; specifying that the rules of construction, the interpretation of, and disposition of property by will also apply to the interpretation of the terms of a trust as well as the disposition of the trust property; defining term; allowing for insurable interests of trustees; prescribing guidelines on who may receive an insurable interest of a trustee; stating the role of a court in administration of a trust; prescribing who shall have jurisdiction over the trust; providing venue location for legal proceedings; providing that notice to certain representatives has the same effect as if notice were given directly to the other person; providing that consent by a representative is binding on the person they represent in certain circumstances; declaring that a settlor may not represent and be a beneficiary in certain circumstances; specifying representation powers by a holder of general testamentary power of appointment; specifying representation powers by fiduciaries and parents; allowing representation in certain instances by a person having substantiality identical interests; allowing for appointment of a representative; providing power and duties of representative; prescribing methods for creating a trust; stating requirements for creating a trust; providing when a trust created in another state is valid; specifying trust purpose; specifying purpose of a charitable trust; providing that a court may select the purpose or beneficiary for a charitable trust in certain circumstances; specifying who may maintain a proceeding to enforce a charitable trust; declaring that a trust is void if the creation was induced by fraud, duress, or undue influence; specifying requirements for an oral trust; providing rules for noncharitable trust created without ascertainable beneficiary; specifying when a trust terminates; providing who may commence a proceeding for the modification and termination of a trust; prescribing procedure for the modification or termination of a noncharitable irrevocable trust; allowing a court to modify or terminate a trust in certain circumstances; permitting a court to apply cy pres to modify or terminate a charitable trust in certain circumstances; allowing modification or termination of uneconomic trusts in certain circumstances; prescribing the manner of distribution if uneconomic trust is terminated; providing that trusts are exempt from modification or termination if they are uneconomical; allowing courts to reform a trust to correct certain mistakes; providing that a court may modify a trust to achieve a settlor's tax objectives; providing that a trustee may combine multiple trusts into a single trust; providing that a trustee may divide a single trust into multiple trusts; providing certain rules apply for a claim against a settlor; providing rules for a creditor's claims against a settlor; stating required capacity of settlor of a revocable trust; providing power of settlor in a revocable trust; stating a settlor has the power of withdrawal for a revocable trust; providing limitations on actions contesting the validity of a revocable trust; allowing a beneficiary of a trust to return any distributions in certain circumstances; providing for accepting or declining ENR. H. B. NO. 1850 of trusteeship; specifying when a trustee is required to post a bond; stating procedures and requirements for co-trustees of a trust; providing for when a vacancy in a trusteeship occurs; providing for appointment of successor trustees; specifying the procedure for the resignation of a trustee; providing for the removal of a trustee by the court; requiring former trustees to deliver property held to a successor trustee; allowing for compensation of trustees; providing for reimbursement of expenses by a trustee; providing duty of trustees to administer trust; requiring a duty of loyalty by a trustee; requiring impartiality by a trustee when a trust has more than one beneficiary; requiring a trustee to administer trust prudently; specifying what costs a trustee may incur in administering the trust; requiring trustees who were selected because of a special skill or expertise to use such skill or expertise in administering the trust; providing that a trustee may delegate duties and powers; providing requirements for delegating duties and powers; requiring trustees to take reasonable steps to take control of and protect the trust property; providing requirements for recordkeeping and identification of trust property by a trustee; requiring that a trustee shall take reasonable steps to enforce claim of the trust and to defend claims against the trust; requiring a trustee to collect trust property from former trustees and to redress a breach of trust committed by a former trustee; providing that a trustee has a duty to inform and make reports to certain individuals; granting trustees with certain discretionary powers; providing general powers of a trustee; providing specific powers of trustee; providing procedure and requirements for distribution of a trust upon termination; specifying when a trustee is entitled to a contribution by a co- trustee; providing that a trustee is accountable to a beneficiary for any profit made by the trustee; providing that absent a breach of trust, a trustee is not liable to a beneficiary for a loss or deprivation in the value of the trust or for not making a profit; providing that a trustee is not liable for a breach of trust if reasonably relying upon the terms of the trust; providing that a trustee is not liable for ENR. H. B. NO. 1850 certain events that occur that affect administration or distribution of a trust; providing limitation on personal liability of a trustee; specifying that trustees who hold an interest as a general partner in a general or limited partnership are not personally liable for certain actions and events; allowing a trustee to provide a certification of trust in certain circumstances; providing requirements of a certification of trust; providing exemptions for a certification of trust; providing requirements for electronic records and signatures; providing for severability of act for provisions that are held invalid; providing application to existing relationships; providing for codification; and providing an effective date. SUBJECT: Trusts

AI Summary

Committee Categories

Brent Howard (R)*,  Suzanne Schreiber (D)*, 

Approved by Governor 05/21/2025 (on 05/21/2025)

Official Document