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1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 2104 By: Howard
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6 AS INTRODUCED
6
7 An Act relating to trusts; amending 60 O.S. 2021,
7 Section 175.23, which relates to jurisdiction of
8 district court; clarifying venue of certain actions;
8 clarifying necessary parties to certain actions;
9 directing applicability of certain provisions;
9 amending 60 O.S. 2021, Section 175.717, which relates
10 to exceptions to power of distribution; modifying
10 certain exceptions; amending Section 39, Chapter 369,
11 O.S.L. 2024 (60 O.S. Supp. 2025, Section 1402), which
11 relates to nonjudicial settlement agreements;
12 defining term; directing applicability of certain
12 provisions; amending Section 3, Chapter 254, O.S.L.
13 2025 (60 O.S. Supp. 2025, Section 1601.3), which
13 relates to Oklahoma Uniform Trust Code definitions;
14 modifying definitions; providing for enforceability
14 of certain provisions; providing exceptions;
15 providing certain evidentiary standard; construing
15 provisions; amending Section 46, Chapter 254, O.S.L.
16 2025 (60 O.S. Supp. 2025, Section 1607.7), which
16 relates to delivery of property by former trustee;
17 modifying requirements for delivery of trust property
17 by certain trustee; establishing procedures for
18 trustee to obtain a nonjudicial settlement of
18 account; requiring certain notice; stating required
19 contents of certain notice; establishing procedures
19 for objection to certain settlement; providing for
20 distribution of trust assets under certain
20 circumstances; barring certain claims; directing
21 applicability of certain provisions; amending Section
21 74, Chapter 254, O.S.L. 2025 (60 O.S. Supp. 2025,
22 Section 1610.3), which relates to applicability;
22 construing provisions; updating statutory references;
23 providing for codification; and providing an
23 effective date.
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Req. No. 2736 Page 1
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3 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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4 SECTION 1. AMENDATORY 60 O.S. 2021, Section 175.23, is
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5 amended to read as follows:
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6 Section 175.23. A. The district court shall have original
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7 jurisdiction to construe the provisions of any trust instrument; to
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8 determine the law applicable thereto; the powers, duties, and
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9 liability of trustee; the existence or nonexistence of facts
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10 affecting the administration of the trust estate; to require
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11 accounting by trustees; to surcharge trustee; and in its discretion
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12 to supervise the administration of trusts; and all actions hereunder
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13 under this section are declared to be proceedings in rem.
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14 B. The venue of such actions shall be in the county where the
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15 trustees or any cotrustee resides as provided in Section 1602.3 of
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16 this title. Upon obtaining jurisdiction the same shall not be
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17 divested by the removal of the trustee from the county where the
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18 action is commenced.
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19 C. Actions hereunder under this section may be brought by a
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20 trustee, beneficiary, or any person affected by the administration
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21 of the trust estate. If the action is predicated upon any act or
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22 obligation of any beneficiary, the beneficiary shall be a necessary
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23 party to the proceedings. The only necessary parties to such
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24 actions shall be those persons designated as beneficiaries by name
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1 or class in the instrument creating the trust and who have a vested
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2 interest in the trust which is the subject of the action include
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3 qualified beneficiaries as defined in Section 1601.3 of this title,
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4 those persons currently serving as trustees of the trust, and any
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5 persons who may be actually receiving distributions from the trust
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6 estate at the time the action is filed. Contingent beneficiaries
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7 designated by name or class shall not be necessary parties.
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8 D. The provisions of Article 3 of the Oklahoma Uniform Trust
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9 Code relating to representation shall apply to all actions and
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10 proceedings brought under the provisions of this act.
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11 E. The provisions of the statutes governing civil procedure,
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12 commencement of action, process, process by publication, appointment
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13 of guardians ad litem, supersedeas and appeal, shall govern all
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14 actions and proceedings brought under provisions of this act.
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15 E. F. A court of competent jurisdiction may, for cause shown
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16 and upon notice to the beneficiaries necessary parties identified in
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17 subsection C of this section, relieve a trustee from any or all of
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18 the duties and restrictions which would otherwise be placed upon the
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19 trustee by this act, or wholly or partly excuse a trustee who has
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20 acted honestly and reasonably from liability for violations of the
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21 provisions of this act; provided, that any such action or request
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22 for action shall proceed under the provisions of Title 12 of the
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23 Oklahoma Statutes governing temporary restraining orders and
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24 temporary injunctions.
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1 SECTION 2. AMENDATORY 60 O.S. 2021, Section 175.717, is
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2 amended to read as follows:
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3 Section 175.717.
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4 EXCEPTIONS TO POWER OF DISTRIBUTION
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5 An authorized trustee shall not exercise a power to distribute
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6 principal of a trust under Section 3 175.703 or 4 175.704 of this
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7 act title to:
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8 1. Reduce, limit or modify a beneficiary's current, vested
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9 right to:
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10 a. receive a mandatory distribution of income or
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11 principal,
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12 b. receive a mandatory annuity or unitrust interest,
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13 c. withdraw a percentage of the value of the trust, or
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14 d. withdraw a specified dollar amount from the trust;
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15 2. Materially limit a trustee's fiduciary duty:
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16 a. under the terms of the trust, or
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17 b. in a manner that would be prohibited by the Oklahoma
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18 Trust Act, Section 175.1 et seq. of Title 60 of the
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19 Oklahoma Statutes this title, the Oklahoma Prudent
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20 Investor Act, Section 175.60 et seq. of Title 60 of
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21 the Oklahoma Statutes this title, the Oklahoma
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22 Principal and Income Act, Section 175.101 et seq. of
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23 Title 60 of the Oklahoma Statutes or this title, the
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24 Oklahoma Charitable Fiduciary Act, Section 301.1 et
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1 seq. of Title 60 of the Oklahoma Statutes this title,
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2 or the Oklahoma Uniform Trust Code, Section 1601.1 et
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3 seq. of this title;
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4 3. Decrease or indemnify against a trustee's liability or
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5 exonerate a trustee from liability;
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6 4. Add a provision exonerating a trustee for failure to
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7 exercise reasonable care, diligence and prudence;
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8 5. Eliminate a provision granting another person the right to
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9 remove or replace the authorized trustee exercising the distribution
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10 power under Section 3 175.703 or 4 175.704 of this act title; or
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11 6. Reduce, limit or modify in the second trust a perpetuities
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12 provision included in the first trust, unless expressly permitted by
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13 the terms of the first trust.
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14 SECTION 3. AMENDATORY Section 39, Chapter 369, O.S.L.
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15 2024 (60 O.S. Supp. 2025, Section 1402), is amended to read as
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16 follows:
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17 Section 1402. A. Except as otherwise provided in subsection B
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18 of this section, the trustee and the qualified beneficiaries may
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19 enter into a binding nonjudicial settlement agreement with respect
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20 to any matter involving a trust.
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21 B. A nonjudicial settlement agreement is valid only to the
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22 extent it does not violate a material purpose of the trust and
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23 includes terms and conditions that could be properly approved by the
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24 court under this act or other applicable law.
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1 C. Matters that may be resolved by a nonjudicial settlement
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2 agreement include, but are not limited to:
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3 1. The interpretation or construction of the terms of the
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4 trust;
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5 2. The approval of a trustee's report or accounting;
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6 3. Direction to a trustee to refrain from performing a
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7 particular act or the grant to a trustee of any necessary or
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8 desirable power;
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9 4. The resignation or appointment of a trustee and the
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10 determination of a trustee's compensation;
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11 5. Transfer of a trust's principal place of administration;
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12 6. Liability of a trustee for an action relating to the trust;
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13 7. The extent or waiver of bond of a trustee;
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14 8. The governing law of the trust;
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15 9. The criteria for distribution to a beneficiary where the
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16 trustee is given discretion;
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17 10. The resignation, appointment, and establishment of the
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18 powers and duties of trust protectors or trust advisors; and
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19 11. The approval of an investment decision, delegation, policy,
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20 plan, or program.
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21 D. Any qualified beneficiary or trustee may request the court
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22 to approve a nonjudicial settlement agreement, to determine whether
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23 the representation was adequate, and to determine whether the
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1 agreement contains terms and conditions the court could have
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2 properly approved.
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3 E. For purposes of this section, "qualified beneficiary" shall
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4 have the meaning set forth in Section 1601.3 of this title.
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5 F. The provisions of Article 3 of the Oklahoma Uniform Trust
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6 Code relating to representation shall apply to nonjudicial
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7 settlement agreements under this section.
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8 SECTION 4. AMENDATORY Section 3, Chapter 254, O.S.L.
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9 2025 (60 O.S. Supp. 2025, Section 1601.3), is amended to read as
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10 follows:
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11 Section 1601.3. As used in this act:
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12 1. "Action", with respect to an act of a trustee, includes a
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13 failure to act;
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14 2. "Ascertainable standard" means a standard relating to an
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15 individual's health, education, support, or maintenance within the
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16 meaning of Section 2041(b)(1)(A) or 2514(c)(1) of the Internal
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17 Revenue Code of 1986, as in effect on the effective date of this
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18 act, or as later amended;
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19 3. "Beneficiary" means a person who:
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20 a. has a present or future beneficial interest in a
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21 trust, vested or contingent, or
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22 b. in a capacity other than that of trustee, holds a
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23 power of appointment over trust property;
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1 4. "Charitable trust" means a trust, or portion of a trust,
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2 created for a charitable purpose described in subsection A of
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3 Section 24 1604.5 of this act title;
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4 5. "Environmental law" means a federal, state, or local law,
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5 rule, regulation, or ordinance relating to the protection of the
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6 environment;
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7 6. "Guardian of the property" means a person appointed by the
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8 court to administer the estate of a minor or adult individual;
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9 7. "Guardian of the person" means a person appointed by the
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10 court to make decisions regarding the support, care, education,
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11 health, and welfare of a minor or adult individual. The term does
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12 not include a guardian ad litem;
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13 8. "Interests of the beneficiaries" means the beneficial
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14 interests provided in the terms of the trust;
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15 9. "Jurisdiction", with respect to a geographic area, includes
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16 a state or country;
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17 10. "Person" means an individual, corporation, business trust,
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18 estate, trust, partnership, limited liability company, association,
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19 joint venture, government, governmental subdivision, agency, or
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20 instrumentality, public corporation, or any other legal or
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21 commercial entity;
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22 11. "Power of withdrawal" means a presently exercisable general
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23 power of appointment other than a power:
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1 a. exercisable by a trustee and limited by an
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2 ascertainable standard, or
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3 b. exercisable by another person only upon consent of the
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4 trustee or a person holding an adverse interest;
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5 12. "Property" means anything that may be the subject of
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6 ownership, whether real or personal, legal or equitable, or any
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7 interest therein;
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8 13. "Qualified beneficiary" means a beneficiary who, on the
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9 date the beneficiary's qualification is determined:
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10 a. is a distributee or permissible distributee of a
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11 present interest in the trust income or principal, or
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12 has a vested remainder in the trust,
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13 b. would be a distributee or permissible distributee of
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14 trust income or principal if the interests of the
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15 distributee described in subparagraph a of this
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16 paragraph terminated on such date,
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17 c. would be a distributee or permissible distributee of
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18 trust income or principal if the trust terminated on
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19 such date,
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20 d. is a charitable organization expressly entitled to
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21 receive benefits under the terms of a charitable
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22 trust, or
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1 c. e. is the Attorney General of this state with respect to
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2 a charitable trust having its principal place of
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3 administration in this state;
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4 14. "Revocable", as applied to a trust, means revocable by the
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5 settlor without the consent of the trustee or a person holding an
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6 adverse interest;
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7 15. "Settlor" means a person, including a testator, who
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8 creates, or contributes property to, a trust. If more than one
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9 person creates or contributes property to a trust, each person is a
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10 settlor of the portion of the trust property attributable to that
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11 person's contribution except to the extent another person has the
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12 power to revoke or withdraw that portion;
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13 16. "Spendthrift provision" means a term of a trust which
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14 restrains both voluntary and involuntary transfer of a beneficiary's
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15 interest;
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16 17. "State" means a state of the United States, the District of
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17 Columbia, Puerto Rico, the United States Virgin Islands, or any
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18 territory or insular possession subject to the jurisdiction of the
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19 United States. The term includes an Indian tribe or band recognized
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20 by federal law or formally acknowledged by a state;
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21 18. "Terms of a trust" means:
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22 a. except as otherwise provided in subparagraph b of this
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23 paragraph, the manifestation of the settlor's intent
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24 regarding a trust's provisions as:
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1 (1) expressed in the trust instrument, or
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2 (2) established by other evidence that would be
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3 admissible in a judicial proceeding, or
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4 b. the trust's provisions, as established, determined, or
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5 amended by:
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6 (1) a trustee or other person in accordance with
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7 applicable law,
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8 (2) a court order, or
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9 (3) a nonjudicial settlement agreement under Section
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10 1402 of Title 60 of the Oklahoma Statutes this
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11 title;
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12 19. "Trust instrument" means an instrument executed by the
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13 settlor that contains terms of the trust, including any amendments
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14 thereto; and
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15 20. "Trustee" includes an original, additional, and successor
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16 trustee, and a co-trustee cotrustee.
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17 SECTION 5. NEW LAW A new section of law to be codified
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18 in the Oklahoma Statutes as Section 1604.17 of Title 60, unless
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19 there is created a duplication in numbering, reads as follows:
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20 A. A provision in a will or trust that would cause a forfeiture
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21 of or void a devise or provision in favor of a person for bringing a
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22 court action contesting a will or trust, shall be enforceable unless
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23 in a court action determining whether the forfeiture clause should
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24 be enforced, the person who brought the action contrary to the
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1 forfeiture clause establishes by a preponderance of the evidence
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2 that:
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3 1. Just cause existed for bringing the action; and
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4 2. The action was brought and maintained in good faith.
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5 B. Forfeiture clauses generally shall not be construed to
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6 prevent a beneficiary from seeking to compel a fiduciary to perform
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7 the fiduciary's duties, seeking redress against a fiduciary for a
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8 breach of the fiduciary's duties, or seeking a judicial construction
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9 of a will or trust.
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10 SECTION 6. AMENDATORY Section 46, Chapter 254, O.S.L.
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11 2025 (60 O.S. Supp. 2025, Section 1607.7), is amended to read as
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12 follows:
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13 Section 1607.7. A. Unless a co-trustee cotrustee remains in
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14 office or the court otherwise orders, and until the trust property
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15 is delivered to a successor trustee or other person entitled to it,
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16 a trustee who has resigned or been removed has the duties of a
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17 trustee and the powers necessary to protect the trust property.
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18 B. A trustee who has resigned or been removed shall proceed
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19 expeditiously to within a reasonable time deliver the trust property
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20 within the trustee's possession to the co-trustee cotrustee,
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21 successor trustee, or other person entitled to it the property,
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22 subject to the right of the trustee to retain a reasonable reserve
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23 for the payment of debts, expenses, and taxes. The provisions of
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1 this subsection shall be in addition to and are not in derogation of
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2 the rights of a removed or resigning trustee under the common law.
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3 SECTION 7. NEW LAW A new section of law to be codified
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4 in the Oklahoma Statutes as Section 1608.17 of Title 60, unless
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5 there is created a duplication in numbering, reads as follows:
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6 A. A trustee may elect to proceed under this section to obtain
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7 a nonjudicial settlement of account when the:
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8 1. Trust terminates in whole or in part;
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9 2. Trustee ceases or intends to cease to serve for any reason;
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10 or
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11 3. Trustee seeks discharge for an interim accounting period
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12 when the trust is continuing.
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13 B. Within a reasonable time after a trustee elects to proceed
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14 under this section, the trustee shall give notice of a request for
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15 nonjudicial account settlement in the manner and to the extent
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16 required by subsections A, B, and C of Section 1601.9 of Title 60 of
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17 the Oklahoma Statutes to:
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18 1. The qualified beneficiaries of the trust;
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19 2. Any other beneficiary who has sent the trustee a written
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20 request for notice; and
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21 3. Any cotrustee, trust director, or similar fiduciary or
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22 successor trustee.
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23 C. The trustee may also provide notice to any other person who
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24 the trustee reasonably believes may have an interest in the trust.
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1 D. Whether notice is mandatory or permissive, the trustee may
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2 give notice to a representative in accordance with Article 3 of the
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3 Oklahoma Uniform Trust Code relating to representation. The time
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4 period for the presumption of the representative's acceptance of the
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5 representation shall be deemed to run concurrently with the notice
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6 period provided under this section.
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7 E. The notice under subsection B or C of this section shall
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8 provide:
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9 1. The reason for providing notice under this section;
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10 2. To the extent applicable, the proposed distribution of the
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11 net assets of the trust, including the distributees and proportions
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12 to be distributed;
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13 3. To the extent applicable, an estimate of disbursements
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14 anticipated to be made prior to distribution, including legal fees
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15 and trustee fees, if any;
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16 4. Trust account statements showing all transactions, the fair
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17 market value of all assets and realized and unrealized gains and
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18 losses on assets held in the account for thirty (30) months prior to
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19 the date a trust terminates, the cessation of the trustee's service
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20 or statement of intent to cease to serve, or the end of the interim
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21 accounting period, or for the entire term of the trust if the term
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22 of the trust is shorter than the thirty-month period;
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23 5. A statement that the trustee seeks settlement of the account
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24 of the trust, including the period of time for which the trustee
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1 seeks discharge of the account of the trust, and that clearly and
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2 conspicuously states that claims against a trustee under Article 9
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3 of the Oklahoma Uniform Trust Code relating to liability of trustees
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4 and rights of persons dealing with trustees and Sections 175.23 and
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5 175.57 of Title 60 of the Oklahoma Statutes, if applicable, will be
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6 forever barred if no objections are received within the time period
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7 described in subsection G of this section;
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8 6. The name and mailing address of the trustee; and
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9 7. The name and telephone number of a person who may be
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10 contacted for additional information.
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11 F. To the extent applicable, distributions from a terminating
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12 trust, and any fees and expenses due or anticipated as of the date
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13 that the settlement of account is requested, may be held by or on
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14 behalf of the trustee until the settlement of account is approved or
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15 deemed approved as provided by this section.
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16 G. A person provided notice under subsection B or C of this
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17 section may object to the settlement of account by giving written
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18 notice to the trustee within sixty (60) days after the notice was
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19 sent. If a person given notice under subsection B or C of this
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20 section makes timely objections to the settlement of account, the
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21 trustee or the person making the objections may:
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22 1. Submit the written objection to the court and commence a
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23 proceeding for its resolution; or
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1 2. Resolve the objection by nonjudicial settlement agreement
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2 under Section 1402 of Title 60 of the Oklahoma Statutes or by other
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3 statutory authority.
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4 H. If no timely objections are raised under subsection G of
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5 this section, or objections are resolved as provided by subsection G
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6 of this section, the settlement of account shall be deemed approved
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7 and any assets held in trust shall, within a reasonable time
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8 thereafter, be distributed subject to payment of expenses as
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9 provided in subsection F of this section or shall continue to be
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10 administered in trust subject to payment of expenses.
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11 I. The trustee may rely upon the written statement of a person
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12 receiving notice that the person does not object.
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13 J. 1. When a settlement of account is deemed approved under
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14 this section for a terminated trust or with respect to the duties of
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15 a trustee who ceased to serve or stated an intent to cease to serve,
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16 each person who was sent notice as provided by subsection B or C of
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17 this section is barred from bringing a claim against the trustee or
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18 challenging the distribution of assets of the trust to the same
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19 extent and with the same preclusive effect as if the court had
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20 entered a final, unappealable order approving the trustee's final
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21 account.
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22 2. When a settlement of account for a trustee seeking final
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23 settlement of an interim trust account is deemed approved under this
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24 section, each person who was sent notice as provided by subsection B
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1 or C of this section is barred from bringing a claim against the
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2 trustee for the period of the interim trust account to the same
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3 extent and with the same preclusive effect as if the court had
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4 entered a final, unappealable order approving the trustee's interim
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5 trust account.
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6 K. The provisions of Article 3 of the Oklahoma Uniform Trust
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7 Code relating to representation shall apply to an account settlement
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8 under this section.
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9 L. Nothing in this section shall preclude a trustee from
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10 proceeding under Section 175.23 of Title 60 of the Oklahoma
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11 Statutes.
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12 SECTION 8. AMENDATORY Section 74, Chapter 254, O.S.L.
12
13 2025 (60 O.S. Supp. 2025, Section 1610.3), is amended to read as
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14 follows:
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15 Section 1610.3. A. Except as otherwise provided in this act,
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16 on the effective date of this act:
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17 1. This act applies to all trusts created before, on, or after
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18 its effective date;
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19 2. This act applies to all judicial proceedings concerning
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20 trusts commenced on or after its effective date;
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21 3. This act applies to judicial proceedings concerning trusts
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22 commenced before its effective date unless the court finds that
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23 application of a particular provision of this act would
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24 substantially interfere with the effective conduct of the judicial
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1 proceedings or prejudice the rights of the parties, in which case
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2 the particular provision of this act does not apply and the
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3 superseded law applies;
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4 4. Any rule of construction or presumption provided in this act
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5 applies to trust instruments executed before the effective date of
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6 this act unless there is a clear indication of a contrary intent in
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7 the terms of the trust; and
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8 5. An act enacted done before the effective date of this act is
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9 not affected by this act.
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10 B. 1. If a right is acquired, extinguished, or barred upon the
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11 expiration of a prescribed period that has commenced to run under
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12 any other statute before the effective date of this act, that
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13 statute continues to apply to the right even if it has been repealed
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14 or superseded.
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15 2. For avoidance of doubt, if a duty owed to a beneficiary is
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16 dependent upon the definition of "qualified beneficiary", such duty
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17 shall not apply to actions or inactions prior to the effective date
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18 of the enactment of such definition. This paragraph shall not be
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19 construed to modify the law existing prior to the effective date of
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20 such definition.
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21 C. The applicable provisions of the Oklahoma Trust Act shall
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22 continue to apply, unless such provision is inconsistent with an
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23 express provision of this act and, further, except as expressly
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24 provided in this act.
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1 SECTION 9. This act shall become effective November 1, 2026.
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Req. No. 2736 Page 19Every fact on this page links to its source, starting with the official bill record.