On May 30, OKL LEG enacted bill on framework to govern trusts.
OKL LEG enacted bill HB 3962 in regard to the creation of the Oklahoma Uniform Directed Trust Act of 2024 and the Oklahoma Qualified Disposition into Trust Act.
The bill creates new sections of Oklahoma Statutes, OKL LEG 60, on property.
Bill Provisions
Establishes a framework to govern directed trusts to allow powers and duties to be allocated to investment trust advisor, distribution trust advisor or trust protector.
May be granted the same rights and privileges available to a trustee, are a fiduciary of the trust, and are subject to the same duties, standards and liabilities of a trustee.
Also outlines the requirements for notifying beneficiaries of the existence of a trust, the qualification to be trust advisor or protector and terms for qualified dispositions.
An investment trust advisor or distribution trust advisor is someone that acts with regard to investment decisions or discretionary distributions of income or principal.
The trust protector is someone that may take direct actions involving the trust such as amending the trust, changing interests of beneficiary, reviewing, replacing trustees.
Oklahoma Qualified Disposition into Trust Act establishes framework for creation of irrevocable trusts whose assets cannot be reached by creditors if trust meets criteria.
When properly adhered to, protection applies to qualified dispositions up to $10 mn.
Authorizes trustees to use trust assets to pay attorneys, accountants, agents, brokers reasonable compensation and costs necessary in the administration of a trust estate.
Clarifies that creation of attorney-client relationship between attorney, person serving as fiduciary does not impose upon attorney any duties to other persons in the estate.
Legislative History
On Feb. 5, 2024, bill introduced in House; on Mar. 18, 2024, bill passed in House.
On Mar. 18, 2024, bill introduced in Senate; on Apr. 16, 2024, bill passed in Senate.
On May 6, 2024, House rejected Senate amendments and conference was initiated.
On May 22, 2024, bill passed in House; on May 29, 2024, bill passed in Senate.
On May 30, 2024, bill was sent to governor; on May 31, 2024, governor approved bill.
