Trusts; creating the Uniform Trust Code; definitions; creditor claims; revocable trusts; trustees; duties and powers of trustee; trustee liability; severability; effective date.
HB1850 creates the Oklahoma Uniform Trust Code, a comprehensive statutory framework governing express trusts in Oklahoma, including charitable and noncharitable trusts and certain trusts created by statute, judgment, or decree. The bill defines key trust terms, sets rules for notice and representation, establishes when Oklahoma law applies, and provides that the terms of a trust generally control unless the act specifically provides otherwise. It also preserves the common law of trusts and equity except where the new code changes those rules.
The bill lays out detailed rules for creating, modifying, terminating, and reforming trusts; administering revocable trusts; handling creditor claims against settlors; appointing, removing, resigning, compensating, and replacing trustees; and defining trustee duties such as loyalty, prudence, impartiality, recordkeeping, reporting, and protection of trust property. It also authorizes trustees to combine or divide trusts, use certification of trust documents, and rely on electronic records and signatures. The act applies prospectively to existing trusts and proceedings, with exceptions where applying the new law would interfere with pending cases or vested rights, and it becomes effective November 1, 2025.
HB1850 would substantially revise Title 60 trust law by replacing or supplementing the prior Oklahoma Trust Act with a uniform code governing trust formation, administration, judicial oversight, creditor rights, and trustee liability. It standardizes procedures for trust administration, including notice to beneficiaries, venue and jurisdiction rules, trust modification and termination, cy pres for charitable trusts, and protections for third parties relying on certifications of trust. The bill also clarifies how revocable trusts are treated for creditor claims and how trustee powers interact with fiduciary duties, including environmental-law-related powers and limitations on personal liability.
The bill appears to have broad support overall, passing committee and floor votes with comfortable margins, though not unanimously. It cleared House committees 8-0 and 9-0, Senate Judiciary 7-0, and passed the Senate 39-3, indicating strong bipartisan agreement on modernizing and codifying trust law. The House floor votes were more divided, with 79-19 on third reading and 60-23 on fourth reading, suggesting some members had reservations even as the measure advanced successfully.
The main areas of potential contention are the bill’s broad restructuring of trust law, the extent to which trust terms override default statutory rules, and the expanded powers and protections given to trustees. Issues that may draw scrutiny include the treatment of revocable trusts and creditor claims, the ability to modify or terminate trusts under court supervision, trustee discretion and liability limits, and the rules allowing nonjudicial certifications of trust. The floor vote margins suggest some legislators may have been concerned about how the new code affects beneficiaries, creditors, and existing trust arrangements, even though the bill was ultimately enacted with strong support.