PROPOSED BY THE ESTATE PLANNING PROBATE AND TRUST SECTION
The Legislative Committee of the Estate Planning Probate and Trust Section spent considerable time reviewing the Uniform Trust Code proposed by the National Conference of Commissioners on Uniform State Laws and revising the Code to meet the concerns of Oklahoma practitioners. The version of the Uniform Trust Code proposed by the Estate Planning Probate and Trust Section ("Code") is the result of a collaboration among lawyers and trust professionals who are comfortable with the law as it is and those who wish to update Oklahoma trust law. The proposed Code restates much of the existing Oklahoma law on trusts, while it updates, improves, and clarifies certain aspects of the law. A complete review of the Code is beyond the scope of this synopsis, but some of the significant issues are highlighted below.
Since revocable trusts frequently are used for estate planning in place of a will, the Code provides that the capacity required to create a revocable trust is the same as the capacity required to make a will. This removes the existing distinction under Oklahoma law between the capacity required for a will and a revocable trust.
Beneficiaries should save time and money because the Code specifically authorizes the non-judicial settlement of any matter involving a trust, including the termination of a trust. The Code gives beneficiaries greater access to information, and permits beneficiaries to more easily remove a trustee. The Code also adds tax savings language to trusts when appropriate.
While the Code generally expands the trustee's duty to report to qualified beneficiaries, the Estate Planning Probate and Trust Section has revised the Code to give the settlor more flexibility to define which beneficiaries are entitled to information. The Code also provides greater certainty for a trustee by allowing for release from liability upon proper disclosure to the beneficiaries and by stating specific statutes of limitations.
The Estate Planning, Probate and Trust Section has revised the Code to give practitioners more flexibility to override the default provisions of the Code and has conformed the Code to existing Oklahoma law where appropriate. For example, the spendthrift provisions of the Code have been brought into conformity with existing Oklahoma law.
The Code addresses developments in trust law which have been addressed already in other states. The Code is an excellent way to bring Oklahoma trust law into the 21st century while retaining most of the law with which Oklahoma practitioners are familiar.
Amy J. Sine, Chair of the Estate Planning, Probate and Trust Section |
