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An Act
ENROLLED SENATE
BILL NO. 2104 By: Howard of the Senate
and
Schreiber of the House
An Act relating to trusts; amending 60 O.S. 2021,
Section 175.23, which relates to jurisdiction of
district court; clarifying venue of certain actions;
clarifying necessary parties to certain actions;
directing applicability of certain provisions;
amending 60 O.S. 2021, Section 175.717, which relates
to exceptions to power of distribution; modifying
certain exceptions; amending Section 39, Chapter 369,
O.S.L. 2024 (60 O.S. Supp. 2025, Section 1402), which
relates to nonjudicial settlement agreements;
defining term; directing applicability of certain
provisions; amending Section 3, Chapter 254, O.S.L.
2025 (60 O.S. Supp. 2025, Section 1601.3), which
relates to Oklahoma Uniform Trust Code definitions;
modifying definitions; providing for enforceability
of certain provisions; providing exceptions;
providing certain evidentiary standard; construing
provisions; amending Section 46, Chapter 254, O.S.L.
2025 (60 O.S. Supp. 2025, Section 1607.7), which
relates to delivery of property by former trustee;
modifying requirements for delivery of trust property
by certain trustee; establishing procedures for
trustee to obtain a nonjudicial settlement of
account; requiring certain notice; stating required
contents of certain notice; establishing procedures
for objection to certain settlement; providing for
distribution of trust assets under certain
circumstances; barring certain claims; directing
applicability of certain provisions; amending
Sections 71 and 74, Chapter 254, O.S.L. 2025 (60 O.S.
Supp. 2025, Sections 1609.7 and 1610.3), which relate
to certification of trust and applicability;
clarifying statutory reference; construing
ENR. S. B. NO. 2104 Page 2
provisions; updating statutory references; providing
for codification; and providing an effective date.
SUBJECT: Trusts
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 60 O.S. 2021, Section 175.23, is
amended to read as follows:
Section 175.23. A. The district court shall have original
jurisdiction to construe the provisions of any trust instrument; to
determine the law applicable thereto; the powers, duties, and
liability of trustee; the existence or nonexistence of facts
affecting the administration of the trust estate; to require
accounting by trustees; to surcharge trustee; and in its discretion
to supervise the administration of trusts; and all actions hereunder
under this section are declared to be proceedings in rem.
B. The venue of such actions shall be in the county where the
trustees or any cotrustee resides as provided in Section 1602.3 of
this title. Upon obtaining jurisdiction the same shall not be
divested by the removal of the trustee from the county where the
action is commenced.
C. Actions hereunder under this section may be brought by a
trustee, beneficiary, or any person affected by the administration
of the trust estate. If the action is predicated upon any act or
obligation of any beneficiary, the beneficiary shall be a necessary
party to the proceedings. The only necessary parties to such
actions shall be those persons designated as beneficiaries by name
or class in the instrument creating the trust and who have a vested
interest in the trust which is the subject of the action include
qualified beneficiaries as defined in Section 1601.3 of this title,
those persons currently serving as trustees of the trust, and any
persons who may be actually receiving distributions from the trust
estate at the time the action is filed. Contingent beneficiaries
designated by name or class shall not be necessary parties.
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D. The provisions of Article 3 of the Oklahoma Uniform Trust
Code relating to representation shall apply to all actions and
proceedings brought under the provisions of this act.
E. The provisions of the statutes governing civil procedure,
commencement of action, process, process by publication, appointment
of guardians ad litem, supersedeas and appeal, shall govern all
actions and proceedings brought under provisions of this act.
E. F. A court of competent jurisdiction may, for cause shown
and upon notice to the beneficiaries necessary parties identified in
subsection C of this section, relieve a trustee from any or all of
the duties and restrictions which would otherwise be placed upon the
trustee by this act, or wholly or partly excuse a trustee who has
acted honestly and reasonably from liability for violations of the
provisions of this act; provided, that any such action or request
for action shall proceed under the provisions of Title 12 of the
Oklahoma Statutes governing temporary restraining orders and
temporary injunctions.
SECTION 2. AMENDATORY 60 O.S. 2021, Section 175.717, is
amended to read as follows:
Section 175.717.
EXCEPTIONS TO POWER OF DISTRIBUTION
An authorized trustee shall not exercise a power to distribute
principal of a trust under Section 3 175.703 or 4 175.704 of this
act title to:
1. Reduce, limit or modify a beneficiary’s current, vested
right to:
a. receive a mandatory distribution of income or
principal,
b. receive a mandatory annuity or unitrust interest,
c. withdraw a percentage of the value of the trust, or
d. withdraw a specified dollar amount from the trust;
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2. Materially limit a trustee’s fiduciary duty:
a. under the terms of the trust, or
b. in a manner that would be prohibited by the Oklahoma
Trust Act, Section 175.1 et seq. of Title 60 of the
Oklahoma Statutes this title, the Oklahoma Prudent
Investor Act, Section 175.60 et seq. of Title 60 of
the Oklahoma Statutes this title, the Oklahoma
Principal and Income Act, Section 175.101 et seq. of
Title 60 of the Oklahoma Statutes or this title, the
Oklahoma Charitable Fiduciary Act, Section 301.1 et
seq. of Title 60 of the Oklahoma Statutes this title,
or the Oklahoma Uniform Trust Code, Section 1601.1 et
seq. of this title;
3. Decrease or indemnify against a trustee’s liability or
exonerate a trustee from liability;
4. Add a provision exonerating a trustee for failure to
exercise reasonable care, diligence and prudence;
5. Eliminate a provision granting another person the right to
remove or replace the authorized trustee exercising the distribution
power under Section 3 175.703 or 4 175.704 of this act title; or
6. Reduce, limit or modify in the second trust a perpetuities
provision included in the first trust, unless expressly permitted by
the terms of the first trust.
SECTION 3. AMENDATORY Section 39, Chapter 369, O.S.L.
2024 (60 O.S. Supp. 2025, Section 1402), is amended to read as
follows:
Section 1402. A. Except as otherwise provided in subsection B
of this section, the trustee and the qualified beneficiaries may
enter into a binding nonjudicial settlement agreement with respect
to any matter involving a trust.
B. A nonjudicial settlement agreement is valid only to the
extent it does not violate a material purpose of the trust and
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includes terms and conditions that could be properly approved by the
court under this act or other applicable law.
C. Matters that may be resolved by a nonjudicial settlement
agreement include, but are not limited to:
1. The interpretation or construction of the terms of the
trust;
2. The approval of a trustee’s report or accounting;
3. Direction to a trustee to refrain from performing a
particular act or the grant to a trustee of any necessary or
desirable power;
4. The resignation or appointment of a trustee and the
determination of a trustee’s compensation;
5. Transfer of a trust’s principal place of administration;
6. Liability of a trustee for an action relating to the trust;
7. The extent or waiver of bond of a trustee;
8. The governing law of the trust;
9. The criteria for distribution to a beneficiary where the
trustee is given discretion;
10. The resignation, appointment, and establishment of the
powers and duties of trust protectors or trust advisors; and
11. The approval of an investment decision, delegation, policy,
plan, or program.
D. Any qualified beneficiary or trustee may request the court
to approve a nonjudicial settlement agreement, to determine whether
the representation was adequate, and to determine whether the
agreement contains terms and conditions the court could have
properly approved.
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E. For purposes of this section, “qualified beneficiary” shall
have the meaning set forth in Section 1601.3 of this title.
F. The provisions of Article 3 of the Oklahoma Uniform Trust
Code relating to representation shall apply to nonjudicial
settlement agreements under this section.
SECTION 4. AMENDATORY Section 3, Chapter 254, O.S.L.
2025 (60 O.S. Supp. 2025, Section 1601.3), is amended to read as
follows:
Section 1601.3. As used in this act:
1. “Action”, with respect to an act of a trustee, includes a
failure to act;
2. “Ascertainable standard” means a standard relating to an
individual’s health, education, support, or maintenance within the
meaning of Section 2041(b)(1)(A) or 2514(c)(1) of the Internal
Revenue Code of 1986, as in effect on the effective date of this
act, or as later amended;
3. “Beneficiary” means a person who:
a. has a present or future beneficial interest in a
trust, vested or contingent, or
b. in a capacity other than that of trustee, holds a
power of appointment over trust property;
4. “Charitable trust” means a trust, or portion of a trust,
created for a charitable purpose described in subsection A of
Section 24 1604.5 of this act title;
5. “Environmental law” means a federal, state, or local law,
rule, regulation, or ordinance relating to the protection of the
environment;
6. “Guardian of the property” means a person appointed by the
court to administer the estate of a minor or adult individual;
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7. “Guardian of the person” means a person appointed by the
court to make decisions regarding the support, care, education,
health, and welfare of a minor or adult individual. The term does
not include a guardian ad litem;
8. “Interests of the beneficiaries” means the beneficial
interests provided in the terms of the trust;
9. “Jurisdiction”, with respect to a geographic area, includes
a state or country;
10. “Person” means an individual, corporation, business trust,
estate, trust, partnership, limited liability company, association,
joint venture, government, governmental subdivision, agency, or
instrumentality, public corporation, or any other legal or
commercial entity;
11. “Power of withdrawal” means a presently exercisable general
power of appointment other than a power:
a. exercisable by a trustee and limited by an
ascertainable standard, or
b. exercisable by another person only upon consent of the
trustee or a person holding an adverse interest;
12. “Property” means anything that may be the subject of
ownership, whether real or personal, legal or equitable, or any
interest therein;
13. “Qualified beneficiary” means a beneficiary who, on the
date the beneficiary’s qualification is determined:
a. is a distributee or permissible distributee of a
present interest in the trust income or principal, or
has a vested remainder in the trust,
b. would be a distributee or permissible distributee of
trust income or principal if the interests of the
distributee described in subparagraph a of this
paragraph terminated on such date,
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c. would be a distributee or permissible distributee of
trust income or principal if the trust terminated on
such date,
d. is a charitable organization expressly entitled to
receive benefits under the terms of a charitable
trust, or
c. e. is the Attorney General of this state with respect to
a charitable trust having its principal place of
administration in this state;
14. “Revocable”, as applied to a trust, means revocable by the
settlor without the consent of the trustee or a person holding an
adverse interest;
15. “Settlor” means a person, including a testator, who
creates, or contributes property to, a trust. If more than one
person creates or contributes property to a trust, each person is a
settlor of the portion of the trust property attributable to that
person’s contribution except to the extent another person has the
power to revoke or withdraw that portion;
16. “Spendthrift provision” means a term of a trust which
restrains both voluntary and involuntary transfer of a beneficiary’s
interest;
17. “State” means a state of the United States, the District of
Columbia, Puerto Rico, the United States Virgin Islands, or any
territory or insular possession subject to the jurisdiction of the
United States. The term includes an Indian tribe or band recognized
by federal law or formally acknowledged by a state;
18. “Terms of a trust” means:
a. except as otherwise provided in subparagraph b of this
paragraph, the manifestation of the settlor’s intent
regarding a trust’s provisions as:
(1) expressed in the trust instrument, or
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(2) established by other evidence that would be
admissible in a judicial proceeding, or
b. the trust’s provisions, as established, determined, or
amended by:
(1) a trustee or other person in accordance with
applicable law,
(2) a court order, or
(3) a nonjudicial settlement agreement under Section
1402 of Title 60 of the Oklahoma Statutes this
title;
19. “Trust instrument” means an instrument executed by the
settlor that contains terms of the trust, including any amendments
thereto; and
20. “Trustee” includes an original, additional, and successor
trustee, and a co-trustee cotrustee.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1604.17 of Title 60, unless
there is created a duplication in numbering, reads as follows:
A. A provision in a will or trust that would cause a forfeiture
of or void a devise or provision in favor of a person for bringing a
court action contesting a will or trust, shall be enforceable unless
in a court action determining whether the forfeiture clause should
be enforced, the person who brought the action contrary to the
forfeiture clause establishes by a preponderance of the evidence
that:
1. Just cause existed for bringing the action; and
2. The action was brought and maintained in good faith.
B. Forfeiture clauses generally shall not be construed to
prevent a beneficiary from seeking to compel a fiduciary to perform
the fiduciary’s duties, seeking redress against a fiduciary for a
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breach of the fiduciary’s duties, or seeking a judicial construction
of a will or trust.
SECTION 6. AMENDATORY Section 46, Chapter 254, O.S.L.
2025 (60 O.S. Supp. 2025, Section 1607.7), is amended to read as
follows:
Section 1607.7. A. Unless a co-trustee cotrustee remains in
office or the court otherwise orders, and until the trust property
is delivered to a successor trustee or other person entitled to it,
a trustee who has resigned or been removed has the duties of a
trustee and the powers necessary to protect the trust property.
B. A trustee who has resigned or been removed shall proceed
expeditiously to within a reasonable time deliver the trust property
within the trustee’s possession to the co-trustee cotrustee,
successor trustee, or other person entitled to it the property,
subject to the right of the trustee to retain a reasonable reserve
for the payment of debts, expenses, and taxes. The provisions of
this subsection shall be in addition to and are not in derogation of
the rights of a removed or resigning trustee under the common law.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1608.17 of Title 60, unless
there is created a duplication in numbering, reads as follows:
A. A trustee may elect to proceed under this section to obtain
a nonjudicial settlement of account when the:
1. Trust terminates in whole or in part;
2. Trustee ceases or intends to cease to serve for any reason;
or
3. Trustee seeks discharge for an interim accounting period
when the trust is continuing.
B. Within a reasonable time after a trustee elects to proceed
under this section, the trustee shall give notice of a request for
nonjudicial account settlement in the manner and to the extent
required by subsections A, B, and C of Section 1601.9 of Title 60 of
the Oklahoma Statutes to:
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1. The qualified beneficiaries of the trust;
2. Any other beneficiary who has sent the trustee a written
request for notice; and
3. Any cotrustee, trust director, or similar fiduciary or
successor trustee.
C. The trustee may also provide notice to any other person who
the trustee reasonably believes may have an interest in the trust.
D. Whether notice is mandatory or permissive, the trustee may
give notice to a representative in accordance with Article 3 of the
Oklahoma Uniform Trust Code relating to representation. The time
period for the presumption of the representative’s acceptance of the
representation shall be deemed to run concurrently with the notice
period provided under this section.
E. The notice under subsection B or C of this section shall
provide:
1. The reason for providing notice under this section;
2. To the extent applicable, the proposed distribution of the
net assets of the trust, including the distributees and proportions
to be distributed;
3. To the extent applicable, an estimate of disbursements
anticipated to be made prior to distribution, including legal fees
and trustee fees, if any;
4. Trust account statements showing all transactions, the fair
market value of all assets and realized and unrealized gains and
losses on assets held in the account for thirty (30) months prior to
the date a trust terminates, the cessation of the trustee’s service
or statement of intent to cease to serve, or the end of the interim
accounting period, or for the entire term of the trust if the term
of the trust is shorter than the thirty-month period;
5. A statement that the trustee seeks settlement of the account
of the trust, including the period of time for which the trustee
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seeks discharge of the account of the trust, and that clearly and
conspicuously states that claims against a trustee under Article 9
of the Oklahoma Uniform Trust Code relating to liability of trustees
and rights of persons dealing with trustees and Sections 175.23 and
175.57 of Title 60 of the Oklahoma Statutes, if applicable, will be
forever barred if no objections are received within the time period
described in subsection G of this section;
6. The name and mailing address of the trustee; and
7. The name and telephone number of a person who may be
contacted for additional information.
F. To the extent applicable, distributions from a terminating
trust, and any fees and expenses due or anticipated as of the date
that the settlement of account is requested, may be held by or on
behalf of the trustee until the settlement of account is approved or
deemed approved as provided by this section.
G. A person provided notice under subsection B or C of this
section may object to the settlement of account by giving written
notice to the trustee within sixty (60) days after the notice was
sent. If a person given notice under subsection B or C of this
section makes timely objections to the settlement of account, the
trustee or the person making the objections may:
1. Submit the written objection to the court and commence a
proceeding for its resolution; or
2. Resolve the objection by nonjudicial settlement agreement
under Section 1402 of Title 60 of the Oklahoma Statutes or by other
statutory authority.
H. If no timely objections are raised under subsection G of
this section, or objections are resolved as provided by subsection G
of this section, the settlement of account shall be deemed approved
and any assets held in trust shall, within a reasonable time
thereafter, be distributed subject to payment of expenses as
provided in subsection F of this section or shall continue to be
administered in trust subject to payment of expenses.
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I. The trustee may rely upon the written statement of a person
receiving notice that the person does not object.
J. 1. When a settlement of account is deemed approved under
this section for a terminated trust or with respect to the duties of
a trustee who ceased to serve or stated an intent to cease to serve,
each person who was sent notice as provided by subsection B or C of
this section is barred from bringing a claim against the trustee or
challenging the distribution of assets of the trust to the same
extent and with the same preclusive effect as if the court had
entered a final, unappealable order approving the trustee’s final
account.
2. When a settlement of account for a trustee seeking final
settlement of an interim trust account is deemed approved under this
section, each person who was sent notice as provided by subsection B
or C of this section is barred from bringing a claim against the
trustee for the period of the interim trust account to the same
extent and with the same preclusive effect as if the court had
entered a final, unappealable order approving the trustee’s interim
trust account.
K. The provisions of Article 3 of the Oklahoma Uniform Trust
Code relating to representation shall apply to an account settlement
under this section.
L. Nothing in this section shall preclude a trustee from
proceeding under Section 175.23 of Title 60 of the Oklahoma
Statutes.
SECTION 8. AMENDATORY Section 71, Chapter 254, O.S.L.
2025 (60 O.S. Supp. 2025, Section 1609.7), is amended to read as
follows:
Section 1609.7. A. Instead of furnishing a copy of the trust
instrument to a person other than a beneficiary, and in lieu of or
in addition to a memorandum of trust under subsection A of Section
175.6 175.6a of Title 60 of the Oklahoma Statutes, the trustee may
furnish to the person a certification of trust containing the
following information:
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1. That the trust exists and the date the trust instrument was
executed;
2. The identity of the settlor;
3. The identity and address of the currently acting trustee;
4. The powers of the trustee;
5. The revocability or irrevocability of the trust and the
identity of any person holding a power to revoke the trust;
6. The authority of co-trustees to sign or otherwise
authenticate and whether all or less than all are required in order
to exercise powers of the trustee;
7. The trust's taxpayer identification number; and
8. The manner of taking title to trust property.
B. A certification of trust under this section may be signed or
otherwise authenticated by any trustee.
C. A certification of trust under this section must state that
the trust has not been revoked, modified, or amended in any manner
that would cause the representations contained in the certification
of trust to be incorrect.
D. A certification of trust under this section need not contain
the dispositive terms of a trust.
E. A recipient of a certification of trust under this section
may require the trustee to furnish copies of those excerpts from the
original trust instrument and later amendments which designate the
trustee and confer upon the trustee the power to act in the pending
transaction.
F. A person who acts in reliance upon a certification of trust
under this section without knowledge that the representations
contained therein are incorrect is not liable to any person for so
acting and may assume without inquiry the existence of the facts
contained in the certification. Knowledge of the terms of the trust
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may not be inferred solely from the fact that a copy of all or part
of the trust instrument is held by the person relying upon the
certification.
G. A person who in good faith enters into a transaction in
reliance upon a certification of trust under this section may
enforce the transaction against the trust property as if the
representations contained in the certification were correct.
H. A person making a demand for the trust instrument in
addition to a certification of trust under this section, or excerpts
of the trust instrument, is liable for damages if the court
determines that the person did not act in good faith in demanding
the trust instrument.
I. This section does not limit the right of a person to obtain
a copy of the trust instrument in a judicial proceeding concerning
the trust.
SECTION 9. AMENDATORY Section 74, Chapter 254, O.S.L.
2025 (60 O.S. Supp. 2025, Section 1610.3), is amended to read as
follows:
Section 1610.3. A. Except as otherwise provided in this act,
on the effective date of this act:
1. This act applies to all trusts created before, on, or after
its effective date;
2. This act applies to all judicial proceedings concerning
trusts commenced on or after its effective date;
3. This act applies to judicial proceedings concerning trusts
commenced before its effective date unless the court finds that
application of a particular provision of this act would
substantially interfere with the effective conduct of the judicial
proceedings or prejudice the rights of the parties, in which case
the particular provision of this act does not apply and the
superseded law applies;
4. Any rule of construction or presumption provided in this act
applies to trust instruments executed before the effective date of
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this act unless there is a clear indication of a contrary intent in
the terms of the trust; and
5. An act enacted done before the effective date of this act is
not affected by this act.
B. 1. If a right is acquired, extinguished, or barred upon the
expiration of a prescribed period that has commenced to run under
any other statute before the effective date of this act, that
statute continues to apply to the right even if it has been repealed
or superseded.
2. For avoidance of doubt, if a duty owed to a beneficiary is
dependent upon the definition of “qualified beneficiary”, such duty
shall not apply to actions or inactions prior to the effective date
of the enactment of such definition. This paragraph shall not be
construed to modify the law existing prior to the effective date of
such definition.
C. The applicable provisions of the Oklahoma Trust Act shall
continue to apply, unless such provision is inconsistent with an
express provision of this act and, further, except as expressly
provided in this act.
SECTION 10. This act shall become effective November 1, 2026.
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Passed the Senate the 11th day of March, 2026.
Presiding Officer of the Senate
Passed the House of Representatives the 6th day of May, 2026.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________