Applicable provisions for trusts created pursuant to Oklahoma Discretionary and Special Needs Trust Act.

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  4. Applicable provisions for trusts created pursuant to Oklahoma Discretionary and Special Needs Trust Act.

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The following provisions apply to all trusts created pursuant to the Oklahoma Discretionary and Special Needs Trust Act:

1. A creditor shall not attach, exercise, or otherwise reach an interest of a beneficiary or any other person who holds an unconditional or conditional removal or replacement power over a trustee. Further, this power is personal to the beneficiary and may not be exercised by the creditors of the beneficiary, nor may a court direct any person to exercise this power;

2. A creditor shall not reach an interest of a beneficiary nor otherwise compel a distribution because the beneficiary is then serving as a trustee or a cotrustee;

3. If a party challenges a settlor or the influence of a beneficiary over a trust, the following factors, alone or in combination, shall not be considered dominion and control over a trust:

  • a.a beneficiary serving as a trustee or a cotrustee as described in paragraph 2 of this section,
  • b.the settlor or a beneficiary holds an unrestricted power to remove or replace a trustee,
  • c.the settlor or a beneficiary, as provided in the applicable trust instrument, is:
    • (1)a trust administrator,
    • (2)a trust protector,
    • (3)a special trustee, or
    • (4)a general partner of a partnership, a manager of a limited liability company, an officer of a corporation, or any other managerial function of any other type of entity, and part or all of the trust property consists of an interest in said entity,
  • d.a person related by blood or adoption to a settlor or a beneficiary is appointed as trustee, or
  • e.an accountant of a settlor or a beneficiary, attorney, financial advisor, business associate, or a friend is appointed as trustee; and

4. The settlor or any beneficiary shall not be deemed to be the alter ego of a trustee. The following factors, alone or in combination, shall not be sufficient evidence for a court to conclude that the settlor controls a trustee or is the alter ego of a trustee:

  • a.any combination of the factors listed in paragraph 3 of this section,
  • b.occasional occurrences in which the settlor or a beneficiary may have signed checks, made disbursements or executed other documents related to the trust as a trustee, when in fact the settlor or a beneficiary was not a trustee,
  • c.making requests for distributions on behalf of beneficiaries, or
  • d.making requests to the trustee to hold, purchase, or sell any trust property.

Added by Laws 2010, c. 280, § 4, eff. Nov. 1, 2010.


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