§ 60-175.84. Applicable provisions for trusts created pursuant to Oklahoma Discretionary and Special Needs Trust Act.

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.