The new Oklahoma Uniform Trust Code (the “Trust Code”) goes into effect on November 1, 2025 as a comprehensive framework working alongside the existing Oklahoma Trust Act (the “OTA”) to establish clear rules and fill legal gaps. Oklahoma is not replacing its old trust laws but adding to them.

Here’s a summary of the biggest takeaways for you as a Settlor (the person who creates a trust), a Beneficiary, or a Trustee.

1. Clarity for Trustees: The Trust Code spells out the roles, responsibilities, and powers of a Trustee in detail. This clarity reduces confusion and helps ensure trusts are managed correctly.

   a. Explicit Duties: The law now clearly lists a Trustee’s core duties, such as the duty of loyalty (acting only in the beneficiaries’ best interest) and the duty of impartiality (treating all beneficiaries fairly).

   b. Clear Powers: It formalizes a broad list of administrative powers a Trustee has, from investing trust property to managing real estate and dealing with co-trustees.

   c. Notice and Accounting: Trustees will be required to provide notice to the trust beneficiaries when they take on the role of trustee and when an irrevocable trust is created. This gives beneficiaries a clear route to seek information about the trust and ensure the trustee is performing his or her duties properly. Additionally, if the trust is silent as to accounting requirements, then the trustee must provide at least an annual accounting to the beneficiaries, and an accounting when the trust is terminated.

2. More Flexibility for Irrevocable Trusts: Revocable “see through” trusts can generally be changed or revoked relatively easily, but the process has always been more difficult when dealing with an irrevocable trust. Whether a trust was created to be irrevocable from the start, or became irrevocable after all settlors passed away, the Trust Code provides new pathways to modify or terminate an irrevocable trust without needing to go through a full, expensive court battle.

   a. Modification for Changed Circumstances: A court can modify a trust’s terms if unexpected circumstances arise that would frustrate the original purpose of the trust (for example, a change in tax law that the settlor couldn’t have foreseen).

   b. Correction of Mistakes: If there is clear evidence the original trust document contains a drafting mistake (such as an error in who was supposed to receive a gift) a court can step in to correct the trust to match the settlor’s true intent.

   c. Uneconomic Trusts: If a trust becomes too small ($50,000 or less) and the administrative costs are eating up the trust’s assets, the Trustee can more easily terminate the trust and distribute the funds, saving the beneficiaries from unnecessary expenses. (Note: This does not apply to all trusts, such as those set up for certain special needs.)

3. Stronger Rules on Creditors (Asset Protection): The new law brings clarity to the question of who can access trust assets, especially when the person who created the trust is also a beneficiary.

   a. Revocable Trusts: While you are alive and your trust is a revocable “see through” trust, any assets in that trust are treated as your property, and creditors have full access to make claims against them. The Trust Code solidifies this rule that was already common law and appeared in Oklahoma case law.

   b. Spendthrift Provisions: The Trust Code reinforces the general rule that, in an irrevocable trust (also including a revocable trust that becomes irrevocable after the death of all settlors), a beneficiary’s interest is protected by a “spendthrift” provision, meaning the beneficiary’s creditors cannot touch their future interest in the trust.

4. Easier Administration & Litigation: The Trust Code creates clear procedures for how trusts are legally handled, which is especially important if a dispute ever arises.

   a. Clear Court Roles: The Trust Code clearly states which court has jurisdiction over an Oklahoma trust and who must receive notice for any legal proceeding, creating a clear process for settling disputes.

   b. Representation: The new rules allow certain individuals, such as a parent, to legally represent and bind a minor or unborn beneficiary in certain court proceedings, which can significantly speed up the resolution of an issue.

What Should You Do Now?

The Trust Code is a major improvement that promotes clarity and flexibility in Oklahoma estate planning, but keep in mind, it’s not replacing or removing the prior laws. Many applicable provisions of the current Oklahoma Trust Act will continue to apply.

1. Don’t Panic: If you already have a trust, it does NOT automatically become invalid. The new code simply provides the rules for interpreting and administering your existing trust.
2. Review Your Plan: Contact your estate planning attorney. Ask them how the new Trust Code might affect your existing trust documents, especially any older irrevocable trusts (including a revocable trust that became irrevocable after the death of all settlors), to see if an update or modification would be beneficial.
3. Plan Smart: If you don’t already have a trust, now is a great time to put one into place to ensure your assets will avoid probate and ultimately distribute where you want them to go.