{"data":{"id":"us-ok/okla.-stat.-tit.-60-60-1303","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 60, § 60-1303","heading":"Trust instrument defined","body":"A. For the purposes of the Oklahoma Qualified Dispositions into\n\nTrust Act, a trust instrument is an instrument appointing a\n\nqualified person or qualified persons for the property that is the\n\nsubject of a disposition, which instrument:\n\n1. Expressly incorporates the law of this state to govern the\n\nvalidity, construction, and administration of the trust;\n\n2. Is irrevocable, but a trust instrument may not be deemed\n\nrevocable on account of its inclusion of one or more of the\n\nfollowing:\n\na. a transferor's power to veto a distribution from the\n\ntrust,\n\nb. an inter vivos power of appointment, other than an\n\ninter vivos power exercisable solely by the transferor\n\nin favor of the transferor, the transferor's\n\ncreditors, the transferor's estate, or the creditors\n\nof the transferor's estate,\n\nc. a testamentary power of appointment,\n\nd. the transferor's potential or actual receipt of\n\nincome, including rights to such income retained in\n\nthe trust instrument,\n\ne. the transferor's potential or actual receipt of income\n\nor principal from a charitable remainder unitrust or\n\ncharitable remainder annuity trust as such terms are\n\ndefined in Section 664 of the Internal Revenue Code of\n\n1986, 26 U.S.C., Section 664, as of January 1, 2009,\n\nf. the transferor's receipt each year of a percentage of\n\nthe value as determined from time to time pursuant to\n\nthe trust instrument, but not exceeding the amount\n\nthat may be defined as income under Section 643(b) of\n\nthe Internal Revenue Code of 1986, 26 U.S.C., Section\n\n643(b), as of January 1, 2009,\n\ng. the transferor's receipt each year of a percentage of\n\nthe value as determined from time to time pursuant to\n\nthe trust instrument, but not exceeding the amount\n\nthat may be defined as income under Section 664 of the\n\nInternal Revenue Code of 1986, 26 U.S.C., Section\n\n643(b), as of January 1, 2009,\n\nh. the transferor's potential or actual receipt or use of\n\nprincipal if the potential or actual receipt or use of\n\nprincipal would be the result of a qualified person,\n\nincluding a qualified person acting at the direction\n\nof a trust advisor described in this act, acting\n\neither in the qualified person's sole discretion or\n\npursuant to an ascertainable standard contained in the\n\ntrust instrument,\n\ni. the transferor's right to remove a trustee, protector,\n\nor trust advisor and to appoint a new trustee,\n\nprotector, or trust advisor, other than a trustee who\n\nis a related or subordinate party with respect to the\n\ntransferor within the meaning of Section 672(c) of the\n\nInternal Revenue Code of 1986, 26 U.S.C., Section\n\n672(c), as of January 1, 2009,\n\nj. the transferor's potential or actual use of real\n\nproperty held under a qualified personal residence\n\ntrust within the meaning of such term as described in\n\nthe regulations promulgated under Section 2702(c) of\n\nthe Internal Revenue Code of 1986, 26 U.S.C., Section\n\n2702(c), as of January 1, 2009,\n\nk. a pour-back provision that pours back to the\n\ntransferor's will or revocable trust all or part of\n\nthe trust assets,\n\nl. the transferor's potential or actual receipt of income\n\nor principal to pay, in whole or in part, income taxes\n\ndue on income of the trust if the potential or actual\n\nreceipt of income or principal is pursuant to a\n\nprovision in the trust instrument that expressly\n\nprovides for the payment of the taxes and if the\n\npotential or actual receipt of income or principal\n\nwould be the result of a qualified person's acting in\n\nthe qualified person's discretion or pursuant to a\n\nmandatory direction in the trust instrument or acting\n\nat the direction of a trust advisor described in\n\nSection 24 of this act,\n\nm. the ability, whether pursuant to discretion,\n\ndirection, or the grantor's exercise of a testamentary\n\npower of appointment, of a qualified person to pay,\n\nafter the death of the transferor, all or any part of\nng in\n\nthe qualified person's discretion or pursuant to a\n\nmandatory direction in the trust instrument or acting\n\nat the direction of a trust advisor described in\n\nSection 24 of this act,\n\nm. the ability, whether pursuant to discretion,\n\ndirection, or the grantor's exercise of a testamentary\n\npower of appointment, of a qualified person to pay,\n\nafter the death of the transferor, all or any part of\n\nthe debts of the transferor outstanding at the time of\n\nthe transferor's death, the expenses of administering\n\nthe transferor's estate, or any estate or inheritance\n\ntax imposed on or with respect to the transferor's\n\nestate,\n\nn. a transferor's service as a noncontrolling member of a\n\ndistribution committee that functions as a\n\ndistribution trust advisor, which is a fiduciary given\n\nauthority by the instrument to exercise all or any\n\nportions of the powers and discretions over any\n\ndiscretionary distributions of income or principal, or\n\no. a transferor's enjoyment of a power to reacquire the\n\ntrust corpus by substituting other property of an\n\nequivalent value within the meaning of Section\n\n675(4)(C) of the Internal Revenue Code of 1986, 26\n\nU.S.C., Section 675(4)(C), as of January 1, 2021, and\n\n3. Provides that the interest of the transferor or other\n\nbeneficiary in the trust property or the income from the trust\n\nproperty may not be transferred, assigned, pledged, or mortgaged,\n\nwhether voluntarily or involuntarily, before the qualified person\n\ndistributes the property or income from the property to the\n\nbeneficiary, and such provision of the trust instrument constitutes\n\na restriction on the transfer of the transferor's beneficial\n\ninterest in the trust that is enforceable under applicable\n\nnonbankruptcy law within the meaning of Section 541(c)(2) of the\n\nBankruptcy Code, 11 U.S.C., Section 541(c)(2), as of January 1,\n\n2009.\n\nB. A disposition by a trustee that is not a qualified person to\n\na trustee that is a qualified person may not be treated as other\n\nthan a qualified disposition solely because the trust instrument\n\nfails to meet the requirements of paragraph 1 of subsection A of\n\nthis section.","path":["OK Code","Title 60"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os60.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"86f009e19c433ce6c74fb1d60f0388ad42515ffa050a7237ca4cf333699f6b9f","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-60-60-1302","next":"us-ok/okla.-stat.-tit.-60-60-1304"},"notice":"GroundRules: Original legal text. Not legal advice."}