{"data":{"id":"us-ok/okla.-stat.-tit.-60-60-1608.2","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 60, § 60-1608.2","heading":"Duty of loyalty","body":"A. A trustee shall administer the trust solely in the interests\n\nof the beneficiaries.\n\nB. Subject to the rights of persons dealing with or assisting\n\nthe trustee as provided in subsection I of Section 175.57 of Title\n\n60 of the Oklahoma Statutes, a sale, encumbrance, or other\n\ntransaction involving the investment or management of trust property\n\nentered into by the trustee for the trustee's own personal account\n\nor which is otherwise affected by a conflict between the trustee's\n\nfiduciary and personal interests is voidable by a beneficiary\n\naffected by the transaction unless:\n\n1. The transaction was authorized by the terms of the trust;\n\n2. The transaction was approved by the court;\n\n3. The beneficiary did not commence a judicial proceeding\n\nwithin the time allowed by subsection E of Section 175.57 of Title\n\n60 of the Oklahoma Statutes;\n\n4. The beneficiary consented to the trustee's conduct, ratified\n\nthe transaction, or released the trustee in compliance with\n\nsubsection G of Section 175.57 of Title 60 of the Oklahoma Statutes;\n\nor\n\n5. The transaction involves a contract entered into or claim\n\nacquired by the trustee before the person became or contemplated\n\nbecoming trustee.\n\nC. A sale, encumbrance, or other transaction involving the\n\ninvestment or management of trust property is presumed to be\n\naffected by a conflict between personal and fiduciary interests if\n\nit is entered into by the trustee with:\n\n1. The trustee's spouse;\n\n2. The trustee's descendants, siblings, parents, or their\n\nspouses;\n\n3. An agent or attorney of the trustee; or\n\n4. A corporation or other person or enterprise in which the\n\ntrustee, or a person that owns a significant interest in the\n\ntrustee, has an interest that might affect the trustee's best\n\njudgment.\n\nD. A transaction between a trustee and a beneficiary that does\n\nnot concern trust property but that occurs during the existence of\n\nthe trust or while the trustee retains significant influence over\n\nthe beneficiary and from which the trustee obtains an advantage is\n\nvoidable by the beneficiary unless the trustee establishes that the\n\ntransaction was fair to the beneficiary.\n\nE. A transaction not concerning trust property in which the\n\ntrustee engages in the trustee's individual capacity involves a\n\nconflict between personal and fiduciary interests if the transaction\n\nconcerns an opportunity properly belonging to the trust.\n\nF. An investment by a trustee in securities of an investment\n\ncompany or investment trust to which the trustee, or its affiliate,\n\nprovides services in a capacity other than as trustee is not\n\npresumed to be affected by a conflict between personal and fiduciary\n\ninterests if the investment otherwise complies with the prudent\n\ninvestor rule of the Oklahoma Uniform Prudent Investor Act. In\n\naddition to its compensation for acting as trustee, the trustee may\n\nbe compensated by the investment company or investment trust for\n\nproviding those services out of fees charged to the trust. If the\n\ntrustee receives compensation from the investment company or\n\ninvestment trust for providing investment advisory or investment\n\nmanagement services, the trustee must at least annually notify the\n\npersons entitled under Section 60 of this act to receive a copy of\n\nthe trustee's annual report of the rate and method by which that\n\ncompensation was determined.\n\nG. In voting shares of stock or in exercising powers of control\n\nover similar interests in other forms of enterprise, the trustee\n\nshall act in the best interests of the beneficiaries. If the trust\n\nis the sole owner of a corporation or other form of enterprise, the\n\ntrustee shall elect or appoint directors or other managers who will\n\nmanage the corporation or enterprise in the best interests of the\n\nbeneficiaries.\n\nH. This section does not preclude the following transactions,\n\nif fair to the beneficiaries:\n\n1. An agreement between a trustee and a beneficiary relating to\niaries. If the trust\n\nis the sole owner of a corporation or other form of enterprise, the\n\ntrustee shall elect or appoint directors or other managers who will\n\nmanage the corporation or enterprise in the best interests of the\n\nbeneficiaries.\n\nH. This section does not preclude the following transactions,\n\nif fair to the beneficiaries:\n\n1. An agreement between a trustee and a beneficiary relating to\n\nthe appointment or compensation of the trustee;\n\n2. Payment of reasonable compensation to the trustee;\n\n3. A transaction between a trust and another trust, decedent's\n\nestate, or conservatorship of which the trustee is a fiduciary or in\n\nwhich a beneficiary has an interest;\n\n4. A deposit of trust money in a regulated financial service\n\ninstitution operated by the trustee; or\n\n5. An advance by the trustee of money for the protection of the\n\ntrust.\n\nI. The court may appoint a special fiduciary to make a decision\n\nwith respect to any proposed transaction that might violate this\n\nsection if entered into by the trustee.","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":"fe8d146da7a4503ce25844eb762448b2f0a5cac6b27a0f393e43b1cba4a5aee4","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-60-60-1608.16","next":"us-ok/okla.-stat.-tit.-60-60-1608.3"},"notice":"GroundRules: Original legal text. Not legal advice."}