{"data":{"id":"us-ok/okla.-stat.-tit.-60-60-175.409","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 60, § 60-175.409","heading":"Deferred compensation, annuities, and similar","body":"payments.\n\nDEFERRED COMPENSATION, ANNUITIES, AND SIMILAR PAYMENTS\n\nA. In this section:\n\n1. “Payment” means a payment that a trustee may receive over a\n\nfixed number of years or during the life of one or more individuals\n\nbecause of services rendered or property transferred to the payer in\n\nexchange for future payments. The term includes a payment made in\n\nmoney or property from the payer's general assets or from a separate\n\nfund created by the payer. For purposes of subsections D, E, F, and\n\nG of this section, the term also includes any payment from any\n\nseparate fund, regardless of the reason for the payment; and\n\n2. “Separate fund” includes a private or commercial annuity, an\n\nindividual retirement account, and a pension, profit-sharing, stock-\n\nbonus, or stock-ownership plan.\n\nB. To the extent that a payment is characterized as interest or\n\na dividend or a payment made in lieu of interest or a dividend, a\n\ntrustee shall allocate it to income. The trustee shall allocate to\n\nprincipal the balance of the payment and any other payment received\n\nin the same accounting period that is not characterized as interest,\n\na dividend, or an equivalent payment.\n\nC. If no part of a payment is characterized as interest, a\n\ndividend, or an equivalent payment, and all or part of the payment\n\nis required to be made, a trustee shall allocate to income ten\n\npercent (10%) of the part that is required to be made during the\n\naccounting period and the balance to principal. If no part of a\n\npayment is required to be made or the payment received is the entire\n\namount to which the trustee is entitled, the trustee shall allocate\n\nthe entire payment to principal. For purposes of this subsection, a\n\npayment is not \"required to be made\" to the extent that it is made\n\nbecause the trustee exercises a right of withdrawal.\n\nD. Except as otherwise provided in subsection E of this\n\nsection, subsections F and G of this section apply, and subsections\n\nB and C of this section do not apply in determining the allocation\n\nof a payment made from a separate fund to:\n\n1. A trust to which an election to qualify for a marital\n\ndeduction under Section 2056(b)(7) of the Internal Revenue Code of\n\n1986, as amended, has been made; or\n\n2. A trust that qualifies for the marital deduction under\n\nSection 2056(b)(5) of the Internal Revenue Code of 1986, as amended.\n\nE. Subsections D, F, and G of this section do not apply if and\n\nto the extent that the series of payments would, without the\n\napplication of subsection D of this section, qualify for the marital\n\ndeduction under Section 2056(b)(7)(C) of the Internal Revenue Code\n\nof 1986, as amended.\n\nF. A trustee shall determine the internal income of each\n\nseparate fund for the accounting period as if the separate fund were\n\na trust subject to the Oklahoma Uniform Principal and Income Act.\n\nUpon request of the surviving spouse, the trustee shall demand that\n\nthe person administering the separate fund distribute the internal\n\nincome to the trust. The trustee shall allocate a payment from the\n\nseparate fund to income to the extent of the internal income of the\n\nseparate fund and distribute that amount to the surviving spouse.\n\nThe trustee shall allocate the balance of the payment to principal.\n\nUpon request of the surviving spouse, the trustee shall allocate\n\nprincipal to income to the extent the internal income of the\n\nseparate fund exceeds payments made from the separate fund to the\n\ntrust during the accounting period.\n\nG. If a trustee cannot determine the internal income of a\n\nseparate fund but can determine the value of the separate fund, the\n\ninternal income of the separate fund shall be an amount of not less\n\nthan three percent (3%) or more than four percent (4%) of the fund’s\n\nvalue, as determined annually by the trustee in a manner that\n\nfulfills the trustee's duty of impartiality between the income and\nl income of a\n\nseparate fund but can determine the value of the separate fund, the\n\ninternal income of the separate fund shall be an amount of not less\n\nthan three percent (3%) or more than four percent (4%) of the fund’s\n\nvalue, as determined annually by the trustee in a manner that\n\nfulfills the trustee's duty of impartiality between the income and\n\nremainder beneficiaries, according to the most recent statement of\n\nvalue preceding the beginning of the accounting period. If the\n\ntrustee can determine neither the internal income of the separate\n\nfund nor the fund’s value, the internal income of the fund is deemed\n\nto equal the product of the interest rate and the present value of\n\nthe expected future payments, as determined under Section 7520 of\n\nthe Internal Revenue Code of 1986, as amended, for the month\n\npreceding the accounting period for which the computation is made.\n\nH. This section does not apply to a payment to which Section\n\n175.410 of this title applies.","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":"974251659d031d2187606ed5bc0249acec1f68c953826f4b65b85479b39c3833","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-60-60-175.408","next":"us-ok/okla.-stat.-tit.-60-60-175.41"},"notice":"GroundRules: Original legal text. Not legal advice."}