{"data":{"id":"us-ok/okla.-stat.-tit.-60-60-175.89","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 60, § 60-175.89","heading":"Applicable trust provisions for beneficiaries holding","body":"discretionary interests.\n\nThe following provisions apply only to trusts with one or more\n\nbeneficiaries holding discretionary interests:\n\n1. A discretionary interest is neither a property interest nor\n\nan enforceable right to a distribution; it is a mere expectancy;\n\nprovided, however, a beneficiary holding a discretionary interest\n\nhas an equitable interest to bring an action against the trustee\n\nwithin the judicial review standard of paragraph 4 of this section.\n\nNo creditor, regardless of whether the Oklahoma Discretionary and\n\nSpecial Needs Trust Act provides for any exception creditors, shall\n\nattach, require the trustee to exercise the trustee’s discretion to\n\nmake a distribution, or cause a court to judicially sell a\n\ndiscretionary interest;\n\n2. Regardless of whether a beneficiary has any outstanding\n\ncreditor, a trustee may directly pay any expense on behalf of the\n\nbeneficiary and may exhaust the income and principal of the trust\n\nfor the benefit of the beneficiary. A trustee shall not be liable\n\nto any creditor or beneficiary for paying the expenses of a\n\nbeneficiary;\n\n3. A creditor, including an exception creditor, of a\n\nbeneficiary has no greater rights in a discretionary interest than a\n\nbeneficiary, and shall not compel a distribution that is subject to\n\nthe discretion of the trustee, nor may a court order a distribution;\n\n4. A court may review a distribution discretion of a trustee\n\nonly if it is proved by clear and convincing evidence that the\n\ntrustee:\n\na. acts dishonestly,\n\nb. acts with an improper motive, or\n\nc. fails to act.\n\nThe sole factor not to make a distribution does not constitute a\n\nfailure to act. There is no standard of reasonableness under the\n\nabove review standard;\n\n5. In addition to any limitations of rights of creditors, if\n\nthe trust contains a spendthrift provision, a current interest in a\n\ndiscretionary trust also receives the benefits of any spendthrift\n\nprotection; and\n\n6. Absent express language to the contrary, in the event that\n\nthe distribution language permits unequal distributions between\n\nbeneficiaries or distributions to the exclusion of other\n\nbeneficiaries, the trustee may distribute all of the accumulated,\n\naccrued, or undistributed income and principal to one beneficiary in\n\nthe discretion of 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":"065a87a87e3dc051dabb02d9a52559ba4400bd7c20c4c57ab1f623f88dc9190a","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-60-60-175.88","next":"us-ok/okla.-stat.-tit.-60-60-175.9"},"notice":"GroundRules: Original legal text. Not legal advice."}