Oklahoma State Trust Laws After the Death of a Trustee

By Tom Streissguth

A living trust can spare your family from the trials and tribulations of probate court. In Oklahoma, a trust grantor may set up a trust and then name a trustee to handle the assets. The trustee makes distributions to beneficiaries, according to the terms set down by the grantor. If a trustee dies or becomes incapacitated, then the trust -- as well as Oklahoma law -- decides what happens next.

A living trust can spare your family from the trials and tribulations of probate court. In Oklahoma, a trust grantor may set up a trust and then name a trustee to handle the assets. The trustee makes distributions to beneficiaries, according to the terms set down by the grantor. If a trustee dies or becomes incapacitated, then the trust -- as well as Oklahoma law -- decides what happens next.

Trust Basics in Oklahoma

An Oklahoma trust can be either revocable or irrevocable. With a revocable trust, the grantor can make changes to the trust as he sees fit, or revoke the trust altogether. He can replace the trustee, name new beneficiaries, or remove the beneficiaries originally named. A grantor may also name himself as the trustee. An irrevocable trust generally may not be changed by the grantor. Oklahoma law allows the beneficiaries or the trustee to petition a court for a change in the trust under certain circumstances. In both kinds of trust, it's common practice to name a secondary or successor trustee.

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Successor Trustees

Circumstances change, and the trustee named by an Oklahoma grantor may become incapable of carrying out the trust's instructions. An individual trustee may resign, become incapacitated or pass away. Similarly, a grantor may name himself as trustee of a living trust set up the trust while still alive, and name a successor trustee to take over administration after he dies. In these cases, the successor trustee whom the grantor names becomes the new principal trustee.

Successor Trustee Authority

A successor trustee may distribute assets to beneficiaries immediately, or continue management of the trust for years after the death of the grantor. The trust decides the duties of the trustee. The probate court does not involve itself in administration of the trust or the appointment of trustees. However, if the trust does not name a successor trustee, then an individual or organization with standing -- such as a beneficiary -- would have to petition a court to name a trustee. Alternatively, the beneficiaries may unanimously agree to appoint a trustee of their own choosing.

Acts of Successor

The successor trustee must provide proof of his authority to act. This means providing a copy of the trust document -- and all amendments -- as well as the original trustee's death certificate to the banks, investment brokers, pension administrators and all other parties who are holding assets belonging to the trust. If the successor trustee will be liquidating real estate from an estate, Oklahoma law requires a tax clearance certificate from the Oklahoma Tax Commission, which assures buyers that real estate taxes have been paid. As of 2014, Oklahoma has no estate tax, but federal estate tax may be due if the original grantor passed away leaving a revocable trust for a successor to manage.

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What Are the Duties of a Successor Trustee for Administrating a Living Trust?

References

Related articles

The Difference Between a Grantor & a Beneficiary

Grantor is the legal term for a person who creates a trust, and beneficiaries are people named by the grantor to benefit from the trust by receiving the trust's property. The legal terms "grantor," "settlor," and "creator" have the same meaning and can be used interchangeably. A grantor and beneficiary have different roles in a trust, but either may serve as trustee of the trust. Although the grantor establishes a trust and may have the authority to change it, beneficiaries also have authority to amend or revoke the trust and take legal action to protect the trust in certain circumstances.

Amending an Irrevocable Trust Agreement & Uniform Trust Code

Trust law varies based on the state where the trust is located. The Uniform Trust Code (UTC) is a proposed law meant to be enacted across the country to promote legal consistency regarding trusts. The UTC has been enacted in 23 states and covers most trust issues, including how to amend an irrevocable trust agreement. Under the UTC, an irrevocable trust agreement can be amended when the beneficiaries and creator agree to an amendment or when there is a significant change in circumstances surrounding the trust. When attempting to amend an irrevocable trust agreement, consider consulting with a licensed attorney.

How to Set Up a Living Trust Fund

A trust can be a solid, safe way to send your assets where you want them to go. The grantor -- the individual who creates the trust -- places cash, investments and property under the control of a trustee, who manages the assets for the benefit of another individual or an organization. A "spendthrift" trust, for example, grants money or other assets to a minor, with the grantor setting the terms of disbursement. A "living trust" means simply that the grantor is still alive.

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