Oklahoma Code § 60-1319

Title 60. Property: Discretionary interests
Open in Lexace · Ask the AI about this section
A.  The following provisions apply only to discretionary
interests:
1.  A discretionary interest is neither a property interest nor
an enforceable right.  It is a mere expectancy;

2.  No creditor may force a distribution with regard to a
discretionary interest.  No creditor may require the trustee to
exercise the trustee's discretion to make a distribution with regard
to a discretionary interest; and
3.  A court may review a trustee's distribution discretion only
if the trustee:
a. acts dishonestly,
b. acts with an improper motive, or
c. fails, if under a duty to do so, to act.
B.  A reasonableness standard may not be applied to the exercise
of discretion by the trustee with regard to a discretionary
interest.  Other than for the circumstances listed in this section,
a court has no jurisdiction to review the trustee's discretion or to
force a distribution.
C.  Absent express language to the contrary, in the event that
the distribution language in a discretionary interest permits
unequal distributions between beneficiaries or distributions to the
exclusion of other beneficiaries, the trustee may distribute all of
the accumulated, accrued, or undistributed income and principal to
one beneficiary in the trustee's discretion.
D.  Regardless of whether a beneficiary has any outstanding
creditors, a trustee of a discretionary interest may directly pay
any expense on behalf of such beneficiary and may exhaust the income
and principal of the trust for the benefit of such beneficiary.  No
trustee is liable to any creditor for paying the expenses of a
beneficiary of a discretionary interest.

‹ Prev All Oklahoma sections Next ›


Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.