Chapter 130 — Chapter 130
136 sections in this chapter.
ORS 130.001 UTC 101. Short title. This chapter may be cited as the Oregon Uniform Trust Code. [2005 c.348 §1]
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[Repealed or reserved.]
ORS 130.005 UTC 102. Scope. (1) Except as provided in subsection (2) of this section, this chapter applies to express trusts, whether charitable or noncharitable, and to trusts created pursuant to a statute or a judgment that requires that the trust be administered in the manner of an express trust
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(2) This chapter does not apply to: (a) A trust that is part of an employee benefit arrangement or an individual retirement account. (b) A trust account established under a qualified tuition savings program pursuant to ORS 178.300 to 178.360. (c) Trust accounts maintained on beha…
ORS 130.010 UTC 103. Definitions. For the purposes of this chapter
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(1) “Ascertainable standard” means an ascertainable standard relating to an individual’s health, education, support or maintenance within the meaning of section 2041(b)(1)(A) or 2514(c)(1) of the Internal Revenue Code, as in effect on January 1, 2006. (2) “Beneficiary” means a pe…
ORS 130.015 UTC 104. Knowledge. (1) Subject to subsection (2) of this section, a person has knowledge of a fact if the person
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(a) Has actual knowledge of the fact; (b) Has received a notice or notification of the fact; or (c) From all the facts and circumstances known to the person at the time in question, has reason to know the fact. (2) An organization that conducts activities through employees has no…
ORS 130.020 UTC 105. Default and mandatory rules. (1) Except as otherwise provided in the terms of the trust, this chapter governs the duties and powers of a trustee, relations among trustees, and the rights and interests of a beneficiary
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(2) Except as provided in subsection (3) of this section, the terms of a trust may expand, restrict, eliminate or otherwise vary any laws of general application to trustees pertaining to the manner in which the trustee should invest assets, including whether to engage in one or m…
ORS 130.022 UTC 108. Principal place of administration. (1) Terms of a trust designating the principal place of administration are valid and controlling if
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(a) A trustee’s principal place of business is located in the designated state, country or other jurisdiction, or the trustee is a resident of the designated state, country or other jurisdiction; (b) All or part of the administration occurs in the designated state, country or oth…
ORS 130.025 UTC 106. Common law of trusts; principles of equity. The common law of trusts and principles of equity supplement this chapter, except to the extent modified by this chapter or other law. [2005 c.348 §6]
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[Repealed or reserved.]
ORS 130.030 UTC 107. Governing law. The meaning and effect of the terms of a trust are determined by
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(1) The law of the state, country or other jurisdiction designated in the terms of the trust unless the designation of the law of that state, country or other jurisdiction is contrary to a strong public policy of the state, country or other jurisdiction having the most significan…
ORS 130.035 UTC 109. Methods of giving notice; waiver of notice. (1) If any provision of this chapter requires that a trustee or other person give notice or requires that the trustee or other person send a document, the trustee or other person must give the notice or send the document in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document. Permissible methods of giving notice and sending documents under this chapter include first class mail, personal delivery, delivery to a person’s last known place of residence or place of business, or properly directed electronic mail
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(2) If any provision of this chapter requires that a trustee or other person give notice or requires that the trustee or other person send a document to another person, the trustee or other person need not give the notice or send the document to any person whose identity or locat…
ORS 130.040 UTC 110. Other persons treated as qualified beneficiaries. (1) A charitable organization expressly designated to receive distributions under the terms of a charitable trust has the rights of a qualified beneficiary under this chapter if the charitable organization is otherwise a qualified beneficiary as defined in ORS 130.010
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(2) A person appointed to enforce a trust created for the care of an animal or another noncharitable purpose as provided in ORS 130.185 or 130.190 has the rights of a qualified beneficiary under this chapter. (3) A person appointed as a trust enforcer of a stewardship trust as pr…
ORS 130.045 UTC 111. Nonjudicial settlement agreements. (1) For purposes of this section, “interested persons” means
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(a) Any settlor of a trust who is living; (b) All qualified beneficiaries; (c) Any acting trustee of the trust; (d) The Attorney General if the trust is a charitable trust; and (e) All members of a trust stewardship committee acting pursuant to ORS 130.193. (2) If the trust or a …
ORS 130.050 UTC 201. Role of court in administration of trust. (1) A court may intervene in the administration of a trust to the extent the court’s jurisdiction is invoked by an interested person or as provided by law
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(2) A trust is not subject to continuing judicial supervision unless ordered by a court. (3) A judicial proceeding may relate to any matter involving a trust’s administration, including a request for instructions or a declaratory judgment action. [2005 c.348 §12]
ORS 130.055 UTC 202. Jurisdiction over trustee and beneficiary. (1) By accepting the trusteeship of a trust having its principal place of administration in Oregon or by moving the principal place of administration to this state, the trustee submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust
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(2) The beneficiaries of a trust having its principal place of administration in Oregon are subject to the jurisdiction of the courts of Oregon regarding any matter involving the beneficiaries’ interests in the trust. By accepting a distribution from such a trust, the recipient s…
ORS 130.060 UTC 203. Subject-matter jurisdiction. Except as provided in ORS 130.355, the circuit court has jurisdiction of proceedings in this state concerning the administration of a trust. [2005 c.348 §14; 2009 c.275 §7]
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[Repealed or reserved.]
ORS 130.065 UTC 204. Venue. (1) Except as otherwise provided in this section, venue for a judicial proceeding involving a trust is in the county in which the trust’s principal place of administration is or will be located
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(2) If a trust is created by will and the estate is not yet closed, venue for a judicial proceeding involving a trust is in the county in which the decedent’s estate is being administered. (3) If a trust has no trustee, venue for a judicial proceeding for the appointment of a tru…
ORS 130.100 UTC 301. Representation; basic effect. (1) Notice to a person who may represent and bind another person under ORS 130.100 to 130.120 has the same effect as if notice were given directly to the other person. Notice to a representative must comply with ORS 130.035 (4)
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(2) The consent of a person who may represent and bind another person under ORS 130.100 to 130.120 is binding on the person represented unless the person represented objects to the representation before the consent would otherwise have become effective. (3) Except as otherwise pr…
ORS 130.105 UTC 302. Representation by holder of testamentary power of appointment. To the extent there is no conflict of interest between the holder of a testamentary power of appointment and the persons represented with respect to the particular question or dispute, the holder may represent and bind persons whose interests are subject to the power as permissible appointees, as takers in default or by other reason. [2005 c.348 §17; 2007 c.33 §1]
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[Repealed or reserved.]
ORS 130.110 UTC 303. Representation by fiduciaries and parents. To the extent there is no conflict of interest between the representative and the person represented or among those being represented with respect to a particular question or dispute
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(1) A conservator may represent and bind the estate that the conservator controls; (2) An agent having authority to act with respect to the particular question or dispute may represent and bind the principal; (3) A trustee may represent and bind the beneficiaries of the trust; (4…
ORS 130.115 UTC 304. Representation by person having substantially identical interest. Unless otherwise represented, a minor, financially incapable individual or unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable, may be represented by and bound by another person having a substantially identical interest with respect to the particular question or dispute, but only to the extent there is no conflict of interest between the representative and the person represented. [2005 c.348 §19]
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[Repealed or reserved.]
ORS 130.120 UTC 305. Appointment of special representative. (1) If the court determines that the interest of a person is not represented under ORS 130.100 to 130.120, or that the otherwise available representation might be inadequate, the court may appoint a special representative to receive notice, give consent and otherwise represent, bind and act on behalf of a minor, financially incapable individual or unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable. A special representative may be appointed to represent several persons or interests, if the interests of the persons represented do not conflict
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(2) A special representative may act on behalf of the individual represented with respect to any matter that the court has authorized, whether or not a judicial proceeding concerning the trust is pending. (3) In making decisions, a special representative may consider general bene…
ORS 130.150 UTC 401. Methods of creating trust. (1) A trust may be created
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(a) By transfer of property to another person as trustee during the settlor’s lifetime or by will or other disposition taking effect upon the settlor’s death; (b) By declaration by the owner of property that the owner holds identifiable property as trustee; (c) By exercise of a p…
ORS 130.155 UTC 402. Requirements for creation. (1) A trust is created only if all of the following requirements are met
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(a) The settlor has capacity to create a trust. (b) The settlor indicates an intention to create the trust. (c) The trust has a definite beneficiary or is: (A) A charitable trust; (B) A trust for the care of an animal, as provided in ORS 130.185; (C) A trust for a noncharitable p…
ORS 130.160 UTC 403. Trusts created in other states, countries or jurisdictions. A trust not created by will is validly created if the creation of the trust complies with the law of the state, country or other jurisdiction in which the trust instrument was executed, or the law of the state, country or other jurisdiction in which, at the time of creation
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(1) The settlor was domiciled, had a place of abode or was a national; (2) A trustee was domiciled or had a place of business; or (3) Any trust property was located. [2005 c.348 §23]
ORS 130.165 UTC 404. Trust purposes. A trust may be created only to the extent the purposes of the trust are lawful, not contrary to public policy and possible to achieve. A trust and its terms must be for the benefit of the trust’s beneficiaries. [2005 c.348 §24]
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[Repealed or reserved.]
ORS 130.170 UTC 405. Charitable trusts; enforcement. (1) A charitable trust is a trust that
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(a) Expressly designates one or more charitable organizations, or one or more classes of charitable organizations, to receive distributions as beneficiaries of the trust unless the combined interests of all charitable beneficiaries are negligible or all charitable beneficiaries a…
ORS 130.175 UTC 406. Creation of trust induced by fraud, duress or undue influence. A trust is void to the extent the creation of the trust was induced by fraud, duress or undue influence. [2005 c.348 §26]
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[Repealed or reserved.]
ORS 130.180 UTC 407. Evidence of oral trust. Except as required by a statute other than this chapter, a trust need not be evidenced by a trust instrument. The creation of an oral trust, and the terms of an oral trust, must be established by clear and convincing evidence. [2005 c.348 §27]
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[Repealed or reserved.]
ORS 130.185 UTC 408. Pet trust. (1) A trust may be created to provide for the care of one or more animals that are alive during the settlor’s lifetime. The trust terminates upon the death of the animal or, if the trust was created to provide for the care of more than one animal, upon the death of the last surviving animal. An oral or written declaration shall be liberally construed in favor of finding the creation of a trust under this section. There is a presumption against merely precatory or honorary disposition on behalf of an animal
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(2) A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if a person is not appointed in the terms of the trust, by a person appointed by the court. A person having an interest in the welfare of the animal may request the court to…
ORS 130.190 UTC 409. Noncharitable trust without ascertainable beneficiary. Except as otherwise provided in ORS 130.185 or by another statute
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(1) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee. The trust may not be enforced for more than 90 years. (2) A trust authorized by this…
ORS 130.193 Stewardship trust. (1) A stewardship trust may be created under this section for a business purpose without a definite or definitely ascertainable beneficiary. The business purpose may seek economic and noneconomic benefits
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(2) A stewardship trust may hold an ownership interest of any corporation, partnership, limited partnership, cooperative, limited liability company, limited liability partnership or joint venture. (3) A stewardship trust may be enforced by one or more trust enforcers appointed in…
ORS 130.195 UTC 410. Modification or termination of trust; proceedings for approval or disapproval. (1) In addition to the methods of termination prescribed by ORS 130.045, 130.200, 130.205, 130.210 and 130.215, a trust terminates
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(a) To the extent the trust is revoked or expires pursuant to the terms of the trust; (b) If no purpose of the trust remains to be achieved; or (c) To the extent one or more of the purposes of the trust have become unlawful, contrary to public policy or impossible to achieve. (2)…
ORS 130.200 UTC 411. Modification or termination of irrevocable trust by consent. (1) An irrevocable trust may be modified or terminated with approval of the court upon consent of the settlor and all beneficiaries who are not remote interest beneficiaries, even if the modification or termination is inconsistent with a material purpose of the trust. The Attorney General must consent to any modification or termination of a charitable trust. A settlor’s power to consent to a trust’s modification or termination may be exercised by
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(a) An agent or attorney-in-fact under a power of attorney only to the extent expressly authorized by the terms of the trust or the power of attorney; (b) The settlor’s conservator with the approval of the court supervising the conservatorship if an agent or attorney-in-fact is n…
ORS 130.205 UTC 412. Modifications or termination because of unanticipated circumstances or inability to administer trust effectively. (1) The court may modify the administrative or dispositive terms of a trust or terminate the trust if modification or termination will further the purposes of the trust and the modification or termination is requested by reason of circumstances not anticipated by the settlor. To the extent practicable, the modification must be made in accordance with the settlor’s probable intention
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(2) The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or wasteful, or would impair the trust’s administration. (3) A trustee may terminate a trust if: (a) Termination is appropriate by reason of circ…
ORS 130.210 UTC 413. Cy pres. (1) Except as otherwise provided in subsection (2) of this section, if a particular charitable purpose of a trust becomes unlawful, impracticable, impossible to achieve or wasteful
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(a) The trust does not fail, in whole or in part; (b) The trust property does not revert to the settlor or the settlor’s successors in interest; and (c) The court may apply cy pres to modify or terminate the trust by directing that the trust property be applied or distributed, in…
ORS 130.215 UTC 414. Modification or termination of uneconomic trust. (1) After notice to the qualified beneficiaries, a trustee may terminate a trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration. A trustee may not terminate a trust under this section if the trustee is a qualified beneficiary of the trust or has a duty of support for a qualified beneficiary of the trust
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(2) The court may modify or terminate a trust, or remove the trustee and appoint a different trustee, if the court finds that the value of the trust property is insufficient to justify the cost of administration. (3) Upon termination of a trust under this section, the trustee sha…
ORS 130.220 UTC 415. Reformation to correct mistakes. The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor’s intention if the person requesting reformation proves by clear and convincing evidence that both the settlor’s intent and the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement. [2005 c.348 §35]
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[Repealed or reserved.]
ORS 130.225 UTC 416. Modification to achieve settlor’s tax objectives. The court may modify the terms of a trust to achieve the settlor’s tax objectives if the modification is not contrary to the settlor’s probable intention. The court may provide that the modification has retroactive effect. [2005 c.348 §36]
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[Repealed or reserved.]
ORS 130.230 UTC 417. Combination and division of trusts. (1) Subject to subsection (2) of this section, a trustee may
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(a) Combine two or more trusts into a single trust by taking into account the pro rata economic interests of each beneficiary of each trust; or (b) Divide a trust into two or more separate trusts. (2) In taking any of the actions under subsection (1) of this section, the trustee …
ORS 130.232 Division of trust into separate shares or portions; legal effect. (1) If the occurrence of an event, satisfaction of a condition or exercise of a power allows or creates an obligation for the trustee to divide a trust or any portion of a trust into separate shares or portions for the benefit of separate beneficiaries
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(a) A separate share of a trust comes into existence at the earliest possible time that a trustee may reasonably determine, based upon the facts, that a separate economic interest exists for a beneficiary; (b) Each income beneficiary’s share resulting from the division of the tru…
ORS 130.235 In terrorem clause. (1) Except as provided in this section, an in terrorem clause in a trust is valid and enforceable. If a beneficiary challenges a trust that contains an in terrorem clause that applies to the beneficiary, the court shall enforce the clause against the beneficiary even though the beneficiary establishes that there was probable cause for the challenge
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(2) The court shall not enforce an in terrorem clause if the beneficiary challenging the trust establishes that the beneficiary has probable cause to believe that the trust is a forgery or that the trust has been revoked. (3) The court shall not enforce an in terrorem clause if t…
ORS 130.237 Abatement due to insufficiency of trust property. (1) As used in this section, “abate” or “abatement” means to reduce or the reduction of a gift from a trust at the settlor’s death on account of the insufficiency of the trust property to pay all claims and expenses and distribute all gifts in full
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(2) If the trust instrument expresses an order of abatement, or if the plan of distribution or the express or implied purpose of the distribution from the trust would be defeated by the order of abatement stated in subsection (3) of this section, the shares of the distributees ab…
ORS 130.240 Marital deduction gifts. (1) As used in this section
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(a) “Marital deduction” means the federal estate tax deduction allowed for transfers under section 2056 of the Internal Revenue Code, as in effect on January 1, 2008, or the federal gift tax deduction allowed for transfers under section 2523 of the Internal Revenue Code, as in ef…
ORS 130.300 UTC 501. Rights of beneficiary’s creditor or assignee. To the extent a beneficiary’s interest is not protected by a spendthrift provision, the court may authorize a creditor or assignee of the beneficiary to reach the beneficiary’s interest by garnishment or other execution against present or future distributions to or for the benefit of the beneficiary or by other means. The court may limit the award to such relief as is appropriate under the circumstances. [2005 c.348 §39]
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[Repealed or reserved.]
ORS 130.305 UTC 502. Spendthrift provision. (1) A spendthrift provision is valid only if the provision restrains both voluntary and involuntary transfer of a beneficiary’s interest
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(2) A term of a trust providing that the interest of a beneficiary is held subject to a spendthrift trust, or words of similar import, is sufficient to restrain both voluntary and involuntary transfer of the beneficiary’s interest. (3) A beneficiary may not transfer an interest i…
ORS 130.310 UTC 503. Exceptions to spendthrift provisions. (1) As used in this section, “child” means any individual for whose benefit a judgment, court order or administrative order for child support has been entered in any state, country or other jurisdiction
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(2) Even if a trust contains a spendthrift provision, the holder of a judgment, court order or administrative order against a beneficiary for support or maintenance of the beneficiary’s child, spouse or former spouse or a judgment creditor who has provided services for the protec…
ORS 130.315 UTC 505. Creditor’s claim against settlor. (1) Whether or not the terms of a trust contain a spendthrift provision, except as provided in ORS 130.518
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(a) During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor’s creditors. (b) A creditor or assignee of the settlor of an irrevocable trust may reach the maximum amount that can be distributed to or for the settlor’s benefit. If an…
ORS 130.320 UTC 506. Overdue distribution. Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the designated distribution date. [2005 c.348 §43]
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[Repealed or reserved.]
ORS 130.325 UTC 507. Personal obligations of trustee. Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. [2005 c.348 §44]
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CLAIMS AGAINST TRUST BASED ON DEBTS OF SETTLOR
ORS 130.350 Statute of limitations. (1) Claims against a trust described in subsection (2) of this section that are not presented within the time limitations established under ORS 130.360 or within the statute of limitations applicable to the claim, whichever is earlier, are barred from payment from the trust estate
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(2) ORS 130.350 to 130.450 apply only if: (a) A claim is made against assets of a trust; (b) The trust came into existence during the settlor’s lifetime and was a revocable trust at any time after the trust was created and before the death of the settlor; (c) The claim is based o…
ORS 130.355 Commencement of proceeding. (1) At any time after the death of a settlor of a trust described in ORS 130.350 (2), a trustee of the trust may petition the probate court to determine the claims of creditors of the settlor. A petition under this section must include all of the following information to the extent known by the trustee
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(a) The settlor’s name, the settlor’s date of birth, the settlor’s date and place of death and the last four digits of the settlor’s Social Security number. (b) The name of the trustee. (c) The address at which claims must be presented. (d) The name of the trust, if any, and the …