Title 13, Protective Proceedings; Powers of Attorney; Trusts

This chapter may be cited as the Oregon Uniform Trust Code. [2005 c.348 §1]

(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. (2) Thi…

For the purposes of this chapter: (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, …

(1) Subject to subsection (2) of this section, a person has knowledge of a fact if the person: (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…

(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. (2) Except as provided in subsection (3) of this section, the terms of a trust may expand,…

(1) Terms of a trust designating the principal place of administration are valid and controlling if: (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 oth…

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]

The meaning and effect of the terms of a trust are determined by: (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 t…

(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…

(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. (2) A pers…

(1) For purposes of this section, “interested persons” means: (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 co…

(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. (2) A trust is not subject to continuing judicial supervision unless ordered by a court. (3) A judicial proceeding may relat…

(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 t…

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]

(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. (2) If a trust is created by will and the estate is not yet closed, venue for a judic…

(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). (2) The consent of a person who may represent and b…

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 permissib…

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: (1) A conservator may represent and bind the estate that the conservator controls; (2) An agent …

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 respe…

(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, b…

(1) A trust may be created: (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 tru…

(1) A trust is created only if all of the following requirements are met: (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 o…

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: (1) …

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]

(1) A charitable trust is a trust that: (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 negl…

A trust is void to the extent the creation of the trust was induced by fraud, duress or undue influence. [2005 c.348 §26]

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]

(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 survi…

Except as otherwise provided in ORS 130.185 or by another statute: (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…

(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. (2) A stewardship trust may hold an ownership interest of any corporation,…

(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: (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) …

(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 Attorne…

(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 …

(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: (a) The trust does not fail, in whole or in part; (b) The trust property does not revert to the se…

(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 qualifi…

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 fac…

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]

(1) Subject to subsection (2) of this section, a trustee may: (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 …

(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: (a) A separate share of a …

(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 b…

(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. (2) If the trust instrument ex…

(1) As used in this section: (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 In…

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 benefi…

(1) A spendthrift provision is valid only if the provision restrains both voluntary and involuntary transfer of a beneficiary’s interest. (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 suff…

(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. (2) Even if a trust contains a spendthrift provision, the holder of a judgme…

(1) Whether or not the terms of a trust contain a spendthrift provision, except as provided in ORS 130.518: (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 i…

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 with…

Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. [2005 c.348 §44] CLAIMS AGAINST TRUST BASED ON DEBTS OF SETTLOR

(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 estat…

(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 exte…