Oregon Statutes - Chapter 130 - Uniform Trust Code

130.001 UTC 101. Short title.
This chapter may be cited as the Oregon Uniform Trust Code. [2005 c.348 §1]
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...
130.010 UTC 103. Definitions.
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...
130.015 UTC 104. Knowledge.
(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;...
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...
130.022 UTC 108. Principal place of administration.
(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...
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
130.030 UTC 107. Governing law.
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...
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...
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...
130.045 UTC 111. Nonjudicial settlement agreements.
(1) For purposes of this section, �interested persons� means any settlor of a trust who is living, all beneficiaries of the trust who have an...
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...
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...
130.060 UTC 203. Subject-matter jurisdiction.
The circuit court has jurisdiction of proceedings in this state concerning the administration of a trust. [2005 c.348 §14]
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...
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...
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...
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...
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...
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...
130.150 UTC 401. Methods of creating trust.
(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...
130.155 UTC 402. Requirements for creation.
(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...
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...
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....
130.170 UTC 405. Charitable purposes; enforcement.
(1) A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal...
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]
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...
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...
130.190 UTC 409. Noncharitable trust without ascertainable beneficiary.
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...
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 130.200, 130.205, 130.210 and 130.215, a trust terminates: (a) To the extent the trust...
130.200 UTC 411. Modification or termination of irrevocable trust by consent.
(1) An irrevocable trust may be modified or terminated upon consent of the settlor and all beneficiaries, even if the modification or termination is inconsistent...
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...
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...
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...
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...
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...
130.230 UTC 417. Combination and division of trusts.
After notice to all qualified beneficiaries, a trustee may combine two or more trusts into a single trust or divide a trust into two or...
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...
130.240 Marital deduction gifts.
(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...
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...
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. (2) A term of a...
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...
130.315 UTC 505. Creditor�s claim against settlor.
(1) Whether or not the terms of a trust contain a spendthrift provision: (a) During the lifetime of the settlor, the property of a revocable...
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,...
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] CLAIMS AGAINST TRUST...
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...
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...
130.360 Limitation on presentation of claims when notice to claimants given.
Not later than four months after a petition under ORS 130.355 is entered in the register of the court, the trustee of the trust shall...
130.365 Publication of notice.
After filing a petition under ORS 130.355, a trustee must cause a notice to claimants to be published once in each of three consecutive weeks...
130.370 Notice to individual claimants.
(1) Within three months after a petition is entered in the register of the court under ORS 130.355, or within such longer time as the...
130.375 Form of claim; evidence in support.
(1) A claim presented under ORS 130.350 to 130.450 must: (a) Be in writing. (b) Describe the nature and the amount of the claim, if...
130.380 Claim based on debt due or judgment.
(1) If a claim on a debt due is presented and allowed, allowance shall be in the amount of the debt remaining unpaid on the...
130.385 Claim on debts not yet due.
A claim on a debt not due, whether or not the creditor holds security for the claim, may be presented under ORS 130.350 to 130.450...
130.390 Claim on secured debt that is due.
(1) A claim on a debt due for which the creditor holds security may be presented under ORS 130.350 to 130.450 as a claim on...
130.395 Claim on contingent or unliquidated debt.
(1) A claim on a contingent or unliquidated debt shall be presented under ORS 130.350 to 130.450 in the same manner as other claims. If...
130.400 Allowance and disallowance of claims.
(1) The trustee may compromise a claim against the trust estate. (2) A claim presented to a trustee under ORS 130.350 to 130.450 shall be...
130.405 Creditor may obtain order for payment.
A creditor whose claim has been allowed or established by summary determination or separate action, and who has not received payment within six months after...
130.410 Evidence required to allow court approval of claim disallowed by trustee.
A claim that has been disallowed by a trustee under ORS 130.350 to 130.450 may not be allowed by any court except upon some competent,...
130.415 Waiver of statute of limitations.
A claim subject to ORS 130.350 to 130.450 that is barred by a statute of limitations may not be allowed by the trustee or by...
130.420 Tolling of statute of limitations on claim.
If a claim is not barred by the statute of limitations on the date of death of the settlor, the claim is not barred by...
130.425 Priority of claims.
(1) Claims allowed against the trust estate under ORS 130.350 to 130.450 must be paid by the trustee in the following order of priority: (a)...
130.430 Applicability of time limitations to public bodies.
Notwithstanding ORS 12.250, all statutes of limitations and other time limitations imposed under ORS 130.350 to 130.450 apply to actions brought in the name of...
130.435 Applicability of time limitations to certain claims based on liens against property and liability of settlor or trustee.
The statutes of limitations and time limitations provided by ORS 130.350 to 130.450 do not affect: (1) Any proceeding to enforce a mortgage, pledge or...
130.440 Petition to close case.
(1) Not earlier than four months after the publication of notice to claimants, or the date on which all claims against the trust estate have...
130.445 Dismissal for want of prosecution.
(1) If the trustee does not file a petition to close the case under ORS 130.440 within one year after filing a petition under ORS...
130.450 Consolidation of proceedings.
If the proceeding to determine claims against a deceased settlor is pending under ORS 130.350 to 130.450 at the same time as probate proceedings under...
130.500 UTC 601. Capacity of settlor of revocable trust.
A person who has capacity to make a will has capacity to create, amend, revoke or add property to a revocable trust, or to direct...
130.505 UTC 602. Revocation or amendment of revocable trust.
(1) Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor of the trust may revoke or amend the trust....
130.510 UTC 603. Settlor�s powers; powers of withdrawal.
(1) While the settlor of a revocable trust is alive, rights of the beneficiaries are subject to the control of the settlor, and the duties...
130.515 UTC 604. Limitation on action contesting validity of revocable trust; distribution of trust property.
(1) A person must commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor�s death in the manner...
130.520 Definition for ORS 130.520 to 130.575.
For the purposes of ORS 130.520 to 130.575, �specific distribution� means a distribution of specific property to a specific beneficiary that is required under the...
130.525 Applicability of ORS 130.520 to 130.575.
ORS 130.520 to 130.575 apply only to a trust, or a portion of a trust, that comes into existence during the settlor�s lifetime and is...
130.530 Effect of marriage.
Unless otherwise provided by the terms of the trust instrument, a trust is not revoked by the marriage of the settlor after the trust instrument...
130.535 Revocation by divorce or annulment.
(1) Unless otherwise provided by the terms of the trust instrument, a settlor�s divorce or the annulment of the settlor�s marriage, after the trust instrument...
130.540 Contract of sale of property not revocation.
Unless otherwise provided by the terms of the trust instrument, a contract of sale made by a trustee to convey property that is the subject...
130.545 Encumbrance or disposition of property after trust instrument executed.
Unless otherwise provided by the terms of the trust instrument: (1) A disposition of a portion of property that is subject to a specific distribution...
130.550 When trust assets pass to descendants of beneficiary; class gifts.
Unless otherwise provided by the terms of the trust instrument, when property is to be distributed under the trust to any beneficiary who is related...
130.555 Children born or adopted after execution of trust instrument.
(1) As used in this section, �pretermitted child� means a child of a settlor who is born or adopted after the execution of the trust...
130.560 Failure of specific distribution.
(1) Subject to this section, a specific distribution does not fail by reason of the destruction, damage, sale, condemnation or change in form of the...
130.565 Effect of failure of specific distribution.
If a specific distribution, other than a specific distribution that governs the residue of the trust estate, fails for any reason, the property that is...
130.570 Advancement against share of trust.
Property that the settlor gives during the settlor�s lifetime to a beneficiary of the trust is an advancement against the beneficiary�s share of the trust...
130.575 Effect of advancement on distribution.
(1) If the value of an advancement made to a beneficiary under ORS 130.570 exceeds the beneficiary�s share in the trust estate, the beneficiary shall...
130.600 UTC 701. Acceptance or rejection of trusteeship.
(1) Except as otherwise provided in subsection (3) or (4) of this section, a person designated as trustee accepts the trusteeship: (a) By substantially complying...
130.605 UTC 702. Trustee�s bond.
(1) A trustee shall acquire a bond to secure performance of the trustee�s duties only if a bond is required by the terms of the...
130.610 UTC 703. Cotrustees.
(1) Cotrustees who are unable to reach a unanimous decision may act by majority decision. (2) If a vacancy occurs in a cotrusteeship, the remaining...
130.615 UTC 704. Vacancy in trusteeship; appointment of successor.
(1) A vacancy in a trusteeship occurs if: (a) A person designated as trustee rejects the trusteeship; (b) A person designated as trustee cannot be...
130.620 UTC 705. Resignation of trustee.
(1) A trustee may resign: (a) After at least 30 days� notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or (b)...
130.625 UTC 706. Removal of trustee.
(1) The settlor, a cotrustee or a beneficiary may request that a court remove a trustee, or a trustee may be removed by a court...
130.630 UTC 707. Delivery of property by former trustee.
(1) Unless a cotrustee remains in office or the court otherwise orders, a trustee who has resigned or been removed has the duties of a...
130.635 UTC 708. Compensation of trustee.
(1) If the terms of a trust do not specify the trustee�s compensation, a trustee is entitled to compensation that is reasonable under the circumstances....
130.640 UTC 709. Reimbursement of expenses.
(1) A trustee is entitled to be reimbursed out of the trust property, with reasonable interest if appropriate, for: (a) Expenses that were properly incurred...
130.650 UTC 801. Duty to administer trust.
Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of...
130.655 UTC 802. Duty of loyalty.
(1) A trustee shall administer the trust solely in the interests of the beneficiaries. (2) Subject to the rights of persons dealing with or assisting...
130.660 UTC 803. Impartiality.
If a trust has two or more beneficiaries, the trustee shall act impartially in investing, managing and distributing the trust property, giving due regard to...
130.665 UTC 804. Prudent administration.
A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements and other circumstances of the trust. In...
130.670 UTC 805. Costs of administration.
In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust and...
130.675 UTC 806. Trustee�s skills.
A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee�s representation that the trustee has special skills or...
130.680 UTC 807. Delegation by trustee.
(1) A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise...
130.685 UTC 808. Powers to direct.
(1) While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms of the trust. (2)...
130.690 UTC 809. Control and protection of trust property.
A trustee shall take reasonable steps to take control of and protect the trust property. [2005 c.348 §67]
130.695 UTC 810. Recordkeeping and identification of trust property.
(1) A trustee shall keep adequate records of the administration of the trust. (2) A trustee shall keep trust property separate from the trustee�s own...
130.700 UTC 811. Enforcement and defense of claims.
A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust. [2005 c.348 §69]
130.705 UTC 812. Collecting trust property.
A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee, and to remedy a...
130.710 UTC 813. Duty to inform and report.
(1) A trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and of the material facts necessary...
130.715 UTC 814. Discretionary powers; tax savings.
(1) A trustee shall exercise a discretionary power in good faith and in a manner that is in accordance with the terms and purposes of...
130.720 UTC 815. General powers of trustee.
(1) A trustee, without authorization by the court, may exercise powers conferred by the terms of the trust and, except as limited by the terms...
130.725 UTC 816. Specific powers of trustee.
Without limiting the authority conferred by ORS 130.720, a trustee may do any of the following: (1) Collect trust property and accept or reject additions...
130.730 UTC 817. Distribution upon termination.
(1) Upon termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution. The right of any beneficiary...
130.750 Trustee�s duty to comply with prudent investor rule.
(1) Except as otherwise provided in subsection (2) of this section, a trustee who invests and manages trust assets owes a duty to the beneficiaries...
130.755 Prudent investor rule.
(1) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements and other circumstances of...
130.760 Diversification of trust investments.
A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are...
130.765 Trustee duty.
Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning...
130.770 Determination of compliance with prudent investor rule.
Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee�s decision or action...
130.775 Trust language authorizing investments permitted under prudent investor rule.
Unless otherwise limited or modified, the following terms or comparable language in the provisions of a trust authorize any investment or strategy permitted under ORS...
130.800 UTC 1001. Remedies for breach of trust.
(1) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust. A breach of trust may...
130.805 UTC 1002. Damages for breach of trust.
(1) A trustee who commits a breach of trust is liable to the beneficiaries affected for the greater of: (a) The amount of damages caused...
130.810 UTC 1003. Damages in absence of breach.
(1) Except as provided by ORS 130.725 (4) and (15) or 709.175 or other law of this state, a trustee is accountable to an affected...
130.815 UTC 1004. Attorney fees and costs.
In a judicial proceeding involving the validity or administration of a trust, the court may award costs and expenses and reasonable attorney�s fees to any...
130.820 UTC 1005. Limitation of action against trustee.
(1) Notwithstanding ORS chapter 12 or any other provision of law, but subject to subsection (2) of this section, a civil action against a trustee...
130.825 UTC 1006. Reliance on trust instrument.
A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary...
130.830 UTC 1007. Event affecting administration or distribution.
A trustee is not liable for failing to determine whether a marriage, a divorce, a death, the performance of educational requirements or another event affecting...
130.835 UTC 1008. Exculpation of trustee.
(1) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that the term: (a) Relieves...
130.840 UTC 1009. Beneficiary�s consent, release or ratification.
If a beneficiary consents to conduct of a trustee that constitutes a breach of trust, releases a trustee from liability for a breach of trust...
130.845 UTC 1010. Limitation on personal liability of trustee.
(1) Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee�s fiduciary capacity...
130.850 UTC 1011. Interest as general partner.
(1) Except as otherwise provided in subsection (3) of this section or unless personal liability is imposed in the contract, a trustee who holds an...
130.855 UTC 1012. Protection of person dealing with trustee.
(1) A person other than a beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a...
130.860 UTC 1013. Certification of trust.
(1) A person who is not a beneficiary and who proposes to deal with the trustee of a trust may require that all trustees execute...
130.900 Uniformity of application and construction.
In applying and construing ORS chapter 130, consideration must be given to the need to promote uniformity of the law with respect to trusts among...
130.905 UTC 1102. Electronic records and signatures.
The legal effect, validity or enforceability of electronic records or electronic signatures under ORS chapter 130, and of contracts formed or performed with the use...
130.910 UTC 1106. Application.
(1) Except as otherwise provided in ORS chapter 130: (a) ORS chapter 130 applies to all trusts created before, on or after January 1, 2006....

Last modified: August 7, 2008