130.001 UTC 101
Short title. This chapter may be cited as the Oregon Uniform Trust Code.
Oregon Revised Statutes
Chapter 130 — Uniform Trust Code
68 sections130.005 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. This chapter does not apply to: A trust that is part of an employee benefit ar…
130.010 UTC 103
Definitions. For the purposes of this chapter: “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. “Beneficiary” means a person that: Has a present or future ben…
130.015 UTC 104
Knowledge. (1) Subject to subsection (2) of this section, a person has knowledge of a fact if the person: Has actual knowledge of the fact; Has received a notice or notification of the fact; or From all the facts and circumstances known to the person at the time in question, has reason to know the fact. An organization that conducts activities through em…
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. Except as provided in subsection (3) of this section, the terms of a trust may expand, restrict, eliminate or otherwise vary any laws of gen…
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 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; All or part of the administrat…
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.
130.030 UTC 107
Governing law. The meaning and effect of the terms of a trust are determined by: 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 significant …
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 …
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. A person appointed to enforce a trust c…
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 qualified beneficiaries; Any acting trustee of the trust; The Attorney General if the trust is a charitable trust; and All members of a trust stewardship committee acting pursuant to ORS 130.193. If the trust or a p…
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. A trust is not subject to continuing judicial supervision unless ordered by a court. A judicial proceeding may relate to any matter involving a trust’s administ…
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. The beneficiaries of a trust h…
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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.
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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. 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 es…
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). The consent of a person who may represent and bind another person under ORS 130.100 to 130.120 is bi…
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…
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: A conservator may represent and bind the estate that the conservator controls; An agent having authority to act with respect to the…
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 part…
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, financi…
130.150 UTC 401
Methods of creating trust. (1) A trust may be created: 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; By declaration by the owner of property that the owner holds identifiable property as trustee; By exercise of a power of appointment in favor of a …
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Requirements for creation. (1) A trust is created only if all of the following requirements are met: The settlor has capacity to create a trust. The settlor indicates an intention to create the trust. The trust has a definite beneficiary or is: A charitable trust; A trust for the care of an animal, as provided in ORS 130.185; A trust for a noncharitabl…
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: The settlor was domicil…
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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.
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Charitable trusts; enforcement. (1) A charitable trust is a trust that: 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 are remote i…
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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.
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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.
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 constr…
130.190 UTC 409
Noncharitable trust without ascertainable beneficiary. Except as otherwise provided in ORS 130.185 or by another statute: 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 9…
130.193 Stewardship trust
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. A stewardship trust may hold an ownership interest of any corporation, partnership, limited partnership, cooperative, limited liability company, limited liab…
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: To the extent the trust is revoked or expires pursuant to the terms of the trust; If no purpose of the trust remains to be achieved; or To the ext…
130.200 UTC 411
Modification or termination of irrevocable trust by consent. 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…
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 n…
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: The trust does not fail, in whole or in part; The trust property does not revert to the settlor or the settlor’s successors in interest; and The court may apply cy pr…
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 …
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.
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.
130.230 UTC 417
Subject to subsection of this section, a trustee may: 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 Divide a trust into two or more separate trusts. In taking any of the actions under subsection (1) of this section, the trustee shall: Provide notice to all qual…
130.232 Division of trust into separate shares or portions; legal effect
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 separate share of a trust comes into existence at the earliest possible time that a trustee may reasonably …
130.235 In terrorem clause
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. The court s…
130.237 Abatement due to insufficiency of trust property
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. If the trust instrument expresses an order of abatement, or if the plan of distribution or the express or implied…
130.240 Marital deduction gifts
As used in this section: “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 effect on January 1, 2008. “Marital deduction gift” means a…
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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 m…
130.305 UTC 502
Spendthrift provision. A spendthrift provision is valid only if the provision restrains both voluntary and involuntary transfer of a beneficiary’s interest. 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 t…
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. Even if a trust contains a spendthrift provision, the holder of a judgment, court order or administrative order again…
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: During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor’s creditors. A creditor or assignee of the settlor of an irrevocable trust may reach the maximum amount that c…
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 dat…
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.
130.350 Statute of limitations
Claims against a trust described in subsection 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. ORS 130.350 to 130.450 apply only if: A claim is made against assets of a trust; …
130.355 Commencement of proceeding
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: The settlor’s name, the settlor’s date of birth, the settl…
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 give notice to persons with claims against the trust estate in the manner provided by ORS 130.365 and 130.370. All claims against the trust estate are barred unless those claims are submitted before the later of: Four months …
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 in a newspaper of general circulation published in the county in which the petition is filed. The notice must include: The name of the settlor; The name of the trustee and the address at which claims must be presente…
130.370 Notice to individual claimants
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 court allows, a trustee must make reasonably diligent efforts to investigate the financial records and affairs of the settlor and to take such further actions as are reasonably necessary to ascertain the identity and address of ea…
130.375 Form of claim; evidence in support
A claim presented under ORS 130.350 to 130.450 must: Be in writing. Describe the nature and the amount of the claim, if ascertainable. State the name and address of the claimant and any attorney for the claimant. A defect of form of a claim timely presented may be waived by the trustee or by the court. Upon demand of a trustee, a claimant must produce a…
130.380 Claim based on debt due or judgment
If a claim on a debt due is presented and allowed, allowance shall be in the amount of the debt remaining unpaid on the date of allowance. If a judgment was entered on a claim prior to the death of the settlor, the claim shall be presented under ORS 130.350 to 130.450 in the same manner as if no judgment had been entered, and a copy of the judgment shall be…
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 as a claim on a debt due. If the claim is allowed, allowance shall be in an amount equal to the value of the debt on the date of allowance. The creditor, after allowance of the claim, may withdraw the claim without prejudice to o…
130.390 Claim on secured debt that is due
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 an unsecured debt due, or the creditor may elect to rely entirely on the security without presentation of the claim. If the claim is presented under this section, the claim shall describe the security. If the security is an encumbrance tha…
130.395 Claim on contingent or unliquidated debt
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 the debt becomes absolute or liquidated before distribution of the trust estate, the claim shall be paid in the same manner as a claim on an absolute or liquidated debt. If a contingent or unliquidated debt does not become abso…
130.400 Allowance and disallowance of claims
The trustee may compromise a claim against the trust estate. A claim presented to a trustee under ORS 130.350 to 130.450 shall be considered allowed as presented unless within 60 days after the date of presentment of the claim the trustee mails or delivers a notice of disallowance of the claim in whole or in part to the claimant and to the attorney of the c…
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 the date of the first publication of notice to interested persons, may apply to the court for an order directing the trustee to pay the claim. The trustee may recover amounts owing under the claim from a…
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, satisfactory evidence other than the testimony of the claimant.
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 any court except upon the written direction or consent of those interested persons who would be adversely affected by allowance of the claim.
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 any statute of limitations until at least one year after the date of death.
130.425 Priority of claims
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: Expenses of administering the trust estate. Expenses of a plain and decent funeral and disposition of the remains of the settlor. Debts and taxes with preference under federal law. Reasonable and necessary medical and hospi…
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 the state, or brought in the name of any county or public corporation, and to actions brought for the benefit of the state or for the benefit of any county or public corporation.
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: Any proceeding to enforce a mortgage, pledge or other lien upon property of the trust estate; Any proceeding to quiet title or reform any instrument with respect to title to property; or To the limits of the insurance protection only, any proceeding to estab…
130.440 Petition to close case
Not earlier than four months after the publication of notice to claimants, or the date on which all claims against the trust estate have been resolved, whichever is later, a trustee that has filed a petition under ORS 130.355 must file a petition to close the case with a statement that all claims received by the trustee have been paid in full or otherwise r…
130.445 Dismissal for want of prosecution
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 130.355, the court clerk shall mail a notice to the trustee, or the attorney for the trustee if the trustee is represented by counsel, informing the trustee that a judgment of dismissal will be entered in the case for want of prosecut…