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
136 sections130.005 UTC 102. Scope
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 arrangement o…
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 beneficial inter…
130.015 UTC 104. Knowledge
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 employees has not…
130.020 UTC 105. Default and mandatory rules
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 general application to trustees pert…
130.022 UTC 108. Principal place of administration
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 administration occurs in the designated state, cou…
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 relationship to…
130.035 UTC 109. Methods of giving notice; waiver of notice
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 givin…
130.040 UTC 110. Other persons treated as qualified beneficiaries
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 created for the care of an animal or another noncharita…
130.045 UTC 111. Nonjudicial settlement agreements
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 portion of the trust is a charitable tru…
130.050 UTC 201. Role of court in administration of trust
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 administration, including a request for instructions o…
130.055 UTC 202. Jurisdiction over trustee and beneficiary
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 having its principal place of administration in …
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.
130.065 UTC 204. Venue
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 estate is bei…
130.100 UTC 301. Representation; basic effect
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 binding on the person represented un…
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.
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 particular question or dispute may represe…
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 con…
130.120 UTC 305. Appointment of special representative
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 individ…
130.150 UTC 401. Methods of creating trust
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 trustee; By an agent or attorn…
130.155 UTC 402. Requirements for creation
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 noncharitable purpose, as provided in ORS 1…
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 domiciled, had a place of abode or was a national; A trustee was d…
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.
130.170 UTC 405. Charitable trusts; enforcement
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 interest beneficiaries; or Is create…
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.
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.
130.185 UTC 408. Pet trust
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…
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 90 years. A trust authorized by this section may be enf…
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
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 extent one or more of the purposes of the trust have become unlawful, contrary to publ…
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 to any modification or termination of a charitable trust. A s…
130.205 UTC 412. Modifications or termination because of unanticipated circumstances or inability to administer trust effectively
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…
130.210 UTC 413. Cy pres
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 pres to modify …
130.215 UTC 414. Modification or termination of uneconomic trust
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 …
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. Combination and division of trusts
Subject to subsection (2) 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 q…
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…
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 re…
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 the beneficiary’s interes…
130.310 UTC 503. Exceptions to spendthrift provisions
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 against a beneficiary for support or maintenanc…
130.315 UTC 505. Creditor’s claim against settlor
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 can be distributed to or for the settlo…
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.
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. CLAIMS AGAINST TRUST BASED ON DEBTS OF SETTLOR
130.350 Statute of limitations
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. 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 re…
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…
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 ORS chapter 115, upon motion of any party or upon the court’s own motion, any of the courts conducting proceedings may: Order a joint hearing or trial on the common claims; Order that the proceedings be cons…
130.500 UTC 601. Revocable trusts generally
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 the actions of the trustee of a revocable trust. A revocable trust remains a revocable trust for the purposes of ORS 130.520 to 130.575 even though the trust cannot be revoked because: The settlor becomes financially incapable; …
130.505 UTC 602. Revocation or amendment of revocable trust
Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor of the trust may revoke or amend the trust. Unless the trust expressly provides otherwise, if a revocable trust is created or funded by more than one settlor: To the extent the trust consists of community property, the trust may be revoked by either spouse acting alone…
130.510 UTC 603. Settlor’s powers; powers of withdrawal
While the settlor of a revocable trust is alive, rights of the beneficiaries are subject to the control of the settlor, and the duties of the trustee are owed exclusively to the settlor. Beneficiaries other than the settlor have no right to receive notice, information or reports under this chapter. The rights of the beneficiaries with respect to property th…
130.515 UTC 604. Limitation on action contesting validity of revocable trust; distribution of trust property
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 prescribed by ORS 12.020 within the earlier of: Three years after the settlor’s death; or Four months after the trustee sends the person a copy of the trust instrument and notice informing the person of the trust’s existen…
130.518 Creditor protections retained upon conveyance of property held as tenants by the entirety to revocable trust
Real property of spouses married to each other that was held as tenants by the entirety and subsequently conveyed to the trustee or trustees of the joint revocable trust of the spouses or of the separate revocable trust of each spouse shall have the same immunity from the claims of a spouse’s creditors as would exist if the spouses had continued to hold the …
130.520 “Specific distribution” defined 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 terms of a trust instrument.
130.525 Applicability of ORS 130.530, 130.535 and 130.540 to 130.575
ORS 130.530 and 130.535 apply only to a trust, or portion of a trust: That comes into existence during the settlor’s lifetime; and Is a revocable trust on the occurrence of any of the events described in ORS 130.530 or 130.535. ORS 130.540 to 130.575 apply only to a trust, or a portion of a trust, that comes into existence during the settlor’s lifetime an…
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 is executed.
130.535 Revocation by divorce or annulment
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 is executed: Revokes all provisions of the trust in favor of the former spouse of the settlor; Revokes all powers of appointment, general or nongeneral, in the trust that are exercisable by the former sp…
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 of a specific distribution is not a revocation of the specific distribution. If all or part of the property that is the subject of the contract of sale has not been delivered at the time set in the trust instrument for t…
130.545 Encumbrance or disposition of property after trust instrument executed
Unless otherwise provided by the terms of the trust instrument: A disposition of a portion of property that is subject to a specific distribution does not affect the operation of the trust upon the remaining portion of the property; and If property subject to a specific distribution is encumbered, the property passes under the specific distribution but is …
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 by blood or adoption to the settlor, and the beneficiary dies leaving lineal descendants either before the settlor dies or before the time set in the trust instrument for distribution, the descendants take by ri…
130.555 Children of settlors; pretermitted children
As used in this section, “pretermitted child” means a child of a settlor who, after the execution of the trust instrument, is born or adopted during the lifetime of the settlor or is in gestation at the time of the settlor’s death, who is not acknowledged or mentioned, either by name or by class, in the trust instrument or in the settlor’s will, and who surv…
130.560 Failure of specific distribution
Subject to this section, a specific distribution does not fail by reason of the destruction, damage, sale, condemnation or change in form of the property that is the subject of the specific distribution unless: The trust instrument provides that the specific distribution fails under the particular circumstances; or The settlor, during the lifetime of the s…
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 the subject of the specific distribution becomes part of the residue and must be distributed as provided by the terms of the trust instrument for the residue.
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 only if either the settlor makes a written statement that the property constitutes an advancement or the beneficiary makes a written statement acknowledging that the property constitutes an advancement. Fo…
130.575 Effect of advancement on distribution
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 be excluded from any further share of the trust estate, but the beneficiary is not required to refund any part of the advancement. If the value of the beneficiary’s share in the trust estate is greater than the val…
130.600 UTC 701. Acceptance or rejection of trusteeship
Except as otherwise provided in subsection (3) or (4) of this section, a person designated as trustee accepts the trusteeship: By substantially complying with a method of acceptance provided in the terms of the trust; or If the terms of the trust do not provide a method of acceptance, or the method provided in the terms of the trust is not expressly made e…
130.605 UTC 702. Trustee’s bond
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 trust or if a court finds that a bond is needed to protect the interests of the beneficiaries. A court may waive a bond required by the terms of a trust if the court finds that a bond is not needed to protect the interests of the benefi…
130.610 UTC 703. Cotrustees
Cotrustees who are unable to reach a unanimous decision may act by majority decision. If a vacancy occurs in a cotrusteeship, the remaining cotrustee or cotrustees may act for the trust. A cotrustee must participate in the performance of a trustee’s function unless: The cotrustee is unavailable to perform the function because of absence, illness or disqua…
130.615 UTC 704. Vacancy in trusteeship; appointment of successor
A vacancy in a trusteeship occurs if: A person designated as trustee rejects the trusteeship; A person designated as trustee cannot be identified, cannot be located or does not exist; A trustee resigns; A trustee is disqualified or removed; A trustee dies; or A guardian or conservator is appointed for an individual serving as trustee. If one or more c…
130.620 UTC 705. Resignation of trustee
A trustee may resign: After at least 30 days’ notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or At any time with the approval of a court. If a court approves a resignation, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property. Any liability of a resigning truste…
130.625 UTC 706. Removal of trustee
The settlor, a cotrustee or a beneficiary may request that a court remove a trustee, or a trustee may be removed by a court on its own motion. A court may remove a trustee if the court finds: The trustee has committed a serious breach of trust; Lack of cooperation among cotrustees substantially impairs the administration of the trust; Removal of the trus…
130.630 UTC 707. Delivery of property by former trustee; report
Unless a cotrustee remains in office or the court otherwise orders, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property until the trust property is delivered to a successor trustee or other person who is entitled to the property. A trustee who has resigned or been removed shall procee…
130.635 UTC 708. Compensation of trustee
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. If the terms of a trust specify the trustee’s compensation, the trustee is entitled to be compensated as specified, but the court may allow more or less compensation if: The duties of the trustee are substanti…
130.640 UTC 709. Reimbursement of expenses
A trustee is entitled to be reimbursed out of the trust property, with reasonable interest if appropriate, for: Expenses that were properly incurred in the administration of the trust; and To the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust. A trustee is entitled to…
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 the beneficiaries, and in accordance with this chapter. A trustee is not required to object to a modification, reformation or termination of the trust under ORS 130.045, 130.200, 130.205, 130.210, 130.215, 13…
130.655 UTC 802. Duty of loyalty
A trustee shall administer the trust solely in the interests of the beneficiaries. Subject to the rights of persons dealing with or assisting the trustee as provided in ORS 130.855, a sale, encumbrance or other transaction involving the investment or management of trust property entered into by the trustee for the trustee’s own personal account or that is o…
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 the beneficiaries’ respective interests.
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 satisfying this standard, the trustee shall exercise reasonable care, skill and caution.
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 the skills of the trustee.
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 expertise, shall use those special skills or expertise in administering the trust.
130.680 UTC 807. Delegation by trustee
A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill and caution in: Selecting an agent; Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and Periodically reviewing the a…
130.685 UTC 808. Powers to direct
While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms of the trust. If the terms of a trust confer upon a person other than the settlor of a revocable trust power to direct certain actions of the trustee, the trustee shall act in accordance with an exercise of the power unless the exercise is manifestly …
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.
130.695 UTC 810. Recordkeeping and identification of trust property
A trustee shall keep adequate records of the administration of the trust. A trustee shall keep trust property separate from the trustee’s own property. Except as otherwise provided in subsection (4) of this section, a trustee shall cause the trust property to be designated so that the interest of the trust, to the extent feasible, appears in records mainta…
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.
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 breach of trust known to the trustee to have been committed by a former trustee.
130.710 UTC 813. Duty to inform and report
A trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and of the material facts necessary for those beneficiaries to protect their interests. If reasonable under the circumstances, a trustee may respond to a request for information related to the administration of the trust from a beneficiary …
130.715 UTC 814. Discretionary powers; tax savings; inclusion of capital gains in income
A trustee shall exercise a discretionary power in good faith and in a manner that is in accordance with the terms and purposes of the trust and the interests of the beneficiaries. The duty imposed by this subsection is not affected by the grant of discretion in the terms of the trust, even though the terms of the trust provide that the trustee has absolute, …
130.720 UTC 815. General powers of trustee
A trustee, without authorization by the court, may exercise powers conferred by the terms of the trust and, except as limited by the terms of the trust: All powers over the trust property that an unmarried financially capable owner has over individually owned property; Any other powers appropriate to achieve the proper investment, management and distributi…
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: Collect trust property and accept or reject additions to the trust property from a settlor or any other person. Acquire or sell property, for cash or on credit, at public or private sale. Exchange, partition or otherwise change the character of trust property. …
130.730 UTC 817. When interest of beneficiary vests; distribution upon termination
The interests of a beneficiary under a testamentary trust vest upon the death of the testator, and the interests of a beneficiary under a revocable or irrevocable trust vest when the trust becomes irrevocable, and not later, unless the will or trust clearly indicates a contrary intent. Unless a will or trust clearly indicates a contrary intent, upon the occ…
130.733 Notice of proposed trustee action to beneficiaries; right of beneficiary to object
Prior to a proposed action to be taken by a trustee regarding the administration of a trust, the trustee may send the beneficiaries a written notice of the proposed action informing the beneficiaries of the proposed action. The right of a beneficiary receiving a notice of proposed action under subsection (1) of this section to object to a proposed action de…
130.735 Appointment of adviser; liability of trustee
A trust instrument may appoint a person to act as an adviser for the purpose of directing or approving decisions made by the trustee, including decisions related to distribution of trust assets and to the purchase, sale or exchange of trust investments. The appointment must be made by a provision of the trust that specifically refers to this section. The app…
130.750 Trustee’s duty to comply with prudent investor rule
Except as otherwise provided in subsection (2) of this section, a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in ORS 130.755. The prudent investor rule is a default rule that may be expanded, restricted, eliminated or otherwise altered by the provisions of a tr…
130.755 Prudent investor rule
A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill and caution. A trustee’s investment and management decisions respecting individual assets are not evalua…
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 better served without diversifying.
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 the retention and disposition of assets in order to bring the trust portfolio into compliance with the requirements of ORS 130.750 to 130.775 and with the purposes, terms, distribution requireme…
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 and not by hindsight.
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 130.750 to 130.775: “investments permissible by law for investment of trust funds,” “legal investments,” “authorized investments,” “using the judgment and care under the circumstances then prev…
130.800 UTC 1001. Remedies for breach of trust
A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust. A breach of trust may occur by reason of an action or by reason of a failure to act. To remedy a breach of trust that has occurred or to prevent a breach of trust, the court may: Compel the trustee to perform the trustee’s duties; Enjoin the trustee from committing …
130.805 UTC 1002. Damages for breach of trust
A trustee who commits a breach of trust is liable to the beneficiaries affected for the greatest of: The amount of damages caused by the breach; The amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or The profit the trustee made by reason of the breach. Except as …
130.810 UTC 1003. Damages in absence of breach
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 beneficiary for any profit made by the trustee arising from the administration of the trust, without regard to whether the profit resulted from a breach of trust. Unless there is a breach of trust, a trustee is not liable to a benefi…
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 party, to be paid by another party or from the trust.
130.820 UTC 1005. Limitation of action against trustee
Notwithstanding ORS chapter 12 or any other provision of law, but subject to subsection (2) of this section, a civil action against a trustee based on any act or omission of the trustee, whether based in tort, contract or other theory of recovery, must be commenced within six years after the date the act or omission is discovered, or six years after the date…
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 for a breach of trust to the extent the breach resulted from the reliance.
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 the administration or distribution of a trust has occurred if the trustee has exercised reasonable care in attempting to determine whether the event has occurred.
130.835 UTC 1008. Exculpation of trustee
A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that the term: Relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries; or Was inserted as the result of an abuse by the trustee of a fidu…
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 or ratifies a transaction entered into by a trustee that constitutes a breach of trust, the trustee is not liable to the beneficiary for the breach of trust unless: The consent, release or ratification of the benefici…
130.845 UTC 1010. Limitation on personal liability of trustee
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 in the course of administering the trust if the trustee disclosed the trustee’s fiduciary capacity in the contract. A trustee is personally liable for torts committed in the course of administering a trust …
130.850 UTC 1011. Interest as general partner
Except as otherwise provided in subsection (3) of this section or unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust’s acquisition of the interest if the trustee’s fiduciary capacit…
130.855 UTC 1012. Protection of person dealing with trustee
A person other than a beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a trustee, is not liable for acts of the trustee that exceed the trustee’s powers or for the improper exercise of the trustee’s powers, unless the person knows that the trustee has exceeded the trustee’s powers or improperly exercised those po…
130.860 UTC 1013. Certification of trust
A person who is not a beneficiary and who proposes to deal with the trustee of a trust may require that all trustees execute and furnish to the person a certification of trust. The certification of trust shall contain the following information: That the trust exists and the date the trust instrument was executed; The identity of the settlor; The identity…
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 states that enact the Uniform Trust Code. Note: 130.900 to 130.910 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 130 or any series therein by legislative act…
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 of such records or signatures, are governed by ORS 84.001 to 84.061. Note: See note under 130.900.
130.910 UTC 1106. Application
Except as otherwise provided in ORS chapter 130: ORS chapter 130 applies to all trusts created before, on or after January 1, 2006. ORS chapter 130 does not apply to judicial, administrative and other proceedings concerning trusts commenced before January 1, 2006. Any rule of construction or presumption provided in ORS chapter 130 applies to trust instrum…