Oklahoma § 31-11 - Definitions

§ 31-11. Definitions

As used in the Family Wealth Preservation Trust Act:

1. "Grantor" means an individual, whether or not a resident of

this state, establishing or creating a preservation trust;

2. "Oklahoma assets" includes:

a.

a stock, bond, debenture, membership interest,

partnership interest, or other equity or debt interest

issued by an Oklahoma-based company, without reference

to assets owned by the Oklahoma-based company,

b.

a bond or other obligation issued by this state or an

Oklahoma governmental agency,

c.

a bond or other obligation issued by a county of this

state, by a municipal government located in this

state, by a school district located in this state or

by any public trust for the benefit of either this

state or one or more political subdivisions of this

state,

d.

an account in an Oklahoma-based bank. As used in this

subparagraph, "account" means a demand, time, savings

or passbook type of account or a certificate of

deposit type of account,

e.

real or tangible personal property, or any interest

therein, having a situs in this state, which shall

include, but not be limited to:

(1) mineral interests, or

(2) promissory notes secured primarily by real or

tangible personal property or both,

f.

any security backed exclusively by promissory notes,

if at least a majority in value of such promissory

notes are secured by real or tangible personal

property having a situs in this state or both, and

g.

mutual funds, as defined pursuant to The Investment

Company Act of 1940, 15 U.S.C., Section 80a-1 et seq.

and The Securities Act of 1933, 15 U.S.C., Section 77a

et seq., and common trust funds, as defined pursuant

to Section 1010 of Title 6 of the Oklahoma Statutes,

to the extent the assets within such funds meet one or

more of the requirements listed in subparagraphs a

through f of this paragraph;

3.

a.

"Oklahoma-based bank" means a bank, savings

association or credit union which both:

Oklahoma Statutes - Title 31. Homestead and Exemptions

(1)

takes deposits insured by the Federal Deposit

Insurance Corporation or the National Credit

Union Administration, and

(2) has a place of business in Oklahoma, which shall

be a physical location, and

b.

"Oklahoma-based trust company" means a trust company

chartered under the laws of this state or nationally

chartered and having a place of business in Oklahoma,

which shall be a physical location;

4. "Oklahoma-based company" means a corporation, limited

liability company, limited partnership, limited liability

partnership or other legal entity formed or qualified to do business

in this state and having its principal place of business in this

state, which principal place of business shall be a physical

location;

5. "Preservation trust" means a trust:

a.

established by a grantor under Oklahoma law,

b.

having at all times as a trustee or cotrustee an

Oklahoma-based bank that maintains a trust department

or an Oklahoma-based trust company,

c.

having as beneficiaries only qualified beneficiaries

or a qualified beneficiary,

d.

having a majority in value of its assets comprised of

Oklahoma assets, except that if any asset which

qualifies, or is intended to qualify, as an Oklahoma

asset ceases or fails to qualify as an Oklahoma asset,

the trustee shall have a reasonable period of time

following discovery thereof to convert such

nonqualifying asset into an Oklahoma asset, and

e.

reciting in its terms that the income generated from

the corpus of the trust is subject to the income tax

laws of this state; and

6. "Qualified beneficiary" or "qualified beneficiaries" means:

a.

the lineal ancestors and lineal descendants of the

grantor or the grantor's spouse, including adopted

lineal descendants if they were under the age of

eighteen (18) at the time of the adoption,

b.

the spouse of the grantor,

c.

a nonprofit organization qualified under the

provisions of the Internal Revenue Code of 1986, 26

U.S.C., Section 501(c)(3), or

d.

a trust settled for the sole benefit of one or more

qualified beneficiaries.

Added by Laws 2004, c. 509, § 2, emerg. eff. June 9, 2004. Amended

by Laws 2005, c. 438, § 1, emerg. eff. June 8, 2005; Laws 2014, c.

102, § 1, eff. Nov. 1, 2014.

Oklahoma Statutes - Title 31. Homestead and Exemptions