Oklahoma § 71-910 - Nonprobate transfer - Liability of transferees

§ 71-910. Nonprobate transfer - Liability of transferees

A. In this section, “nonprobate transfer” means a transfer

described in subsection B of this section by an owner whose last

domicile was in this state.

B. A transfer on death resulting from a registration in

beneficiary form is effective by reason of the contract regarding

the registration between the owner and the registering entity and

this act and is not testamentary.

C. A transferee of a nonprobate transfer is subject to

liability to any probate estate of the decedent for allowed claims

against that estate and statutory allowances to the decedent’s

spouse and children to the extent the estate is insufficient to

satisfy those claims and allowances. The liability of a nonprobate

transferee may not exceed the value of nonprobate transfers received

by that transferee.

D. Nonprobate transferees are liable for the insufficiency

described in subsection C in the following order of priority:

1. A transferee designated in the decedent’s will or any other

governing instrument, as provided in the instrument;

2. The trustee of a trust serving as the principal nonprobate

instrument in the decedent’s estate plan as shown by its designation

as devisee of the decedent’s residuary estate or by other facts or

circumstances, to the extent of the value of the nonprobate transfer

received;

Oklahoma Statutes - Title 71. Securities

3. Other nonprobate transferees, in proportion to the values

received.

E. A provision made in one instrument may direct the

apportionment of the liability among the nonprobate transferees

taking under that or any other governing instrument. If a provision

in one instrument conflicts with a provision in another, the later

one prevails.

F. Upon due notice to a nonprobate transferee, the liability

imposed by this section is enforceable in proceedings in this state,

whether or not the transferee is located in this state.

G. A proceeding under this section may not be commenced unless

the personal representative of the decedent’s estate has received a

written demand for the proceeding from the surviving spouse or a

child, to the extent that statutory allowances are affected, or a

creditor. If the personal representative declines or fails to

commence a proceeding after demand, a person making demand may

commence the proceeding in the name of the decedent’s estate, at the

expense of the person making the demand and not of the estate. A

personal representative who declines in good faith to commence a

requested proceeding incurs no personal liability for declining.

H. A proceeding under this section must be commenced within one

(1) year after the decedent’s death, but a proceeding on behalf of a

creditor whose claim was allowed after proceedings challenging

disallowance of the claim may be commenced within sixty (60) days

after final allowance of the claim.

I. Unless a written notice asserting that a decedent’s estate

is insufficient to pay allowed claims and statutory allowances has

been received from the decedent’s personal representative, a trustee

receiving a nonprobate transfer is released from liability under

this section with respect to any assets distributed to the trust’s

beneficiaries. Each beneficiary to the extent of the distribution

received becomes liable for the amount of the trustee’s liability

attributable to that assets received by the beneficiary.

Added by Laws 1994, c. 208, § 10, eff. Sept. 1, 1994. Amended by

Laws 1999, c. 141, § 5, eff. Nov. 1, 1999.