The Trustee’s Checklist

Have you recently been asked to serve as a trustee for a loved one’s trust? Perhaps you’ve been managing a family trust for years and feel like you have a solid handle on the responsibilities. You may be asking yourself, “Does the law really change that much from year to year?”

The direct answer is yes. As of 2025, the landscape for Oklahoma trustees has undergone its most significant transformation in decades.

The passage of the 2025 Oklahoma Uniform Trust Code (OUTC) has introduced specific, mandatory requirements that every trustee must follow to avoid personal liability. While these changes are designed to protect beneficiaries and provide clarity, they also add a new layer of “to-dos” for families in Sapulpa, Bristow, and throughout Creek County. Whether you are a professional or a family member stepping into this role for the first time, understanding these new standards is no longer optional: it is a legal necessity.

At the office of Gene Thompson, Attorney at Law, we believe that the best way to honor a loved one’s legacy is to manage their trust with total transparency and legal precision. Here is your updated checklist of the seven new and clarified duties under the 2025 Oklahoma Uniform Trust Code.

1. The 60-Day Initial Notification Duty

It is a popular misconception that a trust is a private document that can be kept “under wraps” indefinitely. Under the new code, the “wait and see” approach is officially over.

Within 60 days of accepting a trusteeship, you now have a statutory duty to notify the beneficiaries. This is not just a polite phone call; it is a formal requirement. For trusts that become irrevocable after November 1, 2025, you must provide:

• Your name, address, and telephone number as the acting trustee.
• The identity of the person who created the trust (the settlor).
• A formal notice that the trust exists.
• Information regarding the beneficiary’s right to request a complete copy of the trust document.

This rule ensures that beneficiaries are not left in the dark about their inheritance. If you fail to meet this 60-day window, you could be held liable for any damages that result from the delay.

2. The Annual Trust Report (Detailed Accounting)

For many Creek County families, trust administration used to be handled around the kitchen table with a simple “everything is fine” update. The 2025 Oklahoma Uniform Trust Code changes that by mandating an Annual Trust Statement.

Trustees must now provide a written report: at least once a year: to all beneficiaries who are currently receiving distributions or have a right to them. This report must be comprehensive, including:

• An updated list of all trust assets and their current values.
• A list of all liabilities or debts the trust owes.
• A record of all transactions (money coming in and money going out).
• Detailed information regarding the trustee’s own compensation.

The truth is, many people find this level of accounting overwhelming. However, keeping these records is your best defense against future litigation. If you aren’t sure how to categorize these expenses, oklahoma estate attorneys can help you set up a system that meets the new legal standards.

3. Advance Notice of Trustee Compensation Changes

Trustees are generally entitled to “reasonable compensation” for their work. In the past, the definition of “reasonable” was often left up for debate, sometimes leading to heated family disputes.

The 2025 code introduces a transparency requirement regarding fees. If you plan to change how you are paid: whether that is increasing your hourly rate or changing the percentage of the assets you take as a fee: you must give the beneficiaries advance notice.

Generally speaking, you cannot simply start withdrawing higher fees from the trust bank account without warning. Providing this notice allows beneficiaries to review the change and, if necessary, seek a court’s opinion on whether the new fee is truly reasonable. This proactive communication is designed to stop lawsuits before they start.

4. The Duty of Loyalty and Self-Dealing Prevention

While the Duty of Loyalty has always been a bedrock of fiduciary law, the new Uniform Trust Code clarifies exactly what constitutes a conflict of interest. As a trustee, you must act solely in the interests of the beneficiaries.

But, we cannot ignore the fact that in family trusts, the trustee is often a beneficiary themselves. This creates a “balancing act.” The new code reinforces that any transaction involving trust property that benefits the trustee personally is presumed to be a conflict of interest unless:

• The trust document specifically authorized it.
• The court approved it.
• Every single beneficiary gave their informed, written consent.

If you are considering buying a piece of property from the trust or hiring your own company to perform repairs on a trust-owned home in Creek County, you must tread very carefully. These are the areas where an oklahoma estate lawyer becomes an invaluable partner to ensure you aren’t accidentally breaking the law.

5. The Duty of Impartiality Between Beneficiaries

Often, a trust will have multiple beneficiaries with competing interests. For example, a surviving spouse might have the right to the income from the trust for life, while the children receive the principal later.

The 2025 Oklahoma Uniform Trust Code emphasizes that a trustee must act impartially. You cannot favor the “income beneficiary” by investing in high-yield, high-risk stocks that deplete the principal for the “remainder beneficiaries.”

The code requires you to give “due regard” to the respective interests of everyone involved. This means your investment strategy must be balanced and fair. It is no longer enough to just “do your best”; you must be able to prove that your decisions didn’t unfairly benefit one family member over another.

6. The Duty of Prudent Administration

Under the new code, “common sense” is not the legal standard for managing money. Instead, Oklahoma has adopted a more professional standard known as the Prudent Investor Rule.

As a trustee, you are expected to manage the trust assets as a “prudent person” would, considering the purposes, terms, and distribution requirements of the trust. This involves:

• Diversification: You generally shouldn’t keep all the trust’s “eggs in one basket” (like having 100% of the funds in a single local stock).
• Cost Control: You have a duty to keep administrative costs and investment fees reasonable.
• Review: You must periodically review the assets to ensure they still make sense for the trust’s long-term goals.

If you aren’t an investment expert, the code allows you to delegate these tasks to professionals. In fact, for many Creek County trustees, hiring a financial advisor is the most “prudent” thing they can do to meet this requirement.

7. The Duty to Provide Information Upon Request

Beyond the mandatory 60-day notice and the annual statement, the 2025 OUTC clarifies that trustees have a continuous duty to keep beneficiaries “reasonably informed.”

If a beneficiary asks for a copy of the trust or a specific receipt for a trust expense, you generally must provide it. In the past, some trustees felt they could withhold information to “keep the peace” or prevent “meddling.” The new law is clear: transparency is the rule, not the exception.

However, there is a limit. You don’t have to respond to every single daily text message or unreasonable demand, but you do need to provide relevant information about the administration of the trust when it is requested.

Why Creek County Families Need to Take Notice

You might be thinking, “This sounds like a lot of paperwork for a small family trust.” While it is true that these rules add to the trustee’s workload, they are actually a tool for your protection.

When a trustee follows a clear checklist and provides regular updates, it significantly reduces the likelihood of a “fiduciary litigation” lawsuit. In our experience at Gene Thompson, Attorney at Law, most trust disputes stem from a lack of communication. A beneficiary who feels ignored is a beneficiary who is likely to hire a lawyer.

By following the 2025 Oklahoma Uniform Trust Code, you are building a paper trail that proves you acted with honesty, diligence, and respect for the settlor’s wishes.

How to Get Started

If you have been appointed as a trustee or are currently serving in that role, you don’t have to navigate these new 2025 requirements alone. The transition into these new legal duties can be complex, but it is manageable with the right guidance.

You’re invited to reach out to our team to review your current trust administration process. We can help you:

• Draft and send the mandatory 60-day notifications.
• Prepare your first Annual Trust Statement to ensure it meets the new standards.
• Advise you on “prudent” investment and diversification strategies.
• Review your trustee compensation structure to ensure it is legally defensible.

Serving as a trustee is an act of service to your family. Let’s make sure you have the tools to do it right. If you have questions about how the 2025 Oklahoma Uniform Trust Code affects your specific situation, visit our Estate Planning and Administration page or contact us today to schedule a consultation.

Managing a trust is a big job, but with a clear checklist and professional support, you can protect your loved one’s legacy: and yourself( sooner than later.)