Bill Text: OR SB592 | 2013 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the Oregon Uniform Trust Code; and declaring an emergency.

Sponsorship: Committee Bill

Status: (Passed) 2013-07-03 - Effective date, June 26, 2013. [SB592 Detail]

Download: Oregon-2013-SB592-Amended.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

SA to SB 592

LC 3076/SB 592-1

                      SENATE AMENDMENTS TO
                         SENATE BILL 592

                    By COMMITTEE ON JUDICIARY

                            April 18

  On page 2 of the printed bill, delete lines 15 through 19 and
insert:
  ' (15) 'Remote interest beneficiary' means a beneficiary of a
trust whose beneficial interest in the trust, at the time the
determination of interest is made, is contingent upon the
successive terminations of both the interest of a qualified
beneficiary and the interest of a secondary beneficiary whose
interests precede the interest of the remote interest
beneficiary.'.
  Delete lines 22 through 24 and insert:
  ' (17) 'Secondary beneficiary' means a beneficiary, other than
a qualified beneficiary, whose beneficial interest in the trust,
at the time the determination of interest is made, is contingent
solely upon the termination of all qualified beneficiary
interests that precede the interest of the secondary
beneficiary.'.
  On page 18, line 37, delete the first 'and' and insert a comma
and after '25' insert 'and 26'.
  On page 19, after line 36, insert:
  '  { +  SECTION 26. + }  { + (1) 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.
  ' (2) If the trust instrument expresses an order of abatement,
or if the plan of distribution or the express or implied purpose
of the distribution from the trust would be defeated by the order
of abatement stated in subsection (3) of this section, the shares
of the distributees abate as may be found necessary to give
effect to the intention of the settlor.
  ' (3) Except as provided in ORS 130.555 as to the shares of
pretermitted children, and in ORS 114.600 to 114.725 relating to
the elective share of the surviving spouse, shares of
distributees abate without any preference or priority as between
real and personal property in the following order:
  ' (a) Property of the trust not disposed of by the terms of the
trust instrument.
  ' (b) Residuary gifts, which are gifts paid from the trust
after all claims and expenses are paid and all general gifts and
specific gifts are distributed under the terms of the trust
instrument.
  ' (c) General gifts, which are gifts chargeable generally on
the trust corpus and which are not distinguishable from other
parts of the trust corpus and are not given under the terms of
the trust instrument as a gift of a specific thing or of a
specified part of the trust corpus.
  ' (d) Specific gifts, which are gifts of a specific thing or of
a specified part of the trust corpus as described under the terms
of the trust instrument and that are capable of identification.

  ' (4) A general gift charged on any specific property or fund
is considered, for purposes of abatement, to be property
specifically given to the extent of the value of the property or
fund on which the general gift is charged. Upon the failure or
insufficiency of the property or fund on which the general gift
is charged, the gift is considered a general gift to the extent
of the failure or insufficiency.
  ' (5) Abatement within each classification is in proportion to
the amounts of property each of the distributees would have
received had full distribution of the property been made in
accordance with the terms of the trust instrument.
  ' (6) Persons to whom the trust instrument gives tangible
personal property not used in trade, agriculture or other
business are not required to contribute from that property unless
the property forms a substantial amount of the total estate and
the court specifically orders contribution because of the gift.
  ' (7) When the subject matter of a preferred gift is sold or
used incident to administration, abatement shall be achieved by
appropriate adjustments in, or contribution from, other interests
in the remaining assets. + } ' .
  In line 37, delete '26' and insert '27' and delete the first
'and' and insert a comma and after '25' insert 'and 26'.
  In line 42, delete '27' and insert '28'.
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