Okla. Stat. tit. 16, sec 15.4

Estate Tax Concerns of Revocable Trust

History: The 1995 Report of the Title Examination Standards Committee recommended this new standard. 66 0.B.J. 3256, 3258 (10/21/95). The Real Property Section approved the Committee's recommendation on November 9, 1995, and the House of Delegates adopted the standard on November 10, 1995, 66 0.B.J. 3751 (1995). In 1996, the Title Examination Standards Committee proposed a minor revision regarding use of an affidavit to satisfy the inquiry requirement. 67 O.B.J. 3247, 3251 (1996). Approved by the Real Property Section on November 14, 1996 and adopted by the House of Delegates on November 15, 1996. The 2001 Report of the Title Examination Standards Committee proposed amending Standard 15.4 to address issues that a title examiner faces when dealing with potential estate tax liens upon the passing of title from a revocable trust. 72 O.B.J. 3002 (Oct. 13, 2001). The Real Property Law Section approved that proposal on November 15, 2001 and the House of Delegates adopted it November 16, 2001. 72 O.B.J. 3576 (Dec. 8, 2001). The 2010 Report of the Title Standards Committee recommended amending this standard to reflect the repeal of the Oklahoma Estate Tax. The Real Property Committee approved the Committee's recommendation on November 18, 2010 and the House of Delegates adopted the amended standard on November 19, 2010. 81 O.B.J. 32 (2010). The 2011 Report of the Title Examination Standards Committee, 82 O.B.J. 2566 (2011), proposed a change to the then existing standard to reflect that the date of death of a non joining settlor-grantor in a deed is only relevant as to whether an estate tax release is required from the Oklahoma Tax Commission and to update the authority for the Federal Estate Tax Marital deduction. The proposal was approved by the Real Property Section on November 3, 2011, and adopted by the House of Delegates on November 4, 2011, 82 O.B.J. 2694 (2011). The 2020 Title Examination Standards Sub-Committee of the Real Property Law Section proposed to make changes to Standards 8.1, 15.4, 25.5 and 25.7 to reflect the passage of 10 years since the repeal of the Oklahoma Estate Tax. The Real Property Section approved the proposal, and the House of Delegates adopted the amendment on November 13, 2020. (superseded document available)

Title Examination Standards
Chapter 1, App.
Chapter 15. Trusts and Trustees
§15.4. Estate Tax Concerns of Revocable Trusts.

A. the non-joining settlor(s) was alive at the time of the conveyance; or
B. the settlors were husband and wife and:
1. 1. one settlor is deceased, and
2. 2. the sole surviving settlor is the surviving spouse of the deceased settlor, and
3. 3. the assets of the trust, pursuant to the terms of the trust, pass to the benefit of the surviving settlor spouse,upon the death of the deceased settlor spouse; or
C. the sole settlor is deceased and the assets of the trust, pursuant to the terms of the trust, pass to the benefit of the surviving spouse of the deceased settlor, upon the death of the settlor; or
D. more than ten (10) years have elapsed since the date of the death of the non-joining settlor(s), or since the date of the conveyance from the trustee(s), and no Federal estate tax lien or warrant against the estate of the non-joining settlor(s) appears of record in the county where the property is located,
See TES Standard 25.5 Oklahoma Estate Tax Lien.

Where title to real property is vested in the name of a revocable trust, or in the name of a trustee(s) of a revocable trust, and a subsequent conveyance of such real property is made by a trustee(s) of a revocable trust, who is other than the settlor(s) of such revocable trust, and a closing letter from the Internal Revenue Service, if the estate is of sufficient size to warrant the filing of a Federal estate tax return, should be filed of record in the office of the county clerk where such real property is located unless evidence, such as an affidavit by the currently serving trustee of the revocable trust is provided to the title examiner to indicate that on of the following conditions exists:

The 2001 Report of the Title Examination Standards Committee proposed amending Standard 15.4 to address issues that a title examiner faces when dealing with potential estate tax liens upon the passing of title from a revocable trust. 72 O.B.J. 3002 (Oct. 13, 2001). The Real Property Law Section approved that proposal on November 15, 2001 and the House of Delegates adopted it November 16, 2001. 72 O.B.J. 3576 (Dec. 8, 2001).

The 2010 Report of the Title Standards Committee recommended amending this standard to reflect the repeal of the Oklahoma Estate Tax. The Real Property Committee approved the Committee's recommendation on November 18, 2010 and the House of Delegates adopted the amended standard on November 19, 2010. 81 O.B.J. 32 (2010).

The 2011 Report of the Title Examination Standards Committee, 82 O.B.J. 2566 (2011), proposed a change to the then existing standard to reflect that the date of death of a non joining settlor-grantor in a deed is only relevant as to whether an estate tax release is required from the Oklahoma Tax Commission and to update the authority for the Federal Estate Tax Marital deduction. The proposal was approved by the Real Property Section on November 3, 2011, and adopted by the House of Delegates on November 4, 2011, 82 O.B.J. 2694 (2011).

The 2020 Title Examination Standards Sub-Committee of the Real Property Law Section proposed to make changes to Standards 8.1, 15.4, 25.5 and 25.7 to reflect the passage of 10 years since the repeal of the Oklahoma Estate Tax. The Real Property Section approved the proposal, and the House of Delegates adopted the amendment on November 13, 2020. (superseded document available)