Page One

In this issue

Page 1
    Family Wealth Preservation Act
    100 Year History Book Underway
Page 2
    Adams Abstract Gets Bragging Rights
Page 3
    A Rose Is A Rose
    2004-2005 Board of Directors

Page 4
    Terminology
    Title Insurance School
    Did You Know?
Page 5
    Having Fun At The Ballpark & Zoo
Page 6
    Calendar of Events

By Jerry Hemry, Legal Counsel, OLTA

Oklahoma has a new Statute found in Title 31, Sec. 10 and following entitled "Family Wealth Preservation Trust Act." This Statute passed the Legislature in the last two days of the Legislative Session and became effective June 9, 2004, when signed by the Governor.

This Trust Act authorizes a Grantor (must be "an individual") to place assets issued or located in the State of Oklahoma under a valid Oklahoma Revocable or Irrevocable Trust. The Trust must be administered by an Oklahoma bank trust department or an Oklahoma based trust company and the beneficiaries of the Trust are limited to the natural or adopted children of the Grantor; the spouse of the Grantor or a nonprofit 501(c)(3) organization. The Statute then goes on to exempt the assets of the preservation Trust ... "from the attachment or execution and every other species of forced sale and no judgment, decree or execution can be a lien on the Trust for the payment of debts of a Grantor up to $1,000,000.00." The Statute goes on to have various other defining issues and specifically refers to the effect of the United States Bankruptcy Code. Because of the wording of the Statute, which adds to those items exempt from bankruptcy in the reference to the Bankruptcy Code, it would appear that one purpose of the statute was to preserve assets through the trust vehicle from acquisition and disbursement by a Trustee in bankruptcy. However, the language used to set up such exemption would lend itself to interpretation to stop a legitimate creditor in seeking collection of that creditor's judgment from an individual who had created one of these Trusts and placed all or most of his assets in the Trust.

When a title insurance agent or closing person is faced with memorandum of one of these Trusts of record, then you will always want to call your underwriter and explain the problem of enforceability of the lien of the mortgage to be insured and get written confirmation from your underwriter as to the solution.

OLTA 100 YEAR HISTORY BOOK UNDERWAY

As most of you probably know, the 100-year anniversary of the Oklahoma Land Title Association will occur in the year 2007. To commemorate this event, OLTA is publishing a 100-year history book that will include a short paragraph about all abstract companies in Oklahoma.

But, we can't do this without your help. It may seem that 2007 is a long time away, but as most of you know, the years seem to be flying by and we want to get started on this project. Here is what you can do to help us. We need the following from all abstract companies:

• A photograph of your company, including the outdoor business sign (Employees can be included in the picture or not)
• Any old pictures of your original company
• A photograph of the court house in your county seat
• A short paragraph on the history of the company including the date it was originated
• Any other pertinent information about your company that you deem important

It would be helpful if the pictures are submitted on CD; however, printed photographs will be accepted. Coordinating this effort is Donna Schmulbach and you may send the pictures and information to her c/o Warranty Title & Abstract, Inc., 108 N. Rock Island, El Reno, OK 73036.

Do not hesitate to contact Donna at (405) 262-3093.