Funding the Trust for an Estate Plan in Oklahoma

Funding the Trust for an Estate Plan in Oklahoma

Funding a trust can be difficult, but it’s important to know the steps behind the process. A trust is a legal entity that holds assets for designated beneficiaries, and funding the trust involves transferring assets from the creator of the trust (also known as the grantor or settlor) to the trust itself. The process behind funding a trust is particular, but it is important to get the details correct. You may be subject to unnecessary delays and future expenses, such as probate, if not done correctly. In this article, you will learn to navigate the proper funding for a trust in the state of Oklahoma, gain a general understanding of the nature of trusts for estate plans, and discover why it is so important to properly fund a trust and avoid penalties.

Steps for Funding a Trust in Oklahoma:

1. Create the trust document: This is the first step in the funding process, requiring the grantor or settlor to specify the terms and conditions of the trust document, designate who the beneficiaries are, who the trustee or trustees will be, and how these assets will be distributed.
2. Selecting which assets to transfer: After the trust document is created, the next step is to decide which assets to transfer, i.e., real estate, personal property, bank accounts, or investment accounts.
3. Transferring assets to the trust: After the trust is signed and notarized, the assets must be retitled to the trust itself. Whether it’s an account or a deed, the title must be in the name of the trust.
4. Check-in with financial institutions: Depending on the financial institution of your choosing, they may require further documentation to complete the transfer process. The trustee or settlor may be required to fill out these additional documents.
5. Update designated beneficiaries: If the assets were originally set for the beneficiaries, they may need to be changed to identify the trust as the next owner.

The Cost Behind Funding Trusts in Oklahoma

There is no set cost for an estate plan trust, but there is a formula you can follow to calculate it. There are different factors that go into this process, such as the type and number of assets transferred, the value of those assets, and fees associated with financial institutions or appraisers. Additional attorney fees may be added to the total cost for a trust, depending on the fees given by your attorney for drafting and reviewing the trust documents.

The cost of funding a trust in an estate plan can vary from a few hundred dollars to several thousand, depending on the complexity of the estate plan, the number of assets, and how those assets will be allocated. While all of this can be overwhelming, it is crucial to work with an experienced, reputable estate planning attorney who will be able to help you navigate your trust funding journey. Your estate planning attorney will be able to provide you with information on the possible taxes associated with transferring assets to a trust.

The Cost of Funding a Trust in Oklahoma Might Include the Following:

1. Legal fees: Your estate planning attorney may charge a fee for drafting and reviewing the trust documents, in addition to helping you navigate funding your trust.
2. Appraisal fees: If assets such as real estate or personal belongings are being transferred to the trust, they may require an appraisal to discover their monetary value.
3. Transfer fees: Some financial institutions that may require a fee for transferring assets to your trust. Check-in with your financial institution to inquire if there are any transfer fees.
   
   

Avoiding Probate with an Estate Plan Trust in Oklahoma
There are many advantages of funding a trust in the state of Oklahoma. One of the most important
advantages is avoiding the costs that come with probate. When your assets are held in a trust, they usually do not go through probate. Probate can be expensive and time-consuming, but you can avoid it by funding a trust. Distribution of the assets in the trust will likely reach their beneficiaries faster.

Funding a trust can be a detailed process and it's recommended to reach out to an estate planning attorney to ensure everything was done correctly within state laws. Most estate plans that are created do not have a funding plan in place to ensure the plan reaches its full potential. There are some traditional assets that will require transferring funds into the trust, including surface or mineral deeds, vehicles, and financial assets.

Schedule your free consultation today with our estate planning team at Ball Morse Lowe to maximize your estate planning trust and avoid penalties. Call 405.701.5355 or email clientintake@bml.law for more information.