Living Trusts in Oklahoma: How Do They Work?

 Living Trusts in Oklahoma: How Do They Work?

Living trusts in Oklahoma are estate planning tools used to help your family manage the probate process. There are usually many questions that surround trusts: Do trusts help a family avoid probate? What type of trusts are available? Should they create a living a living trust?

In this article, you will learn basic information about living trusts in Oklahoma. If you have questions about living trusts and whether they are right for your Oklahoma estate, schedule your free consultation with Ball Morse Lowe right away.

Trusts in Oklahoma: Do They Avoid Probate?

Establishing a living trust in Oklahoma can help your family avoid the probate process for the assets that are placed inside of the trust before you die. The key is to place the assets within the trust during your lifetime. How you set up a living trust depends on whether you choose a revocable living trust or an irrevocable living trust.

It is imperative to continue to add assets to your living trust as you purchase them or obtain them if you wish for them to avoid probate. For more information about how a living trust in Oklahoma can be used to avoid probate, schedule a free consultation with the estate planning attorneys of Ball Morse Lowe.

What Is a Revocable Living Trust in Oklahoma?

An Oklahoma revocable living trust is a flexible estate planning document that can be used to help avoid probate. When an established living trust is revocable, you retain the ability to not only continue to add assets to it during your life, but also to remove property from it. You can also be the beneficiary of a revocable living trust during your life while also managing the trust as the trustee. You also name a successor trustee. The successor trustee is the person who will act as the trustee of the revocable living trust when you die. You can also change the beneficiaries during your lifetime. However, once you die, the trust becomes irrevocable.

Your revocable living trust includes instructions on how the beneficiaries may use the assets within the trust. For example, if there is money placed in the trust, there may be a stipulation that it must be used by a minor child for education. That isn't necessary, of course.

What Is an Irrevocable Living Trust?

An irrevocable living trust is a type of trust that cannot be changed. The assets still avoid probate, but if you create a living will of this nature you cannot change it. You must think carefully about how you set up an irrevocable living trust. What assets do you want to place within it? Who do you want to name as the beneficiaries? How should it operate after your death?

Generally, an irrevocable living trust is chosen by individuals looking to minimize estate taxes. Although Oklahoma does not have an estate tax, there is a federal estate tax.

Should You Create a Living Trust in Oklahoma?

If you're wondering if you should create a living trust in Oklahoma, consider whether you have assets that you want to pass on to your loved ones without the assets going through the probate process. A revocable living trust doesn't have to be difficult to set up or manage. It can be a tool that helps protect your assets for years to come.

Connecting with an estate planning attorney is essential when considering a living trust for several reasons:

1. Legal Expertise: Estate planning attorneys specialize in creating personalized estate plans tailored to your specific needs and circumstances. They possess in-depth knowledge of estate planning laws, regulations, and strategies, ensuring that your living trust is legally valid and effectively achieves your goals.

2. Comprehensive Planning: An estate planning attorney will assess your entire estate and help you consider all aspects of your financial situation, family dynamics, and future goals. They can recommend the most appropriate estate planning tools, which may include a living trust along with other documents like a will, powers of attorney, and advance healthcare directives.

3. Individualized Solutions: While living trusts can be useful for many people, they are not one-size-fits-all solutions. An estate planning attorney will take the time to understand your unique situation and design a comprehensive plan that addresses your specific concerns and objectives.

4. Avoiding Costly Mistakes: DIY living trusts or using generic templates without professional guidance can lead to errors and omissions that may render the trust ineffective or subject it to legal challenges. Estate planning attorneys help you avoid costly mistakes that could impact your assets and your beneficiaries.

5. Asset Funding: Properly funding your living trust is crucial for its effectiveness. An estate planning attorney will guide you in transferring assets into the trust, ensuring that your property is appropriately titled, and beneficiary designations are updated to align with your trust's provisions.

6. Navigating Complex Laws: Estate planning involves intricate legal and tax considerations. An experienced attorney will help you navigate complex state and federal laws to minimize tax implications and protect your assets.

7. Ongoing Maintenance: Estate planning is not a one-and-done process. Life circumstances, laws, and personal preferences may change over time. An estate planning attorney will provide ongoing support, ensuring your living trust remains up to date and reflective of your current wishes.

8. Peace of Mind: Working with an estate planning attorney offers peace of mind that your wishes will be executed as intended, and your loved ones will be adequately provided for after your passing.

Estate Planning Attorneys Oklahoma City

If you have questions about how a living trust in Oklahoma can help you or if you want to get started and create a living trust, an experienced estate planning attorney can help. Connecting with an estate planning attorney over a living trust allows you to benefit from years of experience, receive personalized advice, avoid mistakes, and ensure your estate plan is comprehensive, legally sound, and adaptive to your changing needs and circumstances. Ball Morse Lowe provides free consultations. We can answer your questions regarding both revocable and irrevocable trusts and the probate process. Schedule your free consultation now.