Creating a trust as part of your estate plan is generally a good idea. Many people use trusts as a way to delegate their assets on their terms. It is a way to ensure your heirs or benefactors receive gifts you leave them and do so without having to file a probate. A trust allows the person creating the trust all sorts of flexibility. Along with flexibility in how the gift is delivered many trusts can be modified or revoked at anytime after you create it.
Creating a Trust – Four Types
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Irrevocable Trusts
An irrevocable trust is a trust instrument that once created can not be modified or revoked. Irrevocable trusts are uncommon to use when creating a trust. This kind of trust is limited to those with a large sum of wealth. Once you place an asset in an irrevocable trust it no longer belongs to you. Because the assets you used to create the trust is no longer yours to dispose of it give you certain protection. This kind of trust is a great tool used to protect assets from creditor claims or to shelter taxable income.
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Revocable Trusts
On the other hand, many people use revocable trusts. Creating a trust that is revocable is a good tool for almost anyone. Its a great tool you can use to avoid probate. It is simple to change, amend, or end at any point. Further, you have a lot of latitude in the administration of the assets in the trust. In fact, you can even appoint yourself as the trustee. This will allow you to have control over the trust and the assets in it until you pass away or choose to terminate the trust.
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Intervivos Trusts
You have probably come across the term “living trust”. Well, this is legally an intervivos trust. These are generally a revocable trust. Again, you can name yourself as the trustee of the trust and put assets into the trust while you are still living. However, these trusts must have a specific purpose and have specific terms by which you abide as the trustee. For example, it can be an educational trust that you use solely for your or your benefactors educational needs.
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Testamentary Trusts
Finally, when creating a trust for your estate plan, some people prefer a testamentary trust. This is cheaper than an intervivos trust and does not go into effect until your passing. Therefore, the assets you wish to be in the trust are completely available to you without any parameters until your death. However, upon your death they will enter into trust and must be administered to your wishes. You can set your wishes out in the trust document.
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Oklahoma Estate Planning
Our Tulsa Estate Lawyers can help you when creating a trust in your estate plan. We understand the usefulness of trusts and how they can benefit you. Further, we can help you decide which of the above trusts fits your needs best. You simply will fill out the proper documents, sign it, and have it notarized. We can do all of this in our office with little hassle. Contact Tulsa County Lawyers Group today for a free consultation at 918-379-4864
