When you consider planning for the future of your estate, setting up a trust in Oklahoma can be a powerful tool to manage your assets, protect your loved ones, and ensure that your financial wishes are respected. In Oklahoma, you have several types of trusts to choose from, each serving different purposes and offering unique benefits.

Revocable Living Trust

One of the most popular options is the Revocable Living Trust. This type of trust allows you to keep control over the assets during your lifetime. You can change or cancel the trust at any time before you pass away. The main advantage is that it helps your estate avoid probate, which can save time and money after your death. It also keeps your financial matters private, as probate records are public. In Oklahoma, like in many states, this type of trust can also help manage your assets if you become unable to do so yourself because of illness or incapacity.

Irrevocable Trust

Unlike a Revocable Living Trust, an Irrevocable Trust cannot be easily changed or canceled once it’s created. This might seem like a drawback, but it provides certain benefits. For example, assets placed in an irrevocable trust typically move out of your taxable estate. This means they may not be subject to estate taxes upon your death, and they are usually protected from creditors. People often use this type of trust to provide for their family members while also preserving their assets for future generations.

Testamentary Trust

A Testamentary Trust is created as part of your will. This means it only takes effect after your death. One common use for this type of trust in Oklahoma is to manage inheritance for minor children. You can set terms that control when and how much your children will inherit, which can help ensure the money is used wisely until they are mature enough to manage it themselves. Unlike living trusts, a testamentary trust does not avoid probate, and its terms become part of the public record.

Charitable Trust

If you are interested in leaving a legacy that extends beyond your family, a Charitable Trust can be a great option. This allows you to dedicate some of your assets to charitable organizations, either during your lifetime or after your death. There are two main types: Charitable Lead Trusts, which provide a charity with income for a period before the remainder goes to your beneficiaries, and Charitable Remainder Trusts, which allow you or other named beneficiaries to receive income and then leave the remainder to a charity.

Special Needs Trust

For families with a disabled relative, a Special Needs Trust is an important planning tool. This type of trust allows you to provide for the relative’s care without disqualifying them from receiving government benefits like Medicaid or Supplemental Security Income (SSI). Oklahoma law requires careful setup of this trust to make sure it does not interfere with eligibility for these benefits.

Life Insurance Trust

Another type of irrevocable trust is the Life Insurance Trust. This trust owns your life insurance policy, which can help manage the proceeds when you die. This is particularly useful in Oklahoma for reducing or eliminating estate taxes and ensuring that the benefits from the life insurance policy go directly to your intended beneficiaries without the delay of probate.

Setting Up a Trust in Oklahoma

Creating a trust in Oklahoma involves several steps. You need to decide which type of trust best suits your needs. Then, you must establish a trust document that spells out the terms of the trust, including who will act as trustee, who the beneficiaries will be, and how the trust assets are to be managed and distributed. Once the document is drafted, you sign it in front of a notary. After that, you need to transfer assets into the trust, a step known as funding the trust.

Each type of trust has its own set of rules and benefits. When deciding, think about your main goals: Do you want to avoid probate? Are tax considerations a major concern? Are there special family circumstances, like a disabled relative, which require specific provisions? Your decisions now can significantly impact the management and distribution of your assets later.

Tulsa County Wills and Trust Lawyers

Trusts are not just for the wealthy; they offer significant advantages for many people looking to manage their assets more effectively. By consulting with an estate planning lawyer near you can better understand the types of trusts available in Oklahoma and how they align with your personal goals so you can make informed decisions about securing your legacy and providing for your loved ones. A Tulsa estate planning and probate lawyer can guide you through setting up the right trust for your needs. For a consultation, call Tulsa County Lawyers Group at (918) 379-4864 or contact us online.