A revocable trust is a very useful tool in Oklahoma estate planning. When planning for the future, many Oklahomans want to ensure their property is managed smoothly during their lifetime and passed efficiently to their loved ones after death. One of the most popular tools for achieving this is a revocable trust, also known as a living trust.
What Is a Revocable Trust?
A revocable trust is a legal arrangement in which you, as the grantor, transfer ownership of your property to the trust but retain full control during your lifetime. You can:
- Add or remove assets.
- Change beneficiaries.
- Amend the trust terms.
- Dissolve the trust entirely if you choose.
This flexibility is why it’s revocable; you can make changes at any time as long as you’re mentally competent.
How Does a Revocable Trust Work in Oklahoma?
When you decide that you want to create a revocable trust, here are the steps you’ll need to follow:
- Creating the Trust Document
An attorney drafts a trust agreement outlining how your assets will be managed and distributed after your death. - Funding the Trust
You transfer ownership of your assets—such as real estate, bank accounts, and investments—into the trust. These assets are then managed under the trust’s terms. - Management During Your Lifetime
You typically serve as the initial trustee, managing your property as you normally would. - Successor Trustee Upon Incapacity or Death
If you become incapacitated or pass away, a successor trustee you named takes over to manage or distribute the trust assets according to your instructions.
What are Some of the Benefits?
- Avoids Probate: Assets in a revocable trust pass directly to beneficiaries without going through Oklahoma’s probate court, saving time and money.
- Privacy: Unlike a will, a trust is not part of the public record.
- Incapacity Planning: If you become unable to manage your affairs, the successor trustee can step in without the need for court intervention.
- Flexibility: You can modify or revoke the trust at any time during your lifetime.
While the benefits can be beneficial, there are also some downsides to consider. A revocable trust does not provide asset protection from creditors during your lifetime and does not offer immediate tax advantages. It also requires work up front to properly fund the trust, meaning you must retitle assets in its name.
Should You Include a Revocable Trust in Your Estate Plan?
A revocable trust is an excellent tool for many people, particularly those who:
- Own real estate in multiple states.
- Want to avoid probate for their heirs.
- Need to plan for potential incapacity.
- Desire privacy in their estate planning.
However, a trust does not replace the need for a pour-over will and other planning documents.
Creek County Estate Planning Attorneys
We help Oklahomans create revocable trusts and other estate planning tools designed to protect their families and assets. Whether you’re starting from scratch or updating an existing plan, our team at Creek County Attorneys can guide you through the process, ensuring everything is done properly and efficiently. Call us at 918-209-3709 for a free and confidential consultation or ask a legal question here.
