Estate planning is for everyone in Muskogee, Oklahoma.
By planning your estate, you ensure that your family and loved ones are protected and cared for after your death. You can ensure that prized possessions go to those who will most appreciate them, and you can ensure that the charities you most value will benefit after your death.
A Muskogee living trust lawyer can help you craft an estate plan that makes sense for you and your family. A living trust can be an important part of your estate plan.
What is an Estate Plan?
Estate plans can be simple or complex depending on your needs. While some people opt for a simple will, this can leave relatives with the hassle, time, and expense of probating the estate.
A trust is an estate planning tool that allows a third-party trustee to hold assets for the benefit of named beneficiaries. A trustee transfers assets into the trust and manages those assets during their lifetime for the benefit of their beneficiaries. Trusts come in varying forms.
A living trust is also called an inter vivos trust. This is a revocable trust, meaning the trustee can make changes to the trust and can even revoke the trust entirely. The trustee retains control over the assets.
An irrevocable trust is just that. Once the trust is signed, the trustee can no longer revoke the trust. In that sense, they no longer fully control those assets.
Irrevocable trusts can be useful tools for specific goals, like reducing taxes, but they require giving up ownership and control of trust property. Each type of trust has its place in estate planning.
Advantages of a Living Trust
The main advantage of making a living trust is to spare your family the expense and delay of probating your estate after your death. Depending on the type of assets you have, the size of your estate, and the family dynamics in place, you may or may not opt for a living trust.
Oklahoma’s probate process is complex and cumbersome. Oklahoma has not adopted the Uniform Probate Code, which simplifies the probate process. A living trust avoids that process for assets that have been transferred into a living trust.
Not all assets are transferred into a trust. Life insurance proceeds are not transferrable, but are paid directly to the beneficiaries named in the policy.
Though people have the idea that a living trust will save on death taxes, that is often a misconception. Few people owe inheritance taxes anymore. And for most people, a living trust is not a vehicle toward tax savings.
Other Options
If your estate is small, Oklahoma has simplified the probate process. In order to qualify for this streamlined probate, the estate must be valued at under $50,000. In this case, a living trust may not be necessary.
Oklahoma makes it possible to transfer real property using a tool called a transfer-on-death deed. This allows a house or other real property to be transferred quickly and easily instead of probating the property. The document is a simple form and you simply name your beneficiaries.
How Does a Will Work in Conjunction with a Living Trust?
Because not all property gets transferred into a trust, a will is necessary. Often property is acquired, and the trustee simply forgets to transfer the property to the trust. A will works like a backup to the trust to capture any such property inadvertently left out of the trust. You can also name other beneficiaries in a will who were not named in the trust.
While we never like to think about the end of our lives, estate planning can make a huge difference and can bring peace of mind to us and to our loved ones. And your estate plan requires expert attention. Also, your estate plan should be tailored to your individual needs.
Confidential Consultation: Muskogee Living Trust Lawyer
Get your questions answered and get help you need. Understand the law and how it applies to your situation. A Muskogee living trust lawyer can help.
Contact us today at 918-884-7774.