Things to Keep in Mind When Creating an Oklahoma Revocable Living Trust Agreement
A revocable living trust is an excellent estate planning tool that allows you to manage your assets during your lifetime and distribute them to your beneficiaries after you pass away.
In Oklahoma, a revocable living trust can be an excellent alternative to a traditional last will for various reasons. We will cover everything you need to know about creating a revocable living trust in Oklahoma and why it supersedes other estate planning documents.
A revocable living trust is a legal document that allows you to transfer your assets into a trust during your lifetime. As the trust's creator, you are also known as the grantor. You can manage and use your assets as you see fit and even change or revoke the trust anytime during your lifetime.
Here are more details to remember when creating a revocable living trust in Oklahoma.
Why You Need a Revocable Living Trust
One of the main advantages of a revocable living trust in Oklahoma is that it allows you to avoid probate. Probate is a court-supervised process that oversees the distribution of your assets after you pass away.
It can be time-consuming, expensive, and public, so many people prefer to avoid it. With a living trust, your assets will pass directly to your beneficiaries without going through probate. But it is vital to note that while some states have embraced the Uniform Probate Code, a model law simplifying the probate process, Oklahoma still needs to adopt it fully.
Nevertheless, Oklahoma does provide simplified probate options for estates that are small or relatively straightforward. With this, your inheritors can bypass the probate process by using a simpler affidavit procedure to claim properties worth $50,000 or less.
Another option to avoid probate is through the summary administration that applies to estates valued at $200,000 or less. It will also work if the person has been dead for over five years or resided in another estate by the time of death.
These probate shortcuts are relatively straightforward, cheap, and quick. So, if your estate qualifies for any of them, your heirs won't have to worry about a living trust.
Do You Need a Will in Oklahoma If you have a Living Trust?
Even if you have a revocable living trust in Oklahoma, you may still need a will. A will is a legal document that allows you to name a guardian for your minor children, specify who will receive any assets you have not transferred to the trust and prescribe an executor to manage your estate.
Without a will, your assets will be distributed according to a set of laws that govern the process. But if you are unsure how a revocable living trust vs. a last will and testament compares, be sure to speak to your attorney.
Does a Living Trust Reduce Estate Tax?
A revocable living trust does not offer any estate tax benefits in Oklahoma. Oklahoma has no state estate tax, and the federal estate tax only applies to estates valued at more than $12 million.
How to Make a Living Trust in Oklahoma?
Creating a revocable living trust is relatively easy. Here are the basic steps:
Decide who you want to include in your trust as beneficiaries and trustees.
Choose a successor trustee to manage your trust after you pass away.
Draft a revocable living trust document that outlines the terms of the trust.
Transfer ownership of your assets to the trust by retitling them in the name of the trust.
Sign the trust document in front of a notary public.
Store the original trust document safely and give copies to your trustees and beneficiaries.
So, are you looking to create a revocable living trust in Oklahoma but don't know where to begin? You can always find a free and updated Oklahoma revocable living trust template you can fill in online, download and print.