When you are creating your estate plan, you will come across the idea of using “trusts”. There are several different types of trusts that estate lawyers will use as tools in creating your plan. Of course, you have the ability to choose if you want a trust and what type of trust you would like to include in your plan. This article will explain the types of trusts and what some advantages are creating a trust.
Creating a Trust: Types
One of the most commonly used tools is a revocable trust. This is a trust where you put your assets, but you can change, amend, or end it at any time. This allows you to have a great deal of flexibility if you face unforeseen circumstances after creating a trust. Revocable trusts do become irrevocable though, if you pass away.
Creating a trust that is irrevocable is uncommon. Most attorneys would not recommend this type of trust since it is extremely difficult to amend or terminate. If you create an irrevocable trust, then you essentially are locking the assets of the trust into the trust indefinitely. This means that you cannot get them back. They are separate from your family and your estate.
Testamentary trusts are trusts that become effective upon your death. These are often used if you wish to create a trust for grandchildren or other surviving heirs. The assets going to these inheritors will be put into trust upon your death and are subject to the parameters you set out in your plan. They are less expensive than intervivos trusts.
Intervivos Trusts are often revocable trusts in nature and are the most common form. Creating a trust while you are living has several advantages. You can be the trustee of your trust. This means you can administer the trust as you see fit during your lifetime. However, the trust must have a specific purpose with specific terms.
HAVE STEP-CHILDREN? SEE OUR ARTICLE ON HOW TO INCLUDE THEM IN YOUR ESTATE PLAN.
Setting Up Your Oklahoma Trust
Creating a trust can be a rather simple process. First you must fill out a trust document, or create one that you like. It is simply your preference. This document must have the name of the beneficiary of the trust, the name of the trustee, and be signed in front of a notary. Once this is complete, you will transfer the assets and property into the trust that you wish to be in it.
We highly recommend seeking legal counsel when you are finalizing your estate plan and create a trust. Our Estate Planning attorney understands the ins and outs of creating a suitable trust for your needs. Let us make sure you cross all the T’s and dot all the I’s so your estate doesn’t go into probate over a simply mistake. Call For a free phone consultation.