What Does Funding a Trust Mean and What Are Some Examples in Oklahoma

Funding a Trust

Funding a Trust that you own is a critical step towards accomplishing your goals in estate planning. When you decide to manage your assets for the future—whether for retirement, legacy goals, or estate planning—one option you might consider is setting up a trust. But what does it really mean to fund a trust? And how does this process work, especially under Oklahoma laws? In this article, you’ll learn the ins and outs of funding a trust in Oklahoma.

Understanding Trust Funding

Funding a trust involves transferring your assets from your personal ownership to the trust itself. When you fund a trust, you are essentially changing the legal title of your assets from your name to the name of the trust. This step is crucial because the trust can only manage or distribute the assets that it legally owns.

Types of Assets You Can Place in a Trust

You can fund a trust with almost any type of asset. Common examples include:

  • Real Estate: Homes, land, and other real property can be transferred into the trust.
  • Bank Accounts: Checking and savings accounts can be retitled in the name of the trust.
  • Investments: Stocks, bonds, and mutual funds are also transferable.
  • Personal Property: Jewelry, art, and other valuable items can be assigned to the trust.
  • Business Interests: Shares in businesses or partnerships can be part of a trust’s holdings.

How to Fund a Trust in Oklahoma

In Oklahoma, the process of funding a trust varies depending on the type of asset you’re transferring. Here’s how you can transfer some common asset types:

  • Real Estate: To transfer real estate into a trust, you need to prepare and record a new deed with the county clerk where the property is located. This deed will convey the property from your personal name to the trust.
  • Bank and Investment Accounts: For these assets, you’ll typically provide the financial institution with a copy of the trust agreement and sign new account forms that list the trust as the new owner of the accounts.
  • Vehicles: If you’re placing a vehicle into a trust, you’ll need to update the title to reflect the trust as the new owner. This involves visiting your local tag agency with the trust documents and applying for a title change.

Oklahoma Laws Governing Trust Funding

Under Oklahoma law, the process of funding a trust must comply with certain legal requirements to ensure that the transfer of assets is valid. This includes properly documenting the transfer and ensuring that all legal formalities, such as notarization of deeds, are followed to effectively change ownership of the assets.

Examples of Trust Funding in Oklahoma

Imagine you own a home in Tulsa and decide to place it in a trust. You would start by having a new deed prepared, stating that the owner of the property is now the trust, not you personally. After the deed is notarized, you would record it with the Tulsa County Clerk to complete the transfer.

Similarly, if you own a collection of valuable paintings and want to protect these assets through a trust, its easy. Simply create a list of the paintings and formally assign ownership of each piece to the trust. This might include ensuring any registration or ownership certificates are updated.

Why Fund a Trust?

Funding a trust allows you to manage and protect your assets according to your wishes. Once assets are in a trust, they are no longer subject to probate. This can potentially reduce estate taxes, and ensure that your assets are managed according to your directions.

Tulsa Trust and Wills Lawyer

Setting up and funding a trust can be a powerful tool for managing your estate. In Oklahoma, understanding the specific legal steps and requirements to transfer different types of assets into your trust is crucial. By carefully planning and executing the funding of your trust, you ensure that your assets are managed and distributed in the way you intend. Call for a free consultation the Tulsa Estate Planning attorneys at Kania Law Office 918.743.2233 or contact us online.

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Call us today for a free consultation 918-743-2233 or contact us online.