Setting Up a Trust

Establishing a trust is an effective strategy for managing and protecting assets, providing efficient estate planning, and achieving specific financial goals. In Oklahoma, trusts are governed by statutes overseeing the creation, management, and administration of these legal arrangements.

At Brier Law Firm, LLC, we help families through the probate process, estate planning, and naming guardians for adult loved ones. We are passionate about helping families create plans that fit their needs. Every Attorney Leslie K. Brier treats every client with honesty, integrity, and complete transparency.

We have helped countless Oklahoma families in Tulsa, and throughout the Tulsa area, including Cherry Street, Kendall-Whittier, Mcclure Park, Patrick Henry, South Peoria, Longview Lake, Turley, and throughout Rogers County and Wagoner County, establish trusts and protect the lives that they have worked hard to build.

Let's look at the process of setting up a trust in Oklahoma, the legal requirements involved, the types of trusts available, and the roles and responsibilities of the parties involved.

What Are Trusts?

A trust is a fiduciary arrangement in which one party, known as the trustee, holds and manages assets on behalf of another party, called the beneficiary. The person who creates the trust is referred to as the grantor or settlor. 

Trusts can be used for various purposes, including estate planning, asset protection, charitable giving, and tax planning. They offer flexibility in how assets are distributed and can be customized to meet the specific needs and goals of the grantor. 

Trusts also minimize probate costs, reduce estate taxes, and make sure that assets are managed according to the grantor's wishes.

Types of Trusts in Oklahoma

Let's explore the different types of trusts available in the state:

• Revocable living trusts:

  • Allow the grantor to maintain control over the assets during their lifetime.

  • Can be modified or revoked at any time.

  • Avoid probate, assuring privacy and efficiency in asset distribution.

• Irrevocable trusts:

  • Can’t be altered or revoked once established without the consent of the beneficiaries.

  • Provide asset protection and potential tax benefits.

• Testamentary trusts:

  • Created through a will and become effective upon the grantor's death.

  • Subject to probate but allow for structured asset distribution.

• Special needs trusts:

  • Provide for individuals with disabilities without affecting their eligibility for government benefits.

• Charitable trusts:

  • Support charitable organizations or causes.

  • May offer tax advantages to the grantor.

• Spendthrift trusts:

  • Protect the trust assets from creditors.

  • Restrict the beneficiaries' ability to access the principal directly.

Setting Up a Trust in Oklahoma

Here are the steps to set up a trust in Oklahoma:

1. Determine the purpose: Clearly define the objectives, such as estate planning, asset protection, or charitable giving.

2. Choose the appropriate type: Select a type that aligns with the grantor's goals and legal requirements.

3. Draft the trust document: Prepare a written agreement specifying the terms and conditions. Include essential elements such as the grantor's intent, the trustee's powers and duties, and beneficiaries' rights.

4. Appoint a trustee: Select a trustworthy and competent individual or institution to manage the trust assets. Consider naming a successor trustee to ensure continuity.

5. Identify the beneficiaries: Clearly specify who will benefit from the trust. Define the distribution schedule and conditions for receiving assets.

6. Fund the trust: Transfer ownership of assets to the trust, including real estate, bank accounts, investments, and personal property. Properly document asset transfers to avoid legal disputes.

7. Execute the trust document: Sign the agreement in accordance with Oklahoma law. Notarization may be required for certain types of trusts.

8. Maintain and administer the trust: The trustee must manage the trust assets prudently, keeping accurate records and complying with fiduciary duties. Regular reviews and updates may be necessary to reflect changes in circumstances or laws.

Legal Requirements for a Valid Trust in Oklahoma

There are several legal requirements for a trust to be valid in Oklahoma. These include:

• Capacity: The grantor must be able to understand the nature and consequences of creating a trust.

• Intent: The grantor must clearly express the intention to create a trust.

• Trust property: There must be identifiable property placed in the trust.

• Trustee and beneficiary: A trust must have a designated trustee and identifiable beneficiaries.

• Lawful purpose: The purpose of the trust must be legal and not against public policy.

Roles and Responsibilities

There are three main roles that come with a trust. Each role has unique responsibilities. 

1. Grantor:

   • Establishes the trust and defines its terms.

   • May retain certain powers in a revocable trust.

2. Trustee:

   • Manages and administers the trust assets.

   • Owes fiduciary duties, including loyalty, prudence, and impartiality.

3. Beneficiaries:

   • Individuals or entities entitled to receive benefits from the trust.

   • Can enforce the trust terms and hold the trustee accountable.

Legal Benefits of Setting Up a Trust

There are many legal benefits to setting up a legal trust.

• Probate avoidance: Assets in a trust bypass probate, assuring faster and more private distribution.

• Asset protection: Certain trusts shield assets from creditors and legal claims.

• Tax efficiency: Irrevocable trusts can provide estate and gift tax advantages.

• Control and flexibility: Trusts allow grantors to specify how and when assets are distributed.

• Support for special needs: Special needs trusts make sure that beneficiaries receive financial support without jeopardizing public benefits.

Potential Challenges and Considerations

There are several potential challenges and considerations involved with setting up a trust in Oklahoma. These include: 

• Complications: Trusts can be legally complicated and require careful drafting to avoid unintended consequences.

• Costs: Establishing and maintaining a trust may involve legal fees, administrative costs, and trustee compensation.

• Trustee selection: Choosing the right trustee is crucial for effective management and administration.

• Changes in law: Trusts must be reviewed periodically to confirm compliance with current laws.

How Brier Law Firm, PLLC, Can Help

When you're setting up a trust in Oklahoma, you need a law firm with deep familiarity with state and federal laws and extensive experience in the field. We provide meticulous trust, estate planning and probate services for clients seeking serious protection for their assets. If you want to establish a trust, founding attorney Leslie K. Brier has the resources to help you.

This is what we can do for you:

• Provide legal advice:

  • Explain the different types of trusts and their implications.

  • Help determine the most suitable trust structure.

• Draft the trust document:

  • Make sure the trust agreement is clear, comprehensive, and legally enforceable.

  • Address potential legal issues and include necessary provisions.

• Assist with asset transfers:

  • Guide the proper funding of the trust to avoid legal challenges.

  • Prepare and record necessary documents for transferring real property.

• Offer ongoing support:

  • Advise on trust administration, tax matters, and compliance with legal requirements.

  • Assist with amendments, trustee changes, and dispute resolution.

• Represent in legal proceedings:

  • Provide legal representation in cases of trust disputes, litigation, or audits.

Trust Attorney Serving Tulsa, Oklahoma

When you're considering setting up a trust, you need an attorney who can come in and take the lead with your legal needs. At Brier Law Firm, PLLC, we lead your family in the right direction. Located in Tulsa, Oklahoma, we serve clients throughout the Tulsa area, including Cherry Street, Kendall-Whittier, Mcclure Park, Patrick Henry, South Peoria, Longview Lake, Turley, and throughout Rogers County and Wagoner County. Call today to schedule a consultation.