Trusts Attorney in Tulsa, Oklahoma

Are you looking for experienced legal guidance to protect your assets and your loved ones' future? At Brier Law Firm PLLC, our experienced trusts attorney in Tulsa, Oklahoma, is dedicated to crafting tailored estate plans that safeguard your wealth, minimize tax liabilities, and provide peace of mind. 

Whether you’re setting up a living trust, creating a will, or handling a complicated trust administration, our firm is dedicated to offering personalized legal solutions with the highest level of professionalism and care. Trust us to help you make informed decisions that align with your goals and protect your legacy for generations to come.

How Do Trusts Work in Estate Planning?

A trust is a legal arrangement where one party, the trustor (or settlor), transfers assets to another party, the trustee, to manage for the benefit of third parties, known as beneficiaries. 

Trusts are typically established through a trust agreement, which outlines the terms, the duties of the trustee, and the rights of the beneficiaries. There are two primary categories of trusts: revocable trusts and irrevocable trusts.

Revocable Trusts

Revocable trusts, also known as living trusts or inter vivos trusts, are created during the lifetime of the trustor. The trustor retains the ability to modify, amend, or revoke the trust at any time while they're alive and mentally competent. 

This flexibility makes revocable trusts a popular choice for individuals seeking control over their estate planning during their lifetime.

Upon the death of the trustor, a revocable trust becomes irrevocable, and the assets held within the trust are distributed according to the trustor's instructions. 

One of the primary advantages of revocable trusts is that they avoid probate, which is the legal process through which a court validates a deceased person's will and oversees the distribution of their assets. The trust assets pass directly to the beneficiaries, avoiding the time-consuming and often expensive probate process.

Irrevocable Trusts

Irrevocable trusts, on the other hand, can’t be altered or revoked once they're established, except under very specific circumstances or by court order. When a trustor creates an irrevocable trust, they relinquish control over the assets transferred into the trust. 

This feature makes irrevocable trusts particularly useful for individuals who wish to reduce their taxable estate or protect assets from creditors, as the assets in the trust are no longer considered part of the trustor's estate.

Irrevocable trusts offer significant tax benefits because they're typically excluded from the trustor's estate for estate tax purposes. 

They can also protect assets from lawsuits and creditors, as the trustor no longer owns the assets, and they're managed by the trustee for the benefit of the beneficiaries. Within these two categories, there are many different types of trusts.

Common Types of Trusts in Estate Planning

Each type of trust is designed to meet different goals. Below are some of the most commonly used trusts in Oklahoma estate planning.

1. Revocable Living Trust

A revocable living trust is one of the most popular estate planning tools in Oklahoma. It's created during the trustor's lifetime and allows the trustor to maintain control over their assets. The trustor can alter or revoke the trust at any time, which provides flexibility in managing assets. A revocable living trust can be used to:

• Avoid probate

• Provide for the management of assets in case of incapacity

• Name a successor trustee who will take over management of the trust after the trustor's death

In Oklahoma, a revocable living trust is a valuable tool because it allows for a smoother transition of assets without court involvement. 

It's also a private document, meaning the details of the trust, including the assets and beneficiaries, don't become public record upon the death of the trustor, unlike a will, which must go through probate and become part of the public record.

2. Irrevocable Life Insurance Trust (ILIT)

An Irrevocable Life Insurance Trust (ILIT) is a type of irrevocable trust designed to hold life insurance policies. The primary goal of an ILIT is to remove life insurance proceeds from the trustor's taxable estate, thereby reducing potential estate taxes. 

In Oklahoma, where estate taxes aren't as significant as in other states, an ILIT can still be beneficial for high-net-worth individuals or those with large life insurance policies.

When a life insurance policy is transferred into an ILIT, the trust becomes the owner and beneficiary of the policy. As a result, the life insurance proceeds aren't included in the trustor's estate for estate tax purposes. 

The trustee of the ILIT is responsible for managing the policy, making sure that the premiums are paid, and distributing the proceeds to the designated beneficiaries upon the trustor’s death.

3. Charitable Trusts

Charitable trusts are designed to benefit charitable organizations. In Oklahoma, individuals who wish to support charitable causes can use a charitable trust to provide a structured way to give. 

There are two main types of charitable trusts: charitable remainder trusts (CRTs) and charitable lead trusts (CLTs).

• Charitable remainder trust (CRT): This trust allows the trustor to receive income from the trust during their lifetime, with the remainder going to a charitable organization upon their death. CRTs offer significant tax benefits, including charitable deductions.

• Charitable lead trust (CLT): In a CLT, the charity receives income from the trust for a specified period, and the remainder of the assets is transferred to non-charitable beneficiaries, often family members. CLTs can help reduce estate and gift taxes.

4. Special Needs Trust

Special needs trusts are designed to provide financial support for individuals with disabilities without jeopardizing their eligibility for government benefits, such as Medicaid or Supplemental Security Income (SSI). 

In Oklahoma, individuals with special needs can benefit from a special needs trust to enhance their quality of life while preserving access to public assistance programs.

A special needs trust is typically established by a parent, grandparent, or guardian and is managed by a trustee. The trust allows funds to be used for the benefit of the individual with special needs for things like medical expenses, housing, and other needs, while making sure that the individual remains eligible for government programs.

5. Testamentary Trust

A testamentary trust is established through a will and doesn't take effect until after the trustor's death. Unlike revocable living trusts, testamentary trusts don't avoid probate. Instead, the will goes through the probate process, and the testamentary trust is established by the probate court. 

Testamentary trusts can be used to manage assets for minor children or beneficiaries who may not be able to manage their inheritance responsibly.

For example, a testamentary trust might be used to hold assets for a child until they reach a certain age, making sure that the assets are used for the child’s benefit. It can also be used to provide for a spouse or other loved ones who may need ongoing financial support after the trustor's death.

If you're unsure which type of trust is ideal for you and your family, it's in your best interest to speak to an experienced Tulsa trusts attorney. Attorney Leslie K. Brier has years of experience helping Tulsa residents with their estate planning, and setting up a trust offers numerous benefits.

Benefits of Using Trusts in Estate Planning in Oklahoma

Using trusts in estate planning enhances asset protection, tax efficiency, and offers greater control over the distribution of your estate. Some key advantages of establishing a trust include:

Avoiding Probate

One of the primary reasons individuals in Oklahoma create trusts is to avoid probate. Probate can be a time-consuming and costly process, and assets held in a trust pass directly to the beneficiaries without the need for court intervention. 

By establishing a trust with a Tulsa trusts attorney, individuals can help make sure that their assets are distributed according to their wishes without the delays and expenses associated with probate.

Asset Protection

Certain types of trusts, particularly irrevocable trusts, provide significant protection from creditors. 

By transferring assets into an irrevocable trust with the help of a Tulsa trusts attorney, individuals can protect those assets from lawsuits, creditors, and other claims. This protection is especially valuable for business owners or individuals at risk of lawsuits.

Tax Benefits

Trusts, particularly irrevocable trusts, can provide significant tax benefits. For example, irrevocable trusts remove assets from the trustor's taxable estate, potentially reducing estate taxes. Charitable trusts also provide income and estate tax deductions, allowing individuals to reduce their overall tax burden while supporting charitable causes.

Privacy

Unlike wills, which become part of the public record through the probate process, trusts are private documents. The details of a trust, including the assets and beneficiaries, aren't made public upon the trustor’s death. This can be an important consideration for individuals who wish to keep their estate matters private.

Control and Flexibility

Trusts allow individuals to maintain control over their assets, even after their death. Trustors can set specific terms and conditions for how and when assets are distributed. For example, a trust can specify that assets be distributed to beneficiaries only when they reach a certain age or achieve certain milestones.

Incapacity Planning

Trusts can also be used as a tool for managing assets in the event of the trustor's incapacity. In a revocable living trust, for example, the trustor can appoint a successor trustee who will take over the management of the trust if the trustor becomes incapacitated. 

This helps to make sure that the trustor’s financial matters are handled in accordance with their wishes. However, establishing a trust generally requires drafting a trust agreement, which outlines the terms and conditions of the trust. 

Establishing a Trust in Oklahoma

It's highly recommended that individuals consult with a Tulsa trusts attorney who's familiar with Oklahoma law to make sure that the trust is properly created and complies with state regulations. 

An estate planning attorney can also assist with the selection of a trustee and help determine the appropriate type of trust based on the individual’s goals and circumstances.

Once a trust agreement is drafted, the trustor must transfer assets into the trust. This may involve retitling property, such as real estate, bank accounts, or investment accounts, to the name of the trust. Failure to properly fund the trust can result in certain assets not being governed by the trust’s terms and may require probate.

Trusts are a powerful tool in estate planning, offering a range of benefits from avoiding probate to providing asset protection and tax advantages. By working with a Tulsa trusts attorney, you can tailor your trust to meet your specific needs and objectives, whether that includes providing for loved ones or protecting assets from creditors.