A Practical Instrument for Estate Planning
You and your Tulsa probate attorney may determine that a trust is the most effective means of achieving your desired outcomes as part of your estate planning strategy. With a trust, you can do more than just specify how your assets will be divided upon your passing. The beneficiaries of an Oklahoma irrevocable trust may receive income both during and after your lifetime. This is a great way to safeguard your assets both during your life and after death, and to ensure that your loved ones are taken care of.
Reach out to a knowledgeable irrevocable trust lawyer in Oklahoma for a better understanding. A seasoned Tulsa trust attorney will go over the several kinds of trusts that are accessible in Oklahoma, along with the benefits and drawbacks of each kind of trust. The differences between an irrevocable and revocable trust, as well as the reasons why some individuals prefer an irreversible trust to a revocable trust, are briefly covered below.
Distinctions Between Revocable and Irrevocable Trusts?
A revocable trust can be revoked by the grantor, whereas an irrevocable trust cannot. This is the only distinction between the two types of trusts. A revocable trust allows its grantor to change its terms at any moment. The assets entrusted to the trust are still under the grantor’s control, and the grantor has the right to take those assets out at any moment. When the grantor passes away, the majority of revocable trusts automatically become irrevocable.
An irrevocable trust in Oklahoma takes away the grantor’s authority. The grantor gives up all ownership rights over the assets placed in the trust (the assets are transferred to the trust, leaving the grantor without any ownership stake in them) as well as any management rights over the trust’s assets. To oversee the assets owned by the trust, a trustee is appointed. Without the grantor’s consent, the trustee may invest or sell the assets.
What Advantages Do Irrevocable Trusts Offer?
There are advantages to selecting an irrevocable trust in Oklahoma, even though you might be questioning why someone would want one when they can no longer control the trust’s assets.
- Elimination of estate taxes: Assets placed in an irreversible trust are removed from your estate. As a result, these assets are not subject to estate taxation. In order to lower the possible tax liability that can lower the value of your inheritance for your beneficiaries, this can be a crucial part of estate planning.
- Creditor protection: Since the assets in an irrevocable trust are no longer yours, your creditors are unable to seize them in an effort to utilize the proceeds to settle any personal debts you may have.
- The trust is in charge of paying earned income tax: When the trust receives money, it is the trust, not the beneficiaries, that must pay the taxes on that income. Taxes are only paid by beneficiaries on income that is distributed to them directly.
- Effect on long-term health care benefits: You may be able to get long-term health care benefits by using irrevocable trusts to lower your net worth.
- Provide for minors or other family members: An irrevocable trust is a wonderful approach to set aside money on a regular basis to meet the requirements of a family member who has unique needs. The assets are held in trust, so you don’t have to worry about future creditors or other parties taking them for your debts and denying your family member income.
Call Today to Schedule a Consultation
To make sure you select the option that best suits your needs and fits your circumstances, you should speak with an experienced Tulsa estate planning attorney before choosing between an Oklahoma irrevocable trust and a revocable trust. Estate planning should be everyone’s first concern and a crucial component of your overall financial strategy.
Make an appointment with Oklahoma Will & Trust if you require the assistance of a skilled trust lawyer. Margarett L. Prestidge, an experienced and knowledgeable attorney specializing in Tulsa irrevocable trusts, can help you with all of your estate planning and probate requirements. Ms. Prestidge is an experienced estate planning lawyer in Tulsa who understands the benefits of safeguarding your assets and making sure your intentions are carried out.
For a consultation regarding the best strategy for safeguarding your legacy, get in touch with a knowledgeable Tulsa irrevocable trust attorney right now. Give (918) 876-4500 a call to arrange your no-cost consultation. Our address is 500 W. 7th St., Suite 104 in Tulsa, OK.