Many residents in Oklahoma who are involved in estate planning may be interested in learning about trusts. A recent report suggests that there are a number of misconceptions about trusts, and it also argues that the devices are useful in many cases.
Most Oklahoma citizens are aware of the value of a will, but the efficacy trusts are less understood. A trust is a useful tool for those who wish for their estate to go to their designated beneficiaries with a minimum of probate interference, but the devices can also be costly to set up and maintain. Trusts might possibly be of the more use to Oklahoma citizens who do not qualify for the simplified probate process.
Married couples in Oklahoma whose combined taxable estates are potentially greater than the estate tax exemption sometimes turned to a bypass trust as a way of protecting their assets. A bypass trust involves balancing the value of their two estates against each other before either partner dies and then implementing two wills that mirror each other.
While many Oklahoma residents who are contemplating estate planning mainly think of a will as the beginning and end of the process, there are a variety of ways for people of all income levels to preserve and protect their assets for future distribution to their heirs. One such method, which can serve as either a complement to a will or as the primary estate planning document, is the use of a revocable living trust.
Oklahoma families may need to talk about estate planning because studies show that in families where estate planning is not discussed, conflict is twice as likely on the death of benefactors. While this may be a difficult conversation for some people, the consequences of avoiding it can be adverse.