Why Creating a Trust Is Not Enough: The Importance of Properly Funding It
Having a trust as part of your estate plan is a good option for Oklahoma residents; however, you must also understand how to fund your trust. That is why you should consider working with an Oklahoma trust attorney who can help you better understand the basics of funding a trust so that you can better protect your assets in the future. So, keep reading to find out why a trust needs to be funded and how you can do this correctly.
What Does It Mean to Fund a Trust?
Establishing a living trust is one thing, but it requires additional steps to ensure your assets are truly protected for the future. And one of the steps you need to take is funding your trust, which simply means that you’re transferring legal ownership of your assets.
When you do this, your legal ownership transfers into the name of the trust, allowing assets to go directly to the designated beneficiaries upon the time of your death. It’s essential that you take this step, since any assets in your name usually need to go through probate.
Why You Need to Properly Fund a Trust in Oklahoma
Now that you know what it means to fund a trust in Oklahoma, here are some examples of why this is such a necessary step:
- Avoiding probate: A properly funded trust can help your estate avoid the lengthy and costly process of probate in Oklahoma. This is because a trust legally designates beneficiaries and appoints a trustee who can distribute property to the correct individuals without the need for court involvement.
- Incapacity planning: You can use your trust to plan for any future injury or serious illness by appointing a successor trustee to act on your behalf if you become incapacitated. When your trust is properly funded, the successor trustee can manage your property and financial accounts without court intervention.
- Asset distribution: If your estate has to go through probate, many things are left up to the court and Oklahoma’s probate laws. Whereas when you have a funded trust, this allows you to have greater flexibility regarding asset distribution that you can customize according to your goals.
- Privacy: When an estate has to go through probate in Oklahoma, this is a public process that anyone can view. But if you can avoid probate with a funded trust, the details of your estate will be kept private.
If your goal is to fund a living trust so that you can avoid probate, plan for the future, and protect your assets, you should consult with an Oklahoma trust attorney before you get started.
Get the Help of an Experienced Oklahoma Trust Lawyer
Establishing a living trust is a great option for Oklahoma residents who wish to protect their assets and avoid probate. However, you need to make sure you fund your trust correctly so that it can help your loved ones avoid the probate process.
At Outhier & Caruthers, PLLC, our trust funding attorneys in Oklahoma can help you navigate the entire estate planning process, no matter your goals or your estate. Contact us today at 580-234-6600 to discuss your situation with an attorney.