A revocable trust can allow families to avoid probate court in Oklahoma. A revocable trust provides privacy and simplifies the transaction to heirs. People may think that revocable trusts are for the wealthy, but any family could make use of them once they’re aware of the pros and cons.
Advantages of revocable trusts
Estate planning usually involves probate court, but a revocable trust can allow a family to skip probate court. A judge supervises the probate process while distributing assets. A family can distribute assets freely without court supervision with a revocable trust. Another benefit of revocable trusts is protection from conservatorship. A conservatorship allows people to gain control of finances for incapable people. A revocable trust gives the spouse or partner authority over the trust property.
Another benefit of revocable trusts is allowing the flexibility of amendments or changes until the person’s death. A person can name unrelated or out-of-town people for an administrator. Any estate within a revocable trust will remain private after death, and a revocable trust allows people to use the money right after death.
Disadvantages of revocable trusts
Estate planning has tax requirements regardless of how families divide assets. Revocable trusts offer no tax benefits, and not all assets qualify for revocable trusts, including IRAs. Trust planning for retirement is complex because some retirement accounts need individual ownership.
Families must retitle all assets within the revocable trust, which is time-consuming. Non-retitled assets aren’t part of a revocable trust, and courts divide them separately.
The rules of a revocable trust give heirs over three months to contest the will, and the statutes of limitations are between one and five years. Considering these points can help an estate planner decide if a revocable trust is best for their family’s circumstances.