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Benefits derived by advanced estate planning

On Behalf of | Nov 28, 2022 | Estate Planning

A will allows you to ensure that a trustee distributes your assets according to your wishes. Advanced estate planning takes this foresightedness one step further. It’s a suitable strategy for anyone in Oklahoma who wants to protect their property, reduce their tax burden or create a legacy.

Asset protection from lawsuits

Creating and funding an irrevocable trust can protect the trust’s assets if the grantor loses a civil lawsuit. Creditors cannot seize the contents of the account to pay a judgment.

To establish this shield against creditors, the creator and funder of the irrevocable trust names its beneficiaries, gives detailed instructions on how the trustee should distribute the funds and relinquishes control of the funds to a trustee. The trust becomes the legal owner of the account and its contents. It takes a court order, unrelated to pending judgments, to change the terms of a trust. This type of trust also protects the account’s assets from any claims of partial ownership that might arise during a divorce hearing.

Eliminate or reduce estate taxes

Oklahoma has no state estate tax or inheritance tax. However, there is a federal estate tax, which applies to the portion of an estate that is worth more than $12.06 million. Moving valuables to an irrevocable trust will lower the value of an estate.

Create a legacy contribution

Advanced estate planning doesn’t have to focus solely on asset protection or taxes. Some grantors fund trusts with income-producing properties that continue to provide money to their beneficiaries or charities long after they die.

Reap the benefits of thoughtful strategizing and include an irrevocable trust in your advanced estate planning sessions.