Putting Your House in a Trust in Oklahoma
A house is a common asset often placed in a trust during the estate planning process. This can provide many benefits, such as allowing the house to pass to your heirs without going through the probate process. However, in order to take advantage of the trust’s benefits, you must actually put your house into the trust. Here are the steps you need to take in order to do so.
Draft the Trust
Before you can place your house into a trust, you must first establish the trust. This requires creating trust documents that specify how the trust should be managed as well as naming a trustee. For revocable living trusts, you typically name yourself as the trustee and also name a successor trustee in the event of your death or incapacitation.
Once you have drafted the documents, you will need to sign them and have them notarized. Since trusts are fairly complex, working with an experienced Oklahoma City wills and trusts attorney can ensure that your trust fits your needs and follows all relevant Oklahoma laws.
Prepare a New Deed
The next step to placing your house in a trust is preparing a new deed that transfers ownership of the house to the trust. Instead of having your personal name on the deed, you may be listed on the deed as trustee of your trust. The type of deed that you use (such as a quitclaim deed or warranty deed) depends on your personal situation.
Record the Deed
Finally, you need to record the signed deed in the county where the home is located. This is the same procedure that is followed when you sell your home. In this case, however, the new owner is your trust instead of an unaffiliated third party. Once the deed has been recorded, then the trust is the official owner of the house.
Benefits of Placing Your House In a Trust
Placing your house in a trust can offer many benefits, such as:
- Probate avoidance
- Tax savings
- Privacy
If your house passes to your heirs under the terms of your will, then they would have to go through the lengthy and complex probate process, which an Oklahoma City probate lawyer can assist with. Using a trust allows your heirs to bypass this process and take ownership of the home more quickly and easily.
Additionally, a trust can offer substantial tax savings in some cases. Depending on the type of trust you establish, your home may no longer count toward your estate assets. This can significantly lower your estate’s tax bill and save your family a lot of money.
Finally, a trust can allow you to keep the details of your estate private. Since a will must go through the probate court, it will become part of the public record. This means that the details of your will could become public knowledge. A trust, however, is a private document that remains private, so the details of your estate are never divulged to the public.
What Happens If I Don’t Put My House in a Trust?
If you don’t put your house in a trust, then the home would pass to your heirs according to the terms of your will. The home would be included as part of your taxable estate assets, and the probate process can take 6-12 months to complete.
If you do not have a will, then the home would pass to your heirs according to the intestate succession laws of Oklahoma. This process may be vastly different from your wishes, so it is crucial to ensure that you have a comprehensive estate plan in place, along with proper guidance from a trust administration lawyer, to protect your family and ensure your wishes are carried out after your death.
