Will vs. Trust in Oklahoma: Which Do You Need?

When the time comes to create your estate plan, you may be wondering whether you need a will or a trust. The truth is that these are two completely separate documents with distinct uses a nd benefits. In many cases, you can benefit from having both of these documents in place. The estate plan that is right for you depends on your personal family and financial situation.

What Is a Will?

A will is a legal document that allows you to specify how your assets are to be distributed after your death. Without a will, your assets would be passed to your heirs according to the intestate succession laws of Oklahoma. This may or may not align with your wishes. This is why having a will is so important to protecting both your assets and your family.

What Is a Trust?

A trust is a legal entity that owns, manages, and distributes assets for the benefit of specific beneficiaries. A trust is created by a grantor (or settlor) who transfers ownership of property and assets into the trust. A trustee manages those assets and distributes them according to the terms of the trust. Trusts can help you pass assets to your heirs without going through the probate process, which a probate attorney can help navigate, and they can also offer substantial tax savings in some situations.

Choosing Between a Will and Trust

If you are trying to decide between a will and trust, you must closely examine your personal situation along with your specific goals. An experienced Oklahoma City estate planning attorney can help you put a plan in place that best fits your needs. If you are trying to decide between the two, some of the factors you should consider include:

• Is avoiding probate a key element of my goals?
• Is my estate large enough to worry about estate taxes?
• Is keeping the details of my estate private a major concern?
• Do I need to name guardians for minor children in the event of my death?
• Am I concerned about my heirs getting all of their inheritance at once?

Wills are usually easier and cheaper to set up than trusts, but they can create more court costs and probate expenses later. Trusts can be used to keep the details of your estate private and out of probate, but you cannot use a trust to name a guardian for your minor children. Finally, trusts give you more control over how and when your beneficiaries receive their inheritance.

How Wills and Trusts Can Work Together

Remember that you do not always have to decide whether to create a will or a trust. The right solution often involves a combination of both documents. You may decide to use a trust to manage your higher-value assets and any assets that need to pass quickly to your heirs. You could also put a will in place to handle any assets that are not included in your trust, as well as to name guardians for minor children.

The best approach is taking a comprehensive assessment of your needs and goals. From there, select the document or combination of documents that can best help you achieve those goals. The team at Helton Law Firm can help you develop a comprehensive plan and choose the right documents to move forward with confidence, knowing that your family will be protected.