What is the difference between a will and a trust in estate planning? In Oklahoma, a will is a document that specifies how to distribute your assets after your death. A will must go through probate, a court process that can be lengthy and is always public. A trust allows you to use your assets while alive, distribute them to your heirs, and avoid probate.
Wills vs. Trusts in Oklahoma
Wills and trusts in Oklahoma have several differences, including:
- A will becomes effective when you die, while a trust is in effect while you are still alive and can continue after your death.
- A will must go through probate. A properly funded trust can usually avoid probate.
- Anyone who wants to know about your financial situation can learn a lot as your estate goes through probate, because it’s a public process. A trust is not public, so it can shield your financial affairs from scrutiny.
- The only thing you can do with a will is distribute your assets after death. A trust gives you much more flexibility and control over your assets.
- A trust can provide for you if you become incapacitated, while a will cannot.
- A will is usually less expensive to create than a trust.
Wills in Oklahoma
The purpose of a will is to distribute your estate after death. You can use your will to name a person as the executor of your estate. The executor then performs a series of duties, including:
- Collecting any debts owed to you at the time of death
- Paying off your debts
- Paying any taxes you owe
- Distributing any remaining assets to your heirs
If you don’t write a will and specify how you want your property distributed, Oklahoma courts will distribute your assets according to intestate succession law. This might not align with your wishes, so it’s important to write a will if you want to have any control over how your assets are distributed. However, a trust can do several things a will cannot.
Trusts in Oklahoma
Oklahoma allows you to create several different types of trusts, including
- Revocable or living trusts allow you to manage your assets while alive and avoid probate after death
- Irrevocable trusts offer additional asset protection and tax benefits but cannot be modified
- Special needs trusts can provide for a family member with special needs without affecting their eligibility for benefits
- Charitable trusts can benefit a charity of your choice
Trusts give you flexibility and control that a will cannot while protecting your privacy. The Oklahoma Uniform Trust Code regulates trusts in Oklahoma.
Contact an Oklahoma Estate Planning Lawyer to Create a Will or Trust
If you have a small estate and don’t need a lot of flexibility to manage your assets, a will may be the least expensive option for you. If you have a larger estate and want more flexibility and privacy, a trust is the best way to accomplish that. Estate planning lawyer Nicholas Farha can help you with any aspect of estate planning in Oklahoma City and beyond. Contact Farha Law, PLLC, today for help with your will or trust.