For many Oklahoma families, having control over how their accumulated wealth is ultimately distributed is a top estate planning concern. This is an understandable focus, as many families have spent years of hard work and sacrifice in order to attain a certain level of wealth, and want to ensure that those assets are passed down in a way that rewards the positive accomplishments of their intended heirs. For many, simply handing over a sizeable pile of money is not acceptable. One tool that may provide a great for for such needs lies in the creation of revocable living trusts, or RLTs.
With an RLT, the creators of the trust can exert as much control as they like over how their assets are ultimately distributed. Proceeds from the trust can be paid out at certain pre-determined intervals or ages, or can be tied to specific life events. Heirs can be financially rewarded when they get married, buy their first home or complete their education.
For example, an RLT can be structured in such a way as to encourage grandchildren toward achievement. Monthly payments, as well as tuition payments, can be released while a grandchild is attending college, with the understanding that a larger lump sum will be distributed when a degree has been completed. Those distributions can even be tied to a certain GPA level. In the case of grandchildren who choose another path, distributions can be paid out at the end of a term of military service, when a business venture is started or after the completion of a trade school program.
With revocable living trusts, Oklahoma residents can exert a high degree of control over how a lifetime of hard work is passed down to children and grandchildren. For many people, the thought of simply handing over a significant chunk of wealth is unacceptable. By clearly outlining the expectations that are tied to an inheritance, families can ensure that their wealth is passed on in a way that encourages achievement and rewards hard work.
Source: Entrepreneur, "Smart Estate Planning Tips for Entrepreneurs", Mark J. Kohler, June 25, 2015