Some Oklahoma residents mindful of estate planning sway back and forth on the idea of starting a trust. In general, a trust is either living or testamentary, with the latter type taking effect only after the trustor's death. Living trusts can be further divided into those that are irrevocable and those that are revocable.
By establishing a living trust, Oklahoma individuals may be able to avoid the lengthy, public and expensive process of probate. Additionally, they can create a plan to handle disability and retain control over their assets so that they can use them during their lifetime. At the same time, they can prepare for the future and set parameters around how heirs should use assets and income from the trust.
Many Oklahomans who want to leave money for their beneficiaries after their demise use trust structures. Those who worry about their beneficiaries' money management skills may take the additional step of designating their trusts as spendthrift trusts. These structures are expressly designed to give their creators a greater degree of control over the disbursement of the assets they leave behind.
In Oklahoma, many parents want to make certain their children who are disabled will be able to have their needs taken care of when they are adults without interfering with their children's ability to continue receiving federal and state benefits. A special needs trust is a legal vehicle by which parents can provide funds designated to take care of certain expenses that would otherwise not be covered through SSI or Medicaid and Medicare benefits.