Updated January 25, 2024
The Oklahoma living trust is a legal entity into which the Grantor (the creator of the document) places their assets in order to protect them from litigation (probate) and, in certain circumstances, creditors. To create a living trust, the Grantor will have to transfer the ownership of all of their property into the trust’s name and assign particular roles to carry out the trust’s proper management. The Grantor will name a Trustee to control the trust and Beneficiaries to be the inheritors of the estate. A living trust is most useful for very large estates, as it avoids probate court proceedings, which can be an extremely long and costly process. In the State of Oklahoma, a living trust must be notarized, so you will have to consult with a legal professional in order to create one.
Laws – § 60-175.1 to § 60-299.16 (Oklahoma Trust Act)
Will (Last Will and Testament) – A Will is necessary to distribute any assets which have not been transferred into the trust.
Individual Roles
The necessary roles to be assigned in a living trust are as follows:
Grantor (or “Settlor”) – The person who creates a living trust.
Trustee – The person named as being in charge of managing a living trust.
Successor Trustee – The person who will become Trustee in the event of the active Trustee’s incapacity or death.
Beneficiaries – The individuals named as the inheritors of the property held within the trust.
Types
Irrevocable – In addition to avoiding probate, an Irrevocable Trust provides the assurance of protecting an estate from creditors and lawsuits. Once this type of trust has been created, in cannot be changed or revoked.
Revocable – A Revocable trust avoids probate and can be revoked or changed during the Grantor’s lifetime.
How to Make a Living Trust in Oklahoma
Under § 60-299.2, an Oklahoma living trust can only be established if the Grantor is of sound and has not been influenced to do so. The Grantor creates a document wherein they appoint a Trustee to manage the Trust and to distribute the assets to the named Beneficiaries per the Grantor’s instructions once they die. If the Grantor has appointed themselves Trustee (only revocable) the Successor Trustee assumes the position of Trustee. All parties involved must sign the document in front of a notary public. Although this is not legally necessary, it will help avoid problems in the future. The next step is to transfer all assets and property into the Trust. Any assets not placed within the Trust should be written down in a Pour-Over Will.
Motor Vehicles – Transferring the ownership of motor vehicles is accomplished by filling out a Bill of Sale that demonstrates the vehicle being put in the trust’s name.
Real Estate – To transfer real estate into the trust, the Grantor will need to complete an Oklahoma Deed, transfer ownership, have it notarized, and deliver to the appropriate County Clerk’s Office.
Do I Need a Living Trust?
In Oklahoma State, with the exception of extremely small estates, the only way to avoid probate is to form a living trust. Under laws 58 OS § 393 and 6 OS § 906, inheritors of estates valued at $20,000 or less can bypass probate by submitting a Small Estate Affidavit to the decedent’s circuit court. If this situation applies to your estate, or if you have few inheritors and assets, it may not be worthwhile to create a living trust. Otherwise, the creation of a living trust can ensure that your estate will be properly distributed without excessive litigation and loss of time. Other benefits of living trusts are that, unlike other estates, a trust estate is distributed privately and has provisions for how the estate is to be managed should the Grantor/Trustee fall ill or become incapacitated.