When Oklahoma residents set up their estate plans, they have many options to choose from. One of these options is a trust. Because there are many kinds of trusts, it is important for people to understand the differences so they can set up the kind that will be best for them.
The kind of trust that most people may be familiar with is an irrevocable trust. FindLaw says that this type usually cannot be changed once someone has set it up. One benefit of an irrevocable trust is that the assets usually cannot be removed once they have been placed inside the trust. If people want the option to change a trust as their circumstances change, they may want to consider a revocable trust. This type can also keep assets from being subject to probate. Sometimes people may want a portion of their assets to benefit a certain charity after their deaths. In this case, they may want to establish a charitable trust.
Sometimes a trust can help a person pass on their assets when they have a complicated living situation. According to CNN, people who have remarried after getting a divorce may want to consider a qualified terminable interest property trust. This allows people to leave their assets to certain people and usually provides income for the surviving spouse. Some people may want to leave all of their assets to their grandchildren. In this situation, a generation-skipping trust may be the best option. The assets placed in this kind of trust are usually not taxed, allowing people to leave their grandchildren large sums of money without worrying about the taxes.
People may want to remove their home from their estate if they expect their house to increase in value. In this situation, they can generally establish a qualified personal residence trust. If some people want to avoid estate taxes, they may want to consider a credit shelter trust. This usually places a certain amount of assets in the trust. While these assets are typically taxed, everything excluded from the trust can usually pass directly to the beneficiaries without being taxed.