Trust Scenario

Living Trust Scenario


William and Danielle are married and they have one child together.  William was previously married and has an adult child from that previous marriage, but the relationship is strained by that child’s drug abuse.  Danielle had a child while she was still in high school but she gave that daughter up for adoption, and there has been no contact between them.

William and Danielle want to be a certain as possible that the survivor of them will have all of the family assets for all of their life, and that the children who are not maintaining a relationship with them will not be able to take a forced share of the estate when they are both gone. Further, they want to have the ability to use any or all of their assets for anything that they want or need during the time that either of them survive.  If their child is under age 25, they want their trustee to control the money and use that money to care for the child they have together.
Trust Creation
William and Danielle’s situation is not that uncommon, and we can accomplish their goals, provided that they give us the information. They will need to share the story of their life circumstance to assure that we know all of the issues that they have pending.  We will need to discuss the basics, such as payment of income, invasion of principal, and distribution of the remainder. The remainder is the term to describe the remaining assets of the trust after both William and Danielle have passed.

After we have discussed the trust provisions and have drafted the trust document, William and Danielle will then sign the trust both as the grantors and as the initial trustees. Their next step, with my guidance and assistance, is to actually transfer assets into the trust.

The trust document will provide that William and Danielle will receive income for life from the trust as we want that income on their personal tax returns to minimize their income taxes. William and Danielle may revoke the trust, may amend it, and may add assets to the trust.  The trust agreement will name the successor trustees. The successor trustee(s) will manage the trust if William and Danielle are ill and unable to manage, or when they pass away.  The trust document will control who receives trust property after William and Danielle pass away, and it will control when they receive their gifts.

Trust Funding
Every asset that the trustors desire the trust to control must be transferred into the trust. Title to real estate is transferred through by deed that is filed with the county clerk. William and Danielle will have to sign the deeds to place their home and other real estate into their trust.  Our office will assist in sending these deeds for filing.

The family investment accounts may be transferred into the name of the trust.  The financial companies that hold those accounts will tell us what documents they need to see to make that change.

Usually we will create a comprehensive transfer document that will transfer ownership of the untitled personal property into the name of the trust.  That document need not be made public record.

Estate Taxes
Currently (2016) the estate tax exemption is $5,430,000.  If the trust may have more assets than that sum, it is important that William and Danielle meet with us to plan to reduce or eliminate any unnecessary taxes.  Estate taxes are onerous and it is worth the time and money necessary to avoid those punishing rates to the greatest degree possible.

Call Terrell Monks at 405-733-8686 to discuss your estate planning needs.  Trust packages start at $2400.00.

Terrell Monks

Guiding Oklahomans through Estate Planning for almost 20 years

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