• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Parman & Easterday

Oklahoma Estate Planning Attorneys

Call Now: (405) 843-6100 |
(918) 615-2700

Attend an Education Program-Oklahoma City Area Attend An Education Program in the Tulsa Area
  • Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
    • What Our Clients Say
  • Estate Planning
    • Asset Protection
    • Business Succession Planning
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • IRA and Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • Powers of Attorney
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration and Probate
    • Young Families
  • Elder Law
    • Coping With Alzheimer’s
    • Elder Law
    • Emergency Medicaid
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Veteran’s Benefits
  • Resources
    • Asset Protection Worksheet
    • DocuBank
    • Elder Law
      • Elder Law & Medicaid Definitions
      • Elder Law Reports
      • Elder Law Resources
        • Edmond Elder Law
        • Oklahoma City Elder Law
        • Overland Park Elder Law
        • Yukon Elder Law
      • Medicaid
      • Nursing Home Resources
    • Estate Planning
      • An Overview of Estate and Gift Taxes
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Alzheimer’s FAQs
      • Asset Protection Planning
      • Estate Planning
      • Elder Law
      • Frequently Asked Questions for Families Without an Estate Plan
      • Inheritance Planning for Minors
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid Planning
      • Nursing Home Asset Protection
      • Probate
      • Trust Administration
      • Trust Administration & Probate
      • Wills and Trusts
    • Newsletters
    • Probate and Trust Administration
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • Probate Checklist
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
    • Probate Resources
      • Midwest City Probate
      • Moore Probate
      • Oklahoma City Probate
      • Overland Park Probate
    • Published Books
    • Pre Consultation Form
  • Communities We Serve
    • Edmond
    • Midwest City
    • Moore
    • Norman
    • Oklahoma City
    • Owasso
    • Yukon
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact Us
Home » Estate Planning » Answers to Three Common Estate Planning Questions

Answers to Three Common Estate Planning Questions

February 7, 2023 by Larry Parman, Attorney at Law

estate planningWe have spoken with countless clients over the years. They are making very important decisions, so communication is key. We answer all questions thoroughly, and we provide detailed explanations.

In this post, we will look at some questions that we are often asked, and we will provide brief answers. This will give you a basic foundation of information to draw from. There are other resources available on this website that you can utilize to learn more.

What happens if I don’t have any estate planning documents?

If you do not have a last will or a trust at the time of your death, the condition of intestacy will be the result. Under these circumstances, the probate court would step in to determine how your assets should be distributed. The court would appoint a personal representative or estate administrator to handle the business of the estate.

The exact intestate succession laws vary somewhat state-by-state. In Oklahoma, if you pass away with surviving children but no spouse, the children would inherit the entirety of your intestate estate.

If you leave behind a surviving spouse and no children, siblings, or parents, your spouse would inherit everything. A surviving spouse would inherit all of the property that was accumulated by combined effort if your parents are still living. They would also get a third of the remaining property, and the parents would get the rest.

These are a handful of the possible scenarios, but you can see that your own true wishes may not be carried out if the state makes the final decisions.

Will my estate be subject to taxation?

Generally speaking, inheritances are not subject to regular income taxes. Plus, appreciated assets are given a step-up in basis for capital gains purposes. To explain by way of example, let’s say that your uncle paid $100,000 for some stock he bought 20 years ago. He leaves it to you in his will, and it is now worth $1 million. The assets would get a stepped-up basis, so you would not be responsible for those gains.

There is a federal estate tax, but most estates are not subject to it because there is a large exclusion. In 2022, the exclusion is $12.06 million, and the maximum estate tax rate is 40 percent. However, the exclusion is going to be reduced to $5.49 million in 2026 when a provision in the Tax Cuts and Jobs Act expires.

Trusts are only for the wealthy, right?

This is a very common misconception. First, there are different types of trusts. There are irrevocable trusts that are used to obtain estate tax efficiency. Some of them accomplish different objectives that are not related to extraordinary wealth. There are also revocable living trusts that can be useful for a wide range of people.

One benefit of the revocable living trust is the avoidance of probate. If you use a will instead of a trust, you would name an executor to administer your estate. They would be required to admit the will to probate, which is a court supervised process.

Probate is time-consuming, and it is also expensive. There are court costs and legal fees, and the executor is entitled to be paid for his or her time and effort. With a living trust, the assets can be distributed to the beneficiaries outside of probate. This is a major advantage, and there are others.

Schedule a consultation!

If you are ready to work with an Oklahoma City estate planning lawyer to develop a plan, we can help. We will answer your questions, make recommendations, and help you put a plan in place that will bring your wishes to fruition when the time comes.

You can set the wheels in motion if you call us at 405-843-6100, or you can use our contact form to send us a message.

 

 

  • Author
  • Recent Posts
Larry Parman, Attorney at Law
Larry Parman, Attorney at Law
Founder and Owner at Parman & Easterday
After helping his own family deal with a lengthy probate and the IRS following his father’s untimely death in a farm accident, Larry Parman made a decision to help families create effective estate plans designed to reduce taxes, minimize legal interference with the transfer of assets to one’s heirs, and protect his clients’ assets from predators and creditors.
Larry Parman, Attorney at Law
Latest posts by Larry Parman, Attorney at Law (see all)
  • Digital Estate Planning Overview - March 23, 2023
  • Five Thoughts About Estate Planning for Blended Families - March 21, 2023
  • The Pros and Cons of Long-Term Care Insurance - March 16, 2023

Filed Under: Estate Planning Tagged With: Intestacy, taxes on inheritances, trusts

Other Articles You May Find Useful

digital estate planning
Digital Estate Planning Overview
What Happens When You Don’t Trust Your Trustee – Part I
HIPAA
What Does HIPAA Stand For and Why Should I Care?
charitable giving
Is Charitable Giving Part of Your Estate Plan?
The View from Heckerling
guardian selection
How Do I Select a Legal Guardian for My Children?

Primary Sidebar

Parman & Easterday, LLP

DOWNLOAD OUR FREE ESTATE PLANNING CHECKLIST

SUBSCRIBE TO OUR BLOG

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Where We Are

OKLAHOMA CITY, OK
13913 Quail Pointe Drive, Suite B
Oklahoma City, OK 73134
Phone: (405) 843-6100
Fax: (405) 917-7018

MAP

parman_sidbr_map

Where We Are

TULSA, OK
Memorial Place 7633 E. 63rd Place Suite 312
Tulsa, OK 74133
United States (US)
Phone: (405) 843-6100

MAP

parman_sidbr_map

Office Hours

Monday9:00 AM - 5:30 PM
Tuesday9:00 AM - 5:30 PM
Wednesday9:00 AM - 5:30 PM
Thursday9:00 AM - 5:30 PM
Friday9:00 AM - 12:00 PM

Footer

footer-logo

The information on this Oklahoma Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Oklahoma City Estate Planning Attorneys at Parman & Easterday offer estate planning services in the Oklahoma City, Oklahoma and surrounding areas. Contact us for help today.

Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys


© 2023 American Academy of Estate Planning Attorneys, Inc.
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube