• 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
(913) 385-9400

Attend a Webinar - OK Attend a Webinar - KS/MO
  • Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
    • What Our Clients Say
  • Estate Planning
    • Asset Protection
    • 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
      • 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      • Is Your Estate Plan Outdated?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
    • Free Seminars
    • Frequently Asked Questions
      • Estate Planning
      • Elder Law
      • Frequently Asked Questions for Families Without an Estate Plan
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • 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
      • Leawood Probate
      • Midwest City Probate
      • Moore Probate
      • Oklahoma City Probate
      • Overland Park Probate
    • Published Books
    • Pre Consultation Form
  • Communities We Serve
    • Kansas
      • Johnson County
        • Fairway
        • Mission
        • Overland Park
        • Prairie Village
        • Shawnee
      • Wyandotte County
    • Oklahoma
      • Edmond
      • Midwest City
      • Moore
      • Norman
      • Oklahoma City
      • Yukon
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact Us
Home » Estate Planning » Do You Lose Control of Assets in a Trust?

Do You Lose Control of Assets in a Trust?

September 24, 2020 by Larry Parman, Attorney at Law

revocable living trustA common estate planning misconception harbored by many people is the idea that you lose direct personal control over assets you sign over to a trust. Since they want to use the resources if necessary, they instead create a simple will to satisfy their estate planning needs.

In this post, we will dissect this assumption so that you can make informed decisions.

Irrevocable Trusts

Some trusts that cannot be revoked once they have been established. If you create an irrevocable trust, you probably cannot change the terms. Also, as the grantor of the trust, you may not be able to act as trustee, or manager, of the trust.

In a legal sense, you would be “surrendering incidents of ownership” when you conveyed assets to this type of trust. It can seem disconcerting to let go of control, but there are reasons why some people choose to do so.

Think about it.  Many elders require nursing home care late in their lives and Medicare will not assist with these costs. Since nursing facilities are very expensive, this is a big deal. Medicaid will pay for long-term care, but it is a needs-based program, so the value of the assets you can keep is quite low.

Assets held by an irrevocable trust are not counted against this asset limit.  This is one reason why people establish them. High net worth individuals are also concerned about estate tax and resources conveyed into this type of trust would not be part of their estate.

These are a couple of reasons why people use trusts that cannot be revoked, but there are a number of others.

Revocable Living Trust

The most widely utilized trust in the field of estate planning is the revocable living trust. As the name indicates, you can amend or revoke this type of trust. This means you could not use a revocable living trust to qualify for Medicaid or to mitigate your estate tax exposure.

You can be the trustee and beneficiary of this trust while you are alive and well, so you have direct access to all assets in the trust. In a real sense, nothing changes regarding your ability to immediately use assets owned by the trust.

There are many reasons why people use these trusts.  For some, probate avoidance is at the top of the list. Probate is a costly and time-consuming legal process that takes place under the supervision of a court.

A will must be admitted to probate, but assets in a living trust are distributed without court intervention. You can protect a spendthrift beneficiary by including spendthrift provisions that allow for limited distributions over an extended period of time.

If you are married, you and your spouse can establish a joint living trust to simplify things in a number of ways.

You can provide protection against your own incapacity in a living trust by naming a successor trustee to assume the role if necessary. The estate administration process is very efficient because the trust owns all the assets that comprise the estate.

Take Action Today!

You have options when planning your estate. The ideal course of action will depend upon your individual circumstances.  We have the expertise to guide you in the right direction.

We are here to help if you want to put an initial estate plan in place or change an existing one.

You can schedule a consultation in Oklahoma City or Tulsa by calling 405-843-6100, or in Overland Park, Kansas by calling 913-385-9400.  You can also send us a message through our contact page if you would like to reach out electronically.

 

 

  • Author
  • Recent Posts
Larry Parman, Attorney at Law
Latest posts by Larry Parman, Attorney at Law (see all)
  • Estate Planning: It’s Simpler Than You Think - April 8, 2021
  • You Should Have These Estate Planning Documents - March 30, 2021
  • Is There a State Estate Tax in Oklahoma? - March 25, 2021

Filed Under: Estate Planning Tagged With: irrevocable trusts, revocable living trust

Other Articles You May Find Useful

estate planning
Estate Planning: It’s Simpler Than You Think
“Last Will and Testament” Origin
estate planning
You Should Have These Estate Planning Documents
Oklahoma estate tax
Is There a State Estate Tax in Oklahoma?
Dynasty Trusts
beneficiary
Beneficiary Designations and the SECURE Act Basics

Primary Sidebar

Parman & Easterday, LLP

DOWNLOAD OUR FREE ESTATE PLANNING CHECKLIST

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

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
parman_sidbr_map

Where We Are

OVERLAND PARK, KS
10740 Nall Avenue, Suite 160
Overland Park, KS 66211
Phone: (913) 385-9400
Fax: (913) 385-9422
parman_sidbr1_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 - 5:30 PM

Footer

footer-logo

The information on this Oklahoma and Kansas Attorneys & Lawyers / 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.

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


© 2021 American Academy of Estate Planning Attorneys, Inc.
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube