• 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      • Is Your Estate Plan Outdated?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
    • Yukon
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact Us
Home » Wills and Trusts » What If I Make The Wrong Trust Type?

What If I Make The Wrong Trust Type?

October 31, 2017 by Larry Parman, Attorney at Law

Oklahoma City Trust Lawyers

If you are considering establishing a trust, Overland Park trust lawyers should be consulted as early as possible to help you decide what type of trust is right for you. If you create the wrong kind of trust, the consequences could be serious. You may not be able to fix the problem and minimize or mitigate the consequences of having the wrong trust type, especially if your mistake is not discovered until after the damage is done. 

Parman & Easterday has helped many clients in Overland Park and surrounding areas select the best type of trust to accomplish their goals. We will be there for you at every step of the trust creation process. Not only do we help you select the trust that meets your needs, but we help you create your trust and fund it so the trust provides protection for your assets and loved ones. You should give us a call today to find out ways in which our legal team can help you with trust issues and to learn if a trust can help you protect your family and legacy.

What If You Create The Wrong Type Of Trust?

If you create the wrong type of trust, you may believe your trust assets are protected and your trust is providing the desired benefits. Because people expect trusts to protect their family and their assets in case of their incapacity or death, having the wrong type of trust is a very serious problem.

If you expecting your trust to preserve your wealth if you become incapacitated and it turns out you have the wrong kind of trust, you won’t be able to fix the problem because you cannot execute a new trust while you are incapacitated. If you expect your trust to protect your wealth when you pass away and the problem isn’t discovered until after you have died, it is too late to fix the problem.

How Could Making The Wrong Type Of Trust Affect You?

There are many different kinds of trusts, all of which accomplish many different purposes. If you have the wrong kind of trust, the consequences can be serious depending on what you wanted your trust to do.

For example, many people create a trust to avoid probate at their deaths. If you want your wealth to pass to your loved ones in a fast and private process called trust administration, a revocable living trust will accomplish this goal. It is  a great way to transfer assets outside of the probate without giving up control of your wealth while you are alive and capable.

The problem is that many people think because assets are held within a living trust and transfer outside of probate, this means they won’t have to pay estate tax. This is not true. Assets owned by your living trust are part of your estate for tax purposes.  Your trust can make specific provisions to avoid or reduce estate taxes, but if it doesn’t and you have a taxable estate, you will still pay estate taxes.

Other people think their living trusts will help them qualify for Medicaid to pay the costs of a nursing home, but if you have the wrong trust type, you won’t get the expected protection.

Getting Help From Overland Park Trust Lawyers

Overland Park trust lawyers at Parman & Easterday can offer the help you need to avoid mistakes, such as selecting the wrong trust type or failing to fund the trust once it is created. To find out more about how our legal team can assist you with the legal issues involved with trust creation or trust administration, join us for a free seminar. You can also give us a call today at (405) 843-6100 or contact us online at any time to learn more about what the assistance offered by our legal team.

  • 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)
  • Estate Administration 101 - February 2, 2023
  • Why Do You Need an Elder Law Attorney? - January 31, 2023
  • Inheritance Planning for Blended Families - January 26, 2023

Filed Under: Wills and Trusts

Other Articles You May Find Useful

estate plan outline
Address These Questions to Create an Estate Plan Outline (Part 1)
Can I Contest My Husband's Will?
Can I Contest My Husband’s Will?
Trust Administration Tips
Parman & Easterday Trust Administration Tips
Who Should I Appoint as My Executor?
Who Should I Appoint as My Executor?
Questions to Ask Yourself When Creating a Will
Questions to Ask Yourself When Creating a Will
Revocable Trust Advantages
Revocable Trust Advantages

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
Tulsa, OK 74133
Phone: (918) 615-2700

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