• 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      • Is Your Estate Plan Outdated?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 » Guardianship » Can a Trust Protect Family Wealth?

Can a Trust Protect Family Wealth?

July 11, 2014 by Larry Parman, Attorney at Law

Creating wealth can be a challenging task, but the work is not done when you have achieved your financial objectives. You must then take steps to protect your family wealth. There are certain trusts that can be utilized to preserve your wealth, and there are others that are not suitable for wealth preservation purposes.

Asset Protection & Estate Taxes

Before we look at the different types of trusts, we should explain the sources of asset erosion. As they say, we live in a litigious society. Many people who have been financially successful are viewed as “deep pocket targets” by litigious types.

Those who are in certain professions are particularly vulnerable to lawsuits. For example, physicians are subject to malpractice suits, and landlords are also exposed.

Asset protection is important for those who are concerned about legal actions.

The federal estate tax is also a threat to your family wealth. This death levy carries a maximum rate of 40% at the present time.

There is a federal estate tax credit or exclusion. This is the amount that you can transfer tax-free. In 2014, the amount of the federal estate tax exclusion is $5.34 million. Anything that you want to transfer that exceeds this amount is potentially subject to the federal estate tax.

Revocable Trusts

Revocable trusts will not provide asset protection or estate tax efficiency. This is because you can in fact revoke or rescind the trust at any time. You have not surrendered permanent control of the assets.

In addition to the retention of the right of revocation, you can also act as the trustee and the beneficiary while you are living. As a result, you can retain control of the assets even if you keep the trust in place.

You may wonder why revocable living trusts are utilized if they do not provide asset protection or estate tax benefits. These trusts are useful for those who want to facilitate the future transfer of monetary assets outside of the process of probate.

Probate is a legal process that can be time-consuming and expensive.

Irrevocable Trusts

There are also irrevocable trusts. This type of trust would help you protect your family wealth, because you are surrendering control of assets that you convey into the trust.

The name of the trust explains a great deal: you can’t revoke it. Generally speaking you cannot alter the terms, but there are limited exceptions under special powers of appointment.

Because you cannot take back the assets that have been conveyed into the trust, they are protected from claimants seeking redress. In addition to this, assets that have been conveyed into an irrevocable trust would no longer be part of your taxable estate.

Wealth Preservation Consultation

If you would like to discuss wealth preservation strategies with a licensed estate planning attorney, contact us through this website to request a free consultation.

Blaine Peterson
Attorney
Parman & Easterday

  • 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: Guardianship Tagged With: Charitable Remainder Unitrust, Free Estate Planning Reports

Other Articles You May Find Useful

incapacity planning
Take Proactive Steps to Prevent a Guardianship
Parman & Easterday
Estate Planning For Domestic Partners
Overland Park estate planning attorney
Are Your Assets In Harm’s Way?
overland park probate attorneys
Understanding Guardianship Proceedings in Probate Court
Parman & Easterday
How Does a Court Choose a Guardian or Conservator?
Parman & Easterday
Guardians, Conservators, and More – What Does a Guardian/Conservator do?

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