Revocable Living Trusts

What Is a Revocable Living Trust?

A revocable living trust is a legal arrangement where you transfer ownership of your assets to a trust while maintaining complete control during your lifetime. You typically serve as your own trustee, meaning day-to-day life feels exactly the same.

The key differences emerge when you pass away or become incapacitated:

• No probate required – Your successor trustee can immediately begin distributing assets
• Complete privacy – Unlike wills, trusts never become public record
• Incapacity protection – If you can't manage affairs, your successor trustee steps in seamlessly
• Faster distribution – Beneficiaries often receive assets within weeks, not months or years

Oklahoma Trust Law: What You Need to Know

Oklahoma's trust laws are governed by the Oklahoma Uniform Trust Code (Title 60, Sections 175.1-175.87). Key provisions that protect your interests include:

• Revocability presumption – Oklahoma law presumes trusts are revocable unless stated otherwise (60 O.S. § 175.22)
• Spendthrift protection – You can protect beneficiaries' inheritances from their creditors
• Trustee duties – The law imposes fiduciary duties on trustees, providing accountability
• Modification flexibility – Courts can modify trusts when circumstances change in ways you couldn't anticipate

Who Should Consider a Trust?

While trusts aren't necessary for everyone, they're particularly valuable if you:

• Own real property (especially in multiple states)
• Value privacy and want to avoid public probate records
• Have concerns about future incapacity
• Want to provide structured distributions for beneficiaries (children, grandchildren)
• Own a business or complex investments
• Wish to minimize the burden on your family after death

How a Living Trust Works

During Your Lifetime

You create the trust, transfer assets into it (a process called "funding"), and continue using those assets normally. You can buy and sell trust property, add or remove assets, change beneficiaries, or even revoke the entire trust.

If You Become Incapacitated

Your successor trustee—someone you've chosen and named in the trust—steps in to manage trust assets. This avoids the need for court-supervised conservatorship, which is expensive and time-consuming.

After Your Death

Your successor trustee follows your instructions to distribute assets to beneficiaries. There's no waiting for probate court approval, no public notice requirements, and significantly less paperwork.

Trust vs. Will: Key Differences

Factor	Will	Trust
Probate Required	Yes	No
Public Record	Yes	No
Incapacity Planning	No	Built-in
Distribution Timeline	6-12+ months	Weeks
Upfront Cost	Lower	Higher

Trust Funding: The Critical Step Most People Miss

Creating a trust is only half the work—you must also "fund" it by transferring assets into the trust's name. An unfunded trust provides no probate avoidance benefit. Key assets to consider:

• Real estate – Requires a new deed transferring ownership to the trust
• Bank accounts – Retitle in the trust's name or designate the trust as beneficiary
• Investment accounts – Transfer to the trust or name as beneficiary
• Business interests – LLC membership interests, stock certificates, partnership interests
• Personal property – Vehicles, valuable collections (may require title transfer)

At Goodnight Law, we provide funding guidance as part of your trust package and can prepare the necessary deeds and transfer documents.

Common Trust Mistakes to Avoid

Even well-drafted trusts can fail to achieve their goals. Here are mistakes we help Oklahoma families avoid:

• Not funding the trust – The most common error; unfunded trusts go through probate just like wills
• Forgetting to update after acquisitions – New assets must be titled in the trust's name
• Naming the wrong successor trustee – Your successor should be financially responsible, organized, and willing to serve
• Ignoring beneficiary designations – Retirement accounts and life insurance should coordinate with your trust plan
• Using online templates – Generic forms may not comply with Oklahoma law or address your specific needs
• Never reviewing the trust – Laws change, families change; regular review ensures your trust remains effective