Create a Living Trust in Oklahoma

Living trusts in Oklahoma

When you set up a living trust in Oklahoma you are called the grantor. You set up the trust so that it can manage your assets during your life and distribute them after your death. The more assets you transfer into the trust, the more complete the benefits of the trust will be. There are some assets that cannot be transferred, including life insurance and retirement accounts.

When you set up the trust, you appoint a trustee who manages the assets in the trust. While you can select anyone you want, it is most common to name yourself so you can maintain complete control. You will then also select a successor trustee who will step in once you die. This trustee will continue to protect and manage the assets in the trust until they are distributed to your beneficiaries at the dates you have directed. The revocable trust can be altered by you during your lifetime. In contrast, an irrevocable trust cannot be changed once it is signed.

Your living trust Oklahoma avoids the need for probate for any asset in the trust. When you leave assets via a will, the will must be verified and approved by a court in a probate procedure before any assets can be distributed (whereas assets in a trust can be distributed immediately). This leads to months of waiting as well as expenses such as an attorney, executor’s fees, and court fees. Oklahoma has not adopted the Uniform Probate Code, so its processes are not streamlined. The exception to this is if you leave an individual estate worth less than $50,000 (2025); it qualifies for a simplified small estate proceeding, which is faster and less costly. A trust allows you to avoid probate in any state where you own property if you include that property in your trust. Check with an estate planning attorney for the most recent threshold on estate taxes.

Do I need a living trust in Oklahoma?

Choosing to create a living trust in Oklahoma is a matter of personal choice, but many people find its benefits to be very attractive. A trust creates privacy for your family because the trust is never public record. When you leave a will, that will is probated and becomes public record. The trust is never revealed, and the assets, beneficiaries, and terms of the trust are not disclosed. A trust is also harder to contest than a will, adding another layer of protection.

Control is another important reason to establish a trust. You place assets into the trust during your life, but you continue to use and manage them as you normally would. You can live in your house, give gifts, and spend money. After you die, the assets are controlled by the terms you have set up in the trust. The assets can remain in the trust and be distributed at future dates that you select if you wish. Assets passed by will are distributed immediately once probate concludes.

Your revocable living trust protects you should you become mentally incapacitated. All of your assets are already controlled, owned, and managed by the trust, and a conservatorship proceeding is likely unnecessary. While a durable power of attorney can be rejected, a trust cannot be. Your financial life is protected by the trust.

Living trusts and estate taxes in Oklahoma

A living trust does not reduce your estate taxes, but be aware that few people owe estate tax anymore. Oklahoma has no estate tax, and the federal estate tax only applies to estates worth more than $5 million. You can set up a specially designated trust called a marital trust (also called an AB or QTIP trust) that passes assets from a deceased spouse to a surviving spouse with no estate tax. Living trusts do not protect assets from Medicaid or creditors, but they can make it more challenging for a creditor to track down your assets.

How to create a living trust in Oklahoma

Creating a living trust in Oklahoma occurs when you sign the written trust document before a notary public. You must then take the final step of funding the trust by transferring your assets into it. A living trust can provide a variety of benefits. Weigh the advantages and decide if it is right for you. 

Oklahoma living trust FAQs

What is a living trust and how does it work in Oklahoma?

A living trust is a legal document that holds and distributes property, with revocable living trusts being the most common type in Oklahoma. You create the trust, put your assets (like your house, bank accounts, and investments) into it, and manage everything as the trustee. When you pass away, the person you chose as your successor trustee takes over and distributes property according to your instructions. When set up and funded correctly, living trusts bypass probate. 

Why would I want a living trust instead of just having a will?

With a will, your family has to go through probate, where a judge oversees giving out your property. A living trust keeps your family's business private and lets your successor trustee distribute your assets immediately. While probate isn’t always a negative experience, many families set up living trusts instead of wills to avoid the time and expense of the court process. 

What property can I put into my Oklahoma living trust?

You can put most property into a living trust, including your home, other real estate, bank accounts, stocks, bonds, and valuable personal items like jewelry or art. You'll need to officially transfer ownership of these items from your name to the trust's name. However, some assets like retirement accounts (401k, IRA), life insurance policies, and annuities usually shouldn't go in the trust because they have their own beneficiary designations. 

Can I change or cancel my living trust after I create it?

Yes, you can change or completely cancel a revocable living trust anytime while you're mentally capable. You can add or remove property, change beneficiaries, or modify how you want things distributed. You can even dissolve the entire trust if your circumstances change. The trust only becomes permanent and unchangeable after you die, at which point your successor trustee must follow your original instructions.

Do I need a lawyer to create a living trust in Oklahoma?

You don't legally need a lawyer to create a living trust, but working with one is a smart idea for several reasons. This is especially true if you own property in multiple states, have a business, or want advice for your family’s situation. You can also work with an online legal service like LegalZoom to get help drafting your living trust (we can even connect you with an attorney, too). 

Will a living trust help me avoid estate taxes in Oklahoma?

Oklahoma doesn't have an estate tax, so you won't owe state taxes regardless of whether you have a trust. However, federal estate tax affects estates worth more than $13,990,000 (as of 2025).