More than 50 percent of Americans do not have any sort of estate plan that organizes and distributes their assets when they die. The consequence of dying “intestate” or without a will impact family members, triggering stress and sometimes causing financial chaos.
An experienced estate planning attorney can help your family avoid the unnecessary stress and administrative delays of the court-administered probate process. In just a few steps, your assets can be evaluated and your estate plan established, creating a legacy of inheritance that conforms to your wishes.
The Most Common Estate Planning Gaps in Oklahoma
People who are busy making a living and raising families often overlook the simple process of estate planning. They don’t realize the impact this omission can have on their families. It’s a critical step that can spare your loved ones from financial distress and disputes. The following are common scenarios:
- Dying Without a Will. Leaving a will is the most basic step in estate planning, yet it is too frequently skipped. When an Oklahoma resident dies without a will, the state applies intestate succession laws to determine who inherits the estate. The law follows a rigid formula, including dividing the estate among the spouse of the deceased and any children. Stepchildren, foster children, and other dependents receive nothing unless they were formally adopted. Estranged spouses may receive an inheritance even if the couple was separated for years.
- Skipping Beneficiary Designations or Forgetting to Update Them. Retirement accounts, life insurance policies, and bank accounts can pass outside a will if a beneficiary has been named. If none is named, or if the named beneficiary dies before the account holder, the asset may revert to the estate and go through probate. Updating beneficiary designations is just as important, as families change through major life events like remarriage and births.
- Leaving Real Estate Out of the Plan. Leaving a will is not enough to keep real estate out of the probate process in Oklahoma. Property solely owned by a person who dies must pass through the court system before it can transfer to heirs. A Transfer on Death (TOD) deed allows a property owner to name a beneficiary who automatically receives title to the property upon the owner’s death and without court involvement. The deed must be properly executed and recorded before the owner’s death.
- Not Knowing About Oklahoma’s Small Estate Threshold. When the total value of a person’s estate and personal property, excluding real estate, is under $50,000, formal probate can be avoided. An Oklahoma Small Estate Affidavit can be filed to collect the assets of a small estate without a formal probate process.
- Assuming a Will Is Enough. It’s a common misconception that having a will keeps your estate out of probate. It does not. All estates, regardless of including a will, are subject to review by the state probate court. The process is longer and more expensive if there is no will introduced. Placing assets in a revocable living trust is the most comprehensive way to avoid probate in Oklahoma. When fully funded, a trust allows the estate to distribute assets and close out the estate without court involvement.
Passing On Peace of Mind
Estate planning is not a single document; it’s a coordinated set of tools that work together. An attorney from Kincannon Law can describe the process and get you started immediately. By establishing a will, beneficiary designations, a TOD deed, or a trust, you can avoid the time and expense of the probate process. Call for a consultation today.