Real estate investors are always looking for ways to grow their wealth and minimize taxes. But they may not know that strategies like 1031 exchanges can also have estate planning benefits. Learn how to get the most from your 1031 exchange in Oklahoma.

Everything You Need to Know About 1031 Exchanges in Oklahoma

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Learn the differences between guardianship vs. conservatorship vs. power of attorney in Oklahoma so you can choose to pass decision-making power to the right person for the right reasons.

Guardianship vs. Conservatorship vs. Power of Attorney: What’s the Difference?

The probate process can cause your loved ones stress and financial strain during an already difficult time. Learn how to avoid probate in Oklahoma and ensure your wishes are honored.

How to Avoid Probate in Oklahoma

Trusts can help you minimize taxes, avoid probate, and more. And they’re not just for the wealthy. Learning how to set up a trust in Oklahoma can help almost anyone ensure their assets go where they want them to, both during life and after death.

How to Set Up a Trust in Oklahoma

There’s a lot to think about when it comes to estate planning: beneficiaries, administrators, and taxes, for example. But there’s another area you shouldn’t forget about—conflicts of interest in estate planning.

How to Avoid Conflicts of Interest in Estate Planning

Want to save up for your child or grandchild’s education? A 529 can be a great option AND can be a valuable estate planning and retirement tool. Read this article to learn more.

529 Plans For Estate Planning In Oklahoma: Everything You Need To Know

Trusts and estates are two common terms you’ll hear when talking about estate planning. Even if you know the basics, you may still have questions about the difference between estate and trust administration—and when you need them. We have answers.

Estate and Trust Administration: A Comprehensive Guide

Both estate and trust administration involve managing someone’s assets according to their wishes. Trust administrators manage and distribute the assets held in a trust, while estate administrators oversee assets according to a will or probate court. The administrator takes care of tasks like:

- Identifying and listing assets
- Determining the value of assets
- Managing and protecting assets
- Settling debts and filing taxes
- Transferring assets to beneficiaries 

The person appointed to carry out the administration of a trust or estate must act in the best interests of the beneficiaries—those who stand to gain from the trust or will—and in accordance with the terms of the document. They’re usually a neutral third party who is either named by the owner of the assets or assigned by a court. If the appointed person is not a lawyer, they often choose to hire one to help them.

What Are Estate and Trust Administration?

While they both refer to overseeing assets, there are a few important differences. Trusts are typically created during someone’s lifetime, to both manage and protect assets while they’re alive and also ensure they’re distributed appropriately after their death. Trust administration is an ongoing process that follows terms set out in a trust document. The administrator is called a trustee. 

An estate, on the other hand, is everything that someone owns when they pass away. This includes assets like real estate, vehicles, investments, and life insurance money, as well as liabilities like mortgages or credit card debts that need to be paid off. Estate administration is a one-time process that follows terms set out in a will or decided by state law or probate court. The administrator is called an estate executor. 

What’s the Difference Between Trust and Estate Administration?

The administration of trusts and estates depends on a neutral third party, called a trustee or estate executor. Both play important but different roles in managing and distributing assets. A trustee is appointed by the creator of a trust, known as the trustor, through the trust document. The trustee's engagement begins as soon as the trust is established and can last for many years or even decades. Trustees manage ongoing responsibilities like investing assets, making distributions, and ensuring the trust complies with legal and tax obligations.

An estate executor is appointed through a will by the deceased person, or by the court if there is no will. The executor's role begins after the individual's death and is generally a temporary assignment, lasting until the estate is fully settled. This involves tasks such as inventorying assets, paying debts and taxes, and distributing the remaining assets to the beneficiaries.

What’s the Difference Between a Trustee and an Estate Executor?

Yes, a trustee can also be a beneficiary of the trust. However, this dual role requires careful management to avoid conflicts of interest. The trustee must act in the best interests of all beneficiaries and adhere to the terms of the trust, and they can’t let their personal interests interfere with this fiduciary duty. If you find yourself in this situation, be sure to set clear guidelines and seek legal advice to navigate any potential conflicts.

Can a Trustee Also Be a Beneficiary?

If you’re a conservator for a loved one, their well-being is your top priority. But what if you need to sell real property to help pay for their care? A conservatorship sale of real property can be complex, but we’re here to guide you through the process.

Can a Conservator Sell Real Property?

Even if a loved one passes away with a will, their estate still needs to go through probate in Oklahoma. Learn what to expect, how long probate takes in Oklahoma, and how an attorney can help.

How Long Does Probate Take in Oklahoma?

Probate is the legal process of distributing a deceased person's assets according to their will or state law if no will exists. During probate, the court oversees the validation of the will, payment of debts, and transfer of assets to beneficiaries.  There are ways to avoid probate, including summary administration, small estate affidavits, and setting up trusts. If you do have to go through probate, there is a specific process you’ll need to follow. An attorney can help you navigate this process and save you time, hassle, and stress.

How does probate work in Oklahoma?

File the Petition

The first step in the probate process is to file both the will (if there is one) and a Petition to Probate. You’ll file these with the district court in the county where the deceased person lived. Typically the executor named in the will files the petition, or a close relative if there is no will. The court will schedule a hearing to validate the will and appoint the executor, who will manage the estate.

Notify Beneficiaries

At least ten days before the hearing, the petitioner must notify any beneficiaries of the hearing date and their rights in the probate process. This is easier if there’s a will that names beneficiaries—if there’s not, you’ll have to follow Oklahoma’s intestacy laws, which determine who has a claim to an estate. It’s best to use certified mail, because you’ll need proof that you sent the notices on time.

Attend the Hearing

On the date of the hearing, the petitioner appears before the court so the judge can validate the will. Any beneficiaries who want to contest the will or the probate proceedings can also do so at the hearing. (If this happens, the answer to “How long does probate take in Oklahoma?” can get a lot longer.) Once everything is in order, the court formally appoints the executor, giving them the legal authority to manage the estate.

Notify Creditors

Once you’re appointed the executor of the estate, you must notify creditors and beneficiaries of the probate proceedings. To notify creditors, you’ll publish a Notice to Creditors in a local newspaper at least two times. They then have 60 days to file claims against the estate.

Inventorying the Estate

As the executor, you’re responsible for taking possession of the deceased person’s assets, which can include real estate, bank accounts, investments, and personal property. You’ll need to file an inventory and appraisal with the court within three months of being appointed. This document lists the estate’s assets and their values so the court can make sure they’re distributed fairly.

Paying Debts and Taxes

Before the estate can be closed, you’ll have to pay any debts and taxes the deceased owed. This includes funeral expenses, outstanding bills, state and federal taxes, and mortgages. If the estate doesn’t have enough assets to cover these expenses, the court will prioritize which debts are paid first. In some cases, you may need to sell property or other assets to cover these costs.

Distributing the Remaining Assets

Once all debts and taxes are paid, the executor can distribute the remaining assets to the beneficiaries as outlined in the will or according to state law if there is no will. This distribution must be approved by the court. Afterward, the executor files a final report with the court, and the probate process is completed. The court then closes the estate.

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