Story by Matt Neil, Oklahoma Real Estate Planner
When you care about your family’s well-being and future it’s important to understand the significant advantages of using trusts in your financial planning. Trusts are powerful tools designed to protect and preserve your family’s wealth, especially when it comes to real estate—an asset that typically grows in value and is key to your family’s long-term financial security.
One major advantage of placing real estate into a trust is avoiding probate. Probate is the legal process where the court determines how assets are distributed after someone passes away. This process can be time-consuming, costly, and public, negatively affecting those involved and reducing the estate’s value through various fees. By using a trust, families can bypass probate entirely, allowing real estate to be transferred privately, efficiently, and exactly according to the family’s wishes.
Additionally, trusts simplify property management. With a revocable trust, you keep control of your property and can manage, sell, or modify it as your family’s needs evolve. Should you or another family member become unable to manage the property due to illness or other circumstances, a trustee you’ve chosen can seamlessly take over management responsibilities without court involvement. This continuity provides peace of mind and ensures the property remains well-managed.
Trusts also may offer important tax advantages. A well-structured trust can significantly reduce estate taxes, helping your heirs preserve more of the family’s wealth. Currently, the lifetime gift/estate tax exemption is 13.99 million in 2025, so most Oklahomans will not be affected this year. However, in 2026 the lifetime gift/estate tax exemption is projected to decrease to $7 million. Additionally, trusts can minimize potential taxes that heirs may owe upon selling inherited properties, further enhancing their financial benefits.
Beyond financial and management advantages, trusts provide clear guidelines for how assets are to be distributed among family members. This clarity reduces the likelihood of family conflicts or misunderstandings after assets are passed down. Trusts can include special provisions to protect property from external threats such as creditors, divorces, or poor financial decisions by heirs, further ensuring that family wealth remains intact for future generations.
In conclusion, incorporating trusts into your real estate and estate planning strategy is essential for effectively preserving and transferring family wealth. Trusts provide privacy, streamlined management, tax savings, and protective measures that safeguard your
family’s assets. By leveraging these advantages, you can confidently build a legacy that supports and enriches future generations. As Real Estate Planners, we work alongside trust and estate attorneys to help you begin to plan your legacy. Please email us at [email protected] or call us at 405-757-9980 to learn more about building a plan to build, protect, and preserve your wealth.
Matt Neill is a realtor who has lived in Oklahoma over 17 years and enjoys spending time with his family creating memories, reading, and cheering on the OKC Thunder.
