Our estate planning offices are in Oklahoma, and the laws that govern estate administration are enacted by each respective state. There are some similarities, and 16 states utilize the Unified Probate Code in its entirety. As a result, they are working with identical guidelines. Oklahoma is not one of these states.
Let’s look at probate from an overview before we explain a specific provision that is in place here in Oklahoma.
Administration of a Will
The most commonly used estate planning document is the simple will. The executor that is named to act as the administrator cannot conduct the business of the estate independently. Supervision would be provided by the probate court, and this process serves a purpose.
It would not be fair for the inheritors to receive their bequests before final debts are paid. Therefore, creditors are notified about the passing of the decedent. They are given time to make claims. In addition, the executor will be required to establish an estate bank account.
All final debts are paid, and this will include taxes. The court will also determine the validity of the will. If someone wants to present a challenge, they could come forward while the estate is being probated.
Probate Drawbacks
Probate provides an oversight mechanism that ensures the legitimacy of the administration process, but it can be a hassle for the heirs. They receive nothing while the estate is in probate, and it will typically take close to a year.
More complicated cases can be in probate for longer periods. Expenses pile up during probate, and this reduces the amount of the inheritances that will eventually be received.
This court also handles intestacy cases. If someone dies without a will or trust, the court would appoint a personal representative, and a similar estate administration process would unfold.
Ultimately, the assets would be distributed using the intestate succession laws of our state. Under these circumstances, the way that the assets are distributed may not be consistent with the true wishes of the decedent.
Probate Shortcuts in Oklahoma: Small Estate Affidavit
There is a small estate affidavit option in Oklahoma. It is only available if the assets that would be subject to probate are valued at $50,000 or less after all debts have been paid.
Simplified Probate via Summary Administration
Summary administration is another shortcut that can potentially be utilized in Oklahoma under certain circumstances. It is potentially available if the estate’s value does not exceed $200,000.
Two other situations could qualify for this simplified probate process. If the decedent has been dead for more than five years, summary administration may be available, and it could be an option if the decedent was living outside of Oklahoma at the time of their passing.
Proactive Probate Avoidance
All of this is somewhat complicated, but it does not have to be a factor at all. Probate is an issue when you use a will to state your final wishes, but there are other options.
A revocable living trust is a very viable alternative that is a great choice for a wide range of people. When you have this type of trust, you will be the trustee while you are alive, so you maintain complete control of the assets.
After you are gone, a successor trustee that you name in the trust agreement will take over as the administrator. They will distribute the assets to the beneficiaries per your stated wishes, and probate will not be a factor.
Probate avoidance is one of the benefits that a living trust will provide, but there are others that we will explain in a future blog post.
Take Action Today!
If you are going through life without an estate plan, today is the day to end the procrastination. You can schedule a consultation at our Oklahoma City estate planning office if you call us at 405-843-6100, and our Tulsa office can be reached at 918-615-2700.
You can alternately fill out our contact form to send us a message and we will get back in touch with you promptly.
