If you’re planning your estate in Oklahoma, one of the tools you may hear about is an irrevocable trust. Unlike revocable trusts, which you can change or cancel, an irrevocable trust is typically permanent once you create it. This may sound rigid, but for many individuals and families, an irrevocable trust can offer powerful benefits—particularly when it comes to protecting assets, reducing estate taxes, and planning for long-term care.
What Is an Irrevocable Trust?
An irrevocable trust is a legal arrangement where the person creating the trust (called the “grantor” or “trustor”) permanently transfers assets into the trust. After transferring those assets, the grantor gives up control and ownership of them. A designated trustee manages the trust and distributes assets according to the terms the grantor laid out in the trust agreement.
Because the grantor no longer owns the assets, they are generally safe from creditors, lawsuits, and estate taxes. However, the grantor also loses the ability to modify or revoke the trust without court approval or consent from all beneficiaries, unlike a revocable trust.
What Are the Main Uses for an Irrevocable Trust?
Irrevocable trusts in Oklahoma are commonly used for:
- Asset protection – shielding property from lawsuits or creditor claims
- Medicaid planning – qualifying for long-term care benefits while preserving family assets
- Estate tax planning – removing large life insurance policies or appreciating assets from your taxable estate
- Special needs planning – providing for a loved one with disabilities without disqualifying them from government benefits
Who Controls the Trust?
Once created, the grantor no longer controls the trust. The trustee manages the trust’s assets and must act in the best interests of the beneficiaries. The grantor may select the trustee and outline detailed instructions in the trust document, but the trustee makes all day-to-day decisions.
If you want to maintain control over how the trust works, it’s essential to work with an attorney when drafting the trust so that your wishes are clearly stated.
Can an Irrevocable Trust Be Changed?
Generally, no. That’s what makes it “irrevocable.” However, in certain situations, Wagoner courts may allow modifications—especially if the change is minor or all beneficiaries agree. Still, anyone considering this kind of trust should be comfortable with its terms from the beginning.
Is an Irrevocable Trust Right for You?
An irrevocable trust can be a powerful estate planning tool, but it’s not right for everyone. Because it limits your control over the assets you place in the trust, it’s most appropriate for people with specific goals like asset protection, Medicaid planning, or minimizing estate taxes.
Wagoner Estate Planning Attorneys
We help individuals and families create customized revocable living trusts that offer protection, flexibility, and peace of mind. Whether you’re just starting your estate plan or updating an old one, we’re here to guide you every step of the way. Call our team of estate planning attorneys at Wagoner Attorneys at 918-283-7394 for a free consultation. Or you can follow this link to ask a free online legal question.
