Oklahoma Estate Planning Considerations
Oklahoma is a Common Law State, which means the rules governing the ownership, division, and inheritance of income and property acquired by a husband or wife during their marriage holds that subject to various qualifications, each spouse owns and has complete control over his or her income and property.
Last Will and Testament
The minimum age of a person competent to make a will is 18. The number of witnesses necessary to execute a will is two.
The custodial arrangement terminates when:
- The minor child reaches age 18 for custodial transfers made by irrevocable lifetime gift, will, trust, or exercise of a power of appointment. The transfer can be delayed up to age 21 if noted in writing.
- The minor child reaches age 18 for other custodial transfers.
- The minor child dies.
Dying without a Last Will, the Oklahoma Laws of Intestacy.
The estate assets go to the surviving spouse, as follows:
- If there are no surviving descendants, parents, or siblings, —100% of the estate
- If there are no surviving descendants but there are one or more surviving parents or siblings—all property acquired by the joint industry of the spouses during the marriage, plus an undivided one-third of the balance of the estate (the statute technically states “during coverture,” which is not defined but is generally read to mean “during the marriage”)
- If there are surviving descendants, all of whom are also descendants of the spouse—an undivided 50% interest in all estate property, whether acquired by the spouses’ joint industry during a marriage or otherwise.
- If there are surviving descendants, one or more of whom are not also a descendant of the spouse—an undivided 50% interest in property acquired by the joint industry of the spouses during the marriage, plus an undivided equal part in the property of the decedent not obtained by the joint endeavor of the spouses during the marriage, with each of the living children of the decedent and the lawful descendants of any deceased child taking by right of representation (see Okla. Stat. tit. 84 §213 B. 4)
If there is no surviving spouse, or if a portion of the estate does not go to the spouse:
- 100% in undivided equal shares to the surviving children and descendants of any deceased child by right of representation (see Okla. Stat. tit. 84 §213 B. 4)
If there is no surviving spouse, child, or descendant of a deceased child:
- 100% to surviving parent or parents equally
If there is no surviving spouse, child, the descendant of a deceased child, or parent:
100% to descendants of the decedent’s parents, by right of representation (see Okla. Stat. tit. 84 §213 B. 4)
If none of the above:
- Intestacy laws outline further distribution steps to the level of grandparents, then next of kin and descendants. See Okla. Stat. tit. 84, §213 B. 2.d. and 3.
- If no legally described recipient can be found, estate assets go to the state of Oklahoma.
The executor or administrator of an estate, where otherwise authorized, may control, conduct, continue or terminate any of the decedent’s accounts on any social networking website, microblogging or short message service, or email services website. Oklahoma has introduced, but not yet passed, the Revised Fiduciary Access to Digital Assets Act.
Oklahoma does not impose an inheritance tax.
Credit Estate Tax
Oklahoma imposes an estate tax equal to the maximum credit allowed under the federal tax code for paid state estate and inheritance taxes under IRC Sec. 2011. However, the current federal tax code does not permit a credit for paid state estate or inheritance taxes. Therefore, there is no credit estate tax in effect at this time.
Oklahoma does not impose a GST tax.
Oklahoma does not impose a gift tax.