Q: Are there any restrictions regarding what type of assets are eligible to be placed in a preservation trust?
A: Yes. A “majority in value” of the assets must be considered to be “Oklahoma assets.” Oklahoma assets include, but are not limited to, stocks, bonds or ownership interests in Oklahoma-based companies; bonds issued by the state of Oklahoma or an Oklahoma governmental agency; accounts maintained with an Oklahoma-based bank; real estate and mineral interests located in Oklahoma. Assets that aren't “Oklahoma-based” also are protected, as long as those assets have a cumulative value of less than one half of the total value of the preservation trust's assets.
Q: Can a preservation trust be revoked?
A: Yes. It can be revoked at any time by the grantor. Once the preservation trust is revoked, its assets immediately lose protection from the grantor's creditors.
Q: Can you have more than one preservation trust?
A: No. An individual only may have one preservation trust at a time. Because they're revocable, a grantor could revoke an existing trust, and then immediately establish a new preservation trust.
PAULA BURKES, BUSINESS WRITER