Trust Attorneys in Houston, TX

Helping Your Family Avoid Probate and Estate Taxes

So often, many of us get caught up in the daily grind of work and life, and we don’t take the time to plan for the future and envision how our efforts might pay off and support our families later in life. If you have started building a life and growing your assets, whether it be kids, real estate investments, a business—or all of the above and more—opening up a trust might be the right move for you. Many financial planners suggest that if you have a net worth of at least $100,000 and you have a specific vision for how you’d like your assets to be distributed, you should consider the benefits of a trust.

Setting up a trust as an estate planning tool can save your family time, money, and legal headaches down the road. Our holistic approach will factor in your current situation, long-term and future goals, and the handling of all of your assets at a comprehensive level. In our experience, with thorough consideration, most Texas families will not benefit from the effort and exceptional cost to create a living trust. In most circumstances, a Testamentary trust is the perfect tool.

Regardless of where you might be in the estate planning process, The Hatchett Law Firm is here to provide answers to your questions and help you align your most valued wishes and goals with a trust and a comprehensive estate plan.

Contact us at (281) 771-0560 to speak with a member of our team today and learn more about your options.

What is a Trust?

A trust is a fiduciary arrangement in which a third-party person, or trustee, holds assets on behalf of a beneficiary or beneficiaries. Trusts can be designed in various ways and can detail how and when assets should be passed to your loved ones in the event of a serious medical injury or death.

Trust Options

There are three types of trusts, and our trust lawyers will uncover the best option for you.

Revocable trust: Also known as a living trust, a revocable trust prevents your estate or multiple properties from going through the probate process. It can be changed at any time, and assets can be moved in and out.
Irrevocable trust: Assets in an irrevocable trust can’t be removed after they’re placed in the trust. This type of trust is inflexible and is typically used to protect the assets of an individual with a disability, prevent certain assets from being misused or wasted, or lower certain tax liabilities.
Testamentary trust: A testamentary trust can be tied to a will, which will only go into effect after your death. This trust is perfect for assets to be passed to minor children.

We take careful steps to help you understand the right course of action as it relates to your estate plan choices. Our trust attorneys will provide legal guidance and support as to which trust is appropriate for your goals.

How Does a Will and Trust Work Together?

Estate planning is the overarching process of asset protection, including your home and other properties, investments, business, and personal belongings. An estate plan considers both wills and trusts and how they can work together in your and your family’s favor. A will and a trust often work together to create a complete and effective estate plan, with each serving a distinct role.

A revocable living trust is designed to hold and manage assets during a person’s lifetime and to distribute those assets at death without the need for probate. Assets that are properly titled in the name of the trust pass directly to beneficiaries according to the trust terms, providing privacy and efficiency. A will acts as a backstop to the trust. Most estate plans include a pour-over will, which directs that any assets still titled in the individual’s name at death be transferred into the trust through probate. The will also addresses matters a trust cannot, such as naming guardians for minor children.

Together, the trust handles the management and distribution of funded assets, while the will ensures that no property is left out and that personal and family protections are in place. When properly coordinated and maintained, the two documents function as an integrated plan rather than competing tools.

Essential Estate Planning Documents

For most Texas families, the essential components of an estate plan include these estate planning documents:

Last Will and Testament
Declaration of Guardian in the Event of Incapacity
Declaration of Guardian for Minor or Special Needs Children
Durable power of attorney for Financial Decisions (POA)
Healthcare power of attorney (POA)
Burial Decisions Directive
Transfer on Death Deed for Real Property
Living will (Directive to Physicians)

Wills

A will is a legal document that spells out how you want your affairs handled and assets distributed after you die. A will includes basic personal information, a letter of intent, funeral arrangement wishes, an appointed executor, an appointed guardian for minor children, and a list of property with beneficiaries. A will may also create a trust for the protection of assets and family members.

Trusts

A trust, on the other hand, is a private fiduciary agreement that can become effective immediately or upon death, unlike a will that only goes into effect after you die. A named trustee preserves and manages the trust while you’re alive in the event you become incapacitated and distributes assets after your death.

With the addition of a trust, you can minimize estate taxes, protect your estate from creditors and lawsuits, and ensure your assets are distributed directly to your loved ones with no probate court involvement.

What is Probate?

The probate process is a legal procedure that an estate goes through upon a person’s death. This is the process in which the court approves the validity of the will and approves the appointment of an executor or administrator. Once appointed, the administrator or executor will make an effort to collect estate assets, pay lawful debts, and distribute your estate to the proper heirs, as designated by your will.

Unlike trusts, wills are subject to the probate process. Wills make it easier for the court to distribute your assets, though sometimes an unclear will or lack of one can complicate the process, among other nuances like family disputes or complex estates.

In the latter situation, when a will is involved, the probate process can usually move very quickly and be completed in just a few months.

In the absence of a will, the probate process can be more complicated. The court will appoint someone to administer your estate, and your wealth will be distributed according to Texas intestate succession laws, transferring assets to family members you may have avoided.

With a trust, you can bypass the probate process altogether. Other ways to avoid probate might include passing along assets to family members while you’re alive or maintaining joint ownership. Our probate team will determine the best approach for you, including a strategic estate plan to avoid probate altogether.

Do You Have a Disabled Loved One?

If you have a loved one who is disabled and relies on public benefits like Medicaid and Supplemental Security Income (SSI), then you will need to plan your estate around their eligibility for those benefits. You may think you are helping them with your final gift, but a sudden inheritance without proper planning could put them over the income threshold, and they could lose their benefits.

By creating a will that includes a special needs trust, you can leave assets to your loved one while maintaining their access to crucial government benefits. These assets can be used to help them with medical expenses that their benefits can’t cover and enrich their quality of life. This type of trust has strict legal requirements, meaning you will need an estate planning lawyer to help with the legal arrangement.

Why Contact Our Team?

Consulting an experienced trust attorney in Houston is crucial for ensuring your assets are properly protected and distributed according to your wishes. Trusts are a powerful estate planning tool, but their effectiveness depends on careful legal drafting and compliance with Texas laws. An experienced attorney can help you select the right type of trust to meet your specific needs. They will also guide you through the complexities of funding the trust and managing assets to minimize tax liabilities and avoid probate. Without proper legal counsel, mistakes in drafting or managing a trust could lead to costly disputes or unintended consequences for your beneficiaries. A qualified Houston trust attorney provides peace of mind by ensuring that your estate plan is legally sound, comprehensive, and aligned with your long-term goals.

If you need legal guidance on how to set up a trust, have a growing estate, or have minor or special needs children or other special arrangements, our trust lawyers will be instrumental in helping you craft the right estate plan.

Call our team today at (281) 771-0560 for help with creating a plan that will give you peace of mind and security.