281-771-0560Trust Attorneys in Pearland, TX
Helping You Lessen the Impact of Probate!
A will is only the first step in a comprehensive estate plan. While a will tells the executor of your estate what your final wishes are, it does not provide for privacy. For some, having a trust is a preferred option.
What is a Trust?
When you create a trust, you become the trustor of that trust. You will pick someone to manage and administrate the distribution of assets from the trust to the beneficiaries of the trust after you are no longer serving as the trustee. This person is called the “trustee” of the trust fund.
In some instances, such as living trusts, you may be the trustor, trustee, and beneficiary of the trust at the same time.
Trusts are not subject to the probate process, meaning your family may be able to receive assets from the trust faster than if they were governed by a simple will. The assets in a trust are private, while an estate in probate is not. However, there are substantial downfalls to creating a trust if an inappropriate trustee is appointed.
What Types of Trusts Are There?
There are many types of trust, but they all slot into one of two categories: revocable and irrevocable trusts.
Revocable Living Trust
This is the ultimate estate planning tool as it allows the trustor to retain control of and modify the trust during their lifetime. This trust avoids probate but does not protect assets or lessen taxes.
With something like a pour-over will, you can immediately transfer assets to the trust fund when you pass away.
Irrevocable Trusts
Irrevocable trusts are where you start to protect assets. Once you create and fund an irrevocable trust, the assets in the trust are transferred out of your ownership, and the trust can not be modified or easily revoked.
These trusts include special needs trusts, an estate planning tool that allows you to care for disabled loved ones. Charitable trusts are a powerful way to find tax advantages that lessen the impact of estate taxes, meaning more of your wealth goes to your family, and less goes to the government.
Do You Need a Trusts Attorney?
Creating, funding, and managing a trust is a complex legal matter that, when used properly, offers a comprehensive estate plan that may achieve the transfer of assets to your family faster than probate would normally allow. Each estate plan should be created based on the evaluation of the unique circumstances, goals, and anticipated challenges.
You need an experienced attorney who is committed to their clients. You need The Hatchett Law Firm. Call (281) 214-6541 to find out more about this and other estate planning matters.