A trust is a powerful device to manage and distribute your property, both during your lifetime and at your death. Trusts are difficult to describe in the abstract because they are so flexible. A trust can be set up to provide assets for a child with special needs, to obtain advantageous tax treatment of an estate or to segregate assets of a family business from other assets. They can be revocable or irrevocable, and you can create as many as necessary to carry out your intentions.
While they can be immensely useful for individuals and families with substantial assets and property holdings in Texas, they can also be used by those with more modest means to aid with asset and business management and control for your children and future generations.
A Lawyer Can Help You Determine The Type Of Trust You Need
There are a wide variety of trusts and they can serve many purposes. James Law Firm, P.L.L.C., will examine your finances and family situation and help you create the trust or trusts that will help you achieve your goals.
We can create estate plans that use:
- Charitable trusts
- Living trusts (inter vivos trust), such as revocable living trusts to avoid probate in Texas and other states, to plan for incapacity, and to keep administration private.
- Spendthrift trust to help protect and provide for your family
- Self-settled trusts
- Special needs trusts to help beneficiaries with special needs so that they can continue on their disability or needs programs
- Testamentary trusts—in Wills
- Gift trusts for estates that will be subject to estate tax, such as Grantor Retained Annuity Trusts (GRAT) and Intentionally Defective Grantor Trusts (IDGT)
Trusts can help with many aspects of estate planning. They can reduce the number of assets that pass through probate, saving time and money, potentially limiting tax exposure, and protecting your family’s privacy.
Because of the tremendous flexibility of a trust, you can set it up to meet your exact needs. This control means that if you have concerns with how a beneficiary may handle assets, you can protect the core assets of the trust, to prevent the risk of the wasting of these assets due to immaturity, addiction or mental illness. You can specify with precision how and when proceeds from the trust are to be distributed.
A trust also has the advantage of consistent management, as the trustee has a fiduciary duty to manage the assets according to the terms of the trust. This setup ensures proper management, even if you have been incapacitated by illness or accident.