Trusts May Be The Right Choice For Your Estate Plan
A trust is one of the most versatile and important estate planning tools that exist. A savvy estate plan will use all the tools available, such as wills or tax planning, but the lynchpin of a successful, asset protection-forward estate plan will be a trust.
At Griffin, Cain & Herbig, Attorneys at Law, PLLC, we are trust and estate planning attorneys for people in Conroe and across the Houston-The Woodlands-Sugar Land metropolitan area. A trust is a legal entity created to hold assets outside of an individual’s estate. Because it is not owned by anyone, per se, it avoids probate and taxes. The benefits of trust are obvious, but there are several types of trust that you may consider, and we’ll look at each of them.
Revocable Living Trust
A revocable living trust is one that you create to hold assets while you’re alive. Because it is revocable, the person funding the trust can dissolve it or change it as needed. It is “living” because you have it while you are alive.
However, once you pass, it becomes an “irrevocable trust,” and the trustees and terms you created it with will be respected going forward. This is the way that trusts transfer property from one person to another, without incurring major tax penalties or probate costs.
Trusts For Minors
Trusts are often established for minors so that they can have access to funds and assets when they are not responsible enough to manage that kind of wealth. These trusts often carry restrictions regarding when and how the beneficiary may access funds. They also may allow more control and freedom once a minor comes of age.
Marital Trusts
A marital trust is created by married couples to hold assets after the other passes away. These trusts hold funds that are acquired by the married couple. Control of the trust passes to the surviving spouse and avoids probate and inheritance costs.
Special Needs Trusts
Special needs trusts are trusts created by families for children or other family members who cannot care for themselves. These individuals can still inherit assets, but those assets will impact their ability to receive the government services they rely on. A special needs trust offers a way for them to access and use their funds, without losing those needed benefits.
Answers To Your Most Pressing Questions About Trusts
Trusts are complex legal creations with rules and considerations that may be difficult to understand on your own. However, they are our business, and we will provide you with as much clarity as we can. Often clients begin conversations with our team by asking these questions:
What are the benefits of having a trust?
Asset protection and transferring property onto your heirs without having massive tax or probate costs. You can also provide stricter controls over the use and distribution of the assets by crafting terms and selecting a trustee to enforce them.
What type of trust do you need to include in your estate planning?
We wrote about several types of trusts that you could include in your estate plan. Any one of them would be a good addition. Mostly, you want your trust to be funded and accessible to your heirs.
How do I choose the right type of trust?
This is a decision we cannot make for you. You have to figure out what makes sense for yourself. However, we can provide you with information and guidance to make that decision, and then help you craft the trust when you’re ready.
Skilled. Experienced. Caring.
We are a hardworking group of lawyers who have seen the difficulties our clients face when it comes to estate plans. Trusts can help you in many important ways, and we’ll be happy to help you realize them. Reach out to us today by calling 281-524-6979 or sending an email using this form.