Trusts have a number of benefits over a simple Will.
- By using a Trust, you avoid the time and expense of taking an estate through probate in Texas probate court.
- There are definite tax advantages to putting your estate into a Trust.
- And people who prefer to keep their financial affairs private will find a Trust to be an attractive option. Trust administration is private, unlike probate administration.
Despite these advantages, a Trust is not for everyone. It is more costly to set up and you need to be sure that you are continually moving your assets into the Trust. Any assets that aren’t in the Trust when you die will have to go through probate. (Learn about how a Pour- Over-Will can help with this.)
If you are considering a Trust, talk to an experienced El Paso Trust attorney at The Law Offices of Victor H. Falvey. We can help you determine if a Trust is the best option and which type of trust will best meet your overall estate planning [link to probate and estate law] goals.
How Does a Trust Work in Your Texas Estate Plan?
You can put any type of asset into a Trust, including property, cash and investments. One or more Trustees, whom you name when you initially set up the Trust, will manage the Trust. Depending on the type of Trust you create, you may or may not be able to serve as a Trustee of your own Trust, or to make changes to your Trust during your lifetime.
There are two broad categories of Trusts: revocable and irrevocable Trusts. As you might suspect, you can make changes to a revocable Trust during your lifetime, and you cannot make changes to an irrevocable Trust. But the differences go deeper than that. There are significantly different tax consequences between the two types.
When you meet with one of our Trust attorneys, he/she will explain the various Trusts available for your purposes and the rules associated with each of them. A few examples of Trusts that may meet your particular needs include:
- Special Needs Trust (a Medicaid-eligibility-sensitive Trust funded by the beneficiary’s own assets)
- Miller Trust (a Medicaid-eligibility-sensitive Trust funded by another person’s assets)
- Charitable Trust to fund charitable purposes
- Education Trust to pay for a loved one’s educational expenses
- Life Insurance Trust, funded by a life insurance policy after death
When you establish a Trust, you also establish guidelines about how the assets of the Trust should be invested and how and when the assets should be distributed to beneficiaries. A Trustee, whom you appoint, will manage the Trust until the assets are completely distributed.
Is a Trust is Right For You? Ask Our El Paso Elder Law Attorney
Contact our El Paso law office today to discuss your estate planning needs and learn more about how we can help you with one or more Trust documents. Call 915-229-6964 to schedule your initial consultation.