Trusts are an important estate administration document, and they can be used by anyone in the state of Texas to protect or pass on wealth. You don’t have to have a great deal of wealth to benefit from a trust, either, and there are many types of trusts to choose from.
One reason to set up a trust is to ensure any minor children or dependents are taken care of if you pass away. It’s not pleasant to consider, but you can’t know when such an event might happen, so planning now is usually the safest option. Trust are usually held by a trustee, who handles assets according to your wishes to ensure all needs are met for your dependents until a time when the dependents can take care of themselves. Trusts can also be used to take care of dependents who are physically or intellectually handicapped.
Trusts also let your heirs avoid some or all of the probate process, which can be a big relief for them at a time when grief makes it hard to face a legal proceeding. Although Texas doesn’t have estate taxes, trusts can protect your wealth from other taxes, including some federal estate taxes.
Another reason many people set up trusts is to protect their wealth for later in life. If you should become incapacitated, a trust can ensure you are amply provided for. It can also protect your assets against taxation and creditors even if you are not incapacitated.
Trusts are complex legal documents, however, so you do want to take care in setting them up. Working with a professional to ensure all possibilities are covered is often the best way to protect your future and your heirs.
Source: USA.gov, “Trusts” accessed Mar. 13, 2015