If you want your assets to be properly managed both during your life and after, a trust may be the best option at your disposal. Managing your estate in Texas can be more complicated than just drawing up a will and hoping for the best. A will can be contested, which can result in a messy and drawn-out legal process.
A trust has numerous advantages over a will when it comes to planning your estate. These benefits include:
- Possibly cutting down on gift taxes and estate taxes
- Bequeathing assets without the necessity of probate court
- Planning not only for your passing but also for the potential for you to become incapacitated
- Looking out for the care of children and any dependents with special needs
- Setting up conditions or rules under which your beneficiaries would receive assets
Types of Trusts
It’s beyond the scope of this to delve into all the many complexities and full range of options. But here is an overview of the most popular types of trusts used in estate planning:
- Revocable Trust – A trust that you can either change or dissolve after creating it.
- Irrevocable Trust – A trust that, once created, cannot be amended or dissolved.
- Charitable Trust – A trust that lets you give to god causes after your passing.
- Marital Trust – A trust between married partners that allows assets to pass to the surviving partner without estate taxes.
- Generation-Skipping Trust – A trust that passes assets to one’s grandchildren rather than children.
- Spendthrift Trust – A trust that protects your beneficiaries from overspending or squandering their inheritance.
- Special Needs Trust – A trust that gives support and care for a minor or dependent that still allows them to receive government benefits.
Choosing the right trust for your financial situation can be a complicated task. But with good estate planning and financial guidance, you can find a trust that suits your needs.