Establishing A Trust As Part Of A Comprehensive Estate Plan
Last updated on August 14, 2024
Are your assets protected against the effects of taxation, divorce or bankruptcy? If not, your heirs could face a costly legal quagmire if something unexpected happens after you’re gone. An experienced estate planning attorney can help you evaluate your assets and wealth to determine if it makes sense to include a trust as part of a comprehensive estate plan.
Our founding attorney has been practicing law since 2003. She founded the Law Office of Carrie Kemper Allen, PLLC, in Pearland to provide clients in south Houston with comprehensive estate planning services. Whether you need to establish a trust to provide for a child or a dependent adult or create a trust to protect your assets and wealth against unforeseen circumstances, our wills and trusts lawyers can help secure your interests.
What Is A Trust?
A trust is an estate planning tool that allows you (as the grantor) to transfer assets and wealth for the benefit of someone else (known as the beneficiary). The person who manages the trust is called the trustee. A trust can be utilized anytime, while you are still alive or after your death. You can shift assets into a trust and it can go into effect at any time, unlike a will, which only takes effect after you pass away. As such, trusts can provide greater flexibility and control over how your assets are distributed.
Setting up a trust involves creating a legal document that outlines the terms and conditions under which the trust operates. A lawyer can guide you through this process, helping you decide what kind of trust is right for your situation and best suits your needs. A lawyer can also ensure that all the legal requirements are met for the trust to be valid. Your wills and trusts attorney can also assist with funding the trust, which involves transferring your assets into it. This professional guidance can make the process smoother and more efficient, giving you peace of mind that your assets are protected and will be distributed according to your wishes.
What Is An Irrevocable Trust?
In an irrevocable trust, the grantor cannot make changes or revoke a trust once it is established. This means that once you place assets in an irrevocable trust, you give up control and ownership of those assets. This can seem harsh. However, irrevocable trusts can provide significant protection for your assets and might also provide serious tax advantages.
For example, assets in an irrevocable trust are typically protected from creditors and legal judgments. Additionally, these assets are often excluded from your taxable estate, which can reduce estate taxes. Working with an attorney to set up an irrevocable trust can ensure that it is structured correctly to maximize these benefits. Your lawyer can help you understand the implications and advantages of this type of trust, making sure it aligns with your overall estate planning goals.
How Can A Trust Help Simplify The Probate Process?
A trust can significantly simplify the probate process by keeping assets out of probate altogether. In Texas, assets held in a trust do not go through probate, which means they can be distributed to beneficiaries more quickly and without court involvement. This can save time, reduce legal fees, and minimize the stress and complexity often associated with probate.
When you establish a trust, you transfer ownership of your assets to the trust. Upon your passing, the trustee can immediately begin managing and distributing these assets according to the terms you’ve set forth without waiting for probate proceedings. An experienced attorney can help you create and fund your trust, ensuring that your assets are properly titled and managed. By doing so, you can make the administration of your estate much smoother and more efficient for your loved ones.
Consult A Pearland Trust Attorney Today
Our team at the Law Office of Carrie Kemper Allen, PLLC, cares about the families and communities we serve. Our attorneys represent clients throughout Harris, Galveston and Brazoria counties.
Whether you are planning for the immediate future or the years ahead, you will receive reliable guidance for your personal wills and trusts. Call us at 713-804-5889 or send us an email to schedule a consultation to learn more about the benefits of establishing a trust as part of your estate plan.