A legal trust is one of the oldest methods for preserving assets in the event of a death. While it is similar to a will, a trust has several unique advantages. However, an experienced estate planning attorney is needed to help you determine if a trust is right for you, and if so, what type of trust.
How Do Trusts Work?
A trust is a legal arrangement where one person, called a trustee, holds the title to another person’s assets and is in charge of managing and distributing those assets to beneficiaries chosen by the creator of the trust.
Trusts can be used to ensure assets are adequately managed for beneficiaries that are unable or too young to make prudent decisions. Trusts can also be used in tax planning. Certain types of trusts can allow assets, life insurance payouts or property to be passed to beneficiaries without being subject to estate taxes. In addition to not being subject to certain taxes, trusts keep your assets out of probate court, avoiding the lengthy process of dividing up assets outlined in a will.
Preserving Your Legacy
In a trust, you can detail the exact instructions for the trustee to distribute your estate to your beneficiaries. You can provide your beneficiaries with steady payments over time, or you can put conditions into your trust like requiring beneficiaries to obtain a college degree before receiving any assets.
How A Lawyer Can Help
There are many legal issues to address when forming a trust. In addition to determining what type of trust is best for you, you will need to consider who will serve as trustee. A trustee needs to be more than a person you can trust. A trustee will have certain responsibilities like filing tax documents and making prudent investment decisions. A lawyer will be able to help you understand what to look for in a trustee.
Houston Trusts Lawyers
To best protect your assets and the people you love, call the estate planning lawyers at Hensley & Krueger, PLLC today. We can give you peace of mind, knowing your loved ones will be taken care of after you’re gone. Contact us today to schedule a visit.