One of the most common estate planning tools that Texas families use in their estate plans is a trust. There are many types and varieties of trusts to choose from depending on your circumstances and needs.
These include pet trusts, spendthrift trusts, living trusts, irrevocable trusts, special needs trusts and more.
Here are five potential advantages that you might experience if you incorporated a trust into your estate plan:
- Put unique conditions on the distribution of your assets following your death.
- Reduce your gift and estate tax liabilities.
- Allow your assets to transfer to your heirs after you death immediately by bypassing the costs, stress and delays associated with probate proceedings, which could eat up between 5 and 7 percent of your estate's value.
- Confidentially transfer wealth to your heirs without their inheritances becoming public knowledge. Probate proceedings are public, and your will and estate distribution will become a part of the public record. Trusts are different in this respect.
- Benefit from protection from lawsuits and creditors.
- Name a specific trustee who will safeguard the assets in your trust and will be legally bound to follow the terms of the trust for the benefit of the trust's beneficiaries.
Different trusts will render different advantages, and these documents are also very flexible. Trust creators can craft their trusts to include specific terms that meet the unique needs of themselves and their families.
If you'd like to reap the many benefits of a trust, consider discussing your options with an experienced estate planning attorney to determine which kind of trust is appropriate for you and your family.