Estate planning is a shrewd and clever way to provide for a family’s financial future. Trusts are an alternative to leaving a will (or may be used in conjunction with one), and offer a broad range of flexible solutions during estate planning. In Texas, revocable trusts, commonly known as living trusts can be made, and managed according to the terms set forth by the creator. Living trusts can also be changed once they are put in place.
Living trusts serve two purposes. If the trust owner should become incapacitated, and cannot manage estate affairs, an elected trustee will step in on the owner’s behalf. Revocable trusts are often used as primary estate planning devices, also setting forth final instructions and wishes regarding asset distribution after death. With this type of trust family members can avoid a lengthy and tedious probate process.
Couples may also consider marital trusts when estate planning. This benefits the surviving spouse, but may also include additional family members. These trusts take full benefit of limitless deductions from the estate tax and are more commonly used when step-children and surviving spouses are competing for an inheritance. Marital trusts may help safeguard a melodious family situation.
Proper estate planning is imperative especially when a family’s well-being is at stake. There are many more trust options available, and they can cover almost every need. When considering final estate planning in Texas it is important to know which avenue will work best. Families may benefit from the advice of a highly trained and knowledgeable attorney. With his guidance, they can rest easy knowing that their loved ones will be taken care of.
Source: fool.com, “Your 2017 Guide to Trusts“, Dan Caplinger, Sept. 23, 2017