Many Texas parents, and even grandparents, often want to make sure that their young loved ones are provided for in the event of their passing. It is common for individuals to use estate planning tools, like trusts, to protect and allocate assets. However, some people may wonder whether those beneficiaries should know that the trusts exist.
Deciding whether to tell a trust beneficiary about the account is a personal decision. Some parties may worry that the kids will not want to work hard to earn money or will not consider the true value of money because they have trust funds waiting on them. Even if the inheritance will not occur for a number of years, some hesitation about making the trusts known may exist.
While the decision is personal, it is important to remember that certain state laws may also play a role in the decision. Trustees commonly have to make sure that beneficiaries are reasonably informed about trust information. This information can help beneficiaries protect their interests. Typically, if a beneficiary has reached the age of 25, the trustee likely has to provide trust-related information to that person.
If Texas residents are interested in creating trusts to protect assets for future generations, they may want to explore the different types and their uses. If these parties are also interested in potentially restricting some of the related information from beneficiaries, it may be wise to understand how state law will affect that desire. Parties in this type of situation may want to discuss their trust options and possible restrictions with estate planning attorneys.