When looking into estate planning options, some Texas residents may want to rearrange some of their assets. Living trusts can help them transfer ownership of those assets before their passing and help give them more control over the distribution of those assets later. Plus, trusts can lessen the delays that beneficiaries may encounter when waiting on their bequests.
When creating a living trust, the trustmaker will need to decide whether it should be revocable or irrevocable. Some parties choose a revocable trust because they still have the power to change the trust while they are alive. However, because the trustmaker still has that power, it means that the assets are not fully removed from his or her estate and are still vulnerable to creditors and estate taxes.
An irrevocable trust can seem more intimidating because it cannot be changed, but it can offer certain benefits that revocable trusts cannot. For example, an irrevocable trust protects assets from creditors and other claims and can help reduce estate taxes. The assets placed into this type of trust no longer belong to the trustmaker and are removed from his or her estate.
Living trusts, whether revocable or irrevocable, can have various benefits and meet the different needs of Texas trustmakers. If individuals are interested in gaining more information on how to effectively use this planning tool, they may want to speak with knowledgeable estate planning attorneys. Having questions and concerns addressed by legal professionals could better ensure that parties receive accurate and applicable information for their specific estate details.