Estate planning is an important way to make sure that your wishes are honored after you pass away, and your loved ones are taken care of. In Texas, wills and trusts are two estate planning tools that you can use to accomplish these goals.
Wills
A will is a legal document that specifies how you would like your estate to be distributed after you pass away. You can use a will to designate who will receive your property, take care of your minor children and manage your estate. To be valid, you and two witnesses must sign the will. The laws of your state will dictate how your estate will be distributed if you die without a will. This may not be how you would have wanted your estate to be divided, so it’s important to have this estate planning document in place. Just remember that a will is a public document, which means that anyone can request a copy of it from the court.
Trusts
A trust is a legal entity that holds assets on behalf of beneficiaries. You can use a trust to transfer property to your loved ones without going through probate, which is the official, legal process of distributing someone’s estate after he or she dies. It can be a long and expensive process, so avoiding it can be a big benefit. Trusts can also be used to manage property for minors or people with special needs. You can create different types of trusts, such as revocable and irrevocable, and you can customize the trust’s terms to fit your needs. For instance, you can create a trust that pays out over time or when certain conditions are met.
If you’re thinking about planning your estate, you should consider whether a will or trust is right for you. Many people choose to have both a will and a trust as they can complement each other. Both tools can help achieve different goals, so it’s important to understand the difference between them. With a little bit of planning, you can ensure that your estate is distributed the way you want it to be.
