The Most Common Kinds of Trusts (and Why People Use Them) in Texas

The Most Common Kinds of Trusts (and Why People Use Them) in Texas

Scott Dylan Westerlund
Scott Dylan Westerlund
 | 

Recent estimates suggest that nearly 5 million people across the globe unexpectedly lost their lives during the Covid-19 pandemic. Have you given much thought about what would happen to your loved ones if you were to suddenly perish as a result of the virus? Have you wondered what would happen to all the money you’ve earned, your assets, and even your debt?

 

If you have assets that you know you want to pass down to your heirs, then it’s advised that you set up a trust. Setting up a trust in Texas is much easier than you might think, and it can help protect your future heirs from dealing with the headache of splitting up or selling your assets after you pass.

 

Learn everything you need to know about trusts, the most common types, and why Texans are starting to set them up in higher numbers than ever before right here.

 

What’s a Trust?

 

So, what exactly is a trust, and how can it benefit you? A trust is a legal document that gives a third party (a trustee) the legal authority to hold and disperse your assets in the event that you pass away.

 

While setting up a trust, you’ll first want to identify who your trustee will be. Make sure to talk to the trustee and verify that they’re okay with the legal authority you’d be imposing on them by drafting this document. Once you’ve gotten their approval, it’s time for you to determine what you’d like to happen with your assets.

 

Before you finalize your trust, it’s a good idea to run all your ideas by an estate lawyer. They’ll help ensure that the trust meets your needs and fits your circumstances.

 

Why People Would Set Up a Trust in Texas

 

So, why would you want or need to set up a trust in Texas? Many Texans are currently being forced to contemplate their mortality as a result of Covid-19. All it takes is one unexpected infection to completely derail your health, life, and plans for the future.

 

First and foremost, a trust provides peace of mind for you and your family. You can rest assured knowing that your wishes have been officially put into action and your trust will be the legal authority after you pass. You will have more control over your assets than you would without a trust or if you only write a will.

 

A trust is also very low maintenance. Once it’s all set up, you and your family won’t have to do anything more to ensure that it will get upheld when it's needed the most. Trusts are also a cost-effective planning option. That’s because trusts can help protect your loved ones from getting taxed, and it can also help them avoid probate court. Probate court is often time-consuming and costly. It’s not something you want your family to have to go through just to obtain the assets or money you want them to have.

 

Finally, a trust can ensure that every member of your family is taken care of. If you have a special needs member of your family, then you can set up your trust to ensure they’re set for life. If you have complex assets, then trusts can help you ensure everything gets divided up per your wishes.

 

The Most Common Kinds of Trusts in Texas

 

There are many different types of trusts including:

 
  • • Revocable or Living trust: can be changed up until the owner passes away
  • • Irrevocable trust: can’t be altered once finalized
  • • Marital: provides benefits to surviving spouse
  • • Credit shelter: Surviving spouse receives income from trust until death
  • • Charitable remainder: All extra money goes to charity
  • • Crummey: gives gifts or assets to children over time
 

The type of trust that best fits your situation hinges on the types of assets you have, who your trustee is, and how you want your assets distributed.

 

Do You Need Legal Advice for Your Trust Needs?

 

End of life planning isn’t something most of us want to think about. Despite that, it’s better to have your plans in place when the inevitable happens because doing so will protect your grieving loved ones when they need it the most.


Are you considering setting up a trust in Texas? Are you still not sure about what kind of trust you need or how to start getting your plans together? If so, then we advise speaking to an estate planning lawyer in your area. They’ll help you ensure all your documents are legal and your wishes will get upheld. If you’re ready to speak with an estate planning attorney, then we can help. Head over to our lawyer search area now to find a qualified lawyer to get in touch with today.

This article is intended to convey generally useful information only and does not constitute legal advice. Any opinions expressed are solely those of the author, not LawChamps.
Scott Dylan Westerlund

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