What are Trusts?
Trusts are a great tool for estate planning that can help avoid probate, simplify transfer of property upon death, and better effect your wishes should the unthinkable should happen to you.
Many average folks tend to skip the whole conversation about trusts because they are often thought of as a rich man’s game. However, reasonably priced trusts can be not only affordable for an average family, they may in fact be the best option.
Here are some things to consider:
WILLS MUST BE FILED IN PROBATE COURT IN ORDER TO BE EFFECTIVE.
In Texas, the process for filing a probate is more streamlined than in some other states. However, even in Texas, probate costs can costs thousands of dollars and still take months to complete. Meanwhile, your will and your property can be exposed to the public record.
TRUSTS CAN LIMIT YOUR GIFTS TO PROTECT YOUR BENEFICIARIES.
You love your children. You wish to leave them gifts that impact their lives for the better. However, most people would never wish to leave a gift of money to a child that would only empower them to destroy their lives.
When leaving gifts through trusts, it is possible to create trusts that put limitations on what the trustee can give to children in such cases.
Gifts can also be protected from lawsuits, divorced spouses, and creditors of your beneficiaries.
TRUSTS GIVE YOU MORE CONTROL ON HOW MONEY IS DISTRIBUTED.
Whatever your wish for your loved ones in regards to your assets, trusts can be the most effective tool in allowing the money to be distributed in the time and fashion of your choosing.