What is a Trust?
A will is one of the most basic Texas estate planning documents, and everyone should have one to make sure that there is no question about what would happen to your assets and kids if something happens to you.
A trust is basically an agreement between two people, the Grantor (also known as the creator, trustor, settlor, or trustmaker, they all mean the same thing) and the Trustee (who holds title to the property) for the benefit of the Beneficiary. So, there are three roles here and (in the case of a living trust) while you are living, you are in all three roles. You’ve given nothing up.
There are some cases when having a trust in addition to a will is imperative; here are six of them:
Avoiding probate or guardianship. A trust will bypass the probate process, saving the people you love time and money. To carry out instructions in a will, a probate must be opened in the county court of Houston, TX and that means your family is stuck dealing with the Court if you get hospitalized or after you die.
Providing for a person with special needs. If you have a child or another dependent with special needs, a trust commonly known as a Special Needs Trust can protect assets for a special needs person without jeopardizing their qualification for government benefits. A will allows you to transfer assets to a special needs person, but will not protect those assets.
Privacy . Because a will undergoes probate in Houston, TX, it becomes public record. A trust is private.
Blended families. If you are part of a blended family, a trust can give you the flexibility you will want to make sure that children from prior marriages are provided for in the way you want.
Out-of-state property. If you own property in another place besides Houston, TX, you can more easily transfer ownership via a trust than a will. Transferring out-of-state property in a will usually means additional legal expenses because you could have probate in multiple states. More than one probate is no fun for your family.
Asset protection. If you want to protect the assets you leave your loved ones from creditors ( including bankruptcy and divorce ) a trust is the way to do it. It’s a gift you can give your loved ones that they could not easily (or at all) give themselves.
Contact us now
If you would like to learn more about the use of trusts in Houston, TX to pass on what you care about to the people you love, call our office today to schedule a time for us to sit down and talk.