Most people in Texas who are currently looking into estate planning are more than likely informed when it comes to wills and what should be included in these important legal documents. But what they may not know about is the use of a living trust is a way of distributing assets to beneficiaries without all the probate associated with wills.
Let’s take a look at a couple trusts that can help you disperse your assets in accordance with your exact wishes. First, we’ll start with living trusts. These types of trusts become effective during your lifetime and can be revoked at anytime. Living trusts are a good choice for people who want to distribute their assets to beneficiaries without losing a majority of it to taxes and probate fees.
There may come a time when you may want to establish a trust but want to make sure you have complete control over what happens to the assets in the trust. Unlike living trusts which are managed by a trustee, a revocable trust allows a grantor the ability to have complete control over the trust, even making changes to it if necessary. They also have the ability to be revoked in the case that you no longer want to give assets to the intended beneficiaries. It’s important to note however that money placed in a revocable trust is subject to estate taxes and the assets within the trust can be reached by creditors.
In some states, the use of trusts can be far more efficient than wills not only because they avoid probate, but because they can be set up in such a manner that the grantor can control the assets in the exact manner in which they choose. Also, in many states, probated wills become public record. This can especially be a problem for people who want to make sure that the specifics of their assets stays private.
Because there are so many different types of trusts, it will be important to speak with a skilled attorney before making any definite decisions about your assets.
Source: The New Jersey On-Line, “Biz Brain: The benefits of a living trust,” Karin Price Mueller from The Star-Ledger, Feb. 18, 2013