Granbury, Texas Trusts Attorney

Trusts Attorney in Hood County Helping Create a Trust That Benefits All Those Involved

A trust is similar to a will in some ways. A trust allows a person to decide who should receive their assets after their death, and it can also include instructions in the event of an incapacitation. Unlike a will, a trust transfers assets to beneficiaries without going through the probate process.

Only about 33 percent of all adults in the United States have an estate plan. Of these, about three-quarters have a will, and almost 19 percent have some type of trust. While it can be hard to take the first step toward creating a comprehensive estate plan that includes a trust, the benefits of doing so are significant. A Granbury trusts lawyer from The Law Offices of Rob Christian can help determine the best type of trust for your situation.

What Are the Benefits of a Trust?

Many people are under the impression that only the very wealthy will benefit from having a trust as a part of their overall estate plan. However, trusts are a powerful planning tool that can deliver significant benefits for many people, regardless of their financial status. Every person's unique situation will determine whether a trust is appropriate. Some of the major benefits of trusts include:

• Assets can be protected and preserved through the use of a trust.
• A trust can be customized to determine how and when assets will be distributed.
• Trusts can be used to help a grown child with special needs or an elderly parent manage their financial affairs.
• Probate can be skipped when a trust is used in place of a will.
• Trusts are able to address blended families, divorce, and business succession more easily than a will.
• Federal and state taxes can be minimized by using specific types of trusts.

A living trust may be created by a person during their lifetime, and the grantor may also be the trustee and a beneficiary. A testamentary trust may be created by a person's will. Beyond these options, trusts broadly fall into two categories: revocable trusts and irrevocable trusts. A revocable trust allows a person to retain as much control as they choose over the trust and the assets placed into it.

Many people will initially serve as trustees for their own trusts, appointing a successor trustee who will serve after the original trustee's death or incapacitation. An irrevocable trust offers significant tax savings but, as the name implies, cannot be altered or dissolved except under very specific circumstances.

What Types of Trusts Are the Most Common?

Under revocable and irrevocable trusts are many specific types of trusts that are tailored to fit a wide variety of situations. These include:

• Irrevocable Life Insurance Trusts (ILIT) allow funds to be set aside to pay estate taxes and distribute funds to the beneficiaries of a life insurance policy. A family business that will remain in the estate after a person's death could benefit from an ILIT to ensure the business remains in the family despite estate tax bills.
• Charitable Trusts can provide beneficial ways to donate assets to charity and provide income to other beneficiaries. Charitable remainder trusts allow people to give chosen beneficiaries income to start, while a charity receives the remaining assets after a specified amount of time. Charitable lead trusts may be set up the opposite way, allowing the charity to receive income from the trust; then, after a certain period, the trust terminates, and the remaining assets will go to the beneficiaries.
• Special Needs Trusts can help a child or family member with a disability who is eligible for government benefits. Since a direct gift of money or assets can disqualify a person from receiving government benefits, a special needs trust can provide for that person while allowing them to continue receiving necessary government benefits.
• Generation-Skipping Trusts are chosen for tax reasons. Assets are designated to grandchildren, skipping grown children and bypassing estate taxes that occur when children inherit directly.

What Is Trust Administration?

Trust Administration is the management of assets within a trust. When the grantor passes away, the trustee or successor handles the administration of the trust, often with the assistance of an experienced trust administration attorney. In some cases, a trustee may be unsure about how to administer a trust. While they want to do what has been asked of them, their duties can feel overwhelming, despite the fact that detailed instructions are usually laid out in the terms of the trust document.

The trustee must usually identify all the trust property and ask for property appraisals when necessary. The trustee is in charge of protecting the assets in the trust, as well as accounting for all assets until they can be distributed to the named beneficiaries. It is virtually always a good idea to seek legal advice from an estate planning attorney with knowledge and experience in trust administration.

Contact Our Granbury, TX Trusts Attorneys

Once you and your Granbury trusts lawyer from The Law Offices of Rob Christian have determined whether your estate plan could benefit from one or more trusts, preparations will begin to ensure your trust precisely meets your needs. Our attorneys are committed to each client, and we will work hard to ensure your estate plan will accomplish every goal. We can answer your questions regarding how a trust will fit into and complement your estate plan, as well as how a trust will affect your future and the future of your loved ones. Contact The Law Offices of Rob Christian at 682-936-4003 to schedule a free consultation.