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Trust Lawyer in Frisco, TX
No one likes thinking about the worst-case scenario–particularly not when it involves their own health or mortality. Unfortunately, this apprehension, justifiable though it may be, puts many people in a bad position.
If you become incapacitated without a clear, legally defined plan in place, it’s not just you who will suffer. Your family will be exposed to a chaotic and emotionally devastating situation that is hard to navigate.
Relying only on wills for asset distribution isn’t always enough. While a will is an important document in estate planning, wills can create gaps that could prove problematic later on.
Below, we examine how trusts can help eliminate that concern and why enlisting the services of a trust attorney to manage your estate is a good idea.
What is a Trust?
A trust legally arranges for someone to manage your assets at the time of your passing. The “trustee,” works on behalf of the beneficiaries. Beneficiaries are the people who receive assets from your estate.
The arrangement is designed to ensure a smooth and legally secure transfer of assets. Trusts components include:
- The Person Establishing Trust (Trustor/Grantor)
- The Party Managing Assets (Trustee)
- Those Receiving Benefits (Beneficiaries)
- Guidelines on Asset Use and Transfers (Trust Terms)
Basically, they are there to make sure your things are distributed the way you want them to be. They can also be heavily customized to fit specific niche scenarios–some of which will be described later on.
Trusts are private documents that help your estate circumnavigate the courts.
Why Choose Trusts Over A Will?
Many people who establish trusts will also use what is called a “pour-over will,” which ensures the smooth transfer of assets that are not specifically listed or described in your estate. However, a trust is the best vehicle for someone who wants to avoid having their assets and property tied up in probate court. A trust allows you to easily pass on your assets to your beneficiaries and avoid probate altogether.
A trust can cost a few thousand dollars upfront, but saves countless more down the road and most importantly, avoids probate court, delays in distributing assets to your beneficiaries, disputes between heirs (as your trust documents and will spell out your wishes explicitly), and of course, avoids expensive probate attorney fees down the road.
Moreover, they help promote a peaceful transference of assets among family members. Probate courts can cause a lot of tension among beneficiaries. A well-established trust helps avoid conflict during a time when people should be coming together.
Common Types of Trusts Used in Texas
Revocable Living Trusts
Revocable living trusts can be adjusted to reflect changes in over your lifetime. They are one of the easiest ways to avoid probate court and pass assets to your beneficiaries.
In order to get the full benefits of a trust, it requires retitling assets like homes or accounts into the name of your trust.
Life Insurance Trusts
If substantial life insurance coverage exists, direct payouts to individuals may create unwanted tax burdens that decrease the policy value. Life insurance trusts avoid this issue.
Special Needs Trusts
As mentioned earlier, if one of your dependents has special needs, it may complicate the way they can safely receive assets. Government assistance programs typically require recipients to meet certain financial criteria.
An inheritance could change someone’s eligibility.
Special needs trusts hold the assets, allowing your special needs adult or child to benefit from the assets without having them count against their income, which would make them ineligible for certain benefits, tax savings and government programs.
Talk to a Frisco, TX Trust Attorney Today
When it comes to protecting your legacy and ensuring your loved ones are cared for, a well-crafted trust can make all the difference. At our Frisco, TX law firm, we understand the importance of planning for the future and the peace of mind that comes with knowing your assets are secure. Our experienced trust attorneys are dedicated to helping you navigate the complex world of estate planning, offering personalized guidance and support every step of the way. Whether you’re looking to minimize tax liabilities, protect your wealth, or provide for a loved one with special needs, we have the knowledge and expertise to help you create a trust that meets your unique goals and circumstances. So don’t wait until it’s too late – contact our office today to schedule a consultation and take the first step towards securing your legacy and protecting the ones you love.