How to Establish a Trust
A trust is a great way to avoid having assets delayed in probate court. In some cases it can reduce the estate so that beneficiaries avoid estate taxes as well. Numerous types of trusts are available in Texas, and it would be in your best interests to speak with a Conroe trusts lawyer to help you determine which is best suited to your needs. This post will show how to establish a trust.
How a Trust Can Be Beneficial
Trusts are useful for many purposes. Some are designed to be used by beneficiaries while the settlor (person who creates the trust) is still alive, while others are meant for passing money down to heirs after his death. You have the power to control the timing and distribution of assets held in trust. Among the situations when a trust may be beneficial are:
- You have a disabled child or you care for a disabled adult.
- Your children are minors.
- You would like to set up a charitable organization or fund an existing one.
- You wish for certain assets to be available to beneficiaries quickly after your death rather than be delayed in probate court.
- You possess complex assets.
- You have a specific purpose for some of your assets; for instance, you may set up a trust for a child to fund her education later.
Types of Trusts
When you meet with your Conroe trusts lawyer he will discuss your trust options based on the purpose for which you intend the assets held within to be used. Among the most common trusts allowed by Texas law are:
- Living Trusts
- Revocable and Irrevocable Trusts
- Special Needs Trusts
- Spendthrift Trusts
- Charitable Trusts
Creating a Trust
When you create the trust the assets that you transfer into it legally become property of the trust, rather than yourself. In many cases you still have control of adding and removing assets. The steps involved include:
- Author a trust document. This instrument states who is to be the beneficiary. It also names the trustee.
- Name the trustee. Make sure that you choose someone you trust implicitly who has no interest in the assets held in trust. You need also to make sure that this person agrees to be the trustee.
- Sign the trust document before a notary public.
- Transfer assets into the trust. Assets can include real property, automobiles, stocks, cash, and other holdings.