A common estate planning question involves trusts and who can be named as beneficiaries. A living trust, also referred to as an inter vivos trust, differs from others in that it can be modified, or even done away with while the settlor is alive. If you are considering a living trust, consult with a living trust attorney in Texas.
Types of Living Trust Beneficiaries
A trust by law must have named beneficiaries who are locatable. When you set up a living trust, your attorney will ask you whom you want to designate to receive the assets once you die. Often this is a spouse and/or children. Three types of beneficiaries can be named. The first of these are specific beneficiaries, who are designated to receive only certain property in the trust. Any remaining assets are left to the primary beneficiaries. You may also name alternates should something happen to one of the beneficiaries before your death.
Many settlors leave assets in a trust to their children. When the beneficiaries are children who have not yet reached majority status, the living trust is managed on their behalf, termed a subtrust. Once the children reach age 21 the subtrust dissolves.
It is important to note that a living trust does not eliminate the need for a will. Your living trust attorney in Texas will advise you that it is very important to have a will in place, along with the trust. This is important for a number of reasons. For one, if you acquire assets that are not held in trust, they need to be probated. Also, you cannot designate a guardian for your children through a trust. This must be done in a will.
A Living Trust Attorney Can Help You Set up a Living Trust
The living trust can be very useful for ensuring your assets go to the rightful heirs. You will find it in your best interests to work with a living trust attorney in Texas while setting up the living trust. Call Peterson Law Group today at 979-703-7014.