What Are Trusts?
Estate planning is essential for anyone who possesses assets wants to ensure that they are distributed among chosen heirs in case of death. Trusts are among the most effective components of estate planning, and a Conroe trust attorney can help you decide which type is best for your circumstances. So, what is a trust?
In its most general form, a trust is an estate planning instrument that enables a person to control distribution of his assets following his demise. They differ from wills in that the assets placed in trust actually are removed from the estate and are thereby not included in determining any estate taxes that are due. In essence, the assets become property of the trust, itself.
Three parties are required for a trust. The first is the grantor, who is the person who actually sets up the trust. The beneficiaries are those who ultimately will receive the assets held in trust. The final individual is the trustee. Because of the nature of this position, and the authority the trustee possesses, you need to make sure the person you select as trustee is above reproach. Usually you would want a disinterested party. Your Conroe trust attorney would make an ideal trustee.
Function of the Trust
As suggested, a trust can help prevent an estate from being eaten up by estate and other taxes. As your Conroe trust attorney will tell you, trusts also can also do much more. They control the distribution of assets to beneficiaries. They also help heirs to avoid probate, for the funds held in trust are not probated.
There are two main types of trusts: revocable and irrevocable. The distinction is that a grantor maintains power over the assets held in trust until he dies with a revocable trust. You can change the terms of the trust or close it altogether. With an irrevocable trust this is not the case. However, the irrevocable trust provides greater protections of the assets, including avoidance of creditors.
Work with a Conroe Trust Attorney
If you are interested in learning more about trusts, or have another estate planning concern, call a Conroe trust attorney who has the experience and breadth of knowledge to provide you with the highest standard of legal assistance. Call Peterson Law Group at 979-703-7014 or 936-337-4681.