One reason people may not want to engage in estate planning is because they prefer not to discuss death. Another reason is that they might be overwhelmed with the process of developing effective estate plans. Both a will and a trust are valuable estate planning vehicles, with a trust particularly offering benefits to people in Texas.
Some people prefer to use a revocable trust instead of a will as their main document estate plan document. This is because these types of trusts are convenient for passing on assets in an efficient, quick and private manner. A trust will not be filed with a probate court and, unlike a will, thus will not become a public document. In addition, any property that is transferred into such a trust during one’s lifetime will not be subject to delays and expenses associated with probate.
Revocable trusts are also effective for preserving assets for charities and heirs. A person can make changes to this type of trust anytime, but when the individual dies, it is considered irrevocable. Thus, the provisions pertaining to the assets’ disposition to the individual’s heirs, along with charities, will be administered under the trust’s terms by the trustee.
With a revocable trust, an individual in Texas essentially retains control over his or her distributions as well. For instance, people can stipulate which principal and income distributions will be made available to children, grandchildren and other beneficiaries. These trusts are also an excellent choice for those who wish to keep their assets in their families and distribute retirement accounts in an efficient way. Proper legal guidance can help people to complete estate planning with their own best interests and that of their loved ones in mind.
Source: CBS News, “5 reasons you need a trust, not a will“, Ray Martin, Sept. 17, 2015