Living trusts, dynasty trusts and foreign grantor trusts are just a few of the types that can be used by some people in Texas. Individuals that may benefit the most from these items could include the most wealthy in our state. Others, however, can also make use of trusts in their estate planning, even if the amount of assets at stake are less significant.
In fact, one recent report notes, trusts can be used to achieve many estate planning goals. These include avoidance of taxes, asset protection from creditors during the bankruptcy process and the growth of wealth. In addition, many find the ability to avoid the sometimes complicated probate process among the best reasons to use a trust in estate planning.
Those who are less wealthy may also enjoy many trust benefits. These include the avoidance of probate and the ability to direct the payment of assets to beneficiaries after death. If a person is not interested in creating a trust in estate planning, they can also benefit from using a will and adding documents such as a power of attorney that directs how to handle an estate if there is an incapacity or healthcare directive to their portfolio.
In Texas, people of all income levels can benefit from estate planning. Because there are many options available that can be difficult to choose, it is often helpful to seek out a full understanding of the applicable laws that could come into play. In addition, it may be wise to review as many of the available options as possible to ensure that the best choice is made for the benefit of the living and their heirs.
Source: Forbes.com, What Is Estate Planning?, Russ Alan Prince, Nov. 4, 2013