A person’s family in Texas can lose a lot if he or she fails to complete estate planning. Well-thought-out estate plans may include wills and trusts, among other documents. A trust, in particular, offers a wide range of benefits.
Trusts are arrangements where trustees control property for beneficiaries. Usually, in a living trust, a person names himself or herself both the trustee and the beneficiary until he or she resigns, dies or becomes incapacitated. Then, the terms of the person’s trust appoint another trustee to distribute the assets remaining in the trust or to manage these assets.
Living trusts are revocable unless the agreements specifically state otherwise. These types of trusts can be revoked any time prior to one’s incapacity or death. However, one cannot change a irrevocable trust’s beneficiaries, change the trust’s terms or remove assets from this type of trust. These types of trusts can be complicated but do offer the benefit of helping to avoid probate as well as helping to reduce federal estate taxes in certain situations. They are also helpful for enabling family members to manage the assets of a person who has become incapacitated.
Thousands of baby boomers are currently expected to retire each day. Now is, therefore, the time to begin focusing on creating trusts, wills and other estate planning documents. Proper legal guidance in Texas can help people to successfully complete estate planning in a manner that meets their chosen beneficiaries’ needs in addition to reflecting their own wishes in the event of incapacitation or death.