A trust fund can help avoid probate and also give you greater control on how and when your assets will be distributed after you die. It is important that you work with Kingwood estate lawyers to ensure that you create a trust that is in accordance with Texas laws.
Revocable and Irrevocable Trusts
As the person establishing the trust, you are considered the grantor. The other most significant individuals in the trust are the trustee and beneficiaries. When you set up a trust fund you need first to decide whether you want to create a revocable or irrevocable trust. There are many types of trusts which fall into these categories, and it is a good idea to consult your attorney to determine which is best suited to your needs.
A revocable trust can be dissolved or amended while you are alive. Once you die, however, it becomes an irrevocable trust. An irrevocable trust cannot be changed or dissolved once it has been established.
Selecting a Trustee
You need to take care in deciding who will serve as trustee of your trust. The trustee need not be an individual. It can be a financial institution or legal firm. Many people choose close family members to serve in the role. It is important that you trust the person or institution implicitly, and that you gain the person’s agreement to serve in the capacity of trustee.
It is possible to serve as trustee while you are alive, but it is not a good idea to do this generally with an irrevocable trust because of certain tax consequences you will face. If you do name yourself as trustee of the trust you will still need to name someone to take on the position after you die.
With a trust fund you gain greater control over how and when funds will be distributed to your named beneficiaries. If you have a large estate and want your children to inherit it, but only gain access to the lion’s share of assets after they reach a certain age, for instance, you can set these rules into your trust.
Work with an Attorney when You Set Up Your Trust
Texas laws are very specific regarding the establishing of trusts. For instance, you need to sign the trust before a notary public. In order to make sure that you don’t make any mistakes that could affect your trust, hire Kingwood estate lawyers to help you. Call Peterson Law Group today to set up a consultation at 281-609-0664 or 832-786-5062.