How to Determine Which Type of Trust You Need

We speak with our clients time and time again about the value of adding a trust to an estate plan. If you have wondered whether a trust might be the right tool for you, the next step would be to decide which type of trust is right based on your circumstances. Below are several tips for deciding the kind of trust your estate plan needs. As always, with questions about how these options might apply to your estate plan, give us a call at McCulloch & Miller today.

1. Decide who you want to benefit from the trust.

Deciding the trust’s beneficiaries is a great first step. If your intended beneficiary is a nonprofit or cause you care about, a charitable trust could be right for you. If you have a spouse or loved one with special needs, creating a special needs trust would allow that person to receive important medical benefits while maintaining access to funds they need. If you want to pass money down to your children and grandchildren, you could set up a lifetime trust, which would allow your heirs to benefit from liability protection and consistent funds for their entire lives.

2. Think through your financial situation.

A trust can be revocable or irrevocable. If it is revocable, you can change it as time goes on; if it is irrevocable, you cannot change it without the consent of all beneficiaries. While an irrevocable trust is more complex and expensive to set up, it also has the benefit of protecting your assets from creditors, litigation, and estate taxes. If you are subject to any kind of money judgment, the irrevocable trust might be your best option.

3. Write down your goals for the trust.

Lastly and most importantly, determine why you want to set up a trust in the first place. Are you looking for ways to minimize taxes? Do you want to transfer wealth? Are you hoping to leave a legacy that outlasts your lifetime? Trusts can help with all of these goals, but to determine exactly what kind of trust is right for you, you should speak with a Houston estate planning attorney that can walk you through all of the options. By making an informed decision, you can ensure you and your loved ones are well protected moving forward.

Are You and Your Family Looking for a Houston Estate Planning Attorney?

At McCulloch & Miller, our firm specializes in working with you through all steps of the estate planning and probate processes, helping you make sure everything runs as smoothly as possible. Our services are backed by more than three decades of experience practicing law in Texas, and our clients trust us to have their best interests in mind. If you and your family need a Houston estate planning attorney, we would love to discuss next steps in the process with you. For a consultation with a member of our team, give us a call today at 713-955-7281. You can also fill out our online form to have a member of our team reach back out to you about your case as soon as possible.