For many of our clients and potential clients, trusts are a somewhat foreign concept and are thought of as inaccessible tools only for the uber-wealthy. Fortunately, this is a misconception, and individuals with all different kinds of estates, assets, and debts are able to benefit from establishing a trust. In today’s blog, we take the time to walk you through several key misconceptions we see about Texas trusts. Here are several myths and realities that we think every Texan should know:
Myth: Only wealthy individuals should consider setting up a trust.
Reality: Trusts can benefit those with large estates, small estates, and everything in between. One possible trust purpose, for example, is protecting assets from creditors if you think you might have debts to pay. By putting money into a trust, you can insulate it from the outside world and make sure it is only used for your desired purposes.
Myth: Trusts cost too much money to maintain – they just aren’t worth the hassle and money.
Reality: While some individuals do invest considerable time and money into creating and maintaining their trusts, there are ways to go about the process that actually saves you money in the long term. For example, assets in a trust can avoid the probate process, which saves your estate considerable time and money after your death. Additionally, you can appoint a trustee that is a family member – if your family member does not want payment for being the designated trustee, you’ve avoided a major expense commonly associated with trusts.
Myth: Trusts are only for passing assets to children and heirs.
Reality: This is only one possible purpose of a trust. Other possible purposes include avoiding taxes, foregoing probate, protecting assets from public benefits, distributing money to loved ones, and supporting charities of your choice.
These are only three of the common misconceptions we hear about from our clients. To fully understand how a trust could be beneficial for you, the best thing you can do is talk to an estate planning attorney that can match your individual goals with the right tools. Because estate planning can be complex, it never hurts to take the time to speak with an expert so that you can make sure you are properly looking out for yourself, your assets, and your loved ones both in the short and long terms.
Are You Looking for an Estate Planning Attorney in Texas?
At McCulloch & Miller, we leverage our expertise and institutional knowledge to walk you through every possible estate planning tool that might be beneficial for you and your loved ones. Our Texas firm is proud to represent individuals from all walks of life, and we would be honored to help you reach your financial goals through the estate planning process. For a consultation with a member of our team, give us a call today at (713) 333-8900. You can also fill out our online form to tell us about your circumstances and have an attorney reach back out to you.