As many of our clients know, the trust can be a valuable estate planning tool for those who choose to use it. If you are wondering whether adding a trust to your estate plan might be the right next step for you, consider the following reasons that many individuals choose to utilize the trust in their estate planning processes.
You Want to Avoid Probate
The most common reason to add a trust to an estate plan is to avoid having to go through the probate process. When a person dies with a will, the will’s executor must present the will to the probate court. The court reviews the will, decides it is valid, then approves the distribution of the decedent’s assets. This process takes time and resources, and it can be frustrating for families to have to wait for the court proceedings to play out over a series of months.
A trust, on the other hand, is exempt from probate. By putting your assets in a trust, these assets can go directly to your intended beneficiaries instead of passing through probate court. Avoiding probate has the added benefit of ensuring privacy for the decedent and their family, since no documents become part of the public record when they are part of a trust.
You Want to Avoid Creditors
Putting assets in a trust also means that creditors are unable to touch the assets if they have a judgment against you. That way, when you pass, your assets are guaranteed to go to your beneficiaries, instead of being subject to the risk of third parties to whom you owe money.
You Want to Reduce Taxes
On larger estates, estate taxes can cut a significant portion of the assets and take money away from the intended beneficiaries. By putting money into a trust, you can oftentimes avoid some of these hefty estate taxes. If you are leaving behind money for your loved ones and this money is subject to a gift tax, the trust can also help you reduce or avoid this tax altogether.
These are just a few reasons that you might consider adding a trust to your estate plan. Other reasons could be that you want to give money to loved ones over a longer period of time instead of in a lump sum; you want to give charitably; or you want to maintain greater control over your asset distribution. Whatever your reasoning, call a Houston estate planning attorney you trust to learn more about how to set up a trust in your name.
Is McCulloch & Miller the Estate Planning Firm for You?
Thinking through your estate plan requires care, attention, and a basic knowledge of what is at stake. At McCulloch & Miller, our team of Houston estate planning attorneys uses an empathetic, holistic approach for each client. We believe that every client deserves the best and most thorough estate planning attorney possible, and we are proud to offer the highest quality services for our Texas community.
For a consultation with an attorney from our firm, give us a call today at 713-903-7879. You can also fill out our online form with your contact information to have an attorney get back in touch with you as soon as possible about your estate plan.