Most Texas adults agree that planning for the future is a critical step for both the individual and his or her loved ones. In addition to making legal, financial and medical plans that may come into effect in the future, it is also important to consider the potential tax consequences of any choices one makes. There are certain planning steps one can take that will reduce taxes and simplify matters long-term, including the creation of a trust.
Leveraging the benefits of a trust
A trust is a legal arrangement that allows one to set aside and protect assets for a specific use. There are different types of trusts, and the right choices depends on one’s goals for his or her assets. The following types of trusts may help with the reduction of taxes on one’s estate:
- Irrevocable Life Insurance Trust
- Spousal Lifetime Access Trust
- Intentionally Defective Grantor Trust
The use of a trust is a practical solution, it is critical to think carefully about the goals one wants to achieve through this step. With the variety of trusts available, matching the right option with the specific objectives can give one a higher chance of meeting his or her objectives.
Estate planning goals
When establishing a trust, it is helpful for one to work with an experienced Texas estate planning attorney. This can provide knowledgeable insight regarding the appropriate trust selection that will reduce the taxes associated with one’s estate. An assessment of the estate, one’s objectives and other factors can help one see the most appropriate and effective way forward.