Planning for the future is a unique process that looks different for each individual. If you are considering what you may need for a complete estate plan, it may be in your interests to consider the benefits of establishing a trust. This estate planning tool allows you to set aside and protect assets for a specific purpose in the future. Depending on your objectives, a trust may allow you to accomplish specific goals you have for your Texas heirs and beneficiaries.
There are times when a trust is the most appropriate and effective way to accomplish specific estate planning goals. If you are wondering if this could be a beneficial way to ensure you are able to protect your assets and control what happens to them in the future, you may find it helpful to carefully evaluate your existing plans and long-term objectives. There is a wide variety of types of trusts, and each offers you the opportunity to accomplish a specific goal.
What is a trust?
A trust is a legal arrangement that allows one to hold assets aside for a specific reason. With a revocable trust, you can change the beneficiaries, and move assets in and out of the trust as much as you would like over the course of your lifetime. An irrevocable trust, once created, cannot be changed. Some of the ways a trust could benefit you include:
- You will maintain control over specific assets, and you can be certain they will be used only for their designated purpose, even after you pass away.
- Assets held in a trust do not have to go through probate, which means the details of the trust will remain private.
- Some types of trusts can reduce the tax burden associated with an estate.
- Because a trust does not have to go through probate, it can save time and be less complicated for a family trying to settle an estate.
Trusts allow you to designate funds for charitable giving, support loved ones, care for a special needs loved one and much more. To learn which type of trust may be the most beneficial addition to your estate plan, you may find it helpful to seek an assessment of your specific estate, your future financial projections and your long-term goals. Trusts are useful tools for individuals of all income levels and for estates of all sizes.