Estate planning is especially important regardless of age, wealth, or life circumstances or related variables.
When an individual has worked hard to acquire assets including real estate, they may want to make certain these assets are utilized to support them in their lifetime and in the best interests of surviving loved ones upon their death. A Texas estate planning lawyer will set up a trust to act as a financial tool to control how a person’s assets are held, managed and distributed in accordance with their wishes.
Setting up a trust
- A trust can be considered revocable when it can be changed, or irrevocable when it is not able to be changed.
Revocable trusts have assets held in the name of the trust and can be managed by a successor trustee if the grantor becomes mentally incapacitated.
Irrevocable trusts are commonly used to remove the value of property from a person’s estate so that property cannot be taxed when the person dies.
- Items such as stocks and bonds, real estate, mutual funds, and/or individual property are usually included in a trust. Legal documents are prepared and filed with the appropriate agencies and courthouses to transfer and record deeds, or re-register stocks under the name of the trustee. A brokerage account will need to be set up so that assets can be bought and sold per the terms of the trust agreement.
- A grantor will be named as the person who will be moving assets into the trust.
- Beneficiaries of a trust are the people, or entities directly benefitting from the trust.
- Designated persons, or financial entities will manage the assets, determining if they should be invested and advising on the schedule of distributions.
- A trust will have a life span and termination provisions will be outlined.
Administering a trust
Seek legal counsel to make sure a trust will be set up and administered according to the specific requests of the person initiating it, in concert with Texas laws. Closing out Texas estates can be time-consuming and dragged out, depending upon the nature of the assets left to distribute and instances of beneficiaries contesting a will, requiring the service of an estate planning lawyer.
Tax concerns
An Austin estate planning lawyer will do their best to effectively and expediently administer the will in concert with the trust created by the deceased individual. A tax lawyer will be able to apprise beneficiaries of the tax liabilities associated with any type of asset they receive during estate settlements even as a trust may be in place to avoid tax penalties.
Hire a lawyer
Estate planning is especially important regardless of age, wealth, or life circumstances or related variables. It allows a person’s wishes to be heard when they cannot speak for themself. Estate planning can not only prevent family conflicts, but it can prevent loved ones from having to make painful healthcare decisions in addition to allowing wanted actions by a party that can no longer or temporarily speak for themselves. Experienced lawyers who understand the state and federal laws that will impact administration of a will can guide interested parties in accordance with the trust documents.
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