Types Of Trusts In Texas
A trust is a special estate planning and asset protection tool that can keep your assets from being impacted by taxes during probate. A trust is a separate legal entity that you create with your attorney and assign assets to it. It then distributes those assets to your beneficiary’s beneficiary – the individuals who receive payments from the trust – according to your wishes.
At David W. Smith II PLLC, David is a lawyer with the experience and skill to help you through any trust-related concern. He’s worked with clients all over Dallas and Oklahoma City and offered each of the people he works with his care and undivided attention. To help guide you in your understanding of trusts, here are the major types of trust you may consider:
Special Needs Trust
A special needs trust is a type of trust that you may create to provide for a family member with special needs when you no longer can. Because of the rules of many important government benefits, directly inheriting wealth can do more harm than good to a person with special needs. These types of trusts help circumvent those issues.
A top priority for many parents as they build their estate plans is concerns about how their child will use their inheritance. A Spendthrift trust prevents a from signing away any of the assets or interests in the trust itself. It is also protected against the beneficiaries’ creditors. In this way, you can ensure that your family’s personal spending habits do not compromise your financial legacy.
A living trust is very simply a type of trust that is created while the grantor – the person funding the trust – is alive. These are the most common types of trust, but they almost always come with an important question:
Revocable Or Irrevocable?
Revocability of a trust is vital. If the trust is revocable, it means that at any time, the grantor can dissolve the trust and change the trustees or beneficiaries. An irrevocable trust, on the other hand, cannot undergo changes without the consent of the beneficiary.
How David Smith Can Help
As your lawyer, David can guide you through all the options ahead of your trust and provide you with impactful legal advice on your choices. He can draft the documents and help you fund your trust as well. Contact him by phone at 469-460-8980 or send an email using this form.