If you’re considering various estate planning alternatives, you have probably encountered the concept of living trusts. This legal mechanism allows a person to transfer ownership of properties during his or her lifetime. A living trust DOES NOT replace a Last Will and Testament; rather, it acts as a supplement to what is stated in the Will.
When its provisions are designated as revocable, the person executing the living trust may modify its terms; when it’s irrevocable, the provisions can no longer be changed.
To determine if you need a living trust or not, here are a couple of issues you should take into account. It is also highly advisable to seek the help of an attorney that offers trust services in Texas; this legal advocate is in the best position to help you regarding these matters.
Skip Lengthy Probate
For those whose large and complex estates consist of money and various assets, living trusts can be beneficial for your heirs. Assets included in the living trust will no longer go through the probate process, which can be a complicated and time-consuming process. Since living trusts allow the skipping of the lengthy probate process, heirs and beneficiaries will benefit from the swift transfer of ownership of properties.
The simplicity of living trusts and the prospect of avoiding a lengthy probate process is what attract many people to this estate planning tool.
Avoiding Estate Taxes
While living trusts allow certain tax advantages, they do not automatically allow avoidance of estate taxes. For the most part, living trusts only permit portions of the estate to be free from taxation, allowing tax savings during the probate process. To learn more about these tax advantages, speak with an attorney experienced in trust services in Texas.
Issues Of Incapacity
Following the normal course of life, many people will reach the point of incapacity in which they are unable to manage and direct financial affairs. This could be a result of dire illness, an accident, or just the coming of age.
In case of such inability, setting up a living trust beforehand is one of the best possible ways to manage the assets of your estate and to use or dispose of it according to your terms.
To learn more about living trusts in Texas, speak with an experienced Houston estate planning attorney today.