A family trust is an option to consider when planning your estate. Unlike a will, a family trust allows you to manage your assets while you are still alive and ensures they’re protected for future generations.
In Texas, a family trust can provide flexibility, privacy, and control over how your assets are handled, making it a valuable legal arrangement for many families.
How does a Family Trust work?
An appointed trustee manages assets on behalf of beneficiaries in a family trust. The trust can be set up during your lifetime (a living trust) or activated upon your death (a testamentary trust). Family trusts can include real estate, savings, investments, and personal possessions, ensuring your assets are distributed according to your wishes without the hassle of going through the probate process.
The Advantages of Setting Up a Family Trust
There are several advantages to establishing a family trust in Texas:
- Avoiding Probate: Your estate goes into probate after you die. Assets or items in your will cannot be dispersed until after probate. A process that can be lengthy and costly. A trust allows your beneficiaries to access your assets as soon as you die.
- Privacy: Unlike wills, which become public record once they enter probate, trusts remain private. This means your assets and the details of their distribution will stay confidential.
- Flexibility in Managing Your Assets: A family trust lets you have more control over how your assets are handled and distributed. You can set clear guidelines, like how funds should be used or how assets are managed for minor children or individuals with disabilities, ensuring everything is done according to your wishes.
- Providing for minor beneficiaries: If you have young children or grandchildren, a family trust may be a viable option for you. By assigning a trustee, you can ensure that your children or grandchildren receive their inheritance responsibly and in stages you determine.
- Reduced Estate Taxes: In certain situations, a family trust can help reduce your estate taxes, thus preserving more of your assets for your family.
How to Set Up a Family Trust
Unconstested.com is an evolving platform and we are regularly adding new products that make life easier for people wanting to take control of their lives and help those they care about. Stay tuned as we expand our services to address simple wills and family trusts.
Whether you’re looking to protect your assets from probate or ensure financial security for your children, uncontested.com will be able to make the process simple and stress-free.