TRUST FORMATION & LITIGATION

What is a Trust?

A trust is a written agreement created for the purposes of holding a particular property in trust for designated beneficiaries. Although trusts serve many different purposes, trusts are commonly created to reduce an estate's tax liability,  protect property in an estate, or avoid probate. To set up a trust, you need at least the following information: i) a trust maker or person making the trust; ii) defined rules and objectives of the trust; iii) a confirmed legal trust based on such rules and objectives; iv) property to be placed into the trust; v) at least one beneficiary to receive the benefits of the trust and (vi) a trustee to manage the trust property and the interest of the beneficiary pursuant to the trust rules.  Our Dallas lawyers provide trust administration and Texas probate legal guidance. 

What is Trust Administration?

Trust administration refers to the trustees' management of trust property created by an estate pursuant to the terms and conditions of trust documents that benefit an estate's beneficiaries. Many steps are required to safeguard effective administration.  After an individual's death, his or her assets will be gathered, business affairs settled, debts paid, necessary tax returns filed, and assets distributed as the deceased individual (generally referred to as the "decedent") directed. These activities generally will be conducted on behalf of the decedent by a person acting in a fiduciary capacity, either as executor (in some states called a personal representative) or as trustee, depending upon how the decedent held his or her property.  Important terms to know in an administration of a trust:

• What is a Fiduciary? A fiduciary is an individual, bank or trust company that follows the trust terms and conditions to benefit the trust beneficiary. All trustees, executors, and personal representatives are fiduciaries and have fiduciary obligations to the beneficiary and the trust settlor.

• What is a Grantor? A grantor is a "settlor" or "trustor" who creates the trust rules and transfers property to a trust for a trustee/fiduciary to manager. 

• What is a Testator? A Testator (or Testatrix) is the person who executed the valid will, which may or may not contain a trust created upon death.

• What is a Beneficiary? A person who receives the benefit of the assets under a will or trust was made.

• What is a Trustee? A trustee is a fiduciary such as an individual, bank, or trust company who is obligated to follow the trust terms and conditions for the benefit of the trust beneficiary.

At Wilson Legal Group, our trust lawyers utilize a team-based approach that benefits from having access to multiple attorneys with substantive years of experience in many practice areas. Whatever your estate or trust administration needs may be, our Dallas trust attorneys have the talent, resources, and expertise to meet them in an efficient, timely, and cost-effective manner.  Our Dallas lawyers represent executors, trustees, trust administrators, beneficiaries, heirs, and other family members who own an interest in the trust or estate property.

Managing The Assets Of A Trust

The Internal Revenue Service (IRS) has defined a person's estate as the fair market value of everything a person owns at the time of your death minus debts. The totality of a person's estate would include but is not limited to the following: bank accounts, stocks and bonds, real estate,  business interests and property, personal property, and life insurance policies. Items like cars, jewelry, coin collections, and artwork would be considered personal property for the purposes of a last will and testament; however, the proceeds of life insurance would not be personal property as they can only pass through the beneficiary designated on the insurance policy. It is the fiduciary's responsibility to take control of (marshal) all assets comprising an estate or trust. Especially when a fiduciary assumes office at the grantor's or testator's death, it is crucial to secure and value all assets as soon as possible. Some assets, such as brokerage accounts, may be accessed immediately once certain prerequisites are met. Typical prerequisites are an executor obtaining formal authorization, sometimes referred to as Letters Testamentary, from the court and producing a death certificate

Dallas Trust Litigation Lawyers

Trust-related legal disputes arise for many different reasons. If you or a family member are currently in a trust dispute, our Dallas trust litigation lawyers can advise you on your rights.