A living trust is a structure to protect your assets through a legal document. You can store your assets and property inside a living trust, and ownership is then given to a trustee who will be in charge of distributing the trust's property to beneficiaries according to the trust's instructions. You can name yourself as the trustee or designate someone else.
There are two types of living trusts to choose from:
Creating a living trust will help avoid the probate process. This process can be time-consuming and costly, as well as invasive due to probate making your personal affairs into public record. Essentially, a living trust can make things easier for your family when you pass. Any property placed inside the trust will not be subject to probate court.
In Texas, avoiding the probate process can be helpful because the state does not use the Uniform Probate Code. This code streamlines the probate process in other states, cutting down on the time and costs involved. In addition, since this is not enforced in Texas, a living trust can be especially beneficial to those that have estates in Texas. A living trust can also help you avoid conservatorship if you become incapacitated. It also makes it possible to leave assets or property to a minor child when they reach a certain age. For example, you can leave the property to a trustee, who will hold it until the child reaches legal age.
Our Dallas Trust lawyers can assist you in creating your trust.
A living trust will not erase the need for a will. A trust can only take account of a property placed in it. If something you own is not set in a living trust, a will can further instruct how that property should be allotted. Additionally, a will does have some capabilities that a living trust does not. For instance, a will, among other thigns, can:
Creating a living trust does not have a significant impact on your taxes. However, it's essential to know about the estate tax and the inheritance tax when you start thinking about your estate planning. You can find relief in knowing that there is no inheritance or estate tax in Texas. Although, the federal estate tax will apply if your estate's worth is more than $11.18 million, or $22.36 million for couples, as of 2022.
A living trust could be instrumental in Texas because the state does not fully utilize the Uniform Probate Code, which streamlines the potentially time-consuming and costly probate process. Further, creating a living trust in Texas could save your family a lot of time after you’ve passed. The only exception to this is for estates valued at $50,000 or less, in which Texas offers a simplified probate process.
You have two options to set up a living trust: doing it by yourself or hiring a lawyer to help you. The first option will require extensive planning, research, and paperwork, while the second option will require a more significant financial investment. Before creating a living trust, make sure to weigh the pros and cons for what fits your needs best. Our lawyers here at
Wilson Whitaker Rynell have extensive experience in estate planning and are prepared to guide you through the process. So, if you want to ensure that your estate is adequately prepared for the day when the unthinkable happens, let us be there for you. Please contact our firm for a free consultation.
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