At some point, we all die, and when that happens we can’t take anything with us. However, that doesn’t mean you shouldn’t care about the fate of your property after you die. Drafting a proper estate plan is an important part of determining the future of your legacy. One way that you can pass on your assets after you die is through a trust. A trust may help you avoid costly inheritance taxes on a large estate. However, trusts are technical and require a law expert to complete them successfully. If you’re thinking about drafting a trust to pass on your assets to your family after you die, it’s important to hire an experienced attorney. If you’re in the Houston, Texas, area, one attorney has built a reputation as a reliable, competent, and professional trust expert: Steve Touchy.
Steve Touchy Attorney at Law has helped dozens of clients successfully form trusts to protect their assets for more than 37 years.
Trusts are legal agreements that you form to oversee and administer your assets after you die. They allow you to have more control over the way your assets are distributed. Having one can save your beneficiaries from having to go through the probate process. If you have a sizeable estate, trusts can help you avoid federal inheritance taxes, which can sap an estate of 40 percent of its value. With these factors in mind, the value of a trust becomes obvious.
In Texas, there are a few different prerequisites you need to meet to form a trust:
The Settlor (you) needs to intentionally create the trust and have the mental capacity to do so.
The trust needs to identify the assets that it will administer.
The Settlor needs to designate a Trustee. This is the person who will oversee the administration of the trust after you die. A Trustee can be a friend, family member, or the attorney that helped you form the trust.
The trust needs to have clearly-defined beneficiaries.
If any one of these requirements is not met, the trust will be invalid in Texas.
A living trust is similar to a trust, except that the Settlor doesn’t need to die for it to be enacted. Using a living trust, you and your attorney can find ways to preserve your assets and escape certain taxes. They’re sometimes called “revocable trusts” because you can make changes to them or dispose of them entirely during your lifetime. Once you die, a living trust may continue on as a standard trust.
A family trust is a subsection of a revocable trust. It’s a way that you can transfer possession of your assets and property into a third-party fund. You and your attorney can use a family trust to set up a trust fund for members of your family or your family as a whole.
Steve Touchy Attorney at Law has specialized in trust law since 1983. During that time, he’s helped dozens of clients determine which sort of trust they need and helped them form it. If you need a seasoned trusts attorney in Houston, Texas to handle your case, contact Steve Touchy Attorney at Law today.