The Purpose of a Trust
Part of planning for the future is what will happen to your children and your estate once you pass on. In the State of Texas this involves wills and trusts. A trust is a relationship where one person, several people, or a corporation manages your estate for the benefit of someone else. A common example is how your property will be handled in case of death. An individual that you trust can be assigned to be in charge of your estate. This person, the trustee, can then see to it that your children receive the financial assistance that you desire and in the way that you specify. As a Texas probate and estate planning attorney, Clausell Law Firm, PLLC can work with you to help plan the future distribution of your assets for your heirs.
If you do not have a trust you will not have control of when and how your estate is distributed. Trusts can be established for many valid reasons. They can ensure the privacy of your financial decisions regarding what will ultimately happen to your property. Without a trust, your children can inherit your estate at the age of 18. If they stand to inherit a substantial sum, this can be an incentive for the child to not work or go to school. Many of us did not make correct financial decisions when we were 18 years old. This could result in an inheritance being wasted away by an immature heir. A trust can ensure that the estate you leave behind will be properly used for the support and care of your heirs or other benefactors.
The Elements of a Trust
There are many types of trusts that have various uses. Our goal is to work with you so that your trust is customized for your needs and achieves what you desire. Frequently, people consider that they have to be of a certain age, usually older, to need a trust. Sometimes they feel that they must have a certain amount of wealth in order to require a trust. Neither of these ideas is true. If you have a decent job, have life insurance and minor children, a trust can help give you peace of mind about the future.
The elements of a trust are not complex. There needs to be a trustee, someone who is responsible for managing and distributing your estate. There needs to be clearly spelled out who are the beneficiaries who will have the property distributed to them. The trust administers assets such as property, cash, real estate, insurance and stock. Finally, a trust agreement that formally states what you want the trustee to do must be carefully drafted. Why leave it up to chance or the state to decide what will be done with your property and for your heirs? Clausell Law Firm, PLLC is ready to help you take the steps you need to establish a sound trust.