Creating various types of trusts are often a good way of protecting the financial assets of an estate. Doing this can prevent excessive loss of funds through taxation or the probate process itself and can ensure that the beneficiaries of an estate can claim the maximum amount of assets after the owner of the estate is gone. However, it’s important to understand the different types of trusts and how they work because each one is designed to deliver a different kind of protection. That’s why, when you’re planning your estate, it’s a smart idea to consult with an experienced Texas trust lawyer. This lawyer can help you choose the type of trust that works best for you and your loved ones.
Flexibility, Protection and Taxes
A traditional type of trust, or irrevocable trust, is created by the grantor (person creating the trust) who puts the assets into the trust and then gives up all claim to these assets. A trustee is appointed to execute the instructions written into the trust. Consent must be given by the trust’s beneficiaries for any changes in these instructions. This type of trust is taxed separately and at higher rates.
A living trust, however, is a more flexible choice. The trust’s grantor does not give up claim to the assets and can change the trust at any time. The role of the trustee is to manage the trust if the grantor becomes unable to do so. The assets in the trust are taxed as part of the estate. Irrevocable trusts are protected from creditors, while living trust assets are not.
Call to Schedule a Free Consultation With a Texas Living Trust Lawyer Today
If you are considering establishing a trust and want to learn more, call to schedule a free consultation with a Texas living trust lawyer today. The experienced professionals at the Voeller Law Firm will discuss your options with you and help you choose what works best for you and your loved ones. Visit our web page at voellerlaw.com or give us a call at (210) 651-3851 and let our knowledgeable staff answer any questions you may have. We serve the city of San Antonio and we look forward to serving you.