Setting up a trust

Trusts can help a person, manage his or her property and assets, making sure they are distributed, after one is deceased, according to their wishes. 

Why forming a trust is important 

Setting up a trust

There are many reasons to start setting up a trust, such as, providing for your family after you have passed and stating how they will receive their inheritance.

Setting up a trust may ensures the avoidance of probate (a legal process of authenticating a last will and testament,  that is if a deceased has had a will made.)

What is a Trust

  • A Trust is an entity set up by a written document that is used to own property, including cash.
  • The written document setting it up is referred to as a Trust Agreement.
  • The control of the property owned by the trust is given to a Trustee.
  • The benefits of the property are given to a Beneficiary.
  • The Trustee and Beneficiary can be the same person, but this is not recommended.
  • The person that sets it up is called the Trustor.
  • The Trustor can be the Trustee and can also the Beneficiary, but this is not recommended.
  • It can be set up when the Trustor is alive or it can be set up in the Trustor’s will.
  • A Living Trust is a revocable or irrevocable trust which is set up while the trustor is alive.
  • A Testamentary Trust is a revocable or irrevocable trust which is set up after the trustor is dead and is usually set up in the Trustor’s will.
  • It is usually set up for estate planning purposes or to take care of a special needs child after the parents are dead.
  • It can also be used for asset protection if it is used properly.

Setting up a trust in Texas

A trust can be set up by an individual, group, organization or a corporation known as the grantor. It is  established to hold assets or property for a specific person or group, which are called the beneficiary.

Controlling a trust is overseen by a trustee, this in some cases be the  grantor themselves, or someone can be named as a grantor, such as: a trusted member of the family, an acquaintance or a professional.

A trust consists of: 

  • A grantor - individual, group or organization setting up a trust.
  • The beneficiary - individuals or group benifiting by the trust.
  • A trustee - Can be the same as the grantor, close friend or a professional controlling the trust.

Interested in setting up a trust?

Email us at SteinbachLaw@airmail.net for more information, or you can call us at 972-960-1850 and speak directly with a lawyer.

Reasons for Creating a trust:

There are many reasons setting up a trust in Texas, such as:

  • It can help manage your affairs in case of disability
  • They are difficult to contest
  • Avoids probate (where a judge determines a will’s validity), and are considered more private than wills. 
  • Can determine how money or assests are used by benificiaries. Especially those that have trouble making sound fanancial decisions.
  • Can be distributed for a specific purpose like higher education.
  • Can be used to give to charities
  • Reduces or avoids estate taxes
  • Help in determining how difficult assets should be split

LETS GET STARTED

Email us at steinbachlaw@airmail.net for more information, or you can call us at 972-960-1850 and speak directly with a lawyer.

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