Setting up a trust

Trusts help a person manage their property and assets assuring they are distributed according to their wishes after one is deceased. 

Why forming a trust is important

Setting up a trust

There are many reasons to set up a trust.  Most importantly, providing for your family after you have passed and stating how they will receive their inheritance.

Setting up a trust may ensure the avoidance of probate.  Probate is the legal process of authenticating a last will and testament, assuming the deceased has had a will prepared.

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 up the trust 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 up the trust is called the Trustor.
  • The Trustor can be the Trustee and can also the Beneficiary, but this is not recommended.
  • The trust 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. This is set up after the Trustor is deceased and is usually set up in the Trustor’s will.
  • A trust is usually set up for estate planning purposes or to take care of a special needs child after the parents are deceased.
  • A trust 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.

Control of a trust is overseen by a trustee.  In some cases this may be the grantor themselves or someone may be named as a grantor.  This person might be a trusted member of the family, an acquaintance or a professional.

A trust consists of: 

  • A grantor - individual, group or organization that sets up a trust.
  • The beneficiary - individuals or group benefitting by the trust.
  • A trustee - May be the same as the grantor,  a close friend or a professional controlling the trust.

Interested in setting up a trust?

The Steinbach Law Firm can set up your trust.  $950.00

Questions?  Call us at 972-960-1850 and speak directly with an attorney.

Reasons for creating a trust:

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

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