If you and your spouse have started thinking seriously about your estate plan, you might keep hearing about family trusts. At first, it might seem like something only the ultra-wealthy needed — some complicated financial maneuver for billionaires. But as you dig deeper, you will come to realize a family trust is one of the smartest and most protective tools available for any Texas family, regardless of income or estate size as our Arlington, TX estate litigation lawyer can share who has been rated by Super Lawyers. Here’s why a family trust is an invaluable piece of your long-term financial strategy:
What Is A Family Trust?
A family trust is a legal entity that holds assets for the benefit of your loved ones. It’s often referred to as a revocable living trust, because it can be changed or canceled during your lifetime. There are many types of trusts, but this one in particular allows you, the “grantor,” to transfer ownership of your assets into the trust and appoint a “trustee” (often yourself initially) to manage those assets. When you pass away, the successor trustee takes over and distributes the assets to your beneficiaries without the need for probate.
Benefits Of A Family Trust In Texas
Texas law is relatively favorable for estate planning, but that doesn’t mean you should rely on a simple will alone. Here are the top reasons you should opt for a family trust:
1. Avoiding Probate
Probate in Texas isn’t the worst in the nation, but it’s still a legal process — slow, expensive, and public. With a trust, your heirs can bypass probate entirely. Assets are distributed quickly and privately, without court involvement.
2. Protecting Privacy
Unlike a will, which becomes public record once it enters probate, a family trust remains private. Many people like this aspect as they know that their financial affairs won’t be on display for anyone to see.
3. Providing For Minor Children
If something happened to you or your spouse, a trust would allow you to set clear terms about how and when your children would inherit. This gives many people peace of mind knowing they wouldn’t receive a large inheritance at 18 with no guidance.
4. Asset Protection
While a revocable trust doesn’t protect your assets from creditors while you’re alive, it can help protect beneficiaries from losing their inheritance to divorce, bankruptcy, or lawsuits. Many people like the idea of adding layers of protection for future generations.
5. Flexibility And Control
You can change the trust anytime during your lifetime. You can add or remove assets, update beneficiaries, or modify instructions. This makes it much more adaptable than a will alone.
6. Managing Incapacity
If either you or your spouse becomes incapacitated, the trustee can step in and manage the assets without needing a court-appointed guardian. That kind of preparedness is a gift to your family during already difficult times.
Getting started with a trust felt intimidating at first, but with the right legal team walking you through the process, it’s totally manageable. Contact a lawyer who has received a 10.0 rating from Avvo at the Brandy Austin Law Firm for help.
