Trusts Attorney in Colleyville, Texas
The best time to begin estate planning is today. It does not matter how old or how healthy you are. Planning your estate sooner rather than later is the best thing you can do to protect your loved ones. That is why having a trust is important in Colleyville, Texas.
At Brooks P. Lynn, Attorney at Law, I have the tools necessary to assist you in building a trust. I have an abundance of knowledge and practice when it comes to estate planning, and I am here to help. I proudly serve clients in Colleyville, and Tarrant County, Texas.
What Is a Trust?
In Colleyville, Texas, and throughout all of Tarrant County, we can define a trust as a document that states what happens to your property when you pass away. Now, you might be thinking, “isn’t a trust the same thing as a will?”
On the surface, they are. However, a will must go through a court process known as probate. In probate, the court must approve the will and then supervise the distribution of your assets to your beneficiaries. As such, there is always the chance that someone might appeal to the will. This action could lead to a tough legal battle. A trust ensures that your loved ones get your property according to your exact specifications.
What Are the Types of Trusts?
There are four main types of trusts.
A living trust. A living trust is enacted during the grantor’s (the property owner) lifetime. The grantor is the first trustee while they are alive. As a result, the grantor can decide to transfer their property at any time. Additionally, a living trust is revocable, meaning that the grantor can change or revoke (cancel) the trust at any point. The trust becomes irrevocable when the grantor passes away.
Revocable Trust. This trust type can be changed or revoked at any time during the grantor’s lifetime. It’s a good option for anyone who might add assets or beneficiaries, such as adding grandchildren to the trust as they are born.
An irrevocable trust. This trust type means it cannot be modified or revoked. It is created during the grantor’s lifetime. A third-party trustee, for example, an attorney or asset management firm, manages it. For instance, terminally ill individuals can create an irrevocable trust to ensure the transition of assets to beneficiaries.
A Testamentary trust. These trusts are formed after the grantor’s passing as outlined in their will. A testamentary trust generally contains a portion of the grantor’s assets. Consequently, the will transfers a portion of the assets while the rest goes into a trust. For example, the will transfers real estate ownership. At the same time, cash and financial investments go into a trust until a specified time.
There are other special types of trusts, such as charitable trusts. This trust type allocates a portion of the grantor’s assets to a charitable organization. During the grantor’s lifetime, the portion allocated to this trust produces income the grantor can receive (i.e., a sum of money invested in a stock market fund). The charitable organization receives the funds when the grantor passes away.
How to Create a Trust in Texas?
Here’s how you can create a trust in Colleyville, Texas, and throughout all of Tarrant County:
First, decide on an individual or shared trust. An individual trust is one person allocating their property to a trust. A shared trust is when two or more people (such as a married couple) allocate their individual and joint assets into a trust.
Next, determine what property (e.g., real estate, cash, jewelry, vehicles, investments) will go into the trust.
Then, name the trust’s beneficiaries, in other words, who gets the property.
After, create the legal documentation. I strongly urge my clients to seek the right legal counsel from an experienced estate planning attorney. You may have particular circumstances requiring assistance from a trusted estate planning attorney.
Once you have created the trust document, it must be signed in front of a notary public. The notary then legalizes the document.
Lastly, the property deeds or titles of property you own must be changed to reflect throughout you are the owner as the trustee of a trust.
Creating a trust is relatively simple in Texas. However, getting the right legal counsel can help you avoid any mistakes. Ultimately, getting your trust right the first time is crucial to ensuring your loved ones are protected.
Why Having a Trust Is Important in Texas
Having a trust is important for the following reasons:
Trusts do not need to go through the probate court process. As a result, your beneficiaries get your assets without needing a potentially lengthy court process.
Your assets remain in the trust until your beneficiaries meet specific conditions, such as becoming a certain age, getting married, and so on.
A trust protects the grantor in case of a terminally ill disease or mental incapacitation. As a result, the grantor decides who gets what while they are able to do so. Once the grantor becomes too ill to make decisions, it is too late.
A trust is a private document. In contrast, a will is a public document. In other words, anyone can get access to a will’s contents. Trusts ensure privacy, especially during difficult times such as your passing.
On the whole, a trust offers many more benefits than a will. Nevertheless, plenty of folks use a combination of a trust and will. Your ultimate decision should be based on your needs and circumstances.
Trusts Attorney Serving Colleyville, Texas
Finding the right estate planning attorney in Texas is critical for proper guidance. At Brooks P. Lynn, Attorney at Law, I pledge to do my utmost to help clients protect their loved ones. My staff and I are standing by to help you do your part to protect your loved ones. Contact me today to get trusted legal advice with a caring and compassionate touch. I proudly serve clients in Colleyville, and Tarrant County, Texas.