Trust Attorney in Greenville, TX

Serving Hunt County Clients in Need of Estate Planning Legal Services

If you’re creating an estate plan or adjusting an existing one, it’s essential to consider all the potential tools and strategies, including trusts. At The Council Firm, PLLC, we have helped many families across Hunt County understand how trusts work and use them as part of a customized estate plan. Call our firm today at 903-494-3380 to schedule a time to discuss our legal services and what benefits a trust may offer you and your beneficiaries. Our elder law firm is here to make these decisions easier and ensure our clients understand their options.

How Does a Trust Work?

A trust is an estate planning tool that allows you to protect certain assets. The person who creates the trust (known as the grantor) funds the trust with assets, which can include everything from financial accounts to personal property. The grantor appoints a trustee to administer the trust. Their duties include managing the accounts or property inside the trust and ensuring the assets are distributed to the named beneficiaries as outlined in the trust terms.

The trustee has a fiduciary duty to the beneficiaries, which means the trustee must make decisions and act in the beneficiaries’ best interests. The trustee is also required to provide an accounting of their actions regarding the trust, including all expenses and transactions.

What Are the Different Types of Trusts?

There are several different kinds of trusts, each of which may be set up differently and is suitable for specific situations. Below are some of the most common types of trusts our firm deals with.

Revocable Living Trust

A revocable living trust allows the grantor to remain in control of the trust and the assets as long as they are living. The grantor can add or remove assets from the trust, change the trustee or beneficiary, and even revoke the trust at any point. This provides a great deal of freedom and flexibility. However, because these trusts can be changed, they don’t offer as much asset protection from creditors or taxes.

Irrevocable Trust

As the name suggests, an irrevocable trust generally can’t be altered or revoked once it’s created. It may be possible to make a change if the beneficiaries agree or the court allows, but these situations are rare. With an irrevocable trust, the assets are transferred from the grantor’s estate when the trust is funded. This means that it provides more asset protection because the assets are no longer considered part of the grantor’s estate and, therefore, can’t be taken by creditors and aren’t subject to estate taxes.

Special Needs Trust

A special needs trust is designed to provide financial support to those with disabilities while still ensuring they can remain eligible for Medicaid or Supplemental Security Income benefits. It’s a type of irrevocable trust that must be funded with the beneficiary’s assets, and those assets can be used to pay for things like therapy, necessary assistive tools, and transportation to and from medical appointments. Special needs trusts must be created with specific guidelines in mind and in adherence with the law to be effective, so it’s best to work with a trust attorney who has experience with this structure.

What Are the Benefits of Using a Trust as Part of Your Estate Planning?

Trusts aren’t just for the very wealthy, and they provide a host of benefits when it comes to creating a comprehensive estate plan. One of the primary reasons people choose to use trusts is to avoid probate. Probate is the process your estate must go through after you pass, and it can take months for the estate to be settled and beneficiaries to get their inheritances. A trust bypasses this process, allowing beneficiaries faster access to their inheritance. The probate process is also part of the public record, which means that effectively using trusts can provide more privacy. Some types of trusts can provide significant tax advantages for larger estates that may be subject to federal estate taxes.

How Do You Choose a Trustee?

Appointing a trustee is a big decision. Many people automatically choose a close family member, but there are specific factors to consider. Most importantly, the person needs to be trustworthy and responsible. They will need to be able to handle the responsibilities and duties effectively while acting in the beneficiary’s best interest.

It’s also important to consider the trustee’s age and whether you will need to appoint a successor trustee in case the original choice passes away or is otherwise unable to fulfill the duties.

An aspect that is often overlooked is the trustee’s willingness to serve. It’s crucial to ensure that the person you’re appointing knows that they’re being asked to serve in the role and feels comfortable managing those duties. It can also be helpful if the person has a background in finance or law, if they will be required to manage complex assets.

If you’re interested in finding out more about whether a trust should be part of your estate plan, contact the lawyers at The Council Firm, PLLC, at 903-494-3380 to schedule a consultation.