5 Types of Trusts That You Might Need in Your Texas Estate Plan

 Posted on March 02, 2022 in Estate Planning and Probate

 Trusts are increasingly common vehicles for distributing estate assets. Contrary to popular belief, you do not need to be wealthy for a trust to work well in your estate plan. In fact, trusts can be great for smaller estates as they allow your surviving loved ones to skip probate - which can become costly.

Understanding the different types of trusts you can use may help you see how a trust might fit into your estate plan. It is important to work with an experienced estate planning lawyer, who can assess your situation and guide the process to meet your goals. 

What Types of Trusts Could I Use in My Estate Plan?

You may be familiar with the two main types of trusts - revocable and irrevocable. A revocable trust can be changed after it is established while an irrevocable trust generally cannot, although there are exceptions. Some types of trusts available in Texas that you may not be familiar with include: 

• Testamentary trust - If you are going to use a will, you can establish a testamentary trust through it. This trust has no effect until after you have passed away. These trusts are often used to distribute estate property to minor children. Having a will is important for those with minor children, as you can also use a will to name the person you would prefer to have raise your children should you pass away before they reach adulthood.
• Special needs trust - These trusts are used to provide for a disabled person - without defeating their Medicaid or Medicare eligibility. The disabled person can use trust funds to pay for non-medical needs, like clothing and entertainment. You can also make one for yourself to provide for your own supplemental needs in case you become incapacitated later in life and need Medicaid. 
• Charitable trust - If you would like to donate any portion of your estate property, you can use a charitable trust to name non-profits as beneficiaries. You will be able to specify how any money or other property is to be used by the charity.
• Pet trust - If you have pets who are dear to you, you can set up a special trust to make sure that they are provided for. 
• Asset protection trust - These trusts are used to keep assets safe from creditors - yours and your beneficiaries. They can help protect beneficiaries that have debt, are likely to incur debt, or work in a field where they have a higher-than-average chance of being sued, such as medicine. 

Your attorney will ask you about your goals and beneficiaries to help determine which types of trusts might benefit you and your loved ones the most. 

Call a Guadalupe County Trust Attorney

If you are interested in using a trust or trusts in your estate plan, Geoff Mayfield, Attorney at Law can guide you through the process. Our skilled San Antonio trust lawyers will custom design the trust that works for your plan. Call 210-535-0870 to start with a free consultation. 

Source:

https://statutes.capitol.texas.gov/Docs/PR/htm/PR.112.htm