How to Protect Your Assets with a Trust in Estate Planning

Estate planning is crucial for protecting your assets and ensuring that your loved ones receive what you intend. In Austin, TX, there is the option of using a trust to manage certain assets and prevent them from having to go through probate. An estate planning attorney can carry out a full assessment of your assets and recommend the most appropriate trust for your circumstances.

How to Protect Your Assets with a Trust in Estate Planning in Austin, TX

The Benefits of Setting Up a Trust

A will plays an integral role within effective estate planning, but it has certain limitations. Assets distributed through a will form part of the estate, which typically means they will be subject to probate. Setting up a trust often allows assets to be dealt with outside the estate, avoiding probate. Some of the other benefits of a trust include:

Privacy

Unlike a will, a trust does not form part of a public record.

Protection

Trusts can put special arrangements in place to protect those who are more vulnerable, especially where it would be inappropriate to allow them full control of any assets.

Reduces Taxes

By placing assets outside the estate, you may be able to avoid paying federal estate taxes.

Shields Assets

Some types of trust can prevent other parties, such as creditors, from being able to access any assets.

Allows Incapacity Planning

A trust allows your assets to be managed by a successor trustee, rather than requiring a court-appointed guardian.

What Types of Trust Can Be Used for Estate Planning?

You should consider what you want to achieve by setting up a trust, as not every arrangement offers the same benefits. There are a variety of different trusts that can be used in estate planning, including:

Revocable Trust

A revocable trust is one of the most popular options, as it allows you to retain control and make changes. This means you can revoke all or part of the trust or add extra assets as your needs change. If you become incapacitated, a revocable trust allows a successor trustee to deal with your assets.

Irrevocable Trust

As the name suggests, an irrevocable trust is more difficult to change after it has been formed. However, this can be beneficial if you want to protect your assets against creditors. This type of trust can also help you to qualify for Medicaid.

Testament Trust

A testamentary trust is part of the will and is only effective after death. It allows arrangements to be put in place for minors or vulnerable individuals, but it is subject to probate.

Seek Advice From an Estate Planning Attorney

An experienced attorney can help determine the right type of trust and identify other documents needed for estate planning, such as a will, power of attorney, and an advance directive. This ensures your assets are well-protected and will be distributed as you wish after your death, in addition to being managed should you become incapacitated.

We understand the importance of estate planning, and we work with our clients to create a personalized solution that meets their needs. To schedule a free consultation, get in touch with us at Artie Pennington Law Offices in Kyle, TX today. We also have an office in Austin, TX, available by appointment. 

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