Austin Estate Planning Attorney

 

Your key to successful estate planning begins with a call to Thrash Law Firm:

512-263-5400



 

Trusts and Estate Planning

 
 

There are many types of trusts. Trusts created during the lifetime of the trust-maker, the “Grantor” are referred to as "inter vivos" trusts. Trusts that “spring” into existence at the death of the Trustor are referred to as "testamentary" trusts. Trusts are either revocable or irrevocable. Revocable trusts are only inter vivos trusts but irrevocable trusts can be inter vivos or testamentary. Estate planners use both types of trusts for many reasons and to address many of the challenges in customizing your estate plan for you and your family’s situation.

Revocable Living Trusts

Revocable Living Trusts AVIOD PROBATE and are a must for clients who meet any ONE of the following criteria:

* If you own real property or will inherit real property in another state or country (yes, timeshares too)

* If you or your spouse have been diagnosed with a debilitating illness

* Privacy is important to you and your family

If you or a family member may be applying for Medicaid or other federal assistance you will also want to consider a trust.

In Texas, however, probate is not nearly as intimidating and costly as it is in many other states so although the revocable living trust is the preferred dispositive tool it is not mandatory as it is in many states.

If you have a revocable living trust from another state you will want to have it reviewed to “Texas-size” it as soon as possible.

  Revocable Trusts

Irrevocable Trusts

Estate planners use irrevocable trust for many purposes. Irrevocable trusts, whether they are testamentary or inter vivos, if properly administered and funded have their own separate legal identity so they play a significant role in estate and asset protection planning.

The irrevocable trusts can be drafted...

  • to “supplement” the benefits of a person who receiving SSI (SNT)
  • to hold the income or resources of a client who is applying for Medicaid (Miller or QIT etc.)
  • to care for a child or grandchild with “special needs” after the death of the parent or grandparent for the lifetime of the child or grandchild
  • to “bypass” all or part of the estate tax liability of the estate(Bypass)
  • to hold life insurance separate from the estate so that it avoids the estate tax but is available to assist the family when needed (ILIT)
  • to assist with educational expenses for a child or grandchild (2503(c))
  • to set aside property in second marriage situations for the benefit of the new spouse and still protect the familial wealth for the children
  • to protect family wealth
  • To hold marital deduction property (QTIP)
  • to protect a spendthrift child from him or herself
  • to preserve familial wealth
  • to protect assets from creditors….
  • And many other uses
 
Call (512) 263-5400 today to make your complimentary appointment to discuss whether or not you need a trust.
 

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