Many people are unaware that certain documents can legally determine how their estate will be distributed after they die. A trust allows you more control over who inherits your assets and when, while preventing disputes amongst your children or other heirs. Trust lawyers in Austin, Texas, have the expertise to help you create the proper legal arrangements so that your wishes are carried out no matter what happens to you down the road. Here’s what you need to know about trusts if you live in the Austin area or are considering moving there in the future.
What is a Trust?
In general, trusts are legal agreements between an individual and a third party that allows for asset distribution after death. Trusts can be set up to pass money or property to a spouse, children, or other individuals (such as a charity). In some cases, setting up a trust can also give individuals more control over their assets when they get older and cannot manage those properties/assets themselves.
While trusts can be used for many different matters, such as estate planning and asset protection, they are most often used to provide for a deceased individual’s children. For instance, when parents set up a trust before their death, the remaining assets are delivered to the kids at that time instead of inheriting them outright. Austin Trusts Attorney can also be helpful if you have other family members who may need your financial support after you pass.
Different types of trusts have different tax consequences
A trust is typically classified as either irrevocable or revocable. Each type of trust has its laws regarding taxation and whether or not the assets will be taxed individually or at a lower rate than if they were held directly by the property owner. Therefore, when setting up a trust with your attorney, you’ll want to ensure that it’s appropriately structured so that you don’t end up paying more in taxes than you need to.
Austin Trusts Attorney can help you create the right kind of trust for your individual needs and circumstances. Contact one of the trust attorneys at Kazi Law Firm to schedule a consultation with a trust attorney in Austin, Texas, today to get started on your estate planning.
What is a Will?
In Texas, a will is a legal document allowing individuals to specify their personal property and how it will be distributed after their death. Wills are used for various purposes and can be created by different individuals.
If there are children from a marriage, it’s typical for the parent who is not soon to die to name the other parent to have control over their child’s assets and money after their death. This kind of arrangement is known as a trust in Texas. Other categories commonly have this type of arrangement include adult siblings and parents who don’t have children.
Who Can Create a Will?
Anyone over the age of 18 and of sound mind and body can create a Texas will by simply writing it down and signing it. However, depending on the individual’s age, they may need legal assistance from an attorney to ensure that the will is legally valid and substantiates their intentions correctly. In some cases, especially if the individual is mentally ill or terminally ill, their attorney may request that a medical doctor or another professional review the will to ensure it’s valid and hasn’t been tampered with.
When Should You Create a Will?
You should create a will if you’re an adult with property and want to leave it to beneficiaries after your death. While you may want to create a will for your children, in most cases, it’s a good idea also to name an executor who will handle the process of distributing your assets after you pass.
What Should You Consider Before Designating an Executor?
It would be best if you considered a variety of factors before naming an executor, including:
Austin Trusts Attorney can help designate the right executor for your will to ensure your wishes are carried out correctly and seamlessly. Contact one of the trust attorneys at Kazi Law Firm to schedule a consultation in Austin, Texas, today to get started on your estate planning.
What is the First Step in Creating a Will?
The first step in creating a will is to decide what assets you want to be distributed after your death and how you want them to be divided up. This involves assigning an executor and determining what assets and property will be left behind to which beneficiaries. It is critical to specify your wishes and name the beneficiaries by their legal name in your will.
What Other Important Information Should the Will Include?
In addition to the instructions on distributing the property after you pass away, your will should include final disposition instructions, outlining your wishes regarding burial or cremation. You may also need to indicate where you have set up trusts for specific purposes like paying off debts or providing for specific family members. This will provide a guide for your beneficiaries.
What is Intestacy?
Texas law allows defines intestacy as dying without a last will and testament. Intestate succession follows the rules of the Texas Estates Code.
In essence, if you die without a valid will, your property will be distributed according to Texas inheritance laws. These laws include the rules of intestacy, which determine how your assets will be distributed after your death.
Who Can Name a Personal Representative?
Anyone who creates a valid will has the power to name someone to manage their estate in the event of their death. Many people name a spouse, adult child, parent, close friend, or relative in this role.
When Should You Name an Executor?
The best time to name an executor is when you create your will. Having an executor in place from the beginning of the process will help your family members avoid confusion, misunderstandings, and errors that can occur after you die.
What are the Specific Responsibilities of an Executor?
The first step for any executor is to meet with a lawyer to determine their personal responsibilities. You should make sure that the personal representative you have chosen has the experience and ability to manage your property effectively. If they don’t, they may need some additional help or guidance along the way. It is best to give your attorney’s contact information to the appointed executor in case they need assistance in the future.
What if You Don’t Have a Will?
The process of distributing property if you have no will is known as intestacy. This leaves the following rules in place: – The property would be distributed according to the Texas laws, including intestate succession, which operates under the laws concerning those who die without leaving a valid will. The following would be determined:
What is Inter Vivos?
Inter Vivos (“living”) is the legal term used to describe when an individual who is still living transfers property before his or her death. You can use inter vivos to distribute assets in several different ways. For example, you may decide you want to give assets away today but then never mention it in your will. This would leave that decision up to your heirs, who might not want to accept these gifts from you.
However, you also may choose to include a clause in your will that details why you have chosen to give these assets away. This can be a powerful way to prove that intent and power the estate planning process.
What is Testamentary Trust?
A testamentary trust is the name given to an inter vivos trust that is created by a will. This type of trust works in the same way as a regular inter vivos trust, but it only spriings into action after your death. It’s important to note that you can’t set up this type of trust without having a valid will that describes its purpose and function.
A testamentary trust can be a significant way to ensure that your family and heirs are taken care of after you pass away. There are several different ways you can use this type of trust. You may want to consider the following scenarios: – You may want to set up a trust for special-needs children or adults, and leave it in place for their lifetime.
What are the Benefits of a Trust?
1. Avoid probate
The first benefit of a trust is that it avoids the probate process. Most people don’t have enough money to take care of their family members so you may need to create a living revocable trust for this purpose. The best way to do this is through living trusts, which you can use as long as you’re still alive or after your death. You also may want to add a clause in your will to create a testamentary trust for special-needs children, spouses, and other family members.
Probate is the process in which a court determines who inherits your estate after your death. Depending on where you live and the size of your estate, probate can take from several months to several years. A testamentary trust would address this problem by allowing an executor to distribute gifts during the lifetime of the person who receives them. This can save many months of probate for your family members and friends, which can make the process much easier.
2. They are easy to setup with an attorney
The second benefit of a trust is that it’s fairly easy to set up with the help of an experienced estate planning attorney. It is not recommend to create a trust on your own using an online template as there will be significant gaps and pitfalls in blanket forms.
3. You can use a trust for many different purposes
The third benefit of a trust is that it’s very flexible. You can create one trust for each child, spouse, grandchild, parent and other relatives in your family. Some trusts may even be created for different types of assets such as real estate or physical assets like cars and artwork.
4. You may save taxes
By using a trust, you can help avoid estate tax liability. This can be helpful if you have many nieces, nephews, parents and other relatives that are interested in getting a piece of your estate. If your will doesn’t include them or the will is inadequate, they could end up paying taxes later on down the road. By using a trust, you can avoid this problem completely by setting up an inter vivos trust for them or paying them a small inheritance for their lifetime. This can be a long-term strategy that will work well for your family members and the IRS.
5. The government tends to support trusts
The U.S. government tends to view trusts favorably with the estate tax laws and other benefits that you may get from a testamentary trust, such as avoiding probate.
If you have any questions about testamentary trusts or would like to speak with a legal professional regarding your estate plan, please do not hesitate to reach out to the Austin Wills and Trusts Attorneys at Kazi Law Firm. Our firm has been helping clients protect their families and assets for more than a decade and we can assist you in creating an effective will and/or trust in Texas. Trust attorney in Austin, TX offers the following legal services:
Wills and Trusts in Texas
We offer a wide variety of legal services that deal with wills and trusts, including:
· Wills and Trusts Agreements
· Will drafting services.
· Revocable Living Trusts.
· Texas Personal Representative (also known as an executor) preparation for caretakers.
Our law firm offers clients a full spectrum of estate planning and probate law services to assist with the administration of their estates after their passing is imminent. We are devoted to helping clients maintain their assets and their families in the most efficient way possible after they pass away. Our attorneys offer paid consultations to help you determine the best estate planning and probate law services for your situation.
Austin Wills and Trusts Attorneys are a crucial part of estate planning and probate law services. They can be very beneficial to you and your family when used correctly. With the help of our legal team, we design and create effective estate plans for your family to ensure that your assets are protected when you pass away.