If appropriate, a core component of an estate plan is creation of a trust, which is a method of transferring your estate to another individual or entity. A second party will be named as trustee to hold all assets on the behalf of one or more beneficiaries. The main purpose of creating a trust is to keep some of your assets out of probate, which is a legal process that can be costly and expose your assets to public scrutiny. Before you enter a trust, it's important that you understand the different types of trusts and when they are used.
Primary Types of Trusts
There are two primary types of trusts, which include living trusts and after-death trusts. Living trusts are created during a person's lifetime with the creator of the trust typically being named as trustee. After-death trusts can be created after you die but are initially formed through your will. The trustee you assign to the account will create the trust after your death, which ensures that all your guidelines and wishes are carried out.
What You Should Know About Living Trusts
There are two separate types of living trusts that you should be aware of, which include irrevocable and revocable trusts. The most common living trusts are revocable living trusts, which can be altered or revoked altogether during your lifetime. However, creditors would still be able to access this trust. An irrevocable trust is considered by many to be riskier since it can't be changed. Irrevocable trusts offer a different type of protection for your assets.
Importance of Contacting Estate Plan Attorneys in Dallas TX
Here at Badmus & Associates, we provide our clients with comprehensive representation that takes into account all trust issues and estate plan problems that they are experiencing. Whether you require assistance with setting up a trust or believe that you aren't receiving the proper assets as the beneficiary of a trust, our estate plan attorneys in Dallas TX can help you correct these issues and handle any legal battle pertaining to the estate plan. Without an attorney by your side, mistakes can be made when setting up a complex trust.
This article is provided as an educational service and is not legal advice. If you would like to get started on your estate plan, give us a call at 214-494-8033 or fill out form below to schedule a complimentary consultation.