Having a Texas estate plan in place helps ensure that your assets go where you want them to after your death. It may also mean less trouble for your family members and loved ones because it may help them avoid probate and give them a better understanding of your feelings and wishes. While making your estate plan, you may decide to use a number of different tools, and two that you might explore include the will and the irrevocable trust.
Per Yahoo Finance, both wills and irrevocable trusts give you a way to leave some or all of your legacy behind for your loved ones. However, there are some important differences that exist between them.
The will
A will is a fundamental estate planning tool that lets you dictate what you want to happen to your money and assets and who you want to serve as your child’s guardian, if applicable. It may also cover other areas of relevance. Each state has its own rules as far as what makes a will valid. In Texas, you need to have legal and testamentary capacity, and you also have to have something called testamentary intent. Other rules and formalities may also apply.
The irrevocable trust
An irrevocable trust also allows you to leave assets behind for beneficiaries. However, it is more binding than a traditional will because it is unchangeable. There are several key benefits associated with irrevocable trusts, including the fact that they protect the assets inside if someone files a lawsuit or wins a judgment against you. These trusts also allow your trustee to make distributions when certain conditions come to be.
The bottom line is, while an irrevocable trust offers more protection than a traditional will, it also offers less flexibility.