When you decide to create a Texas estate plan, you may utilize a number of different estate planning tools and methods to accomplish your main objectives. While a will is a fundamental part of your Texas estate plan, a will only does so much. Many people who have more specific estate planning goals in mind choose to establish trusts as a means of working toward them.
Per Kiplinger, trusts offer benefits for all estate planners, even if you do not have a particularly sizable estate. You may find that having one helps you do the following.
1. Protect your legacy from spendthrifts
A trust may make sense for you if you plan to leave assets behind to a child or loved one who may not be responsible with money. This is because you may stipulate in the trust when the trustee should make distributions to this individual, which should effectively help control his or her spending.
2. Protect beneficiary public assistance eligibility
If you have a beneficiary who receives Supplemental Security Income, Medicaid or another type of public assistance program that makes recipients undergo means testing, your windfall could place him or her outside of the eligibility threshold for those benefits. Leaving him or her assets in a trust helps protect a beneficiary’s eligibility for these benefits.
3. Reduce probate costs
Assets you enter into a trust also bypass probate, which may save you time and money.
This is just a brief outline of some of the things a trust helps you do. There are many other ways, also, that a trust helps you manage and control your legacy.
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