Trusts

Austin Trust Attorneys

A Team of Knowledgeable Legal Professionals Dedicated to Helping Clients Protect Their Legacies and Safeguard Their Families’ Futures

While many Austin residents may be well familiar with the purpose of a will for distributing estate assets to designated beneficiaries, far fewer understand the many upsides of including various types of trusts to protect their hard-earned assets, defend their legacy, and provide for their loved ones both during their lifetime and after death. If you have questions or concerns about the usefulness of a trust and whether creating one would benefit your purposes, we strongly encourage you to contact our Austin-based law offices to speak with our estate planning and probate attorneys.

Our legal practice is dedicated to serving individuals and families in the areas of estate planning, including representation in cases involving will contests, business succession planning, probate proceedings, state administration, and the creation and implementation of trusts. As your legal representatives, we will utilize our in-depth knowledge of Texas laws to help you protect your wealth, property, and other interests.

To determine the type of trust that most suits your unique estate planning goals, please get in touch with our law firm to schedule a free, no-obligation case evaluation with our legal team. During your complimentary initial consultation, we will explore various legal options and help you create a personalized estate plan tailored to your specific needs.

Please contact us today to discuss your trust options and which one works best for your needs.

What is a Trust and Who Needs One?

Trusts are legal arrangements that enable the trustor (also known as the grantor or settlor) to transfer ownership of specific assets to the trust, where they will be held under the control of a designated trustee. Among the responsibilities of a trustee are the management of trust assets in accordance with the terms of the legal document, always to protect the interests of the trust beneficiaries. Depending on what type of trust is created, the trustor may or may not have the authority to access the property within the trust. Typically, in situations where the trustor cannot access trust assets, those assets are afforded a higher level of asset protection. Similarly, depending on the type of trust selected, trust assets can be distributed during the trustor’s lifetime and/or after the trustor’s death. One of the benefits of placing property in a trust instead of a will is that a trust generally avoids the probate process, thereby streamlining the proceedings, granting grieving loved ones additional privacy, and simplifying matters during a time of mourning.

Some trusts are more flexible than others, and each estate planning tool may offer different advantages for individuals and families.

Ultimately, what type of trust is right for your estate planning needs must be determined in a consultation with experienced attorneys well-versed in Texas estate laws. While we encourage all prospective clients to consider the benefits of creating a trust, specific individuals may particularly benefit from including trusts in their estate plans.

Parties that could especially benefit from trusts include the following:

  • A person with declining health or someone of advanced age
  • Families with minor children
  • High-net-worth individuals and those with complex estates
  • Individuals with concerns about conflict arising between surviving family members
  • Homeowners 
  • Property owners who own real estate in multiple states
  • Those concerned about the public nature of the Texas probate court
  • Parents and other family members who care for a loved one with disabilities or special needs

Do You Need a Trust if You Already Have a Last Will and Testament?

While we encourage all our clients to create a will that establishes their final wishes upon death, we do not necessarily think that you should stop your estate planning there. Even if you have a will that is carefully written and comprehensive, there are still numerous benefits to drafting trust documents and incorporating them into your estate planning tools.

In many situations, we recommend that our clients create both a trust and a valid will. Trusts can work in conjunction with wills, affording higher levels of asset protection, more control for managing assets, and bringing peace of mind both during their lifetime and providing confidence that all will be taken care of after they pass away.

Wills distribute estate assets to loved ones after you pass away, as well as establish crucial instructions for how your estate should be managed, who you elect to take guardianship of a minor child, and more. Trusts, meanwhile, can potentially reduce estate taxes, avoid probate proceedings, maintain privacy, and potentially continue distributing money and other assets to beneficiaries across multiple generations. When combined, wills and trusts address several complex legal matters and can benefit families in numerous unique ways.

What Are the Benefits of Creating a Trust for Your Estate Plan?

There are several benefits to creating a trust and including it in your estate plan for the benefit of yourself and your beneficiaries. 

Among the many benefits of creating a trust are the following:

  • Probate avoidance, which allows trust assets to go straight to intended beneficiaries without needing to conclude the time-consuming probate process
  • Asset protection measures, which can protect assets from lawsuits, creditors, and other financial risks
  • Potential savings on taxes, thus increasing the value of the estate and passing along that value to your heirs
  • An added level of privacy during a time of mourning. Wills must go through probate, which is a matter of public record
  • Depending on the type of trust you choose, you may be afforded heightened levels of flexibility and control over the management of the trust
  • Some trusts are known for addressing long-term care planning and securing Medicaid eligibility, as well as eligibility for other government benefit programs
  • And more

How Are Trusts Incorporated into Asset Protection Planning?

Asset protection strategies focus on protecting and preserving wealth and specific property from seizure by creditors, judgments, and unlawful predators. Texas laws offer substantial asset protection, along with unique exemptions that can shield an individual’s property.

There are several ways to protect your hard-earned assets via estate planning in Texas, and creating a trust is one such method.

Several types of trusts can provide substantial protection from tax liabilities and creditor claims, including grantor-retained annuity trusts, charitable lead annuity trusts, and others. The asset protection trust (APT) is a uniquely tailored trust designed to protect your estate assets from unforeseen circumstances that could affect your financial standing. Asset protection trusts are a form of irrevocable trust, involving the transfer of asset ownership into the trust to prevent creditors and other parties from accessing those assets for seizure. When properly managed, the asset protection trust preserves your wealth for its intended purposes. Assets can later be passed along to family members, charities, or become part of your business planning strategies.

What Are Different Types of Trusts Available in Texas?

Texas offers several types of trusts for interested parties seeking ways to enhance their estate plans. As your attorneys, we will help you make informed decisions about the kind of trust that is right for your specific needs and assist you from the first step to the last.

Examples of the various trusts available in Texas include the following:

Revocable Living Trusts

Revocable living trusts afford the trustor a high level of flexibility, including the right to alter or revoke the trust at any date during their lifetime. Revocable trusts are typically used as living trusts to avoid probate court. Although revocable trusts have several benefits, they offer no asset protection during the lifetime of the trust creator. Upon the passing of the trustor, a revocable living trust can become an irrevocable trust and serve new functions.

Irrevocable Trusts

Irrevocable trusts are created by an individual who then relinquishes control of the trust, allowing it to remain unchanged, unmodifiable, and cannot be revoked once it is established. Assets placed into the trust will become the property of the trust and will be managed by a trustee in accordance with the language of the estate planning document. Unlike revocable living trusts, irrevocable trusts provide significant liability protection and can shelter assets from creditors, lawsuits, and other financial risks.

Charitable Trusts

There are two primary types of charitable trusts in Texas: the charitable lead trust and the charitable remainder trust. Charitable remainder trusts are tax-exempt, irrevocable trusts that provide income to beneficiaries for a specified period or until the death of the trustor. The trustor can even name themselves as a beneficiary and receive charitable tax deductions during the year the trust is initially funded. Upon the death of the trustor, the trust property is distributed to the designated beneficiaries, and any remaining assets are allocated to a selected charitable organization. Unlike the charitable remainder trust, which distributes to beneficiaries first and then the remaining assets go to charity, a charitable lead trust prioritizes distributions to charity for a certain length of time. After that established period, the remaining balance is then distributed to beneficiaries.

Educational Trusts

Educational trusts devote trust assets to the education fees of the trustor’s children or grandchildren. The trust document ensures that any money within the trust is only used for the purpose of pursuing an education.

Special Needs Trusts

Special needs trusts help ensure that a family member with disabilities or special needs qualifies for government benefits while also maintaining a certain standard of living that their parents or other family members would have wanted for them. Without a special needs trust, it is possible that your special needs family member may not qualify for the benefits they require, or they may struggle financially.

Other Trusts Worthy of Consideration

Other types of trusts in Austin, TX, include the following:

  • AB trusts
  • Generation-skipping trusts
  • Incentive trusts
  • Grantor retained annuity trusts
  • Irrevocable life insurance trusts
  • Pet trusts
  • Qualified domestic trusts
  • Testamentary trusts
  • And more

Contact Our Estate Planning Law Firm to Request a Free Consultation with Our Austin Trust Lawyers Today

Our Austin law office provides dedicated representation to trustors, trustees, and beneficiaries pursuing favorable outcomes to their legal concerns. In addition to assisting you with the creation and implementation of a trust, we can also support you through the legal process of trust administration, litigation, and other legal issues related to trusts and other estate planning matters. If you have questions or concerns about trusts and the associated practice areas relevant to these legal documents, we encourage you to speak with our team immediately.

Schedule a free consultation with our experienced attorneys today by calling our legal team at 512-402-6753.