And as it is true that an individual could take legal title to property, other factors such as equitable considerations may dictate that the title belongs to another party entirely. In some situations a person may need to be protected if they receive important government benefits. To avoid any possible disqualification of these government benefits a special needs trust may be the best option.
A special needs trust is a legal means validated by Social Security rules with the caveat that the disabled beneficiary cannot regulate the amount or the timing of the trust distributions. Additionally, the rules stipulate that the disabled beneficiary may not rescind the trust. This type of trust could allow the beneficiary to attain luxury items, etc. Most trusts of this type are self-terminating if any scenario arises in which the trust could be used to disqualify the beneficiary from their government benefits.
There are many services, treatments, items, and products that could be considered special needs including medical or dental expenses, education, treatment or rehabilitation, equipment, eye glasses, necessary transportation, vehicle purchases, maintenance, and insurance. Parents of disabled children may choose to initiate a special needs trust to ensure their child is always cared for in the event that one or both parents die or are, for whatever reason, unable to care for their child. Also, a disabled person can establish a special needs trust for themselves when they expect to inherit money or assets in general, but the disabled person may not be the trustee.
A spendthrift trust is defined as a trust that does not allow the beneficiary to sell off, or pledge interests in the trust to other parties.
Spendthrift trusts are protected from any creditors the beneficiary may have, until the trust property is apportioned to the beneficiaries. Sometimes a spouse may desire to leave money to his or her spouse and limit the federal estate tax that would be levied upon the death of this second spouse. A tax by-pass trust can help to circumvent this less than ideal situation. In some cases, their surviving children could be spared hundreds of thousands of dollars in federal taxes if the estate is quite valuable. It can be established by depositing money into a special account in her or his name as the trustee for another party.
This is yet another type of revocable trust in which the gift cannot be completed until after the grantor's death or an unambiguous act representing the gift during the lifetime of the grantor. The rules allow for an individual or an entity to be named as beneficiary. In the event of death, all Totten trust assets can completely avoid probate.
For more information on Trusts In Texas, a free initial consultation is your next best step. Our Travis County Trust Administration Lawyers will guide you and will help you come up with an estate plan. We believe each family is unique and that your family dynamics and personal circumstances should be carefully considered when designing your plan. Our caring and compassionate approach to these important matters will allow you to comfortably explore your options and make informed decisions.
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William Cannon Dr. Types Of Trusts. The Revocable Trust Revocable trusts, sometimes referred to as living trusts as they are created during the lifetime of the trustmaker, can be altered and changed, or even rescinded. The Irrevocable Trust Irrevocable trusts, once created, cannot be changed, altered, modified, or rescinded.
To fully understand the drawbacks and benefits each type of trust offers you and your family, it is important to discuss your unique situation with a Texas trusts lawyer. Attorney Hailey-Petty proudly represents individuals, couples and families throughout the Austin area. To schedule a free consultation to discuss your trust concerns with Attorney Hailey-Petty, call to reach our Austin office, to reach our San Antonio office, or contact our firm online today. Schedule an Appointment. Read Our Reviews. First Name. Last Name.
Email Address. Phone Number. How can we help you? Austin: San Antonio: Schedule an Appointment. Trust Creation Explore the Benefits and Drawbacks of Trust Creation with Help from an Experienced Texas Estate Planning Attorney Choosing an estate planning vehicle that offers the maximum benefit for your family can be difficult, especially with so many different options available. With that in mind, Attorney Hailey-Petty offers the personalized guidance you need to explore the benefits of a wide range of estate planning tools, including: Testamentary Trusts Revocable Living Trusts Irrevocable Life Insurance Trusts Special Needs Trusts Testamentary Trusts Testamentary Trusts, also commonly referred to as will trusts, are estate planning strategies that transfer property and assets following the death of the grantor.
Testamentary Trusts offer many benefits, including: Managed gifting: Testamentary Trusts are viable options for individuals wishing to pass assets to a minor child. During the trust creation process, it is possible to create an asset distribution schedule that spreads payments to minors over a period of time until they reach a responsible age, rather than giving them a single lump sum. Protection from creditors: Testamentary Trusts protect your assets from creditors.
Upon your death, assets held within a Testamentary Trust are not subject to be used to repay the creditors of your designated beneficiaries, meaning that the maximum amount of your estate possible is passed to your loved ones. Flexible trustee designation: Testamentary Trusts allow you to designate a trustee of your choosing. This means that you have the power to choose a trusted friend, family member or advisor to manage your estate following your passing.
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Revocable Living Trusts offer a wide range of benefits, including: Asset distribution: Much like a will, Living Trusts allow the grantor to lay out their wishes regarding the distribution of his or her assets. Living Trusts allow the grantor to preplan the distribution of a wide range of assets, including bank accounts, real estate and more. Any assets held within a trust are exempt from the probate process, further protecting them from inadvertent distribution or state involvement in the actual distribution of the assets.
Incapacity planning: While Powers of Attorney are always recommended as part of an overall estate plan, the best incapacity planning tool is a revocable living trust, which allows a designated person to manage Trust assets if you become incapacitated. Probate avoidance: Texas probate proceedings are among the most straightforward and easiest to deal with in the country. Avoiding probate altogether, however, further reduces the stress your loved ones may feel upon your passing.