Trusts In Texas

Texas Trust Attorney

Tax Planning

•  It is a beneficial tax planning tool, because the federal estate tax system assumes that many taxpayers will create a trust.   While the rules for the taxation of trusts are complex, many of them are beneficial to the average taxpayer in Houston, Dallas, Austin or Fort Worth.  For example, if trust meets requirements qualifying the taxpayers for an unlimited marital deduction, the trust will allow couples to defer all estate tax until the death of both spouses.  Another efficient use of both spouses’ lifetime gift and estate tax exemptions is for an individual to create a bypass trust, so that the estate in the bypass trust will not be included in the surviving spouse’s estate.  Yet another option is to set up an irrevocable trust.  Because of the many options of irrevocable trusts, an insured person can set up an irrevocable life insurance trust, which effectively removes the life insurance proceeds from the insured’s estate, or the insured can set up other irrevocable trusts that transfer the wealth out of the parent’s estate, without giving the beneficiary immediate control over the assets

Property Management for Minors or Incapacitated Beneficiaries

•    Even if you think that you do not have enough assets to benefit from using a trust for tax-planning purposes, a trust is valuable if you have minor children who would inherit when you pass.  When a minor directly owns property, it can only be managed through a court-supervised guardianship proceeding because minor children do not have the capacity to execute contracts
•    For parents who do not want their child to fully control their inheritances when they turn 18, a testamentary trust enables parents to appoint a trustee to handle funds until the child is older
•    A trust can offer protection for legally incapacitated adults.  For example, a mentally disabled person’s inheritance may be held in a trust for his lifetime, if he lacks the ability or legal capacity to handle his own affairs.   Additionally, if a disabled person is receiving government benefits because of a disability, a supplemental needs trust can allow the beneficiary to enjoy the benefits of the trust without risking becoming ineligible for the government aid programs

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