Creating a trust is a great way to protect your family’s future. A living trust might be the best option for you. If you live in Texas, you should know how to go about establishing this type of estate planning tool.
What is a living trust?
A living trust is an important legal document that is a part of estate planning. It allows you to store your assets and property in the trust. You name a trustee who can oversee the distribution of the property and assets to your beneficiaries. However, you can choose to be the trustee yourself.
You can create an irrevocable or revocable living trust. An irrevocable living trust is permanent and assets and property that are put into it stay in the trust unless those named allow it to be removed. A revocable living trust allows you to add or remove property and assets whenever you see fit. Both types of living trusts are subject to taxes.
How can you establish a living trust?
If you choose to establish a living trust, you should choose whether to create an irrevocable or revocable one. You should take an inventory of your property and assets and decide what you want to add to your the trust. You cannot put a retirement account into a living trust, but it’s possible to add stocks and bonds.
Designate a trustee to manage the living trust. You can choose yourself or someone else you trust. If you decide to be your own trustee, you should also choose someone who can take over after you pass away. This person will distribute the property and assets to your beneficiaries once you are no longer around or if you become incapacitated and cannot do it yourself.
As part of your estate planning, you should also have a will when you create a living trust. It can be a valuable backup legal document and plan for what happens to assets not included in your trust.