A trust is a way to manage the inheritance you will leave for your loved ones while you’re still alive. Also called a living trust, this document entrusts the responsibility of managing your estate to a trust administrator. You can change what assets go into your trust at any time, so long as you follow Texas law. The estate planning attorneys at Davidson Law Group explain why funding your trust is so important.
Get Paperwork in Line
Because a living trust can change over time, you must get your paperwork in order from the start. You must designate someone to administer your financial assets. That person can be a spouse, child, or close friend. It’s a great idea to discuss the trust with your family before you designate an administrator. Depending on how much money is in your estate, being an administrator may be a full-time job.
You Need Assets to Validate a Trust
A trust isn’t valid in Texas without some kind of property or assets. These can take the form of almost anything, including savings accounts, real estate, collectibles, vehicles, stocks, bonds, and more. Anything that has value can be put into a trust fund. Tax-deferred assets, such as retirement accounts or IRAs, cannot be put into a trust. However, the proceeds from such accounts can go into a trust fund if you so choose.
Add or Subtract as Needed
The trust administrator oversees the distribution of the assets in the trust. However, you’re the one who controls what funds you put in or take out of the trust. You can do this by signing an assignment of property, deeding real property to the name of the trust, or signing a bill of sale naming the trust as the purchaser. There are several ways you can do this, and estate planning attorneys can help with the legal process of assigning or removing property from a trust fund.
Juvenile or Minor Beneficiary
Having a juvenile or minor as a beneficiary means you can place your assets into a trust fund upon your death. Funds from this trust help take care of your children financially until they reach the age of 18. How much money your children receive at age 18 is up to you, and you can put stipulations on the dispersal of funds from the trust. For example, you can stipulate your child receives $500 per month from the trust starting at age 18. You can further stipulate that the person receives the entirety of the fund once he or she graduates from college, purchases a home, or whatever life goal you see fit.
Davidson Law Group: Here for You
The attorneys at Davidson Law Group are knowledgeable about the ins and outs of estate planning and trusts. We’ll help determine the best course of action based on your individual situation. Contact our law firm today in Fort Worth, Allen, or Tyler for more information. The first consultation is always free.