Why would someone use a trust?
A trust has many potential purposes.
Protecting children’s inheritance
In estate planning in Texas, McCreary Law Office recommends using either a testamentary trust or a revocable living trust if a minor or young adult might inherit your property. This helps protect the inheritance rather than giving everything to the child at age 18.
Protecting inheritance in the future
By creating a trust that can hold a child’s inheritance even into adulthood, you can offer your adult child a lot of protection of her inheritance. This includes protection from claims of a future ex-spouse of your child, from creditors, and others. This can also protect the inheritance in situations such as gambling or drug addiction.
Easing estate planning issues for blended families
For a blended family, a revocable trust can be especially important to make sure a surviving spouse is taken care of and that children from prior to the marriage are provided for.
Revocable trusts also can help protect your privacy because when a trust is set up properly, the public inventory can be avoided.
Revocable trusts also can make things smoother after death rather than formal probate. Although independent administration in Texas is not complex, probate in Texas can have many layers.
Protecting a beneficiary who has disabilities
A special needs trust can help take care of someone with disabilities without making her ineligible for public benefits.