If you wish to make financial arrangements for your children, grandchildren, or other heirs, it’s a good idea to speak with a lawyer about estate planning , including the possibility of establishing a trust. An attorney in Conroe, TX, can help you explore the various aspects of a trust and how to structure your trust to accomplish your goals. For example, you could use the trust to leave a certain amount of money to your child, which could be distributed in set amounts at certain intervals. This arrangement prevents your child from spending his or her inheritance all at once. Or, you can place conditions on your child’s inheritance. For example, you can have your lawyer set up the trust to distribute small amounts of money over time and to only allow your child to receive the rest after he or she graduates from college.
Another reason why you might ask your attorney to establish a trust is for tax advantages. Life insurance policies provide tax-free benefits to your beneficiaries. However, the death benefit amount may be added back into the estate, which may make it [the estate] subject to federal estate taxes. Establishing an irrevocable life insurance trust protects the full death benefit for your beneficiaries.