Many people erroneously believe that trusts are only for the very wealthy, but wills and trusts are often established in the Woodlands to simply to help manage property and assets . To create a trust, a lawyer will create a legal document holding property or assets for a specific person, known as the beneficiary. Your lawyer will also name a trustee who controls the trust, which is generally a trusted family member, friend, or attorney. Continue reading to find out why trusts can help you manage your assets’ distribution, ensure your wishes are protected, and save your family time and money.
An attorney may recommend a trust for individuals who want to manage and distribute their assets in a very specific way. With a trust, a grantor can detail exactly how the estate will be distributed with much greater precision than a will allows. For beneficiaries who cannot be relied upon to make their own sound financial decisions, a trust permits the grantor to distribute funds in small, periodic amounts, free from the grasp of creditors.
A trust is more difficult to contest than a will, which means your exact wishes will likely be executed without resort to costly litigation. A will is comparatively open to challenge from anyone who is displeased with the distribution of assets. This is not to say that wills are inferior; they are not. As every person with a trust should also have a will, just in case. A trust can be challenged only if the complainant argues that the person was mentally incapacitated when the trust was established and did not understand the implications. A complainant may also argue that the grantor was unduly influenced by another person and did not create the trust of his or her own free volition.
Many people contact an attorney to create a trust so their survivors can avoid probate court later on. Whenever assets are distributed according to a will, a probate judge is required to determine the will’s validity. This process requires assistance from a skilled probate attorney. By creating a living trust, you enable your descendants to bypass this process so they can access estate property more quickly. Although more costly up front, a trust also helps your family avoid the fees charged by a probate court.