Your family’s future is your priority, and ensuring your assets are protected and your wishes are honored is essential. Trusts offer many benefits, such as avoiding probate, reducing taxes, and providing financial stability for your beneficiaries. However, choosing the right trust can be overwhelming due to the variety of options available. To help you make the best decision, contact our wills and trusts lawyer McAllen.
Revocable Trusts
A revocable or living trust allows you to control your assets during your lifetime. You can modify or revoke the trust anytime, making it a flexible option for many families. Upon your death, the assets in the trust are transferred to your beneficiaries without going through the probate process.
Benefits:
- Flexibility to make changes during your lifetime.
- Avoidance of probate, which can save time and legal expenses.
- Privacy, since assets in a trust are not subject to public record.
Irrevocable Trusts
Unlike a revocable trust, an irrevocable one cannot be changed or revoked once established. The key advantage of this type of trust is that it removes the assets from your taxable estate, helping to reduce estate taxes. Families with significant wealth may find this helpful option to minimize taxes or protect assets from creditors. An estate planning attorney in McAllen can help determine if this trust suits your situation.
Benefits:
- Reduces estate taxes.
- Protects assets from creditors or lawsuits.
- Ensures long-term preservation of assets for future generations.
Special Needs Trusts
If you have a family member with special needs, a special needs trust can provide for their care and financial support without jeopardizing their eligibility for government benefits like Medicaid or Supplemental Security Income (SSI). This trust allows you to set aside assets for their care while preserving their access to essential benefits.
Benefits:
- Ensures your loved one is financially supported without disqualifying them from essential benefits.
- Funds can be used for various needs, including medical care, education, and daily living expenses.
Charitable Trusts
A charitable trust allows you to donate to your favorite charities while benefiting from tax deductions. Different types of charitable trusts, such as charitable remainder and charitable lead trusts, offer unique advantages. These trusts can provide income to your beneficiaries during your lifetime, with the remaining assets going to charity after your death.
Benefits:
- Provides tax benefits for charitable donations.
- Can generate income for beneficiaries during your lifetime.
- Leaves a legacy by supporting causes you care about.
Testamentary Trusts
A testamentary trust is created through your will and only takes effect upon your death. This type of trust allows you to control the distribution of assets to beneficiaries over time, which can be particularly useful if you have young children or beneficiaries who may not yet be financially responsible.
Benefits:
- Allows you to control the timing and amount of distributions to beneficiaries.
- Provides for young children or beneficiaries with specific needs.
- Can help protect assets from being squandered.
Choose With Confidence and Learn About Wills and Trusts Lawyer McAllen
At Fryer and Hansen, our estate planning attorney in McAllen takes the time to understand your unique situation and guide you through decision-making. We’ll help you select the trust that best fits your needs, ensuring your assets are protected and your loved ones are provided for. Contact us today to learn more about what our wills and trusts lawyer McAllen can do for you.