Moving property between parties can raise many complex legal questions. Some transactions require the payment of taxes, and it is essential to understand when the transfer will occur and how to ensure that it happens at the right time. One popular tool for achieving a stress-free and cost-efficient transfer is to place assets into a trust. A trustee must then distribute the property to the named beneficiaries at a specific time in the future.
A Bay City trusts lawyer is ready to answer your questions and concerns about these estate planning tools. Our experienced team at Hegwood Law Group can explain how this form of property transfer differs from other methods, when trusts have a legal effect, and how to create them with minimal legal interference.
How a Trust Functions for Transferring Property
A trust is one way to transfer property from one person to another. However, this transfer is not immediate. All trusts rely on the services of a person or organization designated as trustee. This party has a legal duty to protect property, work to retain its value, and distribute property to beneficiaries at the correct time.
To create a trust, Texas Property Code § 112.001 says that a person must merely transfer property to a named trustee with the intent to move it to a beneficiary. Of course, it is best to provide these instructions in writing. A Bay City attorney can work on drafting trusts that fulfill this essential requirement.
Naming a Trustee
It is essential to select a trustee with the capacity and willingness to serve in this role. This is because the trustee has the sole legal authority to maintain trust property. In fact, TX Prop. Code § 113.051 says that trustees have a legal duty to act only in the interests of the trust and beneficiaries. Our lawyers can provide more information about the role of trustees and provide recommendations on parties who may be able to perform this duty.
Common Reasons to Create a Trust
Trusts can serve as a simple way to transfer property from one party to another at any point in the future. Many people wish to transfer property after their death and avoid the costs and delays of the probate process. In these cases, a trust can be a valuable alternative to a last will and testament.
Trusts can also provide for the long-term maintenance of a person, charitable cause, or even a pet. These trusts must dictate that the beneficiary receive regular payments over time.
Making a trust can even bring benefits for a trust maker. Placing items into a trust means that they are no longer the original owner’s property. This could be a way to lower a person’s overall tax burden or responsibilities. Placing valuable items into a trust, such as an investment account, could help to improve a person’s eligibility for Medicaid or shield an asset from nursing home seizure. Talking with a trusts lawyer at our firm could help people better understand the flexibility of these tools.
Speak with a Bay City Trusts Attorney Now
Effective estate planning requires you to evaluate all your options. When you need to transfer property to another in either a lump sum or for their long-term care, creating a trust could help to avoid unnecessary costs and effort. Property that moves into a trust is protected and can bring financial benefits to the trust maker.
At Hegwood Law Group, a Bay City trusts lawyer is ready to answer your questions and discuss your options. We recognize that estate planning can be complicated and confusing. We are prepared to explain how these documents work and how they can provide a more comfortable and secure future for you and your family. Reach out to us now to get started.