Many people choose to place their assets in a trust so that they may maintain control over their property, avoid probate, and potentially make them eligible for certain government programs like Medicaid. Revocable living trusts in Houston get their name as they are not stagnant, you can change them as the circumstances in your life change, and they are “living” in that they go into effect during your lifetime.
However, the trust becomes irrevocable upon the incapacity or death of the grantor. Our team of experienced lawyers at Hegwood Law Group can explain these estate planning tools in further detail and help you decide if they are right for you.
Purpose of a Revocable Living Trust
In general, revocable living trusts are beneficial for people in Houston who are on second marriages or have minor children. This is because many people who wish to put their property into a trust want to leave things to their children or grandchildren, bypassing spouses and other heirs. As with any estate planning document, there are benefits and disadvantages that should be considered.
For many people, avoiding probate is a key reason to create a revocable trust, as that process can be costly and time-consuming. Additionally, revocable trust planning gives you the ability to dictate how, when, and where your beneficiaries receive assets. For instance, you can set up “what-if” situations or milestones for children or beneficiaries to hit. These documents provide a lot more flexibility and planning, allowing you to be as creative as you want when it comes to distributing your assets.
The main disadvantage to creating a revocable living trust in Houston is the upfront cost to set it up. It takes a little more work on the front-end to get it set up, and it takes time to put assets in the trust or change beneficiary designations. This can be overwhelming, but fortunately, our team is well-versed in the process and could help make it go smoothly.
Creating a Revocable Living Trust
In Houston, there are four key players in the creation of a revocable living trust. These include the:
- Grantor: the person setting up the trust
- Trustee: the person who is going to administer the trust
- Document: tells the trustee when, how, and what to do
- Assets: the property the grantor wants to place in the trust
As these documents allow for a little more creativity, you can be more specific regarding your wishes. For example, you could allow your funds to be spent on your child’s wedding up to a certain point, pay for your child’s schooling as long as they maintain a specific GPA, or help establishing a business with specific guidelines. At Hegwood Law Group, we say “if you can imagine it, we can draft it.”
It is a common misconception that you have to be wealthy in order to set up a trust, but that is not the case. Anyone can benefit from estate planning and working with a trustworthy attorney could ensure you put together a plan that meets your specific needs.
Set Up a Revocable Living Trust with a Houston Attorney
Creating revocable living trusts in Houston does not have to be complicated or stressful. Our seasoned trust and estates attorneys can help you draft documents that accurately reflect your goals. Call our firm today to book a consultation.