Is a Will Enough to Protect My Assets?

Everyone wants to ensure their loved ones are cared for after they're gone. This is why wills occupy such a powerful place in the cultural imagination. However, wills are very basic documents. They can be beneficial for laying out your wishes for burial plans, custody of minor children, and certain inheritances. For more complex estates, though, wills may not be sufficient to ensure your assets go where you want them to. This is particularly true in Texas.

Many individuals find the state's inheritance laws challenging to navigate. Sometimes, individuals who did not plan their estate sufficiently may unintentionally leave their loved ones to deal with creditors, debt collectors, and more. This can mean leaving your family with nothing after you're gone.

If you or a loved one are estate planning, it's vital to consult an experienced attorney. An estate planning attorney can help you adequately protect your assets. Estate attorneys know different legal strategies and techniques to protect their client's assets, including how to use irrevocable trusts.

What is an Estate Plan?

An estate plan is a comprehensive legal strategy to protect your estate and assets. An estate plan ensures your family and loved ones receive any money, real estate, valuables, or other assets you intend to leave for them.

Probate is the process of validating a deceased person's will, paying their debts, and determining how assets should be distributed. It can be extremely time-consuming and challenging. Probate may also involve disputes between parties over inheritance or asset distribution. This is why estate plans are so valuable. By designating particular beneficiaries in an estate plan and establishing precisely what you wish to happen to your assets, you can minimize the extent to which your loved ones will have to go through probate. In some situations, a comprehensive estate plan may eliminate the need for probate.

Trusts are a common and effective strategy for estate plans. Trusts are legal arrangements in which you transfer ownership of certain money and assets to a trusted individual, called a trustee. The trustee will manage these assets for you until you pass away. At that time, the trustee will distribute the assets according to the instructions you left for them.

There are multiple different types of trusts. An experienced estate attorney can review your various options with you and help determine which type of trust best suits your needs. Depending on your circumstances, an irrevocable trust may be the best option for protecting your loved ones.

What is an Irrevocable Trust?

There are multiple types of trusts. Examples of different types of trusts include but are not necessarily limited to:

• Anonymous (Blind) Trusts
• Trusts to Benefit Charities
• Trusts for Special Needs Individuals
• Revocable Trusts
• Irrevocable Trusts

Blind trusts allow an individual to transfer ownership of money and assets to another individual anonymously. Trusts for charities or special needs individuals will enable an individual to set aside money to ensure it benefits a specific organization or is used for the care of a particular person. Revocable trusts allow you to make changes to or modify the details of a trust after it has been established, including the trustee and beneficiaries.

Depending on your financial situation, an irrevocable trust may be most beneficial. An irrevocable trust is a special type of trust that can provide an extra layer of security against creditors and taxes. This can help ensure your loved ones receive the maximum amount of inheritance with minimal hassle. Irrevocable trusts are trusts which cannot be modified once they have been established. This means that you cannot change the details once you have made particular decisions regarding the trust.  Although this is a permanent decision, it comes with multiple benefits.

What Are the Benefits of an Irrevocable Trust?

Because irrevocable trusts cannot be modified, they are exempt from certain potential legal hurdles. For example, assets held in an irrevocable trust are usually protected from being seized by creditors or lost in lawsuits.

Irrevocable trusts can also help avoid the probate process. Because the assets in a trust are legally controlled by the trustee, they can usually bypass having to go through probate. This also means assets in an irrevocable trust can be distributed more quickly and easily to assigned beneficiaries.

An irrevocable trust is also valuable if you're worried about estate taxes. Estate taxes are also called death taxes. These are taxes that an individual must pay on the value of a deceased person's estate. Your loved ones may be responsible for paying a significant estate tax, depending on what you leave behind. This can drastically reduce the amount of any inheritance. Any assets transferred into an irrevocable trust are usually exempt from being included in the value of an estate. This can help reduce the amount paid by your loved ones.

These are only a few of the potential benefits of an irrevocable trust. Our team can review your options and help you determine whether one is right for you.

What Should I Do if I Need to Create an Estate Plan?

Estate plans are valuable tools for shielding your assets and ensuring your loved ones receive everything you want them to get. An irrevocable trust can be vital to protecting all your assets. If you or a loved one are considering an estate plan and think an irrevocable trust may be right for you, don't hesitate to contact Barina Law Group, PLLC.

Our compassionate and dedicated legal team understands estate planning can be a stressful experience. We also know it's a valuable and necessary step to ensure the health and happiness of your loved ones after you're gone. With over twenty years of experience in the legal field, Bobby Barina, Esq. can help you determine the best available strategies to use in estate planning.

Preparing for the future can be intimidating. With Barina Law Group, PLLC is on your side, so it doesn't have to be. If you or a loved one have questions about estate planning or think an irrevocable trust may be right for you, call us today at 254-699-3755 to schedule your custom strategy session.