Wills & Trusts

What is a Will?

A Will is a legal document that expresses an individual’s wishes regarding the distribution of their assets after his or her death.

Why Do I Need a Will?

• Asset Distribution: Clearly specify how you want your assets, property, and possessions to be distributed among your chosen beneficiaries.

• Guardianship Designation and Trusts for Minor Children: Nominate a guardian for your minor children, ensuring their well-being and care align with your wishes, while designating an individual, individuals or a corporate entity as a Trustee to manage your children’s inheritance until the age you deem your children able to manage it themselves.

• Executor and Trustee Appointment: Designate a trusted Executor and Trustee to carry out your instructions and manage the probate process and any continuing trust administration efficiently.

What Happens If I Die Without a Will?

If someone dies without a valid will in Texas, their assets will be distributed according to the state’s intestacy laws. In such cases, the distribution is based on a predetermined hierarchy of heirs, which many times will not align with the deceased person’s preferences. Additionally, depending on the deceased person’s assets at the time death, it often times requires a more expensive probate process than if a valid Will was in place.

What is a Trust?

A trust is a legal arrangement where a person (the trustor or grantor) transfers assets to a trustee (often himself or herself) for the benefit of one or more beneficiaries. Trusts are effective estate planning tools that can help manage and distribute assets according to specific instructions.

Different Types of Trusts:

Revocable Living Trust: This type of trust allows you as the trustor to retain control of the assets during your lifetime and can be altered or revoked during your lifetime.

Irrevocable Trust: Once established, the terms of an irrevocable trust generally cannot be changed without the consent of the beneficiaries.

Special or Supplemental Needs Trust: These trusts are designed to provide for individuals with disabilities without affecting their eligibility for government benefits. A supplemental needs trust may be set up as a standalone irrevocable trust for the benefit of the individual with special needs during your lifetime, or it may be included in your estate planning documents (Will or living trust) to be funded on your death.

Testamentary Trust: Testamentary trusts are those created through your Will (once probated), so they do not become effective until after your death and the probate of your Will in court.

Testamentary trusts are often used for (i) federal estate tax planning for a married couple; (ii) planning for minor children or beneficiaries of any age who should not receive a large amount of assets outright for any reason; (iii) blended family situations where one or both spouses have children from a prior marriage and one or both spouses are uncomfortable leaving assets outright to a surviving spouse but still want that surviving spouse to benefit from those assets during his or her lifetime.

Advantages of a Trust:

Avoidance of Probate: Assets held in a trust generally bypass the probate process, saving time and costs, and providing a more seamless transition.

Privacy: Unlike probate proceedings, trust administration is typically private.

Contact TS Wright Law

It is important to consult with an experienced estate planning attorney to ensure that your Will and trust documents meet legal requirements and address your specific goals and family circumstances. If you have questions regarding Wills or Trusts, please contact Tiffany Wright at (940) 312-6896 to schedule a consultation.