Estate Planning

In the realm of estate planning, wills and trusts are fundamental instruments, each serving distinct purposes. Here's a brief overview of the key differences.

A will allows you to:

• Appoint a guardian for minor children
• Appoint a guardian for your minor children’s estate
• Outline beneficiaries and their respective inheritances
• Specify prospective beneficiaries if you receive assets after your death
• Appoint an executor to oversee probate and related processes

If you pass away without a will, the probate court will distribute your property based on Texas descent and distribution laws. To retain control over who receives your assets, a will is crucial.

A Trust, on the other hand, establishes a fiduciary relationship involving

• You (the trustor)
• The trustee
• Your beneficiary(ies)

This relationship empowers the trustee to manage your estate for the benefit of the designated beneficiaries. There are two primary categories of trusts:

• Testamentary trusts: Created with your will, these trusts take effect only upon your death. While they offer tax protection, they are irrevocable once established.
• Revocable living trusts: Immediate in effect, these trusts can be adjusted or revoked at any time. Though subject to estate taxes, they may help your estate avoid probate.