Trusts in Texas

Trust

Purpose

A trust is created when you give property to someone who will manage it (a “trustee”) for the benefit of another person (a “beneficiary”).

Parties

You – As the Donor, you create a trust by giving property to the trustee who manages it on behalf of the beneficiary.

Trustee – The Trustee is the person who manages the property you donated for the benefit of the beneficiary.

Beneficiary – The Beneficiary is the person who you ultimately intend to receive the value of the property plus any interest.

Attributes

Complexity: 10/10 – Trusts are the most complicated estate planning document for two reasons: first, the trust document itself can be complex and lengthy; second, properly establishing and maintaining a trust can be very involved.

Privacy: 10/10 – Unless the trust is created by a will, it’s not public record.

Control: 10/10 – As the author of the trust, you get to decide all the rules for management and distribution of trust assets. Also, if you create a revocable living trust and name yourself as the trustee, you will have control over all trust assets and even have the authority to remove property from the trust.

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