This form is a living trust form prepared for your state. A living trust is a trust established during a person's lifetime in which a person's assets and property are placed within the trust, usually for the purpose of estate planning. The trust then owns and manages the property held by the trust through a trustee for the benefit of named beneficiary, usually the creator of the trust (settlor). The settlor, trustee and beneficiary may all be the same person. In this way, a person may set up a trust with his or her own assets and maintain complete control and management of the assets by acting as his or her own trustee. Upon the death of the person who created the trust, the property of the trust does not go through probate proceedings, but rather passes according to provisions of the trust as set up by the creator of the trust.
A living trust, also known as a revocable trust, is a legal document that allows individuals to provide specific instructions on how their assets will be managed and distributed during their lifetime and after death. McAllen, Texas offers various living trust options tailored specifically for married couples with minor and/or adult children. 1. Revocable Living Trust for Husband and Wife with Minor Children: This type of living trust is designed for couples with minor children. It allows parents to ensure the seamless management of their assets during their lifetime while naming a trustee to handle the distribution of assets to the children in the event of their passing. This trust ensures the children's financial well-being by safeguarding their inheritance until they reach adulthood. 2. Irrevocable Living Trust for Husband and Wife with Minor Children: An irrevocable living trust serves the same purpose as a revocable trust, but with varying legal implications. Once established, this trust cannot be altered or revoked unless all beneficiaries and interested parties consent. This type of trust offers distinct tax advantages and protects assets from potential creditors, ensuring a secure financial future for the children. 3. Joint Living Trust for Husband and Wife with Adult Children: For couples with adult children, a joint living trust is an ideal solution. It enables the seamless transfer of assets, avoiding probate and minimizing administrative burden upon the parents' passing. The trust will outline how the assets are distributed and managed to provide financial security to the adult children. 4. Testamentary Trust for Husband and Wife with Minor and/or Adult Children: A testamentary trust is established through a will and comes into effect upon the death of the individual. This type of trust ensures clarity in the distribution of assets, appoints a trustee, and allows parents to specify conditions and instructions for the management of assets. This trust is commonly used when minor children are involved and the parents want to ensure their financial well-being in the event of their untimely passing. Regardless of the type of living trust chosen, it is crucial to consult with an experienced estate planning attorney in McAllen, Texas. They will guide individuals through the process, considering their unique circumstances and goals to develop a comprehensive living trust that protects the interests of both the parents and their children.
