KENNETH
C. COURVILLE
ATTORNEY
|
PRACTICE
AREA - LIVING TRUSTS
Often people are sold on the idea of living trusts as a cure
all for all estate planning. Living trusts do offer some advantages, but
not everyone should have one. Often unscrupulous attorneys, accountants,
financial planners, promoters and other "advisors" will suggest that living
trusts will eliminate estate taxes and always save you money. This is simply
not the case. However, living trusts can provide some benefits when appropriate.
The idea behind a living trust is simple. You create a
trust that you can revoke at any time during your lifetime. You place all
of your property in the trust. Often, you will act as the first trustee.
If you are ever unable to make decisions regarding your trust's property,
such as due to a stroke or other disease or your death, a substitute trustee
you selected will step in and manage the trust property and, upon your
death, distribute the trust property to those whom you have selected. Since
upon your death, you own nothing in your name, there is no need to probate
a will or administer any assets through the probate court.
Texas has one of the easier probate processes in the country.
Even with our simple probate process, there are some advantages to using
a living trust to avoid probate:
-
Privacy - Any executor must make an inventory of the
probate estate and file it with the court. This inventory is public record.
Anyone may go to the courthouse and see what you owned. If you value your
privacy, a living trust can avoid others' prying eyes, if structured properly.
-
Avoiding Ancillary Probate - If you own real property
in another state, a living trust may be a method of avoiding the need to
have simultaneous probate cases going on in two or more states. Particularly
if your other property is in a state with a more complicated probate procedure,
this may be advantageous.
-
Greater Difficulty to Challenge - In certain cases,
a pattern of dealing with the trust evidence rebutting a mistake or insanity
in a later challenge to the distribution. This, of course, depends on each
individual situation. There are other solutions which may provide
greater
protection than a living trust. It is important to consult an attorney
experienced in estate and probate law if you anticipate any challenge to
your estate plans.
Another way you might use a living trusts is to plan for
unforseen events such as a stroke or disease that would make it impossible
to manage your affairs. A living trust can allow your loved ones to avoid
the expense and frustration of applying for a guardianship of your estate
if you are ever unable to manage your affairs.
It is important to remember that unlike a will, you do
not just sign a living trust agreement and never think about it again.
In order to obtain the advantages of your living trust, you must change
the title to your property to the trust. Depending on your property, there
may be some considerable paperwork involved in setting up your living trust.
However, the time you invest now may ensure you and your loved ones are
protected in the future. If you would like to visit with me about whether
a living trust is right for you, do not hesitate to call me and set up
an appointment. I look forward to hearing from you.
Not certified by the Texas Board of Legal Specialization.
Last updated Wednesday, August 8, 2001, at 3:01 pm CDT (-0500).
webmaster@courvillelaw.com