In Texas, estate owners review planning strategies that can reduce common risks. When they die, their estate enters the probate court. The purpose is to enable creditors to settle any outstanding debts. Under the right circumstances, the creditor could seize property from the estate to settle the debt. The following are steps that are followed by the Probate Attorney to create the estate plan.
Reducing the Value of the Estate
There are numerous strategies to reduce the value of the estate. They can transfer the property to a family member and remove it from the estate. They can sell the property and transfer the monetary assets into a trust. They can also transfer a majority of the assets into an irrevocable trust.
What is an Irrevocable Trust?
An irrevocable trust is set up as its own entity. This separates ownership of assets from the estate owner and transfers it to the trust. While the owner is alive, they retain full control over these assets. They must identify a new owner or successor for the trust. If the owner wants to add provisions, they must add them when they create the trust.
When Should the Owner Start a Trust Fund?
A trust fund can be created at any time. They can continue to contribute to this trust throughout their lives. There isn’t a limit on how much money they can add to the trust or how often they make these contributions. They can also set up provisions to protect the beneficiary. This could include limiting the withdrawals to a certain value or requiring them to be a certain age when they gain access to it.
Managing Tax Liabilities
The estate owner can also create a fund to cover all tax liabilities incurred by their family. They can set up a savings account for these purposes. They can also utilize the proceeds from a life insurance policy to manage these legal requirements. This could eliminate inheritance taxes altogether.
In Texas, estate owners explore planning strategies to achieve asset protection. They can lower the likelihood of a loss due to any legal action by creditors. They can transfer assets out of the estate as well. Estate owners who need to speak to a Probate Attorney visit website today.