No two families or situations are alike, and when you work on your Texas estate plan, you may have highly specific goals in mind. Sometimes, you may wish to do more with your estate plan than a standard will allows. Under certain circumstances, it may benefit you and your beneficiaries if you set up one or more types of trusts.
Per Kiplinger, assets you place into a trust fall under the care of someone you appoint trustee, and it becomes this person’s job to make distributions from it in line with your wishes. Different types of trusts offer different benefits, but it may benefit you to set one up if either of the following is true.
YOU WANT TO PROTECT MEANS-TESTED BENEFIT ELIGIBILITY
Certain forms of government help, such as Medicaid, require recipients to undergo means-testing to see if they qualify. Depending on how much your beneficiary inherits from you, the inheritance might impact his or her eligibility for public assistance in the future. However, assets you leave in a trust do not count as your beneficiary’s assets during means-testing.
YOU WANT TO PREVENT FRIVOLOUS SPENDING
Leaving loved ones assets in a trust also helps you control when they have access to them. For example, if you have a child who overspends, you might use a trust to make small, periodic distributions to that party to avoid having him or her blow through the inheritance all at once.
If you have unique estate planning goals that might require more than a traditional will, consider exploring whether a trust might suit your needs.