Trusts are a valuable estate planning tool used to distribute assets according to the deceased. The heartache of losing someone is already hard enough without the added stress of figuring out the legal details. 

That’s where The Jacobson Law Firm, P.C. comes into play. Based in San Antonio, Texas, Dana Jacobson understands the ins and outs of estate planning and can guide you through the details so your assets are managed the way you want.  

Whether you’re just starting to think about estate planning or need immediate financial legal help, contacting a trusts attorney can offer peace of mind. Serving clients throughout San Antonio, Central Texas, and South Texas, including Bexar County, Kendall County, Comal County, Guadalupe County, Hays County, Uvalde County, and Medina County, Dana Jacobson is ready to assist with your needs. 

Overview of Trusts 

A trust is a legal arrangement in which one party, known as the trustee, holds and manages assets for the benefit of another party, called the beneficiary. Trusts can take various forms depending on your needs and objectives, making them incredibly versatile tools in estate planning. 

Creating a trust involves several steps. First, you must decide which type of trust is most suitable for your needs. Next, you’ll need to draft the trust document, specifying the terms and conditions under which the trust will operate. This document is where you will outline the responsibilities of the trustee and the rights of the beneficiaries.  

Finally, you will need to transfer ownership of the assets into the trust. Consulting with an estate planning attorney like Dana Jacobson can simplify this process and help you confirm all legal requirements are met. 

Types of Trusts

Trusts can be broadly categorized into different types, each serving distinct purposes and offering unique benefits. Let's explore the various trusts: 

The most common are revocable and irrevocable trusts. Revocable trusts, also known as living trusts, can be altered or terminated by the grantor during their lifetime. This flexibility allows individuals to make adjustments as their circumstances change. On the other hand, irrevocable trusts cannot be modified once established without the beneficiary's consent. They offer asset protection and tax benefits. 

Testamentary trusts are established as part of a will and only come into effect after the grantor's death. They provide a way for the beneficiaries to receive their inheritance in a controlled manner. Special needs trusts are designed to benefit individuals with disabilities without compromising their eligibility for government assistance programs. 

In addition, there are charitable trusts, which allow grantors to support charitable causes while enjoying potential tax deductions. Generation-skipping trusts enable assets to bypass the grantor's children and be transferred directly to grandchildren. This generation skip results in the avoidance of estate taxes. 

Each type of trust has specific legal and tax implications, making it essential to seek professional guidance when incorporating them into your estate plan. Dana Jacobson at The Jacobson Law Firm, P.C. understands the details of each and can guide you on how to best protect your assets and make certain your wishes will be honored. 

Benefits of Establishing a Trust

Establishing a trust offers numerous benefits. Here are some ways a trust might be a good choice for you: 

Bypass Probate 

One of the most significant advantages of a trust is its ability to bypass probate. Unlike a will, which must go through a lengthy and often costly probate process, assets held in a trust can be distributed directly to beneficiaries. This saves time and money and provides privacy, as probate proceedings are public records. 

Asset Protection 

A trust can offer strong protection for your assets against creditors and legal claims. This is particularly true for irrevocable trusts, which separate your assets from your personal estate. By doing so, these assets are shielded from creditors and legal actions, preserving them for your beneficiaries. 

Future Asset Management 

Trusts are also beneficial in situations where you want to manage the distribution of your assets over time. For instance, you can set conditions for when and how beneficiaries receive their inheritance, such as reaching a certain age or achieving specific milestones. This provides reassurance that your assets are used responsibly and according to your wishes. 

Protection in Case of Mental Incapacitation 

In the unfortunate event that you become mentally incapacitated, a trust can ensure that your assets are managed according to your instructions. This provides comfort, knowing that your financial affairs will be handled without court intervention, maintaining continuity in the management of your estate. 

Tax Advantages 

Trusts, particularly irrevocable trusts, can offer significant tax advantages. By removing assets from your taxable estate, you can potentially reduce estate taxes and other related costs. Consulting with an estate planning attorney can help you maximize these benefits, tailoring the trust to your specific financial situation. 

Privacy 

Unlike wills, which become public records after probate, trusts remain private documents. This means that the details of your estate plan and the distribution of your assets are not disclosed to the public, providing an additional layer of privacy for you and your beneficiaries. 

Choosing a Trustee and Beneficiaries

Selecting the right trustee and beneficiaries is critical when establishing a trust. The trustee will be responsible for managing the trust assets and verifying they are distributed according to your wishes, so it is essential to choose someone who is trustworthy, financially aware, and capable of handling these responsibilities. 

When choosing beneficiaries, consider their needs, financial habits, and how the trust can best serve them. For example, if you have young children, you might want to include provisions that guarantee their education and upbringing are financially supported until they reach adulthood. 

Trusts Attorney in San Antonio, Texas

Choosing The Jacobson Law Firm, P.C. for your estate planning needs ensures you receive comprehensive and compassionate legal assistance. Dana Jacobson’s experience in trust and estate law makes him a reliable partner in securing your family’s future. Don’t wait—reach out today to discuss your estate planning needs and learn how a trust can benefit you. Contact The Jacobson Law Firm, P.C. now to get started on protecting your legacy.