Properly creating a trust for your children under Texas law can protect them against potential problems. As one of the leading Dallas law firms working in the area of inheritance, we have a wealth of experience in terms of inheritance issues. Reach out to us to discuss if a trust for your children’s inheritance would be a good idea. Our convenient Dallas and Plano, Texas, offices make a consultation with an estate planning attorney easy.
Many parents are unaware that a properly created trust for the benefit of their children can provide extraordinary protection for the sums parents leave their children as an inheritance. Whether the parents have an estate plan based on a will or a living trust, a specially prepared trust to protect the children’s inheritance can be created for the protection of their children.
The benefits which the children can receive from an inheritance trust, properly administered, include the following:
1. Protection from the claims of any of your children’s creditors;
2. Protection against claims to your child’s inheritance which an in-law might make at the time of a divorce; and
3. Depending upon whether a parent has confidence in a child’s ability to properly invest and manage the money in his or her trust, an inheritance trust can provide protection from a child’s poor judgment regarding investment decisions.
There is a price to be paid for achieving the benefits set out in numbers 1, 2, and 3 above.
The distributions from the trust (the amount of money which can be taken out of the trust and given to or paid for the benefit of a beneficiary) is limited to distributions subject to an “ascertainable standard.” The most widely recognized and accepted ascertainable standard in this regard is for a child’s health, education, maintenance, and support (HEMS). Distributions made for the benefit of the beneficiary’s health, education, maintenance, and support cover a very wide array of life needs. If you would like to further discuss an inheritance trust, please contact us either by phone or on our website and we will be back in contact with you shortly.
In this blog post, we learned three key benefits to a children’s trust under Texas law. As one of the leading law firms in Dallas working in the area of estates, trust, and probate, we encounter many inheritance issues. If you are interested in exploring how a trust may be beneficial to your inheritance planning, reach out for a consultation. Our Dallas and Plano offices offer convenient locations for busy Metroplex residents.