Your Will Could Be Used to Create a Testamentary Trust

 Posted on December 28, 2022 in Estate Planning

A will is an invaluable resource in ensuring that the assets that comprise your estate will go to the individuals and institutions of your choice after your passing. If there is no will, Texas’ default rules—known as the laws of intestate succession—will determine which individuals will inherit your estate and in what proportions they will inherit. Generally, intestate succession laws stipulate that a deceased person’s estate will go to the decedent’s surviving family members, starting with their spouse and children.

In some instances, it might be acceptable to rely on intestate succession, thereby avoiding the cost and delay of probating an estate in probate court. For many people, however, a will brings both specific direction and peace of mind in the distribution of wealth, property, and heirlooms after death. A will is a powerful and flexible estate planning instrument that is capable of regulating many distributions over a long time in lieu of a one-time bulk sum. The intra-will device that allows for this is what is known as a “testamentary trust.” If you have young children or relatives, a testamentary trust is something well worth considering, as is working with an experienced estate planning attorney.

Planning for the Future of Young Children with a Testamentary Trust

Many generations from the 1980s to the present have made different career and family decisions than those made by previous generations. It is no longer uncommon for a person to wait until they are in their 30s or even 40s to begin raising a family. In other instances, there are children from a second or subsequent marriage to care for and support long after children from a first marriage have grown up, left home, and ventured into careers and family lives of their own.

Sound estate planning requires that you consider the possibility that you might become incapacitated or pass on before your young children are able to support themselves. In such a scenario, it is worrisome to contemplate your child receiving a substantial inheritance through either a simple will or the laws of intestate succession—especially if your child is not yet ready to handle large amounts of money responsibly.

Fortunately for both you and your child, a testamentary trust allows you to distribute assets in increments over time until your child reaches maturity. A testamentary trust can be set up through specific clauses in your will, and your lawyer can help you draft your will with this in mind.

Contact a Fort Worth Estate Planning Lawyer

A testamentary trust can be a tremendous estate planning resource, but it can be complicated to set up on your own. Contact an experienced Tarrant County wills and trusts attorney to get the guidance you need to secure your family’s future. Call 817-349-7330 for a free, no-obligation consultation with a member of the team at Gonzalez Law, PLLC today.

Source:

https://www.investopedia.com/terms/t/testamentarytrust.asp