San Antonio Living Trusts Lawyer

Put simply, as the grantor, you would retain full control over the trust and the assets within it.

One of the primary advantages of a living trust is its flexibility and the ability to bypass the probate process, which is the legal procedure for validating a will. By avoiding probate, the trust assets can be distributed to beneficiaries quicker and with more privacy. 

Furthermore, a living trust can provide continuity of asset management in the event of the grantor’s incapacity, as a successor trustee can assume responsibility for the trust without the need for court intervention.

Living trusts offer privacy because they do not typically become matters of public record, whereas a will is subject to probate court proceedings. 

What Assets Can Be Included In A Living Trust?

A living trust serves as a flexible estate planning instrument, enabling you to oversee your assets throughout your life and seamlessly pass them on to your beneficiaries after your death. As experienced living trust attorneys in San Antonio, we frequently counsel clients on the various assets that can be incorporated into a living trust. This approach optimizes the trust's advantages and ensures a streamlined transfer of wealth, making the process as smooth as possible for all parties involved.

You can place nearly any asset you own into a living trust. Typical examples include real estate, such as your main residence, vacation homes, or rental properties. By moving these properties into a living trust, you can bypass the lengthy and expensive probate process. Financial accounts, such as bank accounts, savings accounts, and certificates of deposit (CDs), can also be included in the trust. This ensures that these funds are immediately accessible to your beneficiaries, eliminating the need for probate court involvement.

A living trust can encompass investments such as stocks, bonds, mutual funds, and brokerage accounts, enabling effortless management and transfer after your passing. Personal assets, including valuable collections, antiques, jewelry, and vehicles, are also eligible for inclusion in the trust. Furthermore, business interests, like ownership shares in privately held companies, can be integrated into a living trust to ensure the uninterrupted continuation of business activities.

It's important to note that while many assets can be included in a living trust, some assets, like retirement accounts (e.g., IRAs and 401(k)s), typically remain outside the trust. However, you can still name the trust as a beneficiary to control how these assets are distributed.

Types of Living Trusts

Living trusts can then be separated into two broad categories: revocable and irrevocable. 

When you set up a trust, our living trusts attorney will prompt you to identify the beneficiaries, what they are to receive, and under what (if any) conditions. As the term revocable suggests, this type of trust allows you to change your original decisions. You can even abolish the trust altogether if that’s your desire. 

The key advantage of a revocable trust is flexibility. By retaining the ability to modify or revoke the trust’s terms and beneficiaries during the grantor’s lifetime, you can accommodate changes in circumstances or relationships.

Then, there’s the irrevocable trust. Again, the term accurately describes the conditions. Your trust and its terms are now set in legal stone and cannot be altered. Giving up flexibility is a lot, but there are substantial benefits that come with it. 

These are two important advantages of choosing an irrevocable living trust: 

• Estate tax reduction: The assets transferred into the irrevocable trust are typically removed from your taxable estate.
• Protection from creditors: The assets held within the irrevocable trust may be shielded from potential claims or legal actions against you or your heirs.