In Texas, estate owners work with an attorney to create a viable plan for the future. The first task that must be completed in the process is writing a will to identify which heirs receive wealth and assets. An estate planning attorney in Rockwall, TX can guide estate owners through the process.
Transferring Wealth into Trust Funds
Estate owners transfer their wealth into trust funds for their loved ones. The trust funds enable them to transfer pre-tax values into the account at any time. The owner won’t face limitations and they have the right to send as much money as they want into the trust funds. It is possible to transfer a portion of their wages into the trust fund, too.
Establishing an Irrevocable Trust
An irrevocable trust is established to transfer the assets out of the estate. Once transferred, the assets aren’t the property of the estate owner on paper. The owner retains control over the trust, but the assets are owned by the trust. The estate owner can transfer the assets out of the trust at any time. A successor is identified for the trust, and they take complete possession of the trust when the owner dies.
New Ownership Assignments
New ownership assignments are set up to avoid inheritance tax. Early transfers reduce the amount of time that the estate stays in probate. If the estate owner enters a nursing home, early transfers protect the assets and prevent the facility from seizing the assets for payments.
Controlling Tax Implications
Estate plans offer options for lower tax implications for beneficiaries. Early transfers of ownership eliminate inheritance tax. An irrevocable trust also offers the benefits and prevents additional taxes in the future. A fund is created to manage tax implications and prevent excessive costs for the heirs.
In Texas, estate owners create an estate plan to protect their assets for their family. The plan includes irrevocable trusts, trust funds, and life insurance policies. The will defines who receives the assets and imposes limitations as needed. Early ownership transfers give the assets to the heirs ahead of time. Estate owners who need help can contact an estate planning attorney in Rockwall, TX for professional legal help right now.