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Texas trusts are an important part of estate planning

It's pretty safe to say that no one enjoys discussing what will happen when they die. On the other hand, people are often willing to discuss how they can best protect and provide for their families. This is the primary function of estate planning and trusts are an integral part of that planning for many people in Texas.

After a will, a trust can be the most important estate planning tool available. A trust can be set up within a will, which is called a testamentary trust. These trusts can put aside a portion of the estate for a beneficiary and specific instructions can be included as to how the money is to be used and distributed. These trusts only become effective upon death.

A second kind of trust is a living trust. This trust is active while a person is alive. The assets in the trust are available for use during life of the maker and will then pass to a beneficiary upon the maker's death. Assets in a living trust will not have to go through probate either.

Texas trusts can be set up for nearly any asset the maker has to put into it. Insurance policies, retirement accounts, homes, cash and anything else that the maker wishes. When a will and trust are coupled together, the wishes of the person making the estate plan are almost assured to be carried out. Trusts can be as detailed in their instructions as the person making them believes is necessary to ensure that his or her wishes are carried out and the beneficiary is well taken care of and protected.

Source: Fox Business, Documents that Should be Part of Everyone's Estate Plans, Andrea Murad, Sept. 4, 2013

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