SMITH & GARG, LLC

By the Estate Planning Attorneys at Smith & Garg, LLC, serving The Woodlands, Spring, Houston, Conroe, Humble, Kingwood, Tomball, Cypress, Huntsville, Westchase, Southwest, Sugar Land, West Oaks, Alief, Memorial, River Oaks, Stafford, Katy, Missouri City. Sugarland, Richmond, Alief and other surrounding areas in North, Northwest, South and Southwest Houston.

Trusts can be revocable or irrevocable, depending on the need. Likewise, they may be inter vivos (funded and operable during the grantor’s life) or testamentary (established in the grantor’s Will and funded from assets of the estate). Inter vivos trusts are commonly known as “living trusts” and are taxed at the same level as the grantor. In fact, they do not require a separate tax identification number or tax return.

Trusts in existence at the death of the grantor are not generally subject to probate; however, a Will can create a testamentary trust, which takes effect once the Will is probated and the Trust assets are distributed to the Trustee. Trusts can create a “safe haven” for property that may otherwise be susceptible to attack by creditors; likewise, trusts can help preserve and protect assets for a spouse, for children, for other people or entities for whom the decedent wishes to be a benefactor. Trusts can be particularly appropriate when parties from more than one marriage are involved (blended families), or when there is an inheritance going to a child who is not financially responsible or who may be married to someone who may squander the inheritance. Although irrevocable Trusts are taxed at very high rates, some Trusts may also provide tax advantages.

Not only is it important to have a Will, and possibly a Trust (if your circumstances so require), and advance directives, it is important to keep them updated and to review your overall estate plan on a periodic basis. The attorneys at Smith & Garg will be delighted to discuss all aspects of your estate planning with you, in order to determine what types of Wills, Trusts, and Advance Directives are appropriate for you. The attorneys at Smith & Garg will also work closely with your CPAs and/or financial advisors when there is likely to be a taxable estate involved, or when your particular circumstances are best served by professional teamwork.

We invite you to contact us for a consultation. Call Smith & Garg, LLC at 1-877-517-4275 or complete our contact form.