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What can a trust accomplish that a will cannot?

On Behalf of | Dec 2, 2021 | Estate planning |

A will is a critical part of your Texas estate plan, because it gives you a way to dictate who you want to inherit your belongings, and when. However, sometimes, you may have unique estate planning goals that you are unable to accomplish with a simple will.

According to Kiplinger, trusts are another type of estate planning component that involves an agreement between two parties: you, the settlor, and the person you appoint to manage the trust, who becomes your trustee. What are some of the things you might be able to do by establishing a trust that you are unable to do through a will?

Leave assets on a conditional basis

If you have a child who is a spendthrift or a substance abuse addict, you may have valid concerns about leaving this child a lot of money all at once. If you leave assets for this individual in a trust, you may also give your trustee directions to only distribute them once your child, say, demonstrates financial responsibility or remains sober for a certain length of time.

Protect assets from creditors

Trusts also give you a way to safeguard certain assets against creditors. Say you die in debt. Your creditors may be able to come for some of your estates, reducing how much your loved ones receive from it. However, when you place assets into a trust, they become untouchable to creditors.

These are two key reasons many people choose to create trusts. However, please note that there are many additional estate planning objectives you may be able to achieve through creating one or more types of trusts.