Trust-Based Estate Planning Package
Our trust-based estate plan gives you all the safeguards of our will-based plan, plus beneficial features that a revocable trust offers when used in conjunction with a will. In our view, trust-based estate planning is more comprehensive than will-based estate planning.
A trust-based plan is very flexible, giving you the option to make important changes to the plan over the course of your life. Notably, this plan enables you as the trust maker to maintain lifetime control of your assets, and more readily make changes to the distribution of your assets after your death. It offers you a high degree of customization.
A trust-based plan also bypasses possibly-prolonged court-administered probate proceedings. It secures the privacy of both the trust maker and trust beneficiaries; and, in many cases can reduce estate taxes.
When we work with you to design a trust-based estate plan, we start with the same basics we cover when we create a will-based plan. We address lifetime protections for you, as well as what you want to happen to your assets at the time of your death.
A revocable trust is the cornerstone of a comprehensive estate plan. Our trust-based estate plan has six fundamental components:
1. Revocable Trust
A trust is a legal arrangement, sometimes referred to as a fiduciary relationship, in which there are three roles: a grantor, a trustee, and a beneficiary. The grantor transfers the right to hold title to his or her assets to the trustee, who manages the assets for the benefit of a third party, the beneficiary. Upon that transfer, the assets become assets of the trust. The duties, rights and obligations of the three parties are governed by a trust agreement created by the grantor. A trust is not a corporate entity or partnership.
There are primarily two kinds of trusts: revocable trusts and irrevocable trusts. They’re both used in many contexts; but, they’re different from one another.
In the context of basic estate planning, a Revocable Trust is a valuable tool. You, as grantor of a revocable trust may also serve as the trust beneficiary. Because a revocable trust may be changed, amended or revoked at any time, it allows you to effectively maintain a voice in the control of the trust assets during your lifetime. Its terms continue until after your death, giving you control over the distribution of your assets after you pass away.
Paired with a pour-over will in estate planning, a revocable trust maintains your privacy, avoids court or judicial administration of your estate, and keeps the time and cost of your asset distribution to a minimum.
2. Pour-Over Will
A will, often called a Last Will and Testament, is a legal document that contains your instructions about the distribution of your property after your death. It usually names a guardian for your minor children. It also designates an executor to manage your estate in line with your final wishes.
Your will must go through probate, which is a court proceeding where a judge will first authenticate the will, and then authorize your executor to pay all debts and taxes and distribute your remaining property as outlined in the will.
A Pour-over Will is a unique type of will used in conjunction with a revocable trust to ensure all of your assets will be transferred or “poured over” into your trust after your death. A pour-over will acts as a safety net to catch any assets not transferred to your trust during your lifetime and transfer them into your trust upon your death. The assets will then be distributed according to the terms of your trust.
When combined with a revocable trust, a pour-over will almost always takes an expedited course through probate, which in turn minimizes cost and conceals from the public details about your estate.
3. General Durable Power of Attorney
An important element of an estate plan is a General Durable Power of Attorney. This legal document permits you to name one of more agents to handle business, financial, and legal matters on your behalf, if for any reason you’re not able to handle them yourself. It does not allow those agents to make medical decisions on your behalf.
A durable power of attorney remains in effect if you become incapacitated or disabled; its authority continues until the time of your death.
4. Medical Power of Attorney
A Medical Power of Attorney is a legal document that permits you to appoint a trusted person or persons to make medical decisions on your behalf if you become unconscious or mentally incapable of making those decisions for yourself.
5. Directive to Physicians
A Directive to Physicians, or Advance Directive, is a legal document that permits you to instruct your physicians not to use artificial methods to extend your life in the event you are diagnosed with a terminal or irreversible condition and are unable to communicate those instructions yourself. In almost all situations, medical professionals are legally required to adhere to the instructions in a directive to physicians if the patient can no longer express their own preferences.
6. HIPAA Authorization
A HIPAA Authorization permits you to name one or more individuals who may have access to your medical information so your health care provider or insurance company will have no reservations about sharing your protected medical information. This document gives medical providers your permission to release your private healthcare information to your named healthcare agents and family members in the event of your illness or injury.
An attorney at Reagan Moore can describe in detail our Trust-Based Estate Planning Package, and how we can create one for you or someone you know. Our Texas-based, fully-virtual law firm offers premium estate planning services in all 254 Texas counties. Our unique business model is built to deliver excellent, personalized service to every client at reasonable flat fees. You can count on our experienced lawyers to listen first, then present you options. Let’s collaborate and design the ideal plan for you.