Why Create a Trust?

The concept of a trust is simple: it involves one entity managing another entity’s property. In their wills, many people decide to create trusts so that upon their deaths their property can still be used for some purpose. But people put their property in their trusts before they die as well. There are many reasons people create trusts because trusts serve many purposes.

One purpose of trusts is to allow privacy to a person’s decision about what to do with her or his assets. Whereas a will is a public document, the terms of a trust do not have to be made public.

Another purpose of trusts is to protect assets from creditors to whom debt is owed. By putting the assets into a trust, the former owner of the assets can avoid having to give up those assets to creditors who want their money back.

Yet another reason people establish trusts is to form charities. Many trusts give out money that their trust generates through interest income. Charities formed from trusts focus on a variety of areas, including giving out money to college students, or donating money to fight diseases.

One of the many reasons that people create trusts is to prevent themselves from wasting money. People who are irresponsible with money decide that their assets would be better used under someone else’s management rather than their own management.

Consult an Austin Probate Attorney

If you want to create a trust, whatever your reasons, contact the Austin probate attorneys of Slater, Kennon & Pugh LLP by calling 512-472-0432.