Austin Probate Lawyer

Trust Fund Basics

The term trust fund is a familiar one to anyone who deals with probate or financial issues. While there are many different types of trust funds, with varying requirements and benefits, all trusts have several things in common.

A trust fund is a type of legal arrangement whereby an individual, known as the settlor, transfers legal ownership of some of his or her property to a person or persons known as the trustees. Because the terms of a trust grant them legal ownership over the entrusted assets, trustees have the ability to administer them as they see fit. However, trustees are not free to do anything they want with the property in trust; they have a fiduciary duty to manage the assets of the trust in accordance with the settlor’s wishes and in the best interests of the beneficiaries.

Although acting as trustee is not necessarily a paid job, many settlors choose to include some sort of compensation for their trustee’s work in the terms of the trust.

Benefits of Trusts

Trust funds are useful in probate for several reasons:

• Trusts can be used to reduce or entirely avoid certain estate taxes.
• Trusts can ensure that property is managed by an individual of the settlor’s choice
• Trusts can help protect the privacy of a settlor and his/her beneficiaries.
• Trusts can shield property and assets from creditors of an estate.

Austin probate lawyers Slater & Kennon, LLP can consult with you about your estate planning needs and determine the best way to ensure that your property is handled according to your wishes. For more information about how a trust may be helpful to you, call 512-472-2431 today.

Centrally located in the Arboretum area of north Austin, the Slater & Kennon law firm represents clients in Travis County, Bastrop County, Burnet County, Williamson County, and Hays County, including the cities of Austin, San Marcos, Bastrop, Burnet, and Georgetown.