Estate Planning Basics Attorney in Spring, Texas
How can you help clients protect their assets through a well-crafted estate plan?
How can you help clients protect their assets through a well-crafted estate plan?
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00:04
first off i would
00:06
inform the client that there are
00:09
ways that texas has already protected
00:12
your assets
00:14
these assets include exempt assets and
00:16
exempt assets in texas
00:18
include the homestead a retirement plan
00:20
like a 401k
00:22
a 403 b an ira those assets are already
00:26
protected
00:27
from creditors in addition life
00:30
insurance and annuities are protected
00:32
from creditors
00:33
and so texas has already provided
00:36
a broad range of asset protection
00:40
benefits to its citizens beyond that
00:44
i would um discuss for a high net worth
00:47
client i would
00:48
or a client who has real estate that’s
00:51
not the homestead
00:52
we might talk a little bit about
00:54
creating a business entity such as an
00:56
llc
00:56
or a limited partnership to own those
00:58
assets
01:00
so that it can make it very difficult
01:02
for a creditor to
01:03
attach attach and
01:06
you know take those assets from from the
01:09
client
01:10
in addition when wealth passes from
01:14
one generation to the next it’s really
01:17
an opportunity to protect those assets
01:20
from creditors
01:21
when they pass to the second generation
01:24
and one of the most important ways that
01:26
that can happen
01:27
is through the use of irrevocable trusts
01:30
and we recommend irrevocable trusts
01:32
for assets passing to the next
01:34
generation routinely to our clients
01:37
because when assets pass to their
01:38
children and trust
01:40
then it’s like bubble wrapping the
01:42
inheritance and delivering that
01:44
inheritance to the child
01:45
the child can still be trustee of the
01:48
trust
01:49
they can still consume the assets of the
01:51
trust for their health education
01:53
maintenance and support
01:54
and they can still maintain testamentary
01:56
freedom
01:58
with respect to the trust so that when
02:00
they pass away they can
02:01
say who who receives the assets
02:04
remaining in their trust and so
02:06
there are a lot of um benefits to the
02:09
trust because the trust
02:10
is it enables those assets to be
02:12
protected from the child’s
02:14
creditors bankruptcy lawsuits and failed
02:16
marriages
02:17
and so just to summarize i would um
02:20
encourage clients
02:22
to invest in exempt assets to consider
02:25
the use of business entities in their
02:27
estate plan if they have
02:28
um real estate or that’s not their
02:31
homestead or other
02:32
invested assets and then number three i
02:35
would recommend
02:36
the client consider forming trusts
02:39
within their estate plan for the benefit
02:41
of their children
02:42
so that when their children inherit
02:44
wealth that wealth is protected
Contact Christine Butts
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Spring, TX estate planning & probate attorney Christine Butts explains how she can help clients protect their assets through a well-crafted estate plan.
