• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Mendel Law Firm, L.P.

Attorneys & Counselors

Call Now: (281) 759-3213

  • FB
  • TW
  • IN
  • RSS
LP Payment button
  • Home
  • Our Firm
    • About Our Firm
    • About The American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • Mission Statement
    • Multimedia
    • Published Books
    • The Academy Fellow Designation
  • Services
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
      • Are You A Caregiver
      • Coping With Alzheimer’s
      • Guardianship & Conservatorship
      • Hospice Care
      • Emergency Medicaid & Nursing Home Planning
      • Medicaid Planning
      • Veteran’s Benefits
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Seminars
  • Testimonials
    • Client Testimonials
    • Representative Clients
    • Review Us
  • Resources
    • Areas We Serve
      • Baytown
      • Conroe
      • Galveston
      • Houston
      • Pasadena
      • Woodlands
      • West University Place
    • Elder Law Reports
    • Elder Law Resources
      • Galveston Elder Law
      • Houston Elder Law
      • Sugar Land Elder Law
      • West University Place Elder Law
      • Woodlands Elder Law
    • Estate Planning Resources
      • Estate Planning Checkup
      • Estate and Gift Tax Figures
      • Estate Planning Definitions
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top Estate Planning Techniques
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Asset Protection Planning
      • Avoidance Tax Planning
      • Avoiding Probate
      • Business Succession Planning
      • Charitable Gifting
      • Elder Law
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • IRA and Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Living Trusts
      • Medicaid
      • Medicaid Planning
      • Nursing Home Planning
      • Pet Planning
      • Power of Attorney
      • Probate
      • Trust Administration
      • Trust Administration & Probate
      • Trusts
      • Veterans Benefits
      • Wills
    • LGBTQ Resources
    • Probate Resources
      • Houston Probate
      • Sugarland Probate
      • Woodlands Probate
      • West University Place Probate
    • Probate & Trust Administration Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
    • Special Needs Resources
    • Newsletters
  • Contact Us
  • BLOG
Home » BLOG » Is Creating a Trust Difficult?

Is Creating a Trust Difficult?

May 13, 2019 by Stephen A. Mendel, Estate Planning Attorney

Heirlooms 031

A trust is one of the most common additions to a comprehensive estate plan. A primary reason is that trusts can help accomplish a diverse range of estate planning objectives. In addition, trusts are extremely flexible. The creator of the terms of the trust has considerable leeway, barring illegal or unconscionable terms. With this in mind, is creating a trust difficult? The short answer is, it doesn’t have to be.

If you have considered including a trust in your estate plan, you have likely questioned the difficulty. You may even have seen “Do-It-Yourself” trust agreements advertised online or at the local stationary store. Do not be lured by these “easy” DIY estate planning documents. While the basic concept behind a trust agreement is simple enough, creating a trust that actually functions properly, accomplishes the intended purpose, and complies with relevant state and federal laws requires the assistance of an experienced estate planning attorney.

Trust Basics

There are seemingly countless specialized trusts to choose from. However, all trusts are first divided into two basic categories – testamentary and living trusts. A testamentary trust is a trust that does not become active until the death of the trustor, or creator, of the trust. A living trust, as the name infers, is a trust that becomes active while the trustor is still alive. It comes into effect once the formalities of creation are in place.

Living trusts are then further sub-divided into revocable and irrevocable trusts. A revocable trust can be changed, amended, or revoked by the trustor at almost any time and for any reason. An irrevocable living trust, on the other hand, cannot be changed or revoked by the trustor, but can sometimes be changed with court approval or the appointment of a special trustee.

Creating a Trust –Deciding on the Trust Purpose

The first, and most important, step involved in creating a trust is deciding what type of trust you need. To do that, you must first consider what you want the trust to accomplish. What is the trust purpose? In the past, trusts served a limited purpose. Nowadays, there is a trust for just about any estate planning goal, including trusts that can help with:

  • Probate avoidance
  • Special needs planning
  • Medicaid planning
  • Asset protection
  • Incapacity planning
  • Tax avoidance
  • Parents with young children
  • Blended families
  • Even Pet planning

Deciding what you want to accomplish with your trust is crucial because different types of trusts can accomplish different things. For example, if asset protection, Medicaid planning, or special needs planning is your goal, you will probably need an irrevocable trust. On the other hand, if incapacity planning or probate avoidance is the purpose of your trust, a revocable living trust is probably a better choice.

Choosing a Trustee

The next crucial step is to choose your Trustee. People often make the mistake of appointing a spouse or family member simply because they are family. Being a relative, however, is not the primary concern. The most important quality in a trustee is their ability to do what is required.

The duties and responsibilities of a Trustee can be varied and complex. Thus, an, at least, rudimentary knowledge of both the law and finance is required to properly administer a trust. Choosing the wrong individual for the job can cause a trust to fall apart. In short, the Trustee is responsible for managing and investing your trust assets as well as administering the trust terms; so, pick a good one.

The Trust Terms

Finally, the trustor must create the trust terms used to administer the trust. A trustor may include almost any terms he/she wishes. However, it is important that those terms collectively guide the Trustee in the administration of the trust and allow for the success of the trust. Unless you have experience creating trust terms, it is likely that the terms you choose will conflict with one another, may violate a state or federal law, or tie the Trustee’s hands so that he/she cannot properly fulfill the role of Trustee.

Contact Us

In conclusion, “Is creating a trust difficult?” The answer is, it doesn’t have to be. An experienced Texas estate planning attorney can help you create a trust that should accomplish your goals with a lot less headache. If you have additional questions, concerns, or wish to get started creating a trust contact the experienced Texas estate planning attorneys at The Mendel Law Firm, L.P. by calling 281-759-3213 to schedule your appointment today.

  • Author
  • Recent Posts
Stephen A. Mendel, Estate Planning Attorney
Stephen A. Mendel, Estate Planning Attorney
Mr. Stephen Mendel is an attorney who focuses a substantial part of his practice on estate planning. Mr. Mendel’s guiding principle is to provide his clients with quality legal services tailored to each client’s specific needs and goals.
Stephen A. Mendel, Estate Planning Attorney
Latest posts by Stephen A. Mendel, Estate Planning Attorney (see all)
  • Thought of the Day - February 8, 2023
  • Thought of the Day - February 1, 2023
  • Thought of the Day - January 25, 2023

Filed Under: Trusts

Other Articles You May Find Useful

  • Why Put Assets into a Trust Instead of Gift them in a Will?
  • What Is a Living Trust?
  • What Happens to a Living Trust When One Spouse Dies?
  • What Is a Living Trust?
  • Who Should Be the Trustee of Your Testamentary Trust?
  • How Long Does It Take to Set Up A Trust?

About Stephen A. Mendel, Estate Planning Attorney

Mr. Stephen Mendel is an attorney who focuses a substantial part of his practice on estate planning. Mr. Mendel’s guiding principle is to provide his clients with quality legal services tailored to each client’s specific needs and goals.

Primary Sidebar

The Mendel Law Firm

Follow Us

  • FB
  • TW
  • IN
  • RSS

Blog Subscription

Subscribe to our blog to get all of the latest updates from our attorneys.

Plan For Your Future and Protect Your Legacy

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
  • This field is for validation purposes and should be left unchanged.

HOUSTON

The Mendel Law Firm, L.P.
1155 Dairy Ashford, Suite 104
Houston 77079
United States (US)
Phone: (281) 759-3213
Fax: 281-759-3214

Map

map

Office Hours

Monday8:00 AM - 5:00 PM
Tuesday8:00 AM - 5:00 PM
Wednesday8:00 AM - 5:00 PM
Thursday8:00 AM - 5:00 PM
Friday8:00 AM - 5:00 PM

Footer

The Mendel Law Firm

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an
attorney-client relationship.

© 2023 Mendel Law Firm, All Rights Reserved. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys