Trust funds offer more control in how your beneficiaries spend the assets than a will. You could place limits on how much they can withdraw each year and what they can spend the money on. It’s easy to set up a trust fund in Texas, and you don’t have to be rich to open one.
Determine the type of trust
There are several types of trusts that you could open. You may want to learn about your options before opening an account to choose the one that best suits your needs. The two general categories of trusts are irrevocable and revocable, but there are specific types within these. You can’t modify an irrevocable trust. Once you deposit assets into the account, they are stuck there within the terms of the account.
Define the trust conditions
Before formally opening the trust, you might want to plan your strategy, especially if it’s irrevocable. Determine what limitations you want to put in place. Consider who would make a dependable trustee. You don’t have to choose an individual to be the manager of the account. The law allows for an authorized professional, bank or company to serve as your trustee. If you choose yourself to manage the account, then you need to assign a successor trustee to manage it after you die or in the event of incapacitation.
Create the trust document
Following state law, create a formal trust document. Texas requires that you have a notary public watch you sign it.
Deposit assets into the fund
You may now deposit eligible assets into the account. The terms and conditions of the type of trust will let you know what you can deposit in it. If you transfer anything that has a title, you need to also change the title name. Failure to change the title may invalidate your attempt to pass it on to your beneficiary.