Law Office Of William Davidson
A Trust is a legal entity that can possess property for the benefit of the purpose for which the trust is formed. A “grantor” puts property into the trust which is managed by a “trustee” who has a legal obligation to manage the trust in a fair and equitable manner for the beneficiaries of the trust. This obligation is known as “fiduciary.”
Trusts can protect assets from creditors, trusts can be set up to avoid probate and reduce the costs of probating an estate. Trust are private, and unlike a Will, filed in a public probate court of jurisdiction, the existence of a Trust and the terms of the trust and property held by the trust is confidential.
A trust can be created in a Will such that upon the passing of the one who had the Will drafted, the trust distributes property in certain ways, or distributes property to minors in ways consistent with Texas law. This distribution is handled by the trustee.
There are “Special Needs Trusts” that are set up for those with certain disabilities who need their assets managed and protected. There are trusts set up for minors.
There are “Gun Trusts” which allow NFA (National Firearms Act) items such as a machine guns, short barreled rifles, any other weapon, or silencers to be placed in the trust so they can be used by several individuals specified in the trust.
These items are legal in Texas provided you qualify and pay the Federal government a $200 tax stamp. Sometimes they are referred to as “NFA Trusts,” or “Firearms Trusts.”
Trusts are one important tool of many for proper estate planning. They are private and confidential. Come in and sit down with Mr. Davidson and go over your options for setting up a Trust to protect your assets from those who have no business meddling in your confidential affairs.