Trust Me!

Trusts Aren’t for Rich People

When I try to convince my family and friends that they should consider setting up a Trust Fund for their children, I always get the same reaction. 

That reaction is a puzzled look followed by, “What the heck are you talking about?  I ain’t rich!”

Most people are under the impression that a Trust is only needed if you have great wealth, but I realize the reason they’ve fallen under that belief is because they do not realize what a Trust is, or what the purpose is behind the creation of a Trust.

What is a Trust?

Very simply, a Trust is created when you give something to Person A (usually money), so that Person B can use it.  Person A, who manages and protects the thing given, is called the Trustee, and Person B, who gets the benefit of the thing given, is called the Beneficiary.

I got my son a piggy bank, (he calls it his “money pig”), and I occasionally put loose change into it.  With every dime I drop in, he tells me of all the things he’s going to buy, but I remind him that all of this money is for college.  The money pig is a Trustee, and my son is a Beneficiary.

When you create a Trust, you get to set the conditions on which the Trustee can give the benefits to the Beneficiary.  Just as above, I set the conditions so that my son only gets the benefits if he is using it for education.

Why Should I Create a Trust?

Most often, Trusts are created in a Will so any money that is passed on to heirs will have some management.  You wouldn’t give a teenager a big pile of cash and just tell them to spend it wisely would you?  Setting conditions on your terms creates security even when you’re gone.

A very common Trust scheme is the HEMS Trust, which allows the Trustee to provide benefits to the Beneficiary for Health, Education, Maintenance, and Support.  When the Beneficiary has to justify the expenses, it prevents them from blowing it all on a fancy car or letting them put it all in their bank account where creditors can come after it.

What if I Don’t Have a Lot of Money?

You don’t have to have a lot of money to want to protect your future heirs.  Also, consider that just because you don’t have much money now, doesn’t mean that you won’t have a lot of money when you pass away.

When you pass away, there could be a life insurance policy, retirement account, or your estate could receive a large settlement if you pass away in an accident at someone else’s hands. 

The point is, setting up a Trust doesn’t take a lot of time or money and provides many benefits and protections for your loved ones when you’re no longer here to look after them.

--Authored by Matthew L. Harris, Esq.,

Matthew Harris Law - Estate Management Division

1001 Main Street, Suite 806, Lubbock, Texas, 79401-3322, 

Attorney@MatthewHarrisLaw.com 

(806) 702-4852 

www.MatthewHarrisLaw.com

Planned Organ Donor

It is a scene that we see played out in EVERY medical drama on TV these days.  The doctor steps in the waiting room to speak to the anxious family and says, "He needs a XXXX transplant." (insert your organ of choice here) 

What you never see is a family respond with, "Ah, no thanks.  He isn't an organ donor, and it's not fair that he gets one when he isn't willing to give, so just let him die."  However, doesn't that seem like a fair response for someone that isn't willing to donate their own organs?

Here's another scenario that the medical dramas rarely depict, but it happens every day in America.  The doctor steps into the waiting room to speak to the anxious family and says, "I'm sorry.  We did everything we could.  Do you know his/her wishes on organ donation?" 

Spouses, Mothers, and Fathers are left to wonder what he/she would have wanted them to do because the deceased never said that they had a preference one way or the other.

By now, you're probably wondering, "Why is this lawyer babbling on and on about organ donation?  What does this have to do with the law?" 

Simply put, to ensure that your wishes on organ donation are known, you need to have it documented.  Your attorney can advise you on the most effective documents to preserve your preference and help you to draft and execute them so you don't have to leave your loved ones guessing when the time comes.

You might be considering a simple Will to distribute property and want to establish your organ donation preferences at the same time.  However, you shouldn't only have your organ donation preference in the Will because it usually isn't read during times of emergencies for medical instructions.

You might already have a Will and all you need is help with your organ donation documents.  You might even be considering a full-blown Estate Plan that you want to incorporate your organ donation preference into.  Whatever your wishes are, there is no time like the present.

Don't delay making your decision because very few people get to make this decision at the time the choice has to be made. 

***Special Thanks to John Reddin of Lubbock, Texas for helping choose today's topic, and to everyone else that participated in this week's Reader's Choice Poll on Facebook and Twitter.***

--Authored by Matthew L. Harris, Esq.,

Matthew Harris Law - Estate Management Division

1001 Main Street, Suite 806, Lubbock, Texas, 79401-3322, 

Attorney@MatthewHarrisLaw.com 

(806) 318-8482 

www.MatthewHarrisLaw.com.