How to Set Up a Simple Trust - Whitney L. Thompson

From The Law Office of Whitney L. Thompson, PLLC – How to Set Up a Simple Trust explores the essentials of establishing a simple trust in Texas. We begin by guiding you through what a simple trust is, how it differs from other trust arrangements under the Texas Trust Code and IRS rules, and why it may be the right solution for your estate-planning needs. Hosted in Houston and Bay City, this episode brings clarity to the roles of the grantor, trustee, and beneficiaries in a streamlined structure.

In the next segment, we dive into the benefits of setting up a simple trust: mandatory income distributions to beneficiaries, potential tax advantages, and the relative ease of administration versus more complex trusts. We unpack how trust property can include real estate, financial accounts, personal property, and what steps you must take — such as transferring assets, executing deeds, retitling bank or investment accounts — so the trust truly functions as intended.

Then we explore how to build the trust document itself: drafting the agreement, satisfying legal capacity, intent, definite beneficiaries and lawful purpose according to Texas law. We walk through funding the trust, common mistakes like failing to retitle assets or neglecting beneficiary designations, and how to steer clear of pitfalls that could undermine your original intentions.

Finally, we discuss how to maintain and update your simple trust over time — from regularly reviewing provisions in light of life changes, to amending or modifying the trust with the assistance of a qualified Houston-based attorney. Whether you’re establishing your first trust or reviewing an existing one, this episode offers practical insights and actionable steps to create a trust that meets your goals and safeguards your assets.

The Law Office of Whitney L. Thompson, PLLC

4201 Farm to Market 1960 Rd W Suite 360, Houston, TX 77068, United States

(281) 214-0173

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