From The Law Office of Whitney L. Thompson, PLLC – What is a Simple Trust? explores how this foundational estate planning tool can provide clarity, financial efficiency, and peace of mind for individuals and families alike. In this episode, we delve into the defining characteristics of a simple trust, including mandatory income distribution, principal preservation, and the exclusion of charitable contributions. Listeners will gain a clear understanding of how a simple trust functions under IRS and Texas law, and why it may be the right choice for straightforward, long-term asset management.
We also examine the financial advantages of using a simple trust, from enhanced tax efficiency to cost-effective setup and maintenance. By ensuring that income is distributed annually to beneficiaries—and taxed at their individual rates—a simple trust can reduce overall tax burden and avoid the complexities of higher trust tax rates. Additionally, the episode breaks down administrative responsibilities such as managing trust assets, record-keeping, and annual IRS reporting, helping trustees confidently fulfill their fiduciary duties.
The episode highlights the legal expertise of Houston trust attorney Whitney L. Thompson, whose journey from Thurgood Marshall School of Law to leading her own firm brings a unique blend of empathy and resilience to her practice. Whitney’s client-first approach empowers families across Texas to make informed estate planning decisions. Her legal team focuses on clarity and compassion when helping clients navigate probate, divorce, child support, and trust creation—ensuring long-term security for generations to come.
Tune in to learn the distinctions between simple and complex trusts, when a trust might change its classification, and how a simple trust can shield assets from creditors and bypass probate. Whether you're just beginning your estate planning journey or seeking to simplify an existing plan, What is a Simple Trust? will equip you with the knowledge to make confident, future-focused decisions.
The Law Office of Whitney L. Thompson, PLLC
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