Living or Revocable Trusts

     Especially in states other than Texas, probate of Wills and the administration of estates can be a time consuming and expensive process. Thus, the use of living or revocable trusts are a popular estate planning device to avoid probate. The system of probate in Texas is as a time-consuming and expensive process. Even with a competent attorney and a well-written will, the need for probate avoidance with the use of a living or revocable trust is not as great.

   Even so, these trusts can be useful estate planning tools.

   When a person dies, assets held in a living or revocable trust pass outside of probate. It is only if property passes under a will that an estate needs to be probated. Thus, if assets that would otherwise pass under a will pass via a trust, probate court involvement can be avoided.

  Living or Revocable Trusts can also be used to plan for possible future incapacity. When an incapacity arises, the person you name as successor trustee might find management of trust assets easier than merely relying on a Durable Power of Attorney.

   It is also generally thought that a Living or Revocable Trust is harder to challenge than a will.

   A common use of Living or Revocable Trust is to avoid out-of-state probate proceedings. If you own real estate in another state, transfer of title to the out-of-state real property is under the jurisdiction of the other state. Living or Revocable Trusts can avoid the probate time and expenses involved in transferring property to the other state.

   There are disadvantages to creating these trusts. Transferring title to property from individuals to the Living or Revocable Trusts can be time-consuming and one might still have to probate the Will if not all assets are effectively transferred.

    Like all estate planning issues, the use and non-use of Living or Revocable Trust depends on your specific needs and objectives after discussion with the estate planning attorney.