Revocable Living Trust Vs Will In Texas

In a trust based estate plan the party often through an attorney creates a living trust.

Revocable living trust vs will in texas.

A living trust is generally much more expensive than a will at least in the short term. The texas revocable living trust is more commonly employed than an irrevocable living trust as a tool for managing a person s estate the reason being that a revocable living trust can be altered or revoked by the grantor at any time as their circumstances may change. It s a private contract between you as the trustmaker or grantor and the trust entity. A revocable living trust doesn t require probate because the trust owns the assets and the trust hasn t died.

For residents of texas is there an advantage to setting up a living trust versus a will. The best choice for one person might not. During the process of creating a living trust the grantor will transfer ownership of their property and assets into the trust. Texas has a simplified probate process for small estates under 75 000.

Title of all property is then transferred to the living trust. However each has significant differences. Living trusts in texas a texas living trust is set up by the settlor the person who places the assets in trust. Revocable living trusts are widely used in a number of states including california and florida but are not as common in texas.

I was told there is no probate in texas and therefore a living will was not necessary. Both are regulated by state statute. In most cases the grantor serves as the trustee of his own revocable living trust managing the property placed within it during his lifetime. Texas does not use the uniform probate code which simplifies the probate process so it may be a good idea for you to make a living trust to avoid texas s complex probate process.

A revocable living trust also called an inter vivos trust offers a variety of benefits as an estate planning tool. The alternative is to have a revocable living trust own most of your assets and have the terms of the trust agreement determine how assets are distributed. A will rather than a living trust is the estate planning vehicle.