A revocable living trust provides a private, smoother transition of assets after death.
A revocable living trust is a valuable estate planning device that can help anyone, not just the wealthy. There are many advantages to a living trust. First, it avoids Texas probate. That saves time, legal fees, and makes it easier for those left behind. This is especially important if the deceased owned real estate outside of Texas. A trust is also more private. A last will and testament becomes part of the public record when you probate a will. Financial institutions are more likely to recognize a trust than a power of attorney. A trust is effective immediately. But a will requires a waiting period before the court can have a hearing to declare the will as valid.
A trust is created when one-person (which the law calls a Trustor, Settler, or Grantor) transfers to another person or entity (that the law calls a Trustee) a property interest to be held for the benefits of a person that the law calls a beneficiary. If the trust is created during the Trustor’s lifetime, rather than in his or her will, it is called an “intervivos” or living trust. When the Trustor retains the right to dissolve the trust, it is called a revocable trust. But if the Trustor does not have the right to change or dissolve the trust, it is irrevocable. A revocable trust often becomes irrevocable when the Trustor dies.
A trust is created when one-person (which the law calls a Trustor, Settler, or Grantor) transfers to another person or entity (that the law calls a Trustee) a property interest to be held for the benefits of a person that the law calls a beneficiary. If the trust is created during the Trustor’s lifetime, rather than in his or her will, it is called an “intervivos” or living trust. When the Trustor retains the right to dissolve the trust, it is called a revocable trust. But if the Trustor does not have the right to change or dissolve the trust, it is irrevocable. A revocable trust often becomes irrevocable when the Trustor dies.
The time to create and fund the trust is the most significant disadvantage. This includes putting assets in the name of the trust. Lawyers usually call this process, “pre-settling the estate.” Also, a revocable living trust does not protect assets. You will need an irrevocable trust to provide that advantage.
Choosing an estate planning and probate attorney in Waco Texas is an important decision. You must talk with someone about your situation who understands estate planning nuances so that you get the most advantageous estate plan available. Contact a Waco estate planning lawyer at 254-753-6437 to talk about the matters involving your estate plan.
Contact an estate planning lawyer to talk about a revocable living trust at 254-753-6437.
Vance Dunnam, Jr. graduated from Baylor University in 1974 with a Bachelor of Business Administration degree and a major in accounting and from Baylor Law School in 1977 with a Juris Doctor degree.
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