Wills and Trusts
A Simple Guide to the Revocable Living Trust for Texans
What Is a Revocable Living Trust?
A revocable living trust is a flexible estate planning tool that allows individuals to manage their assets during their lifetime and efficiently distribute them upon death. Unlike a will, Texas law does not require that a revocable living trust be validated by a probate court, which can save time, money, and maintain privacy for your family.
In a typical revocable living trust, the person who creates the trust, called the grantor, transfers ownership of their assets into the trust. The grantor can also serve as the trustee, which allows them to manage and control the assets while they are still alive. This means the grantor can continue to buy, sell, and use the assets as they see fit, just as if they still owned them directly. What sets a revocable living trust apart is that the grantor retains the power to amend, change, or revoke the trust entirely at any time during their life.
Why Use a Trust?
A revocable living trust provides several key advantages over other estate planning tools, such as a simple will:
- Avoids Probate: Assets placed in a revocable living trust pass to beneficiaries without going through probate court. Probate can be a long and expensive process, and a trust helps streamline the transition of assets to your loved ones.
- Maintains Privacy: Since trusts do not go through the probate process, the details of your assets and beneficiaries remain private, unlike a will, which becomes public record during probate.
- Allows for Incapacity Planning: One of the most valuable aspects of a revocable living trust is that it allows for planning in the event you become incapacitated. If you are no longer able to manage your affairs due to illness or injury, the successor trustee you’ve appointed can step in and manage the assets for your benefit.
- Efficient Asset Distribution: With a revocable living trust, you can control how and when your beneficiaries receive their inheritance. This is particularly useful for minor children.
- Flexibility: The revocable nature of the trust allows you to make changes to the trust as your life circumstances change. If you have more children, or simply change your mind about how you want your assets distributed, you can amend the trust document accordingly.
How a Revocable Living Trust Works
The basic structure of a revocable living trust involves several parties:
- Grantor: The person who creates and funds the trust.
- Trustee: The person (often the grantor) who manages the assets during the grantor’s lifetime.
- Successor Trustee: The person or entity that takes over management of the trust if the grantor dies or becomes incapacitated.
- Beneficiaries: The individuals or organizations that will receive the assets upon the grantor’s death.
After the grantor’s death, the successor trustee distributes the trust’s assets according to the grantor’s instructions. Unlike probate, this process is relatively quick and often avoids court intervention.
Why Choose Texan Wills and Trusts for Your Revocable Living Trust
At Texan Wills and Trusts, we understand the unique needs of Texans when it comes to estate planning. Our estate plans are designed to comply with Texas law, ensuring that your revocable living trust will be valid and effective in this state.
Each of our estate plans includes a revocable living trust as part of a comprehensive approach to protect your assets and provide for your loved ones. Our process is simple and affordable, and we provide video reviews of your documents to make sure you know exactly how to sign them correctly.
Don’t leave your family with the burden of probate or a generic estate plan that may fail in Texas. Purchase your estate plan from Texan Wills and Trusts today, and get peace of mind knowing that your future and your family are protected.
