Living Trusts
What Is a Living Trust?
A “living trust” is simply a trust someone creates while alive,
instead of one that is made at someone’s death under the terms of
their will. The trust is set up by the grantor, who is the individual
that places the assets in a trust. The assets in the trust are managed
for the settlor’s benefit while he or she is alive.
A trustee must also be named; however, most people name themselves for
complete control. Furthermore, the trustee needs to name a successor trustee,
who takes over the trust after the trustee’s death. The successor
is then in charge of protecting and managing trust assets and eventually
dispersing them to the beneficiaries.
The following are the proper steps to make a living trust:
- Create a trust document, stating who will inherit trust property and naming
you as trustee
- Sign the document in front of a notary public
- Transfer your property to your name as trustee
Do Living Trust Assets Have to Go Through Probate?
The main benefit of making a living trust is saving your family from the
delay and expense of
probate court proceedings after your death. Texas does not adhere to the Uniform
Probate Code, which simplifies the process of probate, so it may be wise
for you to establish a living trust to avoid the state’s complicated
probate process.
Texas only has a simplified probate process for small estates - under $50,000.
If your net worth will be under this amount when you pass away, the probate
process will be relatively quick and inexpensive, so you may not need
to worry about avoiding it.
Call (972) 200-3078 to Let Our Dallas Estate Planning Lawyer Help You Today
At the Law Offices of Dan Chern, P.C., our legal team can discuss the advantages
and disadvantages of living trusts, based on your specific situation.
With nearly two decades of experience, our
Dallas estate planning attorney has a thorough understanding of Texas law to guide you through the complexities
of the legal system.
Contact us
and request a consultation today.