Revocable trusts, which are sometimes referred to as revocable living trusts, since they typically are established and go into effect during the lifetime of the maker (sometimes called trustor, grantor, or settlor) of the trust. They offer many benefits with the primary one being the ability to control your assets during your lifetime. Of course, another main benefit is the ability to dissolve the trust if and when necessary. There are, of course, other advantages as well as some disadvantages that you should consider.
At Adams, King, & Smith, we want you to make the best decisions about your assets and estate planning. During a FREE CONSULTATION FOR WILLS, ESTATE PLANNING to include TRUSTS, AND PROBATE OF A WILL, our revocable trust lawyer will listen to your wants and expectations and will advise you accordingly. Contact us either online or at (903) 757-3331 to learn more about the benefits trusts can offer you.
Understanding Revocable Trusts in Texas
A revocable trust is a trust that allows the trustor to change its terms, or even revoke it in full, while the trustor is alive. Once the trustor passes away, the trust is managed by a trustee according to its terms. It is a way for a person to manage and control their assets while they are living and provide management, control and ultimately have those assets pass to their loved ones when they die.
The types of property that can be transferred to a trust include but are not limited to:
- Real property (e.g., homes, farms, vacation homes) especially out of state real estate
- Deposit accounts
- Investments (e.g., stocks, bonds, money market accounts)
- Business interests
- Collectables, art, antiques
Pros of Revocable Trusts in Texas
There are distinct advantages to using a revocable trust as an estate planning tool. Below are brief descriptions of the most common advantages. Not all may apply in your unique situation. Likewise, there may be other advantages not listed below. It is important to seek the advice of an estate planning attorney to ensure the trust you choose is the right one.
Incapacity Protection
A trust provides protection in case of testator incapacity, or provides someone whose capacity is diminishing with often much appreciated assistance of a trusted person acting as Trustee. In other words, if the person that creates the trust later becomes incapacitated (develops dementia, for example), a new or successor trustee can take over the management of the trust. They will also be required to administer the trust according to its terms.
Flexibility
While there are other types of trusts, the revocable trust remains a popular choice due to its flexibility. The creator of the trust is able to make changes to the trust up until the time of their death as long as they have mental capacity.
Privacy
If maintaining privacy over your assets is important to you, a revocable trust is an option worth considering. Assets placed in the trust are administered to beneficiaries privately, unlike assets administered through the probate process, which is public.
Probate Avoidance
The ability to avoid or simplify probate is a major reason people consider placing assets in a revocable trust. Probate is the process where a decedent's estate is administered through the court system. It can be a tedious and time-consuming procedure. Assets placed in a revocable trust typically do not have to go through this court-supervised process.
Cons of Revocable Trusts in Texas
There are some disadvantages to revocable trusts. Below are brief descriptions of the most common disadvantages, which must be weighed against the advantages and your specific needs.
Time, Effort and Expense
Going through the process of setting up a revocable trust can take significantly more time, effort and money than simply executing a Will. It may require that the trust be funded by changing deeds, titles, and other documents to transfer property into the trust.
Lack of Asset Protection
Some trust types shield assets from the reach of creditors and judgments. A revocable trust, however, does not provide this protection, and assets are still within the reach of creditors.
Terminating a Revocable Trust in Texas
The good news, and the reason many people choose to use a revocable trust, is that the trustor retains the right to terminate it when they choose to do so.
Contact a Revocable Trust Lawyer in Longview, Gregg County, Texas Today
A revocable trust can offer many benefits. They can be used as a way to protect your assets and help family members or other individuals or organizations for which you care a lot. To find out if a revocable trust is right for you, and if so, which type of revocable trust best aligns with your interests, contact our estate planning attorney in Texas by using the online form or calling us directly at (903) 757-3331. We will schedule a FREE CONSULTATION FOR WILLS, ESTATE PLANNING, AND PROBATE OF A WILL, at which time we will listen to what your wishes and concerns are and develop a customized estate plan that works for you.
Virtual, in person, or by phone consultations are available for your convenience.