Creating a trust may help to circumvent Texas probate laws after your death. This is because your assets will be titled in the name of the trust as opposed to being held in your estate. Therefore, there is no need for a will and the issues that go along with having one. Having a trust may also make it easier to manage your affairs while alive and to shield assets from creditor claims.
Living revocable trust
A living or revocable trust is ideal for those who want to maintain control of their lives if they become incapacitated for any reason. This type of trust allows you to be the trustee and the beneficiary, which means that you retain control of the assets at all times. If you do become incapacitated, a secondary trustee will manage the trust on your behalf. As you are the trustee, you can change the terms of the trust or revoke it entirely for any reason. After you pass, the trust converts to an irrevocable trust.
Irrevocable trust
As the name suggests, an irrevocable trust provides less flexibility than a living trust. This is because the terms cannot be changed after they go into effect, and the document itself generally cannot be revoked without permission of the trustee and the beneficiaries. One of the estate planning benefits of this type of trust is that you have greater protection against creditors since you have little control over the assets inside of it. You have almost no control over trust assets because you cannot name yourself as trustee. Therefore, someone else decides how assets are managed during your life and after your passing.
Adding a trust to your estate plan may help you shield assets from creditors or from being lost in a divorce settlement. An irrevocable trust may be ideal for those who want to gift assets during their lifetime in an effort to reduce their estate tax bill. If you already have a trust, you are encouraged to review it on an annual basis to ensure that it still meets your needs.