Trust = legal device to manage property

Trustee = a person or entity with the right to manage property

Beneficiary = a person or class of people with the right to use and enjoyment of the property

Settlor = the person or persons putting their property into a trust 

There are 2 major types of trusts:  Testamentary Trusts and Living Trusts

• ​Testamentary ​Trusts are created within a Last Will and Testament and come into existence upon your passing.
• Living Trusts are created while you are still alive.

• A Living Trust (LT) is a legal device to manage your property while you are living.
• You do not need an LT to avoid the probate process.  The Texas probate process is fairly easy and often costs less than a LT. 
• If you are constantly acquiring new property, a LT is not recommended as all property should be included in the trust and acquiring new property requires updates to the LT, thus more legal work and expense.
• A LT does not help you to avoid creditors. 
  • ​If creditor avoidance is a concern, then an irrevocable trust will be needed which means the settlor of the trust will need to giving up authority and control of the property they put in trust to the appointed trustee.  We do not currently draft irrevocable living trusts.
• A LT is helpful in these situations:  1) you own real property in another state, 2) impending disability is likely, 3) you have heightened concerns about privacy of your estate and property you own, 4) you are post-retirement and no longer acquiring assets often, and 5) if a will contest is likely; capacity to execute a living trust can be more easily proven as the document is often executed earlier in life.  
• Price is based on complexity of the documents needed.