Search Site
Menu
Will v. Living Trust (Part II): Common Uses for Living Trusts

If living trusts are not always cheaper and faster in Texas when would you use one?  To understand the common uses for living trusts in Texas it may be helpful to understand some basic concepts for how a living trust works.  First, a trust expressly states who will be controlling the property that is held in trust.  Second, a trust should set forth the basic rules for how trust property will be managed and the extent of the trustee’s powers to control that property.  Third, the trust should set forth the conditions and procedures for when control of the trust property will be transferred from the current trustee to a successor trustee. Fourth, and finally, a trust works like a contract; therefore, a properly drafted trust does not require a court order to transfer control of trust property.  From these principals we can extrapolate some instances in which a living trust will be a useful and cost effective estate planning tool.

Multi-State Property Owners.  Living trusts can be utilized to avoid the necessity of probating an estate in multiple jurisdictions.  Probates are a state court proceeding that are only valid in the state in which they are filed.  Therefore, if a descendent owns property in multiple states it may be necessary to probate that will in multiple states in order to transfer the property owned in each state.  The additional court costs, attorney’s fees and delay resulting from probating a will in multiple states can often be avoided by utilizing a living trust that is valid in all states and does not require court action to transfer property that is owned in multiple jurisdictions.

Issues of Looming Incapacity.  Living trusts can be very effective for transferring management of assets in cases of looming incapacity.  Because trusts can transfer property without court intervention, we can fund a living trust prior to the onset of a disease, disorder or genetic predisposition that may impair your (or a loved one’s) cognitive abilities.  The living trust will allow the property owner to control his or her own property while their cognitive abilities remain and provide for a transition of the control of that property upon once the owner is no longer capable of making their own financial decisions.

Privacy Issues.  Living trusts can be utilized to maintain a measure of privacy.  Although recent changes to Texas law have improved on the privacy afforded in probate proceedings, an inventory of property owned by the decedent.  This inventory must (at a minimum) be provided to the decedent’s designated beneficiaries and heirs and may need to be filed as a matter of public record.  However, property held in living trust is not subject to the same disclosure requirements.  Accordingly, a living trust can be utilized when the decedent owns specific items or types of property that he does not wish to disclose to the general public or all of his beneficiaries and heirs.

The Strong Firm P.C.

Phone Number: 281-367-1222

Fax Number: 281-210-1361

[email protected]

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact a Dedicated Texas Business Lawyer To Schedule a Consultation
Call 281-367-1222 or contact us online to schedule a meeting.

Strong In Action

  • Spring 2019

    The Strong Firm represents borrower in $42.3 million HUD construction loan for multifamily real estate development in Walton County, Florida.

    Read More
  • Spring 2019

    The Strong Firm acts as legal counsel for borrower in $32.1 million HUD construction loan for multifamily real estate development in Conroe, Texas.

    Read More
  • Spring 2019

    The Strong Firm aids borrower in $31.7 million HUD construction loan for multifamily real estate development in Nueces County, Texas.

    Read More
  • Spring 2019

    The Strong Firm represents borrower in the refinancing of a $3.57 million commercial mortgage-backed security for a commercial office facility in Montgomery County, Texas.

    Read More
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  • Peer Rated 2019 Award

Recent Blog Posts

Legislation Authorizes Paid Sick Leave for Workers Suffering from Coronavirus

New legislation passed in response to the COVID-19 pandemic allows certain workers to receive paid sick leave even if their employer previously did not provide it. In March, the federal government enacted the Families First Coronavirus Response Act (FFCRA). This law assists employers that give their employees paid time off
Read More
Legislation Authorizes Paid Sick Leave for Workers Suffering from Coronavirus

Lenders Suspend Home Foreclosures Due to COVID-19, But What Happens Next?

Many large financial institutions are suspending foreclosures because of the massive economic damage caused by COVID-19. Some banks have stopped proceedings indefinitely. Others have set time limits for foreclosure suspensions such as 60 or 90 days. Even as health and financial issues remain uncertain, this is a good time for
Read More
Lenders Suspend Home Foreclosures Due to COVID-19, But What Happens Next?

How Can I Create Estate Planning Documents During the Pandemic?

Even in its first few weeks, the COVID-19 pandemic caused many people to examine or reassess what is most important to them. The need to prepare in case of an emergency or untimely death has been highlighted by the tragic losses occurring around the country. What can you do if
Read More
How Can I Create Estate Planning Documents During the Pandemic?

Complying with Corporate Annual Meeting Requirements during the COVID-19 Quarantine

How do you hold a corporate annual meeting when the entire country is in lockdown? On the surface, it might seem like a simple matter of using a favorite video conferencing tool and perhaps checking to see if it’s been hacked. Annual meetings for corporations are more than get-togethers. They
Read More
Complying with Corporate Annual Meeting Requirements during the COVID-19 Quarantine
  • Video Vault


    Watch videos done by our legal team to gain a better understanding of your legal needs. Our lawyers give video insight into areas such as Real Estate, Business Law, Mergers & Acquisitions and much more.

Pay Retainer Online

Use our easy-to-use and secure online payment feature.
We accept all major credit cards.

Pay Your Retainer

Contact us

Quick Contact Form