For many Texans, a will-based plan meets your needs well.
Therefore, a living trust may not be necessary. But what exactly is a living trust, and how can you tell if you should have one?
Think of a living trust as a bucket - you will place your estate assets into this bucket, and then only the owner (trustee) of the bucket can take items out, as directed by the terms of the trust agreement, for the benefit of trust beneficiary.
Living trusts can offer value and maintain privacy if you have a complex estate. They may allow your assets to bypass the probate process, which may be especially helpful for property held out of state. And, a trust may help reduce potential conflict.
However, for some clients, the upfront cost and effort of setting one up will outweigh potential benefits for your family. Property must be transferred, or "funded," into the trust "bucket." The time and cost of doing so must be weighed against the benefits a trust can offer.
A trust is more of a specialty tool than jack of all trades but can be an important piece of an estate plan in some circumstances. The right question isn’t “should I have a will or a trust?” though, but rather, “should I have a trust in addition to my will?”
If you need help deciding whether a living trust is a good fit for you, let's have a conversation.