Living Trusts For Specific Purposes
A living trust (also known as an inter vivos trust) is a separate legal entity you create to own property, such as your home or investments. The trust is called a living trust because it’s meant to function while you’re alive. You control the property in the trust, and, whenever you wish, you can change the trust terms, transfer property in and out of the trust, or end the trust altogether.
Not everyone needs a living trust, but it can be used to accomplish various purposes. The primary functions are if you have a need to restrict the distribution of property, a beneficiary who may not be fiscally responsible or a special needs child. Please call us for more information on Trusts if you fall into one of these categories.
Although a living trust transfers property like a will, you should still also have a will because the trust will be unable to accomplish certain things that only a will can, such as naming an executor or a guardian for minor children.
Often you will be told to use a trust to avoid probate. In Texas, probate is a simple process that is often much easier than creating and maintaining a trust. However, there are other ways to avoid the probate process besides creating a living trust, such as titling property jointly with rights of survivorship or designating beneficiaries when available.