Texas Revocable Living Trust Attorney
Protecting your family’s privacy through personalized estate planning
Although a will is a key part of any estate plan, it doesn’t cover everything. A will can’t protect your family’s privacy or let you avoid the possibility of needing a court-appointed guardian in years to come—but a revocable living trust can.
The Texas revocable living trust attorneys at Shann M. Chaudhry Esq., Attorney at Law PLLC have years of experience working closely with individuals and families to create trusts tailored to their needs.
We pride ourselves on truly listening to our clients and building lifelong relationships.
If you’re considering creating a trust or other estate planning strategy, contact us. Our attorneys can guide you through the process with compassion and insight.
What Is a Revocable Living Trust?
A revocable living trust is an estate planning tool that accomplishes specific goals that can’t be achieved with a Last Will and Testament.
When you place assets in a revocable living trust, they technically no longer belong to you. However, you can appoint yourself as the trustee, meaning that you can still control the assets. You can also still earn taxable income from any assets in the trust.
Probate is the public process of proving a Will in court, and it can be both time-consuming and expensive. But because assets placed in a revocable living trust no longer belong to you, they can bypass the probate process upon your death, as long as the trust is properly structure, funded, and maintained.
With a will, the average attorneys fees and cost of administering a probate in most Texas Counties is $5,000.
On the other hand, the average attorneys fees and costs of an intestate administration ranges from $10-15,000, and can be even more if the estate is contested.
Revocable living trusts grant families privacy by keeping certain assets off the public record where anyone can look up the financial details. These trusts are much harder to challenge in court than a Will.
With a living trust, you can also appoint a family member or trusted friend to manage your assets, if you become incapacitated.
Revocable living trusts grant families privacy by keeping certain assets off the public record where anyone can look up the financial details. These trusts are much harder to challenge in court than a Will.
With a living trust, you can also appoint a family member or trusted friend to manage your assets, if you become incapacitated.
You can change or amend a revocable living trust at any time.
The future you want matters. Our Austin and San Antonio estate planning law firm understands that revocable living trusts reflect very specific personal goals and financial situations. We work with clients to craft comprehensive estate plans that provide the protections and future support they’re looking for.
When is a revocable living trust needed?
Revocable living trusts offer a number of benefits, including:
- Avoiding probate—they’re often used by families who would prefer privacy and to avoid having all their assets listed on the public record
- Preventing the process of inheritance from being drawn out for years
- Designating someone someone you know to manage your affairs, in case you become unable to do so yourself
If you do become incapacitated, the Court can appoint a guardian to manage your finances, legal decisions, and medical treatment. However, when combined with a Power of Attorney, a revocable living trust helps you avoid this situation by allowing you to decide who you’d like to handle these tasks, not a judge who doesn’t know you.
Benefits of a Revocable Living Trust
Revocable trusts appeal to many people because they’re the Swiss Army knife of estate planning—they can be pulled out for lots of different purposes and situations. Once assets are placed in the trust, they can’t be taken out, but almost all other details can be amended at any time—including the designated beneficiaries.
Revocable living trusts are extremely flexible, as well. You can amend one at any time, a feature that works well for grantors who want a safety net for their family but also the ability to make changes in the future.
A revocable living trust allows the person who created the trust to retain control of their assets and continue to earn taxable income from the assets.
For blended families in particular, revocable living trusts are useful for estate planning because they become partially irrevocable if a first spouse passes on or becomes incapacitated.
Revocable trusts work for lots of types of assets, including real estate or a business. Revocable living trusts can set up prohibitions or requirements for beneficiaries—for example, a revocable living trust can require a child’s future spouse to sign a prenuptial agreement.
When the time comes, this trust can help your family bypass the probate process and maintain their privacy. The trust will also be more protected from challenges than a Will.
Our approach to trusts and estate planning
We approach all our client relationships with genuine concern and compassion.
Our job is to make your life easier. We’re committed to communication and service from start to finish.
In our trust and estate planning services, we take the burden off clients by guiding you step by step through the process. We start with basic planning and move on to other complex issues as needed to create an estate plan that matches you and your family’s needs and goals.
Our approach to trusts and estate planning
We approach all our client relationships with genuine concern and compassion.
Our job is to make your life easier. We’re committed to communication and service from start to finish.
In our trust and estate planning services, we take the burden off clients by guiding you step by step through the process. We start with basic planning and move on to other complex issues as needed to create an estate plan that matches you and your family’s needs and goals.
How Do I Set Up a Revocable Living Trust in Texas?
To establish a revocable living trust in Texas, we strongly recommend working with an estate planning attorney.
Creating a living trust is complex and highly personal. The process requires careful consideration, strategy, and a deep understanding of how estate law works in Texas.
A fill-in-the-blank approach to drafting legal documents won’t help you achieve your goals, and especially not where trusts are concerned.
If you’re interested in learning more about the estate planning process, our Austin and San Antonio estate planning teams can answer your questions and create legal documents that support your goals.
Work with Our Trusted San Antonio Estate Planning Law Firm Today
The estate planning attorneys at Shann M. Chaudhry Esq., Attorney at Law PLLC take pride in working closely with individuals and families to set up an estate plan that matches their needs, lifestyle, and financial situation.
We offer a thoughtful, comprehensive approach to planning for your family’s future.
If you’re thinking about planning your estate, contact us today. Our compassionate, knowledgeable attorneys can guide you through the Texas estate planning process.
Texas Revocable Living Trust FAQs
What’s the difference between a revocable living trust and an irrevocable living trust?
A revocable living trust is a flexible estate planning tool that allows the grantor, or person who created it, to change or amend it at any time.
Although assets placed in a revocable trust can’t be removed, the grantor can also be the trustee and therefore retain control of the assets. The grantor may also choose to continue receiving income from the assets in the trust.
An irrevocable trust established for highly specific purposes—such as a Domestic Asset Protection Trusts—and it’s very difficult to change and amendments can only be made with permission from the beneficiaries.
An irrevocable trust lowers the grantor’s taxable estate and therefore helps reduce their taxes.
An important note: a revocable living trust can become partially or fully irrevocable upon death or incapacity of trustmakers.
If you have questions as to which types of trusts make the most sense for your particular situation, our Austin and San Antonio estate planning teams can help you form a personalized and proactive plan for the future.
Do I need a revocable living trust in Texas?
There are lots of reasons to set up a revocable living trust in Texas. To start, a living trust helps your benefactors to bypass Texas probate upon your death.
A revocable living trust creates a greater level of privacy for the whole family and means that when family members are grieving, they won’t also have to wade through a probate process that can take years.
In Texas, if you become incapacitated and haven’t already named someone to make decisions for you, a judge will have to appoint someone as your guardian with no knowledge of your preferences. However, a living trust lets you name someone to manage your affairs if you aren’t able to do so yourself.
What should you not put in a revocable living trust?
You shouldn’t place retirement accounts into a revocable living trust. When a retirement account is transferred, it’s viewed legally as a withdrawal of funds, which triggers income tax on the balance.
Instead, you can name the trust as a beneficiary to your retirement account and end up with a similar result—without the income tax.
You can’t place tax-free accounts, such as medical savings accounts, into a revocable living trust.
However, there are many assets that are good fits for a revocable living trust, including businesses and real estate. Not only does placing real estate in a living trust help you avoid hefty probate estate taxes, but it may also help you avoid additional probate proceedings if you own property outside your home county.
At SMC ESQ PLLC, our Texas revocable living trust attorneys closely work with clients to figure out how to distribute assets to trusts, as well as address other estate planning concerns.