A living trust in Texas allows you to use your assets during your lifetime and transfer them safely to your beneficiaries after your death. A revocable living trust (also called an inter vivos trust) offers a variety of benefits as an estate planning tool. A trust is a box that contains assets. A trust is created when a person (called a trust, trust, or grantor) transfers to another person or entity (called a trustee) a property interest that will be held for the benefits of a beneficiary.
If the trust is created during the life of the trust, rather than in your will, it is called an intervivos or a living trust. When the trust retains the right to dissolve the trust, it is called a revocable trust. Conversely, if the trust does not have the right to change or dissolve the trust, it is irrevocable. A revocable trust often becomes irrevocable when the trustee dies.
If the assets are titled in the name of the revocable living trust and the trust dies, a successor trustee simply steps in and manages the assets according to the instructions outlined in the trust agreement. Most of the advantages associated with the revocable living trust involve the fact that assets owned by the revocable living trust pass to beneficiaries without probate. Often, the revocable living trust is more expensive to create and finance and saves little on administrative expenses after the death of the trust. The software only allows me to use my name as the name of the trust (which I have found a solution to include the word 'revocable life' (vice 'family') in the name of the trust) but I want to use a fictitious name (not for illegal reasons such as evading creditors) to take my eyes off any of the owners of the house.
Contrary to popular belief, revocable living trusts offer very little asset protection if you retain an ownership interest, such as appointing yourself as a trustee. Most grantors appoint themselves as trustees of their revocable living trust so that they can retain control of their assets throughout their lifetime. However, it is reliable that a property registered with a name is much easier to bind to a trust, regardless of what it is called, because someone can infer through the chain of title that the previously named owner and the creator of the trust are probably the same person. When you sign your revocable living trust, you will receive a financing package that lists your assets and provides instructions on how to place each asset in the revocable living trust.
However, because it is a living trust that is revocable, you retain control of assets, even if they no longer belong to you, as long as you are alive. Step 3 — Under Article 1, create a name for the Trust and select the box that applies to this particular Trust document; either a modification of a previous trust or an original trust. The assets in your revocable living trust are considered your property and can be claimed by creditors. Creating a living trust in Texas is a matter of personal choice, but many people find the benefits worthwhile.
By placing assets in a revocable living trust, they can bypass the probate process after their death. Compared to wills, revocable trusts provide greater privacy, as well as more control and flexibility over the distribution of assets.