The Living Trust: An Option for Protecting the Future

The Living Trust: An Option for Protecting the FutureThere are a number of important benefits to the creation of a living trust.  Of course, different states have different regulations regarding the formation of a living trust, but the underlying function of the trust remains the same: all the property that is left in trust does not have to go through the probate system to be passed on to those you wish to inherit the property.  A living trust protects the deceased and his or her heirs against the probate system as a whole, which can sometimes be expensive and time-consuming in complex cases.

In Texas, the probate system is relatively fast and painless– and forming a living trust does not negate the need to pay taxes on property left for heirs.  Within the state, a living trust and probate have almost the same cost; however, for individuals who hold property outside of Texas, a living trust protects heirs from property probate for the out-of-state property.  It is important to note that a living trust is something that must be maintained– it cannot be created and ignored for many years.  This is why a living trust is only recommended for good record-keepers and for individuals who have large holdings of property across different states.  For others, a living will can suffice just as easily.

Despite the many practicalities– and impracticalities– of creating and maintaining a living trust, one of the most common reasons to do so is for privacy.  A living trust allows the creator and his or her heirs to keep the property and the contents of the trust secret and private, something that appeals to many. For more information regarding the creation of a living trust and about the difference between issuing a will and a trust, please feel free to contact us with questions and concerns.