Why a Trust?
A Trust—especially a Revocable Living Trust—is the cornerstone of modern estate planning. Unlike a Will, a Trust holds title to assets during your lifetime and transfers them privately at death, bypassing probate entirely. It also provides seamless incapacity protection if you cannot manage your affairs.
Key Benefits:
Probate Avoidance: Assets titled in your Trust never go through probate court—saves time, money, and keeps your family’s affairs private.
Incapacity Protection: If you become incapacitated, your named successor trustee immediately steps in to manage your finances and make medical or financial decisions on your behalf.
Privacy: Probate proceedings are public. A Trust transfers assets in private without court filings.
Flexibility: You remain in full control—add or remove assets, change beneficiaries, or revoke the Trust at any time.
Types of Trusts We Offer:
Revocable Living Trust: The most common “all-in-one” vehicle—fully revocable, simple to administer, protects against probate.
Irrevocable Asset Protection Trust: For clients concerned about creditor claims, lawsuits, or long-term care costs (Medicaid planning). Once funded, these assets are outside your taxable estate.
Special Needs Trust: Allows you to provide for a child or adult with special needs without jeopardizing their Medicaid/SSI eligibility.
Charitable Remainder Trust (CRT): If you wish to make a significant gift to charity, a CRT can provide you (or a loved one) with income first, then the remainder passes to charity—offering tax benefits.
Business Succession Trusts: For business owners, we create tailored trusts (e.g., Grantor Retained Annuity Trusts, Family Limited Partnerships) to transition ownership smoothly and minimize tax burdens.
Our Trust Process (Step-by-Step):
Initial Trust Consultation: Review goals—probate avoidance, privacy, incapacity, or tax savings.
Document Preparation: We draft a custom Trust agreement (naming you as trustee during life and your chosen successor trustee).
Funding Assistance: We guide and oversee retitling of each asset—homes, bank accounts, investment accounts, vehicles—into the Trust’s name.
Review & Execution: You review with our attorney; then sign with proper notarization.
Ongoing Maintenance: If assets change (new home, new bank account), we provide a funding checklist so nothing gets left out.
Frequently Asked Questions (FAQs)
1. What is a Revocable Living Trust, and why should I consider one?
A Revocable Living Trust is a legal entity you create during your lifetime that holds title to your assets (home, bank accounts, investments, etc.). You remain in full control as trustee, and you can change or revoke it anytime. The key benefits are:
Probate Avoidance: Assets titled in the trust bypass the probate court entirely when you pass away, saving your family months (often 9–24 months) and thousands of dollars (3–7% of your estate).
Incapacity Protection: If you become incapacitated (illness, accident), your chosen successor trustee steps in immediately—no guardianship hearing, no court fees, no delay.
Privacy: Probate records are public; trust transfers remain confidential.
Overall, a Revocable Living Trust ensures your family can access funds immediately, preserves privacy, and keeps your plan up to date as life changes.
2. How does an Irrevocable Trust differ from a Revocable Trust, and do I need one?
An Irrevocable Trust cannot be changed or revoked once executed (except in rare circumstances). You transfer assets permanently into the trust. Its primary purposes are:
Asset Protection: Shield certain assets (cash, real estate) from creditors, lawsuits, or long-term care costs.
Medicaid Planning: Qualify for Medicaid (nursing home benefits) by moving countable resources into an Irrevocable Medicaid Asset Protection Trust before the 60-month “look-back” period.
Tax Savings: Remove assets from your taxable estate to reduce estate taxes if you exceed federal or Texas exemptions.
You’d consider an Irrevocable Trust if you face high creditor risk, need specialized long-term care planning, or want to minimize estate taxes. Because you lose direct control once you fund it, we discuss pros/cons carefully before recommending.
3. Do I still need a Will if I have a Trust?
Yes. Even with a fully funded Trust, a Pour-Over Will is essential. Here’s why:
Safety Net for Unfunded Assets: If any asset (e.g., a newly acquired car or a small bank account) wasn’t retitled into your Trust, the Pour-Over Will “catches” it at your death and transfers it into the Trust, avoiding unintended intestate distribution.
Minor Guardianship Directives: If you have children under 18, a Will nominates their guardian. Trusts alone cannot name guardians for minors.
So, a Pour-Over Will complements your Trust; it never bypasses probate on its own but ensures no asset slips through the cracks.
4. What does “funding the Trust” mean, and why is it so important?
“Funding the Trust” means transferring ownership of your assets—real estate, bank and investment accounts, business interests, vehicles, and even digital assets—into the Trust’s name. Why it matters:
Probate Avoidance: A Trust only avoids probate for assets it actually owns. If you draft a perfect Trust but leave the deed to your home in your personal name, that home still goes through probate.
Incapacity Protection: Only assets in the Trust can be managed by your successor trustee if you become incapacitated. Unfunded assets may require a court-appointed guardian to handle.
Complete Privacy & Efficiency: Properly funded Trust assets transfer immediately and privately—no court delays or public records.
In short, without funding, the Trust is just a shell. We walk every client through each deed transfer, bank retitling, and account-update step so nothing is ever missed.
5. Can I be both the Trustee and Beneficiary of my own Trust?
Yes. In a Revocable Living Trust, you typically name yourself as Trustee and primary Beneficiary while you’re alive. That lets you maintain full control—buy, sell, or remove assets anytime. After you pass (or become incapacitated), a successor trustee you’ve named takes over for the benefit of your named heirs. Because you remain in charge during life, the trust is still considered part of your “taxable estate” (so it does not shield assets from estate taxes unless you structure an Irrevocable Trust).
6. How do I choose a Successor Trustee, and what should they know?
A Successor Trustee steps in if you become incapacitated or when you die and is responsible for managing or distributing Trust assets. The ideal candidate should be:
Organized & Responsible: Comfortable handling bills, financial statements, and tax filings.
Impartial & Trustworthy: Able to honor your instructions fairly, even if family members disagree.
Financially Savvy (or Willing to Learn): They don’t need to be a CPA, but they should follow budgets, read statements, and work with professionals (attorneys, accountants) when needed.
Available & Local (Preferably): Closer proximity to your home county can simplify bank visits, property issues, or legal filings.
Longer Life Expectancy: If you name a peer or older relative, they may not outlive critical distribution phases.
We help you draft a clear Trust Instruction Letter that spells out how and when to distribute assets, who to contact for professional help, and any personal wishes (e.g., pay off specific debts first). That way, your Successor Trustee never has to guess.
7. Are Trusts public record in Texas?
No. Trusts are private agreements. Unlike a Will that goes through probate (publicly accessible for anyone to see heirs and asset values), Trusts transfer assets quietly. The only time a Trust could become public is if there’s a legal challenge requiring court involvement—but even then, the published information is usually limited to beneficiary names, not asset details. For families who value confidentiality (real estate holdings, investment balances, personal distributions), this privacy is a major advantage.
8. How much does it cost to create and fund a Trust?
At Leeds Law Firm, we offer flat-fee Trust packages so you know exactly what to expect:
Revocable Living Trust Package: $4,000–$6,000 total (includes drafting the Trust agreement, Pour-Over Will, Powers of Attorney, and detailed funding assistance).
Irrevocable Asset Protection Trust: $X (varies by complexity—typically $3,500–$5,000) for drafting plus guidance on timing and compliance with Medicaid look-back rules.
Special Needs Trust: $X (usually $2,500–$4,000) depending on beneficiary’s situation and funding complexity.
Fees cover:
Initial Consultation & Planning: We discuss your goals (probate avoidance, incapacity protection, tax planning).
Document Preparation & Review: We draft a custom Trust, related wills, and powers of attorney.
Funding Support: Step-by-step guidance on transferring deeds, retitling bank/investment accounts, and updating beneficiary designations.
One Round of Edits & Final Execution: You review with us, we notarize, and we deliver your book-bound Trust binder.
After funding, if you add new assets (new home purchase, new retirement account), we offer follow-up funding assistance at a reduced rate. There are never hidden fees—if you need additional services (e.g., business succession add-ons or charitable remainder language), we quote those separately before proceeding.