Trusts

A revocable living trust is a legal document you create during your lifetime to hold your assets. You retain full control as the trustee, can change or revoke it at any time, and name a successor trustee to take over when you pass away or become incapacitated. The key advantage is that assets held in the trust pass directly to your beneficiaries without going through probate court. If you own real estate, have minor children, have significant savings, or want to avoid the delay and expense of probate, a revocable living trust is strongly recommended.

A basic revocable living trust package at our firm typically includes the trust document, a pour-over will, durable power of attorney, medical power of attorney, and advance directive. Costs vary based on the complexity of your situation, the number of beneficiaries, whether you have a blended family, business interests, or special needs considerations. We provide transparent, flat-fee pricing during your initial consultation so there are no surprises. A trust-based estate plan is an investment that typically saves your family far more than it costs by avoiding probate.

A revocable trust can be changed, amended, or revoked by the grantor at any time; the grantor typically serves as trustee, retains full control, and the assets remain part of the grantor's taxable estate. Texas sets the default in the grantor's favor: under Texas Property Code § 112.051(a), a settlor may revoke the trust unless it is made irrevocable by the express terms of the instrument — so a Texas trust that is simply silent on the question is revocable, and a revocation or amendment of a written trust must itself be in writing (§ 112.051(c)). An irrevocable trust generally cannot be changed or revoked, and that loss of control is what removes the assets from the taxable estate and places them beyond most future creditors. Irrevocable trusts are used for Medicaid planning, estate tax minimization, and asset protection. One limit is worth knowing before you pay for a structure that will not do what you were told: under § 112.035(d), if the settlor is also a beneficiary, a spendthrift provision does not stop the settlor's own creditors from reaching the settlor's interest. Texas does not permit you to shield your own assets from your own creditors in a trust you still benefit from. Protection for a beneficiary other than yourself is a different matter, and it works.

Yes — assets held in a properly funded trust avoid probate entirely. When you pass away, your successor trustee distributes the trust assets directly to your beneficiaries according to the trust terms, without any court involvement. This saves significant time (probate in Texas typically takes six to twelve months) and cost (court fees, attorney fees, and executor fees). However, a trust only avoids probate for assets that have actually been transferred into it. This is why funding — properly retitling assets to the trust — is essential.

When you pass away, your named successor trustee takes over management of the trust. The successor trustee notifies beneficiaries, inventories trust assets, pays any outstanding debts or taxes from trust funds, and distributes the remaining assets to the beneficiaries according to the trust's terms. Unlike probate, this process does not require court involvement and can typically be completed in a matter of weeks rather than months. The trust document specifies exactly how assets are to be distributed — in lump sums, over time, or in trust for beneficiaries who are minors or have special needs.

Yes. With a revocable living trust, you typically serve as the initial trustee and retain full control of the trust assets during your lifetime. You name a successor trustee — a family member, trusted friend, or professional trustee — who takes over if you become incapacitated or when you pass away. This arrangement allows you to manage your assets as you normally would while ensuring a smooth transition to your chosen successor when needed. For irrevocable trusts, the rules are different: serving as your own trustee — or remaining a beneficiary — undercuts the asset protection, because Texas Property Code § 112.035(d) lets the settlor's creditors reach a settlor-beneficiary's interest despite a spendthrift clause. An independent trustee is often required, and § 112.035(d)(1) confirms the narrow exception that does not by itself make you a beneficiary: a non-settlor trustee paying the income tax you owe on trust income.

Real estate is the primary asset that should be transferred into a trust to avoid probate. Bank and investment accounts, business interests, and valuable personal property are also commonly placed in trusts. Retirement accounts (IRAs, 401(k)s) are generally not titled in a trust but should have coordinated beneficiary designations. Life insurance is typically not placed in a revocable trust but can be held in an irrevocable life insurance trust (ILIT) for estate tax purposes. We walk every client through an asset-by-asset analysis to ensure the trust is properly funded and coordinated with their overall estate plan. Two Texas rules make funding go smoothly. First, Texas Property Code § 112.004 requires written evidence of the trust's terms bearing the settlor's signature, so transfers of real property are documented by deed into the trust, not by verbal instruction. Second, when a bank or title company asks to see your entire trust before it will retitle an account, you are usually not required to hand it over: § 114.086 lets the trustee provide a certification of trust instead — confirming the trust exists, who the trustee is, what powers the trustee holds, and how title should be taken, without disclosing who inherits what. A person who acts in reliance on that certification is protected (§ 114.086(f)), and § 114.086(i) makes a person who demands the full trust instrument anyway liable for damages if the court finds the demand was not made in good faith.

A special needs trust holds assets for a beneficiary with a disability without disqualifying them from need-based government benefits like Medicaid and SSI. These benefits are typically unavailable to individuals with more than $2,000 in countable assets. A special needs trust provides funds for supplemental expenses — medical equipment, education, recreation, and quality of life improvements — while the trust assets are not counted toward the benefit eligibility threshold. Without a special needs trust, a direct inheritance or settlement can cause the beneficiary to lose essential benefits. Proper drafting is critical to ensure the trust complies with federal and Texas law.

A will and a trust serve different purposes and work best together. A will is essential for naming guardians for minor children and ensures any assets not held in the trust still pass according to your wishes (through probate). However, a will alone requires probate — a public, court-supervised process that takes months. A revocable living trust avoids probate, provides for incapacity management during your lifetime, and can distribute assets according to more detailed instructions than a will typically allows. If avoiding probate is a goal, or if you have minor children, significant assets, or real estate, a trust-based plan is recommended.

Review your trust every three to five years, and update it after major life events: marriage, divorce, birth of a child or grandchild, death of a named beneficiary or trustee, significant changes in your financial situation, acquisition or sale of real estate, starting or selling a business, or moving to a new state. Changes in Texas law or federal tax law may also require updates. It is also important to review your funding — making sure any newly acquired assets are properly titled in the trust. An outdated or unfunded trust can undermine years of planning.

You have a statutory right to demand one, and a deadline the trustee cannot ignore. Under Texas Property Code § 113.151(a), a beneficiary may make a written demand for an accounting, and if the trustee fails or refuses to deliver it on or before the 90th day after receiving the demand, any beneficiary may file suit to compel it — and the court may award the suing beneficiary's reasonable and necessary attorney's fees and court costs against the trustee individually, not merely against the trust. The accounting is not a summary: § 113.152 requires it to show all trust property, a complete account of receipts and disbursements with principal and income shown separately, a listing of every asset, the cash balance and where it is held, and all known liabilities. A trustee is generally not obligated to account more than once every 12 months unless a court orders otherwise. Two points defeat the objections trustees usually raise. First, this duty largely cannot be drafted away — § 111.0035(b)(4)(A) provides that the terms of a trust may not limit a trustee's duty, as to an irrevocable trust, to respond to a § 113.151 demand from a beneficiary who is currently entitled or permitted to receive distributions or who would receive one if the trust terminated today. Second, an accounting is usually the beginning rather than the end: if it reveals a breach, § 114.008 lets the court compel the trustee to restore property, impose a constructive trust, appoint a receiver, and suspend or remove the trustee, while § 114.061(b) lets the court deny the trustee compensation altogether. Investment losses are measured against the prudent investor standard in § 117.004, which evaluates decisions in the context of the portfolio as a whole rather than asset by asset. Contested trust matters at our firm are handled by Therese Gutierrez, who leads the firm's probate and trust litigation work.

Far longer than most people expect, and the rule changed recently. Texas Property Code § 112.036(c)(1) provides that for a trust whose effective date is on or after September 1, 2021, an interest must vest no later than the later of 300 years after the effective date or 21 years after some life in being at the effective date, plus a period of gestation. For a trust with an earlier effective date, the older rule — 21 years after a life in being — still governs, unless the instrument opts into the current rule as § 112.036(d) permits. Charitable trusts sit outside the rule entirely (§ 112.036(a)). That 300-year horizon is what makes a multigenerational or dynasty trust genuinely workable in Texas: assets can stay in trust for descendants, protected from their creditors and divorces, instead of being distributed outright to a generation that may not be ready for them. One boundary is easy to miss when drafting for the long term. Under § 112.036(f), a settlor may not direct that a real property asset be retained, or refuse that it may be sold, for a period longer than 100 years. Families who want the ranch or the homestead held indefinitely need the trust drafted around that limit rather than against it.

A spendthrift trust includes a provision — authorized by Texas Property Code § 112.035 — that prevents a beneficiary from voluntarily assigning their trust interest to a creditor, and prevents creditors from reaching trust assets before the trustee actually makes a distribution. This protection is commonly paired with discretionary distribution authority: the trustee, not the beneficiary, decides when and how much to distribute. The structure is valuable when a beneficiary struggles with addiction, chronic financial difficulty, or a high-liability profession, or when you want to insulate an inheritance from a future divorce. Unlike an outright inheritance, a properly drafted spendthrift trust means a judgment creditor cannot attach the trust corpus — only a distribution already in the beneficiary's hands is reachable. Texas courts consistently uphold valid spendthrift provisions, making them one of the most reliable protective tools in estate planning.