What is a living trust and what are the advantages and disadvantages of setting up one?

A living trust is a legal document that allows you to place your assets in a trust while you are still alive. This trust can hold things like real estate, bank accounts, investments, and other property. Once you have designated in the trust who you want to receive the property after your death, the trust remains in effect and allows the assets to be passed on without the need for probate court. The advantages of setting up a living trust include avoiding probate, which can be expensive and time-consuming. It also allows you to remain in control of your assets while you are alive. The trust also offers greater privacy since the terms of the trust do not become a matter of public record. The major disadvantage of a living trust is the cost involved. It can be expensive to set up and maintain a legally binding trust. Additionally, there are certain restrictions on what type of assets can be placed into the trust. It also requires ongoing maintenance, as any changes to your assets or wishes must be reflected in the trust. In Texas, living trusts are a popular way to transfer assets from one generation to the next. Before setting up a living trust, it is important to speak with an experienced elder law attorney to make sure it is the best option for you and your family.

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What is a living trust and what are the advantages and disadvantages of setting up one?

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