Trusts 101: A Simple Guide for Texas Families

When it comes to estate planning in Texas, trusts are often misunderstood and overlooked. Many people assume trusts are only for the wealthy or that they’re too complicated to bother with. In reality, trusts are one of the most flexible and powerful tools available to protect your family, preserve your assets, and ensure your wishes are carried out efficiently.

If you’ve ever wondered whether a trust should be part of your estate plan, this guide is for you. Our affordable Estate Attorneys in Decatur can answer all of your questions about Trusts and when they are appropriate.

Below, we break down what trusts are, how they work, and why Texas families — not just the ultra-wealthy — can benefit from incorporating trusts into their estate planning strategy.

What Is a Trust?

A trust is a legal arrangement where one party (the trustee) holds and manages assets for the benefit of another (the beneficiary). The person who creates the trust is known as the grantor or settlor. The trust document outlines how assets should be managed and distributed during the grantor’s lifetime and after their death.

Trusts are highly customizable, allowing you to tailor them to meet your specific goals — whether that’s providing for young children, protecting assets from creditors, avoiding probate, or supporting charitable causes.

Trusts vs. Wills: What’s the Difference?

Many people ask whether they need a trust if they already have a will. The answer depends on your goals. Both tools serve important but different functions:

Wills do the following: 

-Becomes effective after death 

-Requires probate 

-Public record through probate 

-Appoints executor and guardians 

Trusts do the following:

-Can take effect during life or after death

-Avoids probate (if properly funded)

-Creates a private document

-Appoints trustee for managing assets

In short, a will provides instructions for your estate after your death and must go through probate. A trust can help manage your assets during life (if needed) and efficiently transfer them after death without court involvement.

Benefits of Trusts for Texas Families

1. Avoiding Probate

Texas has a relatively efficient probate system compared to other states, but probate is still a public legal process that can take months. A properly funded trust allows your beneficiaries to avoid probate entirely, saving time, preserving privacy, and reducing costs.

2. Privacy and Confidentiality

Unlike wills, which become public record during probate, trusts remain private. This is particularly important if you want to keep details about your assets, beneficiaries, or family dynamics confidential.

3. Asset Protection

Certain trusts can protect your assets from creditors, lawsuits, or divorce proceedings. If you want to ensure your legacy stays intact for your family, these protections can be invaluable.

4. Providing for Loved Ones

Trusts allow you to provide for children, grandchildren, or family members with special needs in a controlled and responsible way. You can set conditions for distributions, stagger payments over time, or ensure funds are used for specific purposes like education or healthcare.

5. Incapacity Planning

If you become incapacitated, a revocable living trust ensures your assets can be managed seamlessly by a successor trustee without the need for court intervention.

Common Types of Trusts in Texas

Revocable Living Trust

A revocable living trust allows you to retain control over your assets during your lifetime. You can amend or revoke it at any time. Upon your death, your successor trustee takes over to manage and distribute your assets according to yo