DALLAS PROBATE ATTORNEY: WHAT IS A LIVING TRUST?

Posted on | July 12, 2011 | No Comments

A living trust is a commonly used estate-planning tool that transfers real and personal property in to a trust while the grantor is living in order to avoid probate, reduce estate taxes and manage property. Living trusts are created by a document called a Trust Agreement, which sets forth who the trustee and beneficiaries are to the trust. Specifically, a living trust is desirable because it allows a grantor to transfer all his or her assets into the trust for the named trust beneficiaries, but also allows the person, as trustee, to control those assets for the duration of his or her lifetime.  If the trust owns all property of the grantor at the time of the grantors death, probate is unnecessary.

Living trusts are usually accompanied by a last will and testament, which is called a pour-over will. The pour-over will acts as a catch-all for all of the property that was not put into the living trust during the grantor’s lifetime. Once probated, the pour-over will transfers all of the remaining property into the trust for the benefit of the named beneficiaries.

Living trusts and pour-over wills are inherently related and are therefore drafted together. If you would like to speak to a professional about drafting a living trust, please contact The Wright Firm and one of our Dallas Probate Attorney’s today at 972-353-4600 or visit our website at www.thewrightlawyers.com.

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