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Dallas Estate Litigation and Planning Blog

Pros and Cons of Having a Trust

You should consider all available options when creating an estate plan. A living trust can protect your assets while you’re alive and the trust can transfer automatically to named beneficiaries upon your death or incapacitation. It’s a valuable part of estate planning to ensure your loved ones receive the property you want them to have if something happens to you.

pros and cons of having a trustA living trust differs from a will because it doesn’t become effective when you die. It’s effective from the moment you create it while you’re still alive.

You can also appoint yourself as the trustee so you can continue to manage it throughout your lifetime. You can determine which assets you want to be held in trust and amend the legal document when necessary. For example, you might choose a beneficiary to receive a specific property but need to change the designation if they pass away before you.

There are multiple advantages and disadvantages to creating a living trust. You should consult an experienced estate planning lawyer to determine whether a living trust is right for you. Below are the pros and cons of establishing a trust for your estate plan so you can decide whether it will satisfy your wishes.

Pros of a Living Trust

You could benefit from a living trust in multiple ways. Some of the advantages of creating one include:

  • Asset protection if you’re incapacitated – If you become incapacitated and can’t make decisions for yourself, a living trust can keep your assets safe. It also protects your beneficiaries. Appointing a successor trustee allows that person to control the trust and distribute your property according to the instructions you included in the legal document.
  • Avoid probate – You could avoid probate by creating a revocable living trust. Probate can be a long process. When a loved one dies, you must go through probate court for a judge to validate the will and allow for the distribution of the assets. A living trust doesn’t have to go through probate, so your successor trustee can automatically transfer the assets to your intended beneficiaries upon your death.
  • Maintain privacy – Any part of an estate plan that must go through probate becomes a matter of public record. That means anyone could search online for the documents and find out what assets your relative left behind. If there’s a living trust, which does not go through probate, your named beneficiaries can keep the matter private, so no one knows which property they’re receiving.
  • Prevent irresponsible spending – If you’re a parent, you want to know you can take care of your child even after you’re gone. However, many people don’t know how to manage their money responsibly. You might worry your child won’t know how to manage the high-value asset or significant amount of money you left for them. Fortunately, a trust allows you to appoint a guardian to control your child’s spending.

Cons of a Living Trust

Although a trust offers various benefits, there are some drawbacks to creating one. The most common disadvantages of a living trust include:

  • cons of living trustTime-consuming work – If you want your assets to be distributed to your beneficiaries without going through probate, you must transfer them to your trust. It can take some time to decide which property you want to hold in trust and go through the necessary measures to transfer those items.
  • No protection from creditors – If you have a revocable living trust, creditors can go after the assets to satisfy your debts after you die. That means it could take some time for your family to receive the remaining property, if any, after the creditors take what they need.
  • Confusing documents – Unfortunately, if you don’t create a clear and detailed trust, there might be some confusion about the distribution of assets upon your death. If it conflicts with your will or another document in your estate plan, your beneficiaries could face a contentious court battle.
  • Money. The initial costs of creating and funding a trust are more than is required to create a will. Additionally, the assets you hold in trust could be subject to estate and income taxes.

Contact Staubus and Randall

If you’re considering setting up a trust as part of your estate plan, you should contact the Dallas estate planning lawyers of Staubus and Randall today. We can review your assets and other information to determine whether a trust is right for you. Our legal team understands the importance of protecting your property and heirs when you pass away or if you become incapacitated. You can depend on us to protect your interests and create an estate plan that meets your needs.

Call Staubus and Randall at 214-691-3411 for a free consultation with one of our Dallas estate planning attorneys or reach out to us online.

The Firm

The attorneys at Staubus and Randall have over 100 years of combined experience in estate planning, probate, and litigation. We have the knowledge and skills to tackle complex legal issues, such as guardianships, will contests, fiduciary litigation, and trust litigation. We can also handle routine matters, such as estate administration, probating wills, heirship determinations, and other probate court matters.

Staubus and Randall received a preeminent AV rating from Martindale-Hubbell, which is the highest rating possible from a peer-rated legal service. This rating recognizes our hard work, dedication, and the case results we’re able to achieve.

Staubus & Randall Team

What Our Clients Say

"I recently had the occasion to hire Mr. Staubus for a hotly contested Guardianship matter. Mr. Staubus brought a rare combination of effectiveness, reasonableness and understanding of the human element involved. Mr. Staubus handled all things in a calm, highly competent, effective and reasonable way. It could not have been as easy as he made it seem. He's a credit to the Bar."

Jody

"Before retaining the guidance of the Staubus & Randall firm, I was at my wit's end trying to close an uncle's estate as a co-executor. In addition to dealing with difficult heirs, I had other pressing business issues coming up immediately on estate land in the middle of the Eagleford Shale including dealings with pipeline, seismic, oil & gas, and construction companies. The local bank also refused to give me access to information relating to the estate. This quickly became the most stressful and desperate time in my life...and then I found Joseph Legere who truly became my guardian angel. He was able to get all issues resolved efficiently and the estate fully closed. His professionalism, immense legal knowledge on a wide variety of topics, and amazing communication skills took the burdens off of me and quickly got closure. I am forever indebted to this firm for giving me my life back."

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"Keith Staubus and Julie Blankenship and their team represented me in a jury trial in the probate court where the ownership of the business which I had worked hard to build was at stake. They successfully fought to preserve my business and my professional reputation, working masterfully to gain the support of the jury. I would not hesitate to hire them again in any bet-the-company litigation.”

Karen

"I have required legal representation twice in my life in two separate will contests. Both times I sought assistance from Keith Staubus and Staubus/Randall. Their service, approach, and determination to obtain results exceeded the other attorneys in each case. Mr. Staubus has always come across as genuine while being direct. He gets the process done in a timely manner with results. I will certainly use him again when and if any new challenges arise.”

David

"After my husband's death, I was devastated by having to defend against a vicious dispute over my husband's estate. Julie Blankenship and Keith Staubus made me feel very comfortable in this distressing situation. They were very tough and did an excellent job for me in obtaining a summary judgment in my favor without a full jury trial. I was glad to have them and Diane Walker in my corner to help me achieve an excellent result - I won! If I ever had to go back to probate court, I would hire them again.” - (will and trust construction case)

Flo

"If you need intervention for someone you love but don't know where to turn or who to turn to, Julie Blankenship and Keith Staubus helped me through the most difficult and stressful time in my life with a much loved family member. I now believe that good will triumph over evil. They fought for what was right, and good prevailed." (contested guardianship and will contest)

Janet

"As a professional money manager, I have used Ryan Randall's estate planning services both personally and for my clients. Ryan has exhibited three critical attributes in his work with me: (1) high intellectual capacity, (2) exceptional thoroughness, and (3) a total commitment to integrity. In today's litigious world, it can be quite costly not to "get things done right.” An added bonus to us was that we found one of the nicest people we could imagine.”

John

"I was represented by Keith Staubus as an income beneficiary in a lawsuit with the trustee of a family trust. Utilizing the expertise of a forensic accountant and his own trust expertise, Keith was able to negotiate a judicial modification of the trust providing for the buyout of my income interest for a substantial lump sum payment out of the trust, resulting in a win-win situation for all of the parties. I highly recommend Staubus/Randall for any trust disputes and trust modification actions."

Kathy

"I have been a wealth management specialist and retirement plan consultant with the Dallas/Fort Worth financial community for over 20 years. I have engaged Ryan Randall to work with a number of my best clients over the years, including business owners, professionals and families. My clients always appreciate Ryan’s straightforward approach to estate planning, asset protection planning and business succession planning. He makes even the most sophisticated estate planning strategies understandable."

Larry

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