You’ve worked hard for what you have—your home, your savings, your family traditions—and now you’re wondering how to protect it all. If you’re considering a trust, you’re already ahead of the curve.
At Massingill, we simplify the complex. That’s especially true when it comes to estate planning. Too often, people assume trusts are only for the ultra-wealthy. Not true. A trust can be one of your estate plan’s smartest, most protective tools, regardless of your net worth.
In this blog, we’ll walk you through how to set up a trust in Texas, whether you need an estate planning lawyer to do it, and how to avoid common mistakes that can cost your family time and money down the road.
Life Is Complicated—Even When You Think It’s Simple
Many Texans begin their estate planning journey by saying something like, “My situation is simple. I just have a house and some savings.” But simplicity is relative. If you own property, have children, or want to ensure a smooth transfer of assets, a trust might be exactly what you need.
Why? Because without a trust, your loved ones may have to go through Texas probate, a process that can be expensive, slow, and stressful.
A Trust Can Do More Than Just Pass on Assets
Before we dive into the process of setting up a trust, let’s talk about what they do:
- Avoids probate. A properly set up trust keeps your estate out of court.
- Maintains privacy. Trusts aren’t public records, unlike wills.
- Protects beneficiaries. You can set rules to protect minor children or loved ones with special needs.
- Manages assets. Your trustee can step in without a court order if you become incapacitated.
In short, a trust gives you control, privacy, and peace of mind.
How to Set Up a Trust in Texas
Setting up a trust involves several key steps. You can technically do it yourself, but that doesn’t mean you should. More on that in a moment.
1. Choose the Type of Trust
The most common choice is a revocable living trust. This allows you to maintain control of your assets while you’re alive and designate how to distribute them after your death. You can also amend or revoke it anytime.
Other types of trusts include:
- Irrevocable trusts,
- Special needs trusts, and
- Charitable trusts.
Each serves a different purpose, so it’s important to choose wisely.
2. Decide What to Put in the Trust
You can include your home, bank accounts, investments, and other valuable assets. Just remember that if it’s not titled in the name of the trust, you won’t have its protection.
3. Name a Trustee
This person (or institution) will manage the trust assets. You can name yourself initially and a successor trustee to take over if you pass away or become incapacitated.
4. Draft and Sign the Trust Document
This is where things can get tricky. Texas law requires that a trust be in writing and signed. Mistakes in the document, such as vague language or improper execution, can invalidate the trust.
5. Fund the Trust
This step is critical. You must transfer your assets into the trust. For example, changing the deed on your house or updating your bank accounts to reflect the trust’s ownership.
Do I Need a Lawyer to Set Up a Trust?
We get this question a lot. The short answer is that you’re not legally required to have a lawyer, but in most cases, you really should.
Setting up a trust is not just filling in blanks on a form. Mistakes like failing to fund the trust or using outdated language can undo the very protections you were trying to create.
The question isn’t, Do I need a lawyer to set up a trust? The better question is, can I afford not to?
At Massingill, we make the process efficient, clear, and affordable, helping you avoid the pitfalls of DIY legal sites or boilerplate templates.
How Much Does It Cost to Set Up a Trust in Texas?
It’s a good question and one we hear often. Costs vary depending on the complexity of your estate, and it can be difficult to put an exact dollar amount on a professionally drafted trust. However, the cost of hiring a lawyer is usually far less than that of probate, which can eat up 3–7% of your estate in legal and court fees. Think of it as an investment in your financial future and your family’s security.
A Trust Gives You and Your Loved Ones Peace of Mind
Once your trust is in place, you can breathe easier. You’ve created a plan that protects your assets, keeps your family out of court, and carries out your wishes with clarity.
It’s not about how much money you have, it’s about making sure what you do have is protected and passed on the right way.
Let Massingill Handle the Hard Stuff
If you’re wondering how to set up a trust in Texas or whether you need a lawyer to do it correctly, you’re in the right place. At Massingill, we handle the details so you can focus on the big picture.
We’ve helped thousands of Texans just like you create smart, simple estate plans that reflect their values and protect the people they love.
Ready to get started? Contact us today for a personalized estate planning consultation.
Joshua Massingill
Joshua Massingill is an attorney practicing in Austin, Texas. He serves on the Texas State Bar’s Law Practice Management Committee, the Leander Educational Excellence Foundation (LEEF) Board of Directors, and the Success-Werx Board of Advisors. He mentors young entrepreneurs in Leander ISD’s INCubatorEDU program and is active in his church.
Rate this Post
Loading...