In Part One of this series, I explained the benefits of a revocable living trust on incapacity. However, incapacity is only half the story. Trusts are also popular because of the benefits they can provide on death.
First, trusts can avoid probate. A surprisingly common misconception is that a decedent can avoid probate by having a will. This could not be further from the truth, of course. Whether you have a will or not, you go through probate; the best way to avoid it is through a revocable living trust.
But what is probate?
In short, probate is a title-changing machine. In Texas, if you die with your name on an asset, whether it be a bank account, house, or any other asset, probate is the court-ordained process to remove the deceased’s name from that asset and retitle it in the name of their heirs.