Homestead trusts usually fall into the category revocable inter vivos trusts although they can be irrevocable as well. A living trust for the homestead is an excellent probate-avoidance device and our firm is a strong advocate of these. We suggest reading our article on Living Trusts for the Texas Homestead.
Living trusts are often prepared in conjunction with a pour-over will.
These trusts are also categorized as revocable inter vivos trusts but are established by investors on non-homestead properties, often in conjunction with an assignment of beneficial interest. See our article on Investor Land Trusts.
Investor land trusts sometimes seek to conceal the true party in interest behind record title. Our firm uses a very specific anonymity system.
Unlike living trusts, testamentary trusts take effect upon death of the trustor/settlor/grantor. Testamentary trusts can be prepared for both homestead and non-homestead properties.
Deeds in connection with trusts must be prepared carefully. If the property is homestead, the deed should contain specific language indicating that the grantee is a qualifying trust for purposes of preserving the homestead tax exemption.
It is possible to form a living trust that acts as sole member of a newly-formed LLC, usually as a means to achieve a relative degree of anonymity. This approach requires careful drafting as the trust must be integrated across all core LLC documentation.
Considerable effort, expense, and creativity may be involved in anonymity. There is nothing easy or automatic about achieving anonymity in Texas or any other state. Layering of entities may be necessary, and even then the anonymity achieved will be relative rather than absolute.
Anonymity, if desired, must be built into an asset protection structure from the beginning. Read our article on Anonymity in Texas Real Estate.
Living Trusts for the Homestead
Investor Land Trusts
Trusts in LLC Formation
Warranty Deeds into Trust
Amendments and Modifications to Trust
Certifications of Trust
Terminations of Trust
Assignments of Beneficial Interest
Pour-Over Will
Trusts are a complex area. There are many types of trusts that are used in real estate and asset protection. We work with some but not all of these. Also, unless you are absolutely certain that a particular type of trust is what is needed in your case, and you are absolutely certain of its legality and suitability in the circumstances, an initial consultation is recommended so we can review your case and determine the correct legal solution.
At our discretion, we may require an initial consultation before proceeding with any trust project. View our process and fees for online consultations.
Please complete our Client Inquiry Form. Our initial response will be preliminary and general in nature and not a formal legal opinion. You will then have the option of proceeding with paid legal services if you wish.
“I give David J. Willis a full 5 stars for the deeds he prepared for my multi-million dollar transactions. His prices were very reasonable and his deeds gave me the level of protection I was looking for. Some people do not realize the liability that could arise from an improperly prepared deed. I will certainly use him for future real estate transactions and strongly recommend him to anyone else.”
“Mr. Willis is the ‘go-to’ guy for anything related to real estate law, especially as it relates to asset protection. He literally wrote the book on the subject. He helped me form a series LLC when I started my rental property business, and has been a wonderful guide throughout the entire process. Very professional staff, quick turnaround time, and easy-to-follow instructions for a novice like me. I give him my highest recommendation.”
