What are some advantages to creating an inter vivos trust?
An inter vivos trust may either be revocable (the trustor may take the assets back from the trust) or irrevocable (the trustor may not take the assets back from the trust). In Texas, all trusts are revocable unless the trustor expressly makes the trust irrevocable. An inter vivos trust may be used by the trustor who wishes to plan for the possibility that the trustor will become disabled and unable to manage his or her assets. Through a trust, the trustor can avoid the costs of a guardianship proceeding in the event of incapacity. An inter vivos trust can also be used to provide for the disposition of the trust property on the trustor’s death and eliminate the need for a will and the complications of a probate administration. An inter vivos trust also provides married couples a way to make a unified settlement of the couple’s community property interests; otherwise, each spouse may only create a testamentary trust by will for only his or her one-half community interest.
