Living trusts can be an essential aspect of a person's estate plan. Estate planning in Texas and everywhere else utilizes a will to dispose of any assets owned at the date of death by the testator, who is the person who made the will. Estate planning uses living trusts to dispose of assets during life with the option of making the transfer of assets either revocable or irrevocable.
The key difference between living trusts and a will is that the transfer of assets during life through a trust vehicle obviates the need to have those assets go through probate upon death. Probate is the legal administration of assets through the decedent's estate, along with paying creditors and disposing of those assets that remain through the dictates of the will. Assets may be taxed in some instances when they go through probate.