By Lori Ashmore Peters — Managing Attorney and Head of Estate Planning and Probate, The Ashmore Law Firm, P.C. Recognized in The Best Lawyers in America® for Trusts and Estates (Dallas, Texas) — Top 3% of lawyers awarded globally. Texas Super Lawyer® in Estate Planning and Probate (2012–2026). Martindale-Hubbell® AV Preeminent® rated (2022–2026). See full bio →

Do I need a trust in Texas, and if so, which kind?

The short answer

Maybe. Some Texas families need a trust; many do not. A properly drafted will package is enough for most families, because Texas independent administration probate is relatively fast and inexpensive. A trust becomes worthwhile when you have a taxable estate, out-of-state real estate, a blended family, a beneficiary with special needs or money-management concerns, a closely held business, significant life insurance, or a strong privacy preference. Call The Ashmore Law Firm, P.C. at 214-559-7202 for a straight answer on which one applies to you.

A trust is a legal arrangement under Texas Property Code Chapter 111 (the Texas Trust Code) in which a grantor transfers property to a trustee who holds and manages it for named beneficiaries under written terms the grantor specifies. It is the second tier of a Texas estate plan — built on top of a will package, not instead of one. A trust becomes appropriate when at least one of the following is true: you have a taxable estate approaching the $15 million federal exemption (or expect to grow into it), you own real estate in more than one state, you have a blended family, a child with special needs, a beneficiary who cannot manage money, a business interest, life insurance you want kept out of your taxable estate, or a strong preference for privacy and probate avoidance. The most common Texas trusts are the revocable living trust (probate avoidance and multi-state property), the testamentary trust (contingent trust for minor children, created inside a will), the irrevocable life insurance trust (ILIT) (life insurance outside the taxable estate), the special needs trust (protects a disabled beneficiary's government benefits), the spendthrift trust (protects a beneficiary from creditors or from themselves), the generation-skipping trust (grandchildren without a second layer of tax), and the bypass / marital trust combination (for married couples over the exemption).

The talking-to-you answer

Here is what we actually tell clients who sit down at our conference table across the street from Scottish Rite for Children and ask this question:

You do not need a trust because someone on the internet told you every family needs one. You do not need a trust because a national document mill sold you a package. You may need a trust if any of these sound like your family:

  • You have grown children who are married — and you want their inheritance to stay theirs, not their spouse's.

  • You have grandchildren, and you want to make sure a future in-law can never reach what you leave them.

  • You have a child or grandchild with a disability who receives government benefits.

  • You have a child or grandchild who owns a business, or works in a profession that gets sued.

  • You have a second marriage, and children from your first marriage you want to protect.

  • You own real estate in another state — a lake house, a ranch, a Colorado condo.

  • You own a business you want to hand off without a probate court in the middle of it.

  • You have real money — enough that the federal estate tax is a live concern for your family in the next 10 to 30 years.

  • You just do not want your business in the newspaper. Wills become public record; trust distributions do not.

If none of that describes you, we will tell you so, and recommend a will package instead. If any of it does, we will design the specific trust or combination of trusts that fits — not a template. Lori Ashmore Peters, our Managing Attorney and Head of Estate Planning and Probate, has spent 30 years drafting Texas trusts for Dallas families and has been a Texas Super Lawyer for more than 20 years. Call 214-559-7202 or request a complimentary consultation.

Why This Page Is Structured Differently From Other Trust Pages

Most trust pages online start with a sales pitch. This one starts with a harder question: do you actually need a trust in Texas? Because Texas allows independent administration probate — meaning your executor can settle most estates with minimal court supervision — a well-drafted will package is enough for many Dallas families. We would rather send you home with the plan that fits your family than sell you a trust you do not need.

That said, trusts solve problems a will package cannot. When they fit, they fit powerfully. The rest of this page will help you tell the difference.

When a Trust Is Worth It in Texas

You should seriously consider a trust-centered plan if any of the following describes your situation:

  • Your net worth is approaching the federal estate tax exemption. In 2026, the exemption is $15 million per individual / $30 million per married couple, made permanent by the One Big Beautiful Bill Act (IRS 2026 estate tax update). Assets above the exemption are taxed at 40%. If you are within striking distance today, or you expect to grow into it, trust-based planning starts saving your heirs real money.

  • You own real estate in more than one state. Without a trust, each state's real property must go through that state's probate. A revocable living trust holds the property, so no ancillary probate is required.

  • You have a blended family. A trust lets you provide for a current spouse and guarantee that specific assets pass to children from a prior marriage — something a will alone cannot enforce after the surviving spouse takes control.

  • You have a child or grandchild with special needs. A properly drafted special needs trust preserves eligibility for Medicaid, SSI, and other means-tested benefits while providing for the beneficiary's supplemental needs.

  • You have a beneficiary who cannot manage money. Addiction, mental illness, financial immaturity, creditor problems, or an active divorce. A spendthrift trust distributes on terms you set, not in a single lump sum.

  • You own a closely held business. A trust can hold shares, provide for orderly succession, and prevent forced sale of the business during probate.

  • You own significant life insurance. An irrevocable life insurance trust (ILIT) keeps the death benefit out of your taxable estate — often the single largest asset that pushes families over the exemption.

  • You value privacy. Wills are filed in the county probate court and become public record. Trust distributions are private.

  • You want to skip a generation of estate tax. A generation-skipping trust passes assets to grandchildren using the GST exemption ($15 million in 2026) without the middle generation ever paying estate tax on those assets.

If none of the above applies, a Texas will package is probably enough. Our library article on do I need a trust in Dallas walks through the decision in more detail, and 6 reasons you may need a trust covers the most common trigger situations.

What Is a Trust, Legally?

Legal definition. Under Texas Property Code Chapter 111 (the Texas Trust Code), a trust is a fiduciary relationship in which a grantor (also called a settlor) transfers legal title to property to a trustee, who holds and manages the property for the benefit of one or more beneficiaries under written terms the grantor specifies. The trustee owes fiduciary duties of loyalty, care, and impartiality to the beneficiaries.

Why you need it, in plain English. A trust is a set of rules, a container, and a person to enforce them. You (the grantor) write the rules and put your property into the container. Someone you trust (the trustee) manages what is inside and hands it out to the people you name (the beneficiaries) on the schedule and terms you set. Because the trust — not you personally — owns the property, the property does not have to go through probate when you die.

When a trust changes an outcome. Picture a Highland Park couple, both remarried, with three children from their prior marriages. The husband dies first. Without a properly drafted marital trust, his surviving spouse inherits outright and — years later — leaves everything to her children, not his. With a properly drafted marital and bypass trust structure, the surviving spouse is provided for during her life, and at her death the remainder passes exactly as he intended: to his three children. Same family, same assets, radically different outcome.

Revocable vs. Irrevocable — The Two Master Categories

Every trust in Texas falls into one of two master categories. The rest is variations.

Revocable Living Trusts

Legal definition. A revocable living trust is created and funded during the grantor's lifetime. Under Texas Property Code § 112.051, a settlor may revoke or modify a trust unless the trust is expressly made irrevocable. The grantor typically serves as trustee, beneficiary, and holds the power to revoke — so nothing about daily life changes.

Why you would use one. Probate avoidance, privacy, and continuity of management if you become incapacitated. Assets titled in the trust do not go through probate on your death — the successor trustee simply takes over and distributes them per your instructions. Because the trust is revocable and you keep control, it has no estate tax benefit during your life; the assets remain in your taxable estate.

When it changes an outcome. A Casa Linda widow owns her home in Dallas, a lake house in Missouri, and a rental duplex in Colorado. If she leaves everything by will, her family faces probate in all three states — three court cases, three sets of attorneys, three timelines. With a revocable living trust holding the three properties, no probate is required in any of the three states, and her adult children can list, rent, or sell each property within days of her death.

Irrevocable Trusts

Legal definition. An irrevocable trust cannot be amended, revoked, or terminated by the grantor after it is created, except under limited statutory circumstances such as trustee decanting (Texas Property Code § 112.071 and following) or judicial modification. The grantor gives up ownership and control of the transferred property.

Why you would use one. Because the grantor no longer owns the property, the property is removed from the grantor's taxable estate and — depending on the trust — protected from the grantor's creditors. Irrevocable trusts are the workhorse of estate tax planning, asset protection, and long-term generational wealth transfer.

When it changes an outcome. A Frisco founder sells her tech company for $22 million. Without irrevocable trust planning, roughly $7 million is over the federal exemption and exposed to 40% estate tax at her death — a $2.8 million bill her heirs will pay. With a properly funded irrevocable trust structure created before or shortly after the sale (a combination of a spousal lifetime access trust, an ILIT, and a generation-skipping trust), the same $22 million passes to her spouse, children, and grandchildren with the estate tax liability substantially reduced or eliminated.

Types of Trusts in Texas

The trust world uses a lot of jargon. Here is what each of the most common Texas trusts actually does, in the situations Dallas families actually face. Anecdotes below are composite illustrations, not real clients.

Revocable Living Trust

Legal definition. A trust created during the grantor's lifetime that the grantor may amend or revoke at will. Governed by Texas Property Code Chapter 111.

Why you would use one. Probate avoidance, privacy, incapacity planning, and consolidation of out-of-state property. The grantor typically serves as their own trustee and retains full control.

Anecdote. See the Casa Linda widow example above.

Testamentary Trust (Contingent Trust for Minor Children)

Legal definition. A trust created inside a Last Will and Testament that comes into existence only at the grantor's death. Governed by Texas Estates Code Chapter 254.

Why you would use one. To hold a minor child's inheritance until they reach an age you specify. Without it, Texas requires the child's inheritance to be held by a court-supervised guardian of the estate until age 18 — and then handed to them in a lump sum on their eighteenth birthday. A testamentary trust lets you stagger distributions (for example, one third at 25, one third at 30, one third at 35) and gives a trustee you name discretion to pay for college, first home, or medical needs in between.

Anecdote. A Lakewood couple in their thirties has two children, ages 6 and 3. Without a testamentary trust, if both parents died, each child would inherit their share outright at 18 — old enough to be a college freshman, young enough to spend it all before graduating. With a testamentary trust naming the wife's sister as trustee and staggering distributions at 25, 30, and 35, the same inheritance funds college, a first home, and adult stability.

Irrevocable Life Insurance Trust (ILIT)

Legal definition. An irrevocable trust created during the grantor's lifetime for the sole purpose of owning one or more life insurance policies on the grantor's life. Structured so the death benefit is not included in the grantor's gross taxable estate under Internal Revenue Code § 2042.

Why you would use one. Life insurance you own is included in your taxable estate — even though the beneficiary receives it income-tax free, it counts against your $15 million federal exemption. For a family whose net worth is close to the exemption, a $2 million policy can be the tipping point that generates a 40% estate tax bill on the excess. An ILIT owns the policy instead, keeping the death benefit fully outside the taxable estate.

Anecdote. A Preston Hollow physician has a $10 million estate and carries $5 million of life insurance to protect his family. Without an ILIT, his taxable estate at death is $15 million — right at the exemption today, but likely over it by the time he actually passes. With the policy owned by an ILIT set up ten years earlier and funded through annual gifts covering the premium, the $5 million death benefit passes to his family completely outside the taxable estate.

Special Needs Trust (Supplemental Needs Trust)

Legal definition. A trust designed to hold assets for the benefit of a person with a disability without disqualifying them from means-tested public benefits such as Supplemental Security Income (SSI) and Medicaid. Third-party special needs trusts are funded by someone other than the beneficiary (typically parents or grandparents); first-party special needs trusts hold the beneficiary's own funds (typically a personal injury settlement or inheritance received outright).

Why you would use one. Public benefits programs have strict asset limits — typically $2,000 for SSI. Leaving even a modest inheritance outright to a child or grandchild with a disability wipes out those benefits, and the family ends up paying privately for care that was previously covered. A properly drafted special needs trust holds the inheritance, the trustee pays for supplemental needs (therapies, adaptive equipment, transportation, quality-of-life expenses), and the beneficiary keeps their benefits.

Anecdote. An East Dallas couple has a 22-year-old son with autism who receives SSI and Medicaid. His grandmother leaves him $150,000 in her will, outright. Without a special needs trust, the inheritance disqualifies him from SSI and Medicaid the month it arrives, and he must "spend down" the $150,000 before benefits resume — often within a year or two, on care the state was previously funding. With a properly drafted third-party special needs trust named in the grandmother's will, the $150,000 goes into the trust, benefits continue uninterrupted, and the trust funds decades of supplemental care.

Spendthrift Trust

Legal definition. A trust containing a "spendthrift provision" — a clause that restricts the beneficiary's ability to voluntarily transfer or assign their interest in the trust and restricts creditors from reaching it. Enforceable in Texas under Texas Property Code § 112.035.

Why you would use one. To protect a beneficiary from creditors, lawsuits, divorce claims, or their own poor financial decisions. The trustee — not the beneficiary — controls distributions, and creditors of the beneficiary generally cannot reach trust assets while those assets remain in the trust.

Anecdote. A Highland Park father wants to leave $500,000 to his 35-year-old son, who has struggled with gambling. Left outright, the money is at real risk of being gone within a year. Left in a spendthrift trust with a professional trustee, the same $500,000 is invested, distributions are made on a monthly stipend and for approved larger expenses (rent, medical, education), and — critically — casino markers, credit card judgments, and any future ex-spouse's community-property claims cannot reach the trust principal.

Bypass Trust and Marital Trust (the "A-B" or "AB Trust" Structure)

Legal definition. A pair of trusts typically created at the first spouse's death. The bypass trust (also called credit shelter or family trust) holds the deceased spouse's assets up to the federal estate tax exemption and is available for the surviving spouse's benefit during her life, but is not included in her taxable estate at her death. The marital trust holds any remaining assets, qualifies for the unlimited marital deduction under Internal Revenue Code § 2056, and passes to the surviving spouse tax-free at the first death (but is included in her taxable estate at her death).

Why you would use one. For married couples whose combined net worth exceeds the federal exemption ($15 million per individual, $30 million per couple in 2026), the A-B structure captures both spouses' exemptions instead of losing one. Modern portability rules under IRC § 2010(c)(5) provide a simpler alternative for many couples, but the A-B structure still matters when there are children from a prior marriage, appreciating assets, generation-skipping planning, or state estate tax exposure in a second-residence state.

Anecdote. See the Highland Park remarried couple example above.

Generation-Skipping Trust (GST Trust)

Legal definition. A trust designed to pass assets to grandchildren (or more remote descendants) while making use of the grantor's federal generation-skipping transfer (GST) tax exemption — $15 million per individual in 2026, per the IRS 2026 estate tax update. Governed by Internal Revenue Code Chapter 13.

Why you would use one. Without GST planning, transferring wealth to grandchildren typically incurs estate tax twice — once when it passes to your children, and again when it passes from them to your grandchildren. A properly structured GST trust allows the same assets to skip a generation of tax entirely, up to the GST exemption amount.

Anecdote. A University Park grandmother wants $2 million to go to her four grandchildren. If she leaves it to her son and daughter first, those funds are exposed to a second layer of estate tax when her son and daughter later die. A generation-skipping trust holding the $2 million passes directly to the grandchildren (through a trust) with only one layer of tax exposure, and uses her GST exemption to eliminate that layer entirely.

Charitable Trusts (CRT and CLT)

Legal definition. Charitable Remainder Trust (CRT): an irrevocable trust that pays an income stream to one or more non-charitable beneficiaries (typically the grantor and spouse) for a term of years or for life, with the remainder passing to a named charity. Governed by Internal Revenue Code § 664. Charitable Lead Trust (CLT): the reverse — a charity receives income for a term of years, with the remainder passing to non-charitable beneficiaries.

Why you would use one. CRTs are used by donors who own highly appreciated assets (a business, a concentrated stock position, real estate) and want to (a) diversify without immediately paying capital gains tax, (b) generate an income stream for life, (c) receive an immediate charitable income tax deduction, and (d) benefit a favorite charity at their death. CLTs are used by donors who want to make a large charitable gift now and still pass the remaining principal to heirs at a discounted transfer-tax value.

Anecdote. An East Dallas business owner sells his company and holds $8 million in appreciated stock with a very low basis. Selling outright triggers approximately $1.6 million in federal long-term capital gains tax. By contributing the stock to a charitable remainder trust before the sale, he receives a partial income tax deduction, defers the capital gains, receives a lifetime income stream from the diversified investments held inside the trust, and directs the remainder to Scottish Rite for Children — his favorite Dallas cause — at his death.

IRA Trust (Retirement Plan Trust)

Legal definition. A trust designed specifically to be the beneficiary of the grantor's IRA, 401(k), or other qualified retirement account. Drafted to meet the "see-through" trust requirements under Treasury Regulation § 1.401(a)(9)-4, so that the trust's beneficiaries can be treated as designated beneficiaries for required minimum distribution purposes.

Why you would use one. Under the SECURE Act of 2019 (and SECURE 2.0 of 2022), most non-spouse beneficiaries must fully distribute an inherited IRA within 10 years — a significant income tax acceleration compared to the old lifetime "stretch" rules. An IRA trust cannot restore the full old stretch, but it can spread distributions across the 10-year window on a schedule you set, and protect the funds from the beneficiary's creditors, spouses, or spending habits during that window.

Anecdote. A Lakewood professional dies with a $1.2 million IRA and a 26-year-old daughter as beneficiary. Named directly, the daughter receives full access on Day One and must fully distribute within 10 years — meaning she can (and often will) empty the account early, pay income tax at her highest marginal rate, and lose the tax-deferred compounding. With an IRA trust named as beneficiary and a trustee who follows the grantor's instructions, distributions are stretched across the ten-year window on the parent's terms and any undistributed balance is protected from the daughter's creditors and a possible future divorce.

Pet Trust

Legal definition. A trust created to care for one or more designated pets during the pets' lifetimes. Enforceable in Texas under Texas Property Code § 112.037.

Why you would use one. Pets are property under Texas law, so you cannot leave money "to" a pet directly. A pet trust names a trustee to hold funds and a caretaker to receive distributions to care for the pet — and a court can enforce the arrangement if the caretaker fails to perform.

Anecdote. A Preston Hollow widow has two show dogs and no living children. Under her will, she leaves $50,000 and both dogs to a favorite niece, hoping the niece will care for them. Without a pet trust, once the niece takes possession she can legally do whatever she wants — including rehoming the dogs and keeping the money. With a properly drafted pet trust naming an independent trustee, an enforceable duty of care, and remainder to a Dallas animal welfare organization, the dogs' care is guaranteed and monitored.

How Trust Planning Works at The Ashmore Law Firm

Trusts are more complex than a will package, but the process is the same core six steps we use for every estate planning engagement:

  1. Consultation — a working meeting (in person at our Dallas office or by video) where we review your family, assets, tax exposure, and goals. If a trust is not the right answer, we tell you at this step and recommend a will package instead.

  2. Design — Lori proposes a trust structure fitted to your situation: which trusts, funded with which assets, with which trustees and beneficiaries, and on what distribution schedule.

  3. Drafting — we prepare the trust documents, coordinated with your will, powers of attorney, and any beneficiary designations that need updating.

  4. Draft review — you receive drafts, we walk them through with you, and you have real time to ask questions before signing.

  5. Signing and funding — you formally execute the trust and — critically — we help retitle assets into the trust. An unfunded trust protects nothing. Funding is often where document-mill trusts fail.

  6. Family meeting (optional) — once the plan is signed and delivered, if you choose, we sit down with your children, spouse, or successor trustee and explain the goals and mechanics. Trusts often outlive the grantor by decades; the family meeting helps the people who will actually run the trust understand it.

A Dallas Firm With Roots in the Neighborhoods We Serve

The Ashmore Law Firm, P.C. has served Dallas-area families for more than 30 years from our office across the street from Scottish Rite for Children — about five minutes from Uptown, ten minutes from Highland Park and University Park, and twenty minutes from East Dallas, where Gary Ashmore and Lori Ashmore Peters grew up and where they still live today. Casa Linda and Lakewood are their home neighborhoods, not talking points. That firsthand knowledge of Dallas families, Dallas courts, and Dallas neighborhoods is why our clients keep referring their friends, adult children, and neighbors to us.

Estate planning is a family calling for us. Lori and Gary's late father, the Honorable Joseph E. Ashmore, Jr., served on Dallas County Probate Court No. 3 from 1975 to 1986, unanimously appointed by the Dallas County Commissioners Court to the newly created court. For 11 years he heard contested wills, probate disputes, guardianships, and mental illness cases — the exact situations trusts are designed to prevent. Lori grew up watching what happened at the courthouse when families showed up without the right documents: siblings against siblings over a home, guardianships opened because no one had signed a power of attorney, second spouses cutting first-marriage children out of the inheritance. She has spent the past 30 years of her own practice making sure her clients never end up on that side of a probate docket.

Where we practice. Lori Ashmore Peters personally handles trusts, will packages, probate, and guardianship matters throughout the Dallas–Fort Worth metroplex, and our firm has genuine county-level court experience where it matters most:

  • Dallas County (deepest local depth) — East Dallas (Casa Linda, Lakewood), Highland Park, University Park, Uptown, Preston Hollow, and Las Colinas / Irving.

  • Collin County — Frisco, Plano, and surrounding communities.

  • Tarrant County — our Fort Worth attorney has practiced in Tarrant County probate, family, and civil courts for years and knows the judges, staff, and local procedures firsthand.

  • Denton County — including Lewisville and Flower Mound. The Ashmore Law Firm has been selected as one of the 19 firms on Expertise.com's 2026 Best Probate Lawyers Serving Lewisville list.

  • Rockwall County and Kaufman County — for clients across the wider DFW area.

Estate planning documents — including trusts — are executed under Texas law and are valid regardless of which Texas county you live in. Where county-level court experience matters most — for probate, will contests, and guardianship matters — we have deep bench experience in Dallas County, Collin County, and Tarrant County courts.

Trusts That Protect Families As They Change

Because our sister practice handles family law, we write trusts that protect families as they change through every stage — marriage, children, second marriages, blended families, grandchildren, divorce, remarriage, and inheritance. The single most common question we hear from parents and grandparents is:

"How do I give an inheritance to my child or grandchild without it going to their spouse — and if they get divorced, how do I protect it for them?"
The short answer: a properly drafted trust.

Under the Texas Constitution Article XVI, § 15 and Texas Family Code § 3.001, property a spouse receives by gift or inheritance is that spouse's separate property. But separate-property character is fragile. The moment your child deposits their inheritance into a joint checking account with their spouse, uses it as a down payment on a jointly titled home, or lets community-property income mix with it, tracing becomes difficult — and in a Texas divorce, an inheritance that started as clearly separate can effectively be lost.

A properly drafted trust solves the commingling problem at the source. Instead of leaving your daughter $500,000 outright — where it can hit a joint account on Day One — you leave the $500,000 to a trust for her benefit. The trust holds title. The trustee makes distributions on the terms you set. Any principal or income that stays in the trust never becomes community property. If she later divorces, her spouse has no community-property claim against the trust corpus.

The same structure works to:

  • Protect grandchildren from a future son-in-law or daughter-in-law — the inheritance passes to a trust for the grandchild rather than outright.

  • Protect stepchildren in a blended family without disturbing the surviving spouse's community-property share.

  • Protect adult children in second marriages who have their own community-property exposure.

  • Protect an inheritance from a business lawsuit. If your child or grandchild owns a business — a medical practice, a real estate LLC, a construction company, a restaurant, a professional firm — and that business is later sued, an inheritance held outside a trust is a personal asset that a plaintiff's judgment can reach. The same $500,000 held in a properly drafted spendthrift trust under Texas Property Code § 112.035 is generally protected from that plaintiff's creditors, because the beneficiary does not own the trust property outright — the trust does, and the trustee controls distributions.

  • Coordinate with an ongoing or completed divorce — separate-property preservation, blended-family bypass and marital trusts, and irrevocable trusts to hold assets for children from a first marriage.

Our approach to coordinating divorce and estate planning is one of the reasons Dallas families with second marriages and grown children choose The Ashmore Law Firm.

Nothing on this page is legal advice for a specific situation. Divorce planning and separate-property tracing are fact-specific — talk to us before you rely on any of this.

FAQs about Trusts in Texas

Do I really need a trust in Texas, or is a will enough?


Many Dallas families do not need a trust and are well served by a comprehensive will package alone, because Texas independent administration probate is relatively fast and inexpensive. You should consider a trust if you have a taxable estate, out-of-state real estate, a blended family, a beneficiary with special needs or money-management concerns, a closely held business, significant life insurance, a strong privacy preference, or grandchildren you want to benefit directly. Our library article on do I need a trust in Dallas walks through the decision in detail.

How much does a trust cost in Dallas?


The Ashmore Law Firm prepares Texas trusts on a flat-fee basis so you know the total cost before we draft. Fees depend on the type of trust (a revocable living trust is less than a fully funded irrevocable trust structure with an ILIT and a GST component), whether you are an individual or a couple, and whether the trust is a standalone document or part of a broader plan. Call 214-559-7202 or request a complimentary consultation for a fee quote.

Can a trust protect my assets from creditors or a lawsuit in Texas?


It depends on the type of trust and the timing. A properly drafted irrevocable trust or spendthrift trust generally protects the beneficiary's interest from creditors under Texas Property Code § 112.035. A revocable trust does not protect your assets from your own creditors, because you retain control. Critically, transfers made to avoid an existing creditor can be unwound as fraudulent transfers under Chapter 24 of the Texas Business and Commerce Code — trust-based asset protection must be set up before creditor problems arise, not after.

How are Texas trusts taxed?


Texas has no state estate or inheritance tax, and no state income tax on individuals. Federal rules still apply. The federal estate and gift tax exemption is $15 million per individual / $30 million per married couple in 2026, made permanent by the One Big Beautiful Bill Act (IRS 2026 estate tax update), with a 40% rate on amounts above the exemption. Whether a trust itself pays income tax depends on the type — grantor trusts (including most revocable living trusts) are taxed to the grantor, while irrevocable non-grantor trusts file their own returns and are taxed at compressed rates. Trust income tax planning is a real cost driver that we address at the design stage.

How does a trust help me avoid probate in Texas?


Assets titled in a revocable living trust pass directly to your beneficiaries under the trust's terms — they do not go through probate. The successor trustee steps in immediately, without court supervision. For Texas families with real estate in multiple states, this is often the single biggest benefit of trust planning, because it also avoids "ancillary probate" in each other state where you own property.

Do I still need a will if I have a trust?


Yes — a "pour-over will." A pour-over will directs any asset that was not titled in your trust at your death to be transferred into the trust for distribution. It is a safety net for assets you forgot to fund into the trust. A pour-over will also lets you name a guardian for minor children, which a trust cannot do. Every trust-centered estate plan we prepare includes a pour-over will and the rest of the will package documents.

Who should I name as trustee?


It depends on the trust and the family. A revocable living trust typically names the grantor as initial trustee, with a spouse, adult child, or trusted friend as successor. Irrevocable trusts, ILITs, and special needs trusts often benefit from a professional or corporate trustee (a bank trust department or an independent professional fiduciary) — especially where trustee decisions require distance from the family or a long duration of administration. We help you weigh cost, competence, family dynamics, and durability when choosing.

Can a trust keep my child's inheritance separate property if they get married or divorced?


Yes — and this is one of the most valuable reasons Dallas families use trusts. Under the Texas Constitution Article XVI, § 15 and Texas Family Code § 3.001, property a spouse receives by gift or inheritance is separate property. But if your child receives the inheritance outright and deposits it into a joint account, uses it to buy a jointly titled home, or otherwise commingles it with community funds, tracing becomes difficult and the inheritance can effectively be lost in a divorce. A properly drafted trust holds the title, controls distributions, and prevents commingling at the source — so the inheritance stays your child's separate property no matter who they marry or divorce. The same structure protects grandchildren, stepchildren, and adult children in second marriages.

Can a trust protect my child's inheritance if they own a business and get sued?


Yes. If your child or grandchild owns a business — a medical practice, a professional firm, a real estate LLC, a construction company, a restaurant — and the business is later sued, any inheritance they hold in their own name is a personal asset a plaintiff's judgment can reach. The same inheritance held in a properly drafted spendthrift trust under Texas Property Code § 112.035 is generally protected from that plaintiff's creditors, because the beneficiary does not own the trust property outright. The trust owns it, the trustee controls distributions, and creditors of the beneficiary generally cannot reach trust principal while it remains in the trust. This is a common reason Dallas business-owner families leave inheritances in trust for the next generation rather than outright.

What happens if I move to another state after signing a Texas trust?


The trust remains valid. Trust law is a matter of state law, but a properly drafted trust chooses its governing law and forum. Most out-of-state moves do not require redrafting, but they do call for a review — your revised residency may affect state income tax on trust income, your successor-trustee choices, and coordination with any new-state property.

About the Author — Lori Ashmore Peters

Managing Attorney and Head of Estate Planning and Probate at The Ashmore Law Firm, P.C. Lori earned her B.A. from Texas A&M University in 1991 and her J.D. from Texas Wesleyan University in 1996. She has been a member of the State Bar of Texas in good standing since June 27, 1996 — more than 30 years of Texas estate planning and probate practice. Her State Bar listed practice area is Wills, Trusts, and Probate. In addition to her Texas license, Lori is admitted to practice before the United States Supreme Court and the United States Court of Appeals for the Fifth Circuit, and is certified to serve as both Attorney Ad Litem and Guardian Ad Litem in Texas probate courts — the court appointments that place her in front of Dallas County probate judges on contested wills, guardianships, and incapacity cases.

Together with her brother Gary Ashmore, Managing Attorney and Head of Family Law at The Ashmore Law Firm, P.C., Lori co-authors the firm's library of Texas estate planning and probate publications, including Do I Really Need a Will? (3rd Edition), What to Do When a Loved One Dies (2nd Edition), and Who Is in Charge After You Die? (2nd Edition). She is also co-author, with Shep Sands — The Ashmore Law Firm's probate litigator with more than 20 years of Texas probate litigation experience — of Estate and Probate Litigation in Texas: Your Roadmap to Navigate the Process.

She grew up in East Dallas and lives in the Casa Linda / Lakewood area today. She is the daughter of the Honorable Joseph E. Ashmore, Jr., who served on Dallas County Probate Court No. 3 from 1975 to 1986.

Peer recognition and ratings — Estate Planning, Probate, and Trusts and Estates

Bar sections and professional memberships

  • Member, Real Estate, Probate and Trust Law Section (REPTL) of the State Bar of Texas — the section of the Texas Bar that participates in drafting and updating Texas trust and probate law.

  • Member, Dallas Bar Association. The Ashmore Law Firm, P.C. is a Dallas Bar Association 100 Club firm, meaning every attorney at our firm is a Dallas Bar Association member.

  • Member, Dallas Estate Planning Council.

  • Member, Dallas Women Lawyers Association.

  • Member, Dallas Bar Foundation Fellow.

  • Member, Advisory Council on Money Management — Senior Citizens of Greater Dallas.

  • Member, Texas Aggie Bar Association.

Read Lori's full bio at The Ashmore Law Firm →

A trust is one component of a complete Texas estate plan. Depending on your family, assets, and goals, your plan may also involve:

  • Estate Planning (Practice Overview) — the full scope of what Lori and The Ashmore Law Firm can build for your family, from a foundational will package to a fully trust-centered plan.

  • Will Package — the eight coordinated documents (wills, powers of attorney, HIPAA, guardian designations) that sit underneath almost every trust-based plan and address incapacity, health care, and minor children.

  • Probate — what happens if assets pass outside your trust and need to be administered through a Texas probate court, and how a well-designed trust plan minimizes that.

  • Will Contests — what makes an estate plan vulnerable to challenge, and the drafting choices that reduce the risk of trust and will disputes before they arise.

  • Guardianship — the court process the incapacity provisions in your trust and will package are designed to avoid.

Lori co-authors The Ashmore Law Firm's complimentary estate planning library. If a trust ends up being the right structure for you, these companion resources are the ones we point clients to first:

All resources are complimentary. Request any of them at the links above, or call 214-559-7202 to schedule directly.

Lori Ashmore Peters
Lori Ashmore Peters
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Since 1996 helping families in Dallas, HP & all DFW with Estate Planning, Probate, & Litigation