How a Revocable Living Trust Can Help You Avoid Probate in Texas

When someone passes away in Texas, their estate typically goes through probate—a court-supervised process to validate a will, pay debts, and distribute remaining assets. Probate can be time-consuming, public, and expensive. But here’s the good news: a revocable living trust can be a powerful tool to transfer your assets to loved ones without going through probate court.

Let’s break down how this works—and how you can use a trust and other tools to keep your estate out of probate in Texas.

Probate Assets vs. Non-Probate Assets

First, it’s essential to understand the difference between probate and non-probate assets:

• Probate assets are assets that are solely owned by the deceased at the time of death and don’t have a designated beneficiary. These require court involvement to pass to heirs or beneficiaries.
  Examples of probate assets:
  • A house titled only in the deceased person’s name
  • A bank account without a joint owner or named beneficiary
  • A vehicle titled in the decedent’s name alone
• Non-probate assets, on the other hand, pass automatically to a new owner by operation of law, contract, or other legal means—no court required.
  Examples of non-probate assets:
  • Life insurance policies with a named beneficiary
  • Retirement accounts with a designated beneficiary
  • Bank accounts with a payable-on-death (POD) designation
  • Real estate with a transfer-on-death deed (or a Lady Bird Deed)
  • Property held in a revocable living trust

So, the goal of probate avoidance is simple: make your assets non-probate assets.

How a Revocable Living Trust Helps Avoid Probate

A revocable living trust is a legal entity you create during your lifetime to hold ownership of your assets. You retain control of everything during your life (and can revoke or change the trust), but when you die, your successor trustee distributes the assets according to your instructions—without going through probate.

Why does this work?

Because trusts operate under contract law, not testamentary law (the body of law that governs wills and estates). The trust is a binding agreement between you (the grantor) and the trustee. When you pass away, the trustee simply follows the terms of that contract. No court is required to “prove” the document like with a will.

Trusts vs. Wills: Contract Law vs. Testamentary Law

Here’s a deeper look at the key differences between a trust and a will:

Testamentary law in Texas requires strict compliance with certain legal formalities for a will to be valid, including:

• Proper execution (signed by the testator and two witnesses)
• Precise legal language
• Filing the original will in probate court after death

By contrast, a trust can be signed and notarized, and as long as the assets are properly titled in the name of the trust, no court process is required.

Making Assets Non-Probate: Tools to Use

In Texas, there are several ways to make your assets non-probate, either by using a trust or other estate planning tools:

✅ Beneficiary Designations

• For retirement accounts, life insurance, and bank accounts
• Use POD (payable-on-death) or TOD (transfer-on-death) designations

✅ Transfer on Death Deeds (TODDs) and Lady Bird Deeds

• For real estate
• Allows you to name a beneficiary who automatically inherits the property upon your death
• Keeps full control during your lifetime

✅ Assignment of Interests

• For LLC or partnership interests
• You can assign your ownership interest to your trust to avoid probate

✅ Revocable Living Trust

• Can be used to hold all types of assets: real estate, bank accounts, business interests, personal property, and more
• Acts as a central mechanism to transfer everything efficiently and privately

Final Thoughts

Avoiding probate in Texas is entirely possible with thoughtful planning. By using tools like beneficiary designations, TOD deeds, and most importantly, a revocable living trust, you can ensure your assets are transferred privately, quickly, and without unnecessary legal fees or court delays.

Remember: the key is to make sure your assets are set up as non-probate assets. A trust is one of the most flexible and powerful tools to help you achieve that—while giving you control and peace of mind during your lifetime.