How a trust works.
A trust is an arrangement in which one person (the trustee) holds and manages property for others (the beneficiaries), following written instructions you set. Texas trusts are governed by the Texas Trust Code, and New Mexico trusts by the New Mexico Uniform Trust Code. With a revocable living trust, you usually serve as your own trustee during your lifetime, so day-to-day life doesn't change.
Revocable living trust
You keep full control and can change or cancel it at any time. At your death — or if you become incapacitated — the successor trustee you chose takes over without court involvement.
Testamentary trust
Created by your will and funded after your death — often used to hold an inheritance for minor children until they're older.
Irrevocable & Medicaid asset protection trusts
Generally can't be changed once signed. Used in Medicaid and long-term-care planning, but only when set up well in advance: Medicaid looks back five years at transfers.
Special needs trust
Holds assets for a person with a disability without disqualifying them from SSI or Medicaid. Learn more →
Explore each type.
Revocable Living Trust
Avoid probate and plan for incapacity while keeping full control.
Testamentary Trust
A trust in your will that protects children's inheritances.
Irrevocable Trust
Give up control in exchange for protection — and what it can't protect.
Medicaid Asset Protection Trust
Plan for long-term care costs, and the five-year look-back.
Life Insurance Trust (ILIT)
Control how policy proceeds are paid, and keep them out of your estate.
Charitable Remainder Trust
Lifetime income for you, with the remainder to charity.
Special Needs Trust
Provide for a loved one without disrupting SSI or Medicaid.
Why families use a living trust.
- Avoids probate for assets titled in the trust — often the main reason.
- Plans for incapacity: your successor trustee can manage trust assets without a court-ordered guardianship.
- Keeps matters private: a trust generally isn't filed with the court the way a will is when it's probated.
- Handles property in more than one state — such as a home in Texas and land in New Mexico — without a separate probate in each.
- Controls timing for beneficiaries who shouldn't receive everything at once.
A living trust works only if your assets are actually transferred into it — real estate deeded to the trust, accounts retitled or naming the trust as beneficiary. A short "pour-over" will catches anything left out, but those assets may still need probate. We help you fund the trust, not just sign it.
What a living trust doesn't do.
A revocable trust doesn't reduce income taxes, doesn't by itself protect assets from your creditors during your lifetime, and doesn't help you qualify for Medicaid — because you still control the assets. And with the federal estate tax applying only above $15 million per person in 2026, most families don't need a trust for tax reasons at all.
Will or trust: which do you need?
| A will may be enough | A trust may be worth it | |
|---|---|---|
| Probate | Probate in your state is manageable for your estate | You want to avoid probate entirely |
| Property | Property in one state | Real estate in more than one state |
| Family | Straightforward family and beneficiaries | Blended family, minor children, or a beneficiary who needs long-term management |
| Privacy | Privacy isn't a major concern | You'd prefer the details stay out of court records |
| Incapacity | Powers of attorney cover your needs | You want a successor trustee ready to manage assets seamlessly |
Texas probate is often fairly streamlined, so many Texas families do well with a will; the answer can change with New Mexico property or real estate in another state. We'll give you a straight answer either way.
Trust pricing.
Trusts are quoted after a consultation, because the right trust depends on your family, your property, and your goals. The documents that usually accompany a trust are flat-fee:
Texas
New Mexico
Part 1 of the NM Advance Health-Care Directive$150
Part 2 of the NM Advance Health-Care Directive$100
Flat fees are per person and cover preparation of each document. The first hour of an estate planning consultation is free; if a consultation runs longer than one hour and you don't purchase an estate planning package, additional time is $300 per hour, prorated to the nearest quarter hour. Court filing and county recording fees, if any, are separate. Prices effective through December 31, 2027.
Common questions.
Do I need a trust if I already have a will?+
Can I be my own trustee?+
Does a living trust protect my assets from nursing home costs?+
Will a trust save my family estate taxes?+
How much does a trust cost?+
Texas estate planning services are provided by Jeff Barnett, Of Counsel (Texas Practice), of Barnett & Leuty, PC, Austin, Texas, licensed in Texas. New Mexico estate planning services are provided by Shawn Barnett, Managing Attorney, licensed in New Mexico. This page provides general information, not legal advice; reading it does not create an attorney-client relationship.