How it works.
You create the trust, transfer your property into it, and usually serve as your own trustee. Day to day, nothing changes: you buy, sell, and spend as before, and you can amend or revoke the trust at any time. If you become incapacitated, or when you die, the successor trustee you named steps in and manages or distributes the property under your instructions — without a court proceeding.
Under the Texas Trust Code and the New Mexico Uniform Trust Code, a trust can be revoked unless its terms expressly make it irrevocable. A well-drafted living trust says clearly which it is.
The three roles.
Grantor
Creates and funds the trust — you. Also called the settlor or trustor.
Trustee
Manages the trust property. Usually you while you're able, then the successor trustee you choose.
Beneficiaries
Receive the benefit. Usually you during your life, then your spouse, children, or others.
What it does well.
- Avoids probate for everything titled in the trust.
- Plans for incapacity: your successor trustee manages trust property without a court-ordered guardianship.
- Keeps things private: a trust generally isn't filed with a court the way a probated will is.
- Covers more than one state — a Texas home and New Mexico land can pass without a separate probate in each.
- Controls timing for children, blended families, or anyone who shouldn't receive everything at once.
- Keeps bills paid after a death, without waiting for a court to appoint an executor.
Funding: the step that makes it work.
A trust controls only what's titled in its name. Funding usually means:
- Deeding real estate to the trust and recording the deed
- Retitling bank and brokerage accounts in the trust's name
- Naming the trust as beneficiary of life insurance and some accounts — retirement accounts need special handling because of income tax rules
- Assigning personal property such as furniture, vehicles, and valuables
A pour-over will catches anything left out and sends it to the trust, but those assets may still need probate first. We help you fund the trust, not just sign it.
What it doesn't do.
- Reduce income tax. While you're alive, the trust's income is reported on your own return.
- Protect assets from your own creditors. Because you can revoke it, your creditors can generally reach it.
- Help you qualify for Medicaid. Assets in a revocable trust still count as yours. See Medicaid asset protection trusts.
- Save estate tax. It's included in your estate — though with a $15 million federal exemption per person in 2026 and no Texas or New Mexico estate tax, most families owe none anyway.
Texas & New Mexico notes.
| Texas | New Mexico | |
|---|---|---|
| Governing law | Texas Trust Code (Tex. Prop. Code, Title 9) | New Mexico Uniform Trust Code (NMSA 1978, Chapter 46A) |
| Default rule | Revocable unless the trust expressly says it's irrevocable | Revocable unless the trust expressly says it's irrevocable |
| Is probate the main reason? | Texas probate is often fairly streamlined, so a trust is usually a choice, not a necessity | A trust avoids probate here and in any other state where you own real estate |
| Married couples | Community property state — the trust should track community and separate property | Community property state — the trust should track community and separate property |
Pricing.
Trusts are quoted after a consultation, because the right design 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.
Is a living trust better than a will?+
Can I be my own trustee?+
What if I forget to put something in the trust?+
Do I still need a will if I have a trust?+
Does a living trust protect my home from Medicaid?+
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.