Living Trust Fallacies

Gary M. Howell has a very good post ("The Living Trust Fallacy in Texas") on his excellent Texas Estate Planning and Probate Law blog.  I agree with Mr. Howell that living trusts tend to be oversold by some (less-than-scrupulous) folks, although I still think that they have their uses.  Mr. Howell, on the other hand, says that "a living trust likely is not a viable estate planning alternative if you are a Texas resident," and lists only a few situations in which he believes that a living trust is useful. 

One big advantage of a living trust that Mr. Howell doesn't mention is that it allows you to control when your beneficiaries receive your property.  For instance, if you have minor beneficiaries -- or beneficiaries who just aren't good with money -- you can have their property held in a trust, on terms and conditions that you set.  I presume that Mr. Howell would handle gifts to such beneficiaries via what's known as a testamentary trust (that is, a trust set up within a Will).  However, if we're comparing a Pourover Will + Living Trust plan to a Will With Testamentary Trust plan, I'll probably always favor the Pourover Will - Living Trust plan.  In my practice, the plans are comparable in terms of cost, and the Pourover Will - Living Trust plan at least offers the possibility of some other advantages: ease of use in the case of incapacity, privacy, and the chance to avoid probate.  These advantages may not be huge, but they are advantages nonetheless.