How to

What is a revocable living trust, and how do you set one up?

STATEState law: each state sets how a trust is created, signed, changed and run after a death. Examples from California, Texas, Florida and New York; federal tax rules from the IRS.Checked by the Justice legal team against official sources · Last reviewed Oct 3, 2026

Key points

Revocable?: Revocable unless it says otherwise in California, Texas and Florida. In New York it is the reverse: irrevocable unless it expressly says it is revocable.
Funding: A trust works only for what you put into it. Assets left in your name alone usually still go through probate, even with a pour-over will.
Signing: New York: acknowledged like a deed, or signed before two witnesses. Florida: the parts that act at death need the signing formalities of a will.
After a death: In California and Florida, the trustee must notify the beneficiaries within 60 days after the trust becomes irrevocable at the settlor's death.

A living trust is a trust created during your life to hold your property, manage it and pass it on. You can be its trustee. You also name a successor trustee to take over later, and the beneficiaries who will receive the property. If it is revocable, you can change or end it at any time during your life. The IRS notes that many people use one instead of, or in addition to, a will.

Below: who's who in a living trust, revocable vs irrevocable, how to set one up and fund it, pour-over wills, the rules side by side in California, Texas, Florida and New York, what the successor trustee does, whether a trust avoids probate and taxes, trust vs will, living trust scams, and when to get a lawyer, each with its official sources.

What is a living trust, and who's who in it?

A trust is an arrangement where property is given to someone to be held for the benefit of another person, in the words of California's courts. A living trust, also called an inter vivos trust, is one created during the creator's lifetime. A trust created by a will, which doesn't take effect until death, is a testamentary trust. The people in a living trust:

The settlor, also called the grantor. The person who creates the trust or contributes property to it. Texas law says the terms grantor and trustor mean the same as settlor.Tex. Prop. Code § 111.004 · Fla. Stat. § 736.0103
The trustee. The person holding the property in trust, including an original, additional or successor trustee. The settlor can be the trustee of their own trust, and so can a beneficiary.Tex. Prop. Code §§ 111.004, 112.008 · Cal. Prob. Code § 84
The beneficiaries. The people for whose benefit the property is held. Under Florida's definition, that includes anyone with a present or future interest in the trust, vested or contingent.Tex. Prop. Code § 111.004 · Fla. Stat. § 736.0103
The successor trustee. The person you designate to be eventually responsible for managing your assets in the best interests of the beneficiaries you list, as California's courts describe it.California Courts

Tip. A living trust is not a living will. A living will is a health care document: New York's court law librarians describe it as setting out what medical procedures a person does or does not want. A living trust deals with property. For someone to handle money or health decisions for you, see Power of attorney.

Revocable vs irrevocable trust

A revocable living trust can be changed or canceled by its creator at any point. An irrevocable trust can't be changed once the creator has signed it, and assets moved into it can't be removed, as New York's court law librarians explain. Whether a trust is revocable depends on its words and, if they are silent, on the state:

California: revocable unless it says otherwise. Unless the trust instrument expressly makes it irrevocable, the settlor can revoke it. The rule applies if the settlor lived in California when the trust was created, it was signed in California, or it says California law governs.Cal. Prob. Code § 15400
Texas: revocable unless it says otherwise. The settlor may revoke the trust unless its express terms make it irrevocable, and may change or amend a revocable trust. If the trust was created in writing, a revocation or amendment must also be in writing.Tex. Prop. Code § 112.051
Florida: revocable unless it says otherwise. Unless the terms of the trust expressly make it irrevocable, the settlor may revoke or amend it. The rule doesn't apply to a trust signed before the Florida Trust Code took effect on July 1, 2007.Fla. Stat. §§ 736.0602, 736.1303
New York: the reverse. A lifetime trust is irrevocable unless it expressly provides that it is revocable. A New York trust meant to be revocable has to say so.N.Y. Est. Powers & Trusts Law § 7-1.16

Watch out. While it is revocable, it is still yours. In California, while the settlor is competent, and in Florida, the trustee's duties are owed to the settlor, not to the beneficiaries. In Florida, the property of a revocable trust is subject to the claims of the settlor's creditors during the settlor's lifetime, unless it would be exempt if the settlor owned it directly. And for income tax, the IRS treats it as the settlor's. See probate and taxes.

How to set up a living trust, step by step

List what you own and who should receive it. A trust works only for property that is put into it. Some property already passes outside a will or trust, such as money in a joint tenancy bank account, or life insurance and retirement plan benefits paid to a named beneficiary. See assets that skip probate.
Choose the trustee, the successor trustee and the beneficiaries. You can be the trustee yourself. A trustee must have the legal capacity to take, hold and transfer the trust property, and in Texas a corporation acting as trustee must have the power to act as a trustee in the state.
Write the trust document and sign it as your state requires. New York: in writing and acknowledged in the way required to record a deed, or signed in front of two witnesses who sign it too. You sign, and so does at least one trustee unless you are the only trustee. Florida: if you live there, the parts that dispose of property at your death need the formalities of a will; see what makes a will legal. Texas: written terms signed by you or your authorized agent. California: a trust of real property must be shown by a writing signed by the trustee, or by a written transfer of the property signed by you.
Fund the trust. Transfer each asset into the trust's name. In New York, a lifetime trust is valid only as to the assets actually transferred to it, and a statement in the trust document is not enough. See funding the trust.
Sign a pour-over will. A will that leaves anything still in your name at death to your trust. Sign it with your state's will formalities. See pour-over wills.
Keep it current. Property you get later is in the trust only if it is added. Texas law lets property be added to an existing trust from any source in any manner, unless the trust's terms prohibit it or the trustee finds the property unacceptable. To change or revoke the trust, follow the trust and your state's rules: see the state-by-state comparison.

Tip. Forms and kits. A State Bar of Texas pamphlet warns that forms, kits, software and websites may not be tailored to Texas law. It says a licensed Texas attorney with estate-planning expertise should prepare, or at least review, a living trust. California's courts say living trusts are complicated and you usually need a lawyer's help.

Funding a trust: what goes in, and what happens to the rest

A living trust works only for the property that has actually been transferred into it. California's courts put it this way: when you die, as long as you have put your assets into the trust, they should go to the beneficiaries without having to go to probate court.

Assets in the trust. Pass directly to the beneficiaries named in the trust document, bypassing probate.Texas State Law Library · California Courts
How an asset gets in. In New York, saying in the trust document that the trust holds an asset doesn't transfer it. If you are the only trustee, real estate needs a recorded deed. Stocks, bonds and bank or brokerage accounts must be registered in the name of the trust or trustee. Other assets need a written assignment that describes them with particularity.N.Y. Est. Powers & Trusts Law § 7-1.18
Assets left out. Don't pass under the trust. Unless they pass another way, such as to a named beneficiary or a surviving joint tenant, assets in your name alone usually go through probate, with or without a will.N.Y. Est. Powers & Trusts Law § 7-1.18 · Cal. Prob. Code § 6240
Property in another state. A State Bar of Texas pamphlet notes that for people who own out-of-state property, a living trust can help avoid the need to probate their will in that state.State Bar of Texas

Watch out. The trust can still be used to pay debts. In Florida, a trust the person could still revoke at death is liable for the estate's administration expenses and debts to the extent the estate can't pay them. In Texas, if probate assets aren't enough to cover the debts, the executor may have to claim nonprobate assets.

Pour-over wills

A will can leave property to the trustee of your trust, so that whatever is still in your name at death is added to the trust. This is often called a pour-over will. All four states allow it, even when the trust can be amended or revoked:

California. The trust must be identified in the will. Its terms must be in a written instrument signed before, together with, or within 60 days after the will. The property becomes part of the trust. If the trust is revoked or ended before the death, the gift lapses unless the will says otherwise.Cal. Prob. Code § 6300
Texas. The trust must be identified in the will. Its terms must be in a written instrument, other than a will, signed before, with, or after the will. The gift is valid even if the trust was amended after the will was signed.Tex. Est. Code § 254.001
Florida. The trust must be in a written instrument that exists when the will is made, or is signed at the same time, and is identified in the will. Revoking the whole trust in writing before the death cancels the gift.Fla. Stat. § 732.513
New York. A will may leave all or part of an estate to the trustee of a trust whose terms are in a written instrument. The property becomes part of the trust and is administered under its terms.N.Y. Est. Powers & Trusts Law § 3-3.7

Tip. A pour-over will doesn't skip probate. It works only at death, and California's statutory will form says that, with or without a will, assets in your name alone usually go through the court probate process. Funding the trust during your life is what keeps assets out of probate.

Living trust rules in California, Texas, Florida and New York

State	Revocable by default?	Signing	Changing or revoking	Pour-over will
California	Yes, unless the trust expressly says it is irrevocable. Prob. Code § 15400	A trust of real property must be shown by a writing signed by the trustee, or a written transfer signed by the settlor. § 15206	By the method in the trust, or by a signed writing (not a will) delivered to the trustee, unless the trust makes its own method the only one. § 15401	Allowed; trust terms signed before, with, or within 60 days after the will. § 6300
Texas	Yes, unless its express terms make it irrevocable. Prop. Code § 112.051	Written evidence of the terms, signed by the settlor or an authorized agent. § 112.004	Must be in writing if the trust was created in writing. § 112.051	Allowed; trust terms in a writing signed before, with, or after the will. Est. Code § 254.001
Florida	Yes, unless the terms expressly say irrevocable (trusts signed from July 1, 2007). Fla. Stat. §§ 736.0602, 736.1303	The parts that act at death need the formalities of a will if the settlor lives in Florida. § 736.0403	By the method in the trust; if none, by a later will or codicil that expressly refers to the trust, or other clear and convincing evidence. § 736.0602	Allowed; the trust document must exist when the will is made, or be signed with it. § 732.513
New York	No: irrevocable unless it expressly says it is revocable. EPTL § 7-1.16	In writing; acknowledged as for recording a deed, or signed before 2 witnesses. § 7-1.17	In writing, acknowledged or witnessed the same way, or by a will that specifically refers to the trust. §§ 7-1.16, 7-1.17	Allowed. EPTL § 3-3.7

These are the statutes' basic rules, and each has exceptions. Other states set their own rules: start with your state's trust code or your state court's self-help website.

Divorce. In Florida, a divorce voids the parts of a revocable trust that affect the former spouse, unless the trust or the divorce judgment says otherwise. The trust is read as if the spouse had died at the divorce. This covers people who die on or after June 29, 2021. In New York, unless the document says otherwise, a divorce or annulment revokes revocable gifts to a former spouse, including by revocable trust. The Texas State Law Library says Texas law often cancels a former spouse's beneficiary designation on nonprobate property, including revocable trusts. See Family & divorce.

What the successor trustee does

The trust document says when the successor trustee takes over and what they must do. The law adds duties of its own, at two moments in particular.

If you can no longer manage your affairs. A State Bar of Texas pamphlet says a living trust can be an important way to get help managing assets. But it may not avoid a guardianship, and a durable power of attorney may be a simpler and less costly way to reach the same goal. In California, if no one who can revoke the trust is competent any more, the trustee must, within 60 days of learning that, send the beneficiaries notice and a complete copy of the trust and its amendments. Incompetency is shown by the method the trust sets or by a court.

Tip. An agent under a power of attorney can't rewrite your trust on their own. In California, an agent can modify or revoke a trust only if the trust expressly allows it. In Florida, an agent can use the settlor's powers over the trust only as Florida's power of attorney law authorizes. The Power of attorney guide explains which powers, such as changing a trust, a power of attorney must grant expressly.

After the settlor dies, a revocable trust becomes irrevocable, and the successor trustee manages it for the beneficiaries:

Follow the trust. On accepting the trust, the trustee has a duty to administer it according to the trust instrument. In Texas, the trustee must administer it in good faith according to its terms.Cal. Prob. Code § 16000 · Tex. Prop. Code § 113.051
Keep the beneficiaries informed. California and Florida require the trustee to keep the beneficiaries reasonably informed of the trust and its administration.Cal. Prob. Code § 16060 · Fla. Stat. § 736.0813
California: a notice within 60 days. When a revocable trust becomes irrevocable because a settlor died, the successor trustee must serve a notification on each beneficiary and each heir, no later than 60 days after that event. It must say the recipient can ask for a true and complete copy of the terms of the trust.Cal. Prob. Code § 16061.7
Florida: a notice within 60 days, and a notice of trust. Within 60 days after learning that a formerly revocable trust has become irrevocable, the trustee must notify the qualified beneficiaries. The notice says the trust exists, who the settlor was, and that they can ask for a copy of the trust and for accountings. The trustee must also file a notice of trust with the court of the county where the settlor lived.Fla. Stat. §§ 736.0813, 736.05055
Texas: an accounting on demand. A beneficiary can demand in writing a statement of accounts. If the trustee doesn't deliver it by the 90th day, any beneficiary may sue to compel it. The trustee doesn't have to account more often than once every 12 months unless a court requires it.Tex. Prop. Code § 113.151

Does a living trust avoid probate and taxes?

Probate: yes, for what is in it. Assets in a living trust pass to the beneficiaries without probate. California's courts say the fastest a probate case can finish there is typically 9 months, and a living trust helps loved ones bypass this long waiting period and the expense of probate court. A State Bar of Texas pamphlet, by contrast, says Texas probate is simplified and that in most cases administering a living trust is no faster than probating a will.California Courts · Texas State Law Library · State Bar of Texas
Income tax: no change while you are alive. Because it is revocable, the IRS treats a revocable living trust as a grantor type trust: the income is reported on the grantor's own income tax return. The IRS says most people with revocable living trusts can use its easiest filing method.IRS, Instructions for Form 1041
Estate tax: not by itself. The IRS lists trusts among the property that may be included in the gross estate. A federal estate tax return is required only if the gross estate, plus certain lifetime gifts, exceeds the filing threshold: $15,000,000 for deaths in 2026.IRS: Estate tax
Creditors and Medicaid. In Florida, a revocable trust's property is subject to the settlor's creditors during the settlor's lifetime. A State Bar of Texas pamphlet calls the claim that living trusts help you avoid creditors false, and says a living trust will not help you qualify for public assistance benefits, particularly nursing home Medicaid.Fla. Stat. § 736.0505 · State Bar of Texas

Tip. A trust can still be challenged. A State Bar of Texas pamphlet notes that, just like wills, trusts can be attacked for lack of capacity, undue influence and fraud. In California, a person served with the trustee's notice after a death generally has 120 days to sue to contest the trust. If they receive a copy of the trust's terms during that time, they have until 60 days after receiving it, if that is later.

Living trust vs will

Both say who gets your property, and many people use both. The main differences:

When it works. A will is not effective until you die. A living trust works during your life too, and can help someone manage your assets if you can't.Cal. Prob. Code § 6240 · State Bar of Texas
Probate. A will doesn't avoid probate: with or without one, assets in your name alone usually go through it. Assets you have put into a living trust pass to the beneficiaries without probate court.Cal. Prob. Code § 6240 · California Courts
Effort and cost. California's courts say a living trust can be complicated and expensive to create since you would likely need a lawyer. A State Bar of Texas pamphlet says that for many people, the cost of creating, funding and administering one outweighs the benefit.California Courts · State Bar of Texas
Children. A will is where California's statutory form lets you nominate a guardian to raise your children who are under 18.Cal. Prob. Code § 6240

For how a will is made and signed, see Wills and its short will vs living trust comparison.

Living trust scams aimed at older adults

A State Bar of Texas pamphlet for people 50 and older warns that living trust sales are a growing area of consumer fraud. Families often face greater costs later because of poorly drafted or inappropriate trusts. It says con artists reach older people through:

Telemarketing and mail solicitations.
Door-to-door sales.
"Free" seminars and workshops, and advertisements.
Offers of a free living will, power of attorney or estate analysis, to get a meeting in your home.

Claims the pamphlet calls false or misleading include that living trusts save taxes, help you qualify for Medicaid, protect you from creditors, and that everyone should have one. If an estate is taxable, it says, a will can achieve the same tax savings as a trust. Its advice: take your time, don't give in to "act now" pressure, and if a trust may be right for you, deal directly with a licensed attorney with estate-planning expertise. In Texas, it says, only a licensed Texas attorney can legally assist you in creating a trust.

Watch out. If you were targeted. The pamphlet says to contact your local law enforcement agency. See Scam recovery for steps after a scam, and the Eldercare Locator on the estate hub for local help for older adults.

Do you need a lawyer for a living trust?

California's courts say living trusts are complicated and you usually need a lawyer's help, and California's statutory will form says to see a lawyer if you want to create a trust. A State Bar of Texas pamphlet says a licensed Texas attorney with estate-planning expertise should prepare, or at least review, your living trust. It adds that a trust prepared by an attorney will generally cost less than the prices charged by trust salespeople.

The official sources point to legal help especially if you:

Own property in another state.
Want help managing your assets if you lose capacity, and are weighing a trust against a durable power of attorney.
Have assets that could be worth more than the federal estate tax filing threshold.
Want a trust fund for your children, or to disinherit a spouse, domestic partner or descendants.

Find a lawyer or free legal aidLegal aid and state bar referral services, with first-consultation prices.WillsHow to make, sign and change a will, including the one that pours into your trust.ProbateWhat happens after a death to property that is not in the trust.Power of attorneyWho can handle your money if you can't. It ends at death.California Courts: Wills, estates, and advance care planningLiving trusts, wills, payable-on-death accounts and transfer-on-death deeds, with sample forms.State Bar of Texas: Living trust scams and the senior consumerHow living trust sales scams work and how to protect yourself (PDF).

Common questions

What is a living trust?

A trust you create during your life to hold your property, manage it and pass it on. You can be the trustee; a successor trustee you choose takes over later and manages the assets for the beneficiaries you list. Assets you have put into the trust can pass to the beneficiaries without probate court. Many people use one instead of, or in addition to, a will.

What is the difference between a revocable and an irrevocable trust?

A revocable trust can be changed or canceled by its creator at any time. An irrevocable trust can't be changed once signed, and assets moved into it can't be removed. In California, Texas and Florida, a trust is revocable unless it says it is irrevocable. New York is the reverse: a lifetime trust is irrevocable unless it expressly says it is revocable.

What is the difference between a living trust and a will?

A will takes effect only at death, and assets in your name alone usually still go through probate. A living trust works during your life, and the assets you put into it pass to your beneficiaries without probate court. A trust can be more complicated and expensive to set up, since you would likely need a lawyer. Many people have both. See Living trust vs will.

What does a successor trustee do?

Takes over managing the trust when the trust document says, for example when the settlor dies or can no longer manage it. The successor trustee must follow the trust's terms and keep the beneficiaries reasonably informed. In California and Florida, the trustee must notify the beneficiaries within 60 days after a revocable trust becomes irrevocable at the settlor's death. See What the successor trustee does.

What is a pour-over will?

A will that leaves property to the trustee of your living trust, so anything still in your name at death is added to the trust. California, Texas, Florida and New York all allow it, even if the trust is revocable. It doesn't avoid probate for what it carries: assets in your name alone at death usually go through probate.

How much does a living trust cost?

California's courts say a living trust can be complicated and expensive to create, since you would likely need a lawyer. A State Bar of Texas pamphlet says that for many people, the cost of creating, funding and administering one outweighs the benefit. It also says a trust prepared by an attorney generally costs less than the prices charged by trust salespeople. State bar lawyer referral services list first-consultation prices: see Find a lawyer.

Official sources

California Courts Self-Help Guide: Wills, estates, and advance care planning (living trusts) courts.ca.gov
California Courts Self-Help Guide: Probate terms (trust, living trust) courts.ca.gov
California Probate Code § 84: "trustee" includes a successor trustee leginfo.legislature.ca.gov
California Probate Code § 6240: the California Statutory Will form, with questions and answers leginfo.legislature.ca.gov
California Probate Code § 6300: gifts by will to the trustee of a trust leginfo.legislature.ca.gov
California Probate Code § 15206: a trust of real property must be in writing leginfo.legislature.ca.gov
California Probate Code § 15400: a trust is revocable unless expressly irrevocable leginfo.legislature.ca.gov
California Probate Code § 15401: how a revocable trust is revoked leginfo.legislature.ca.gov
California Probate Code § 15800: rights and duties while a trust is revocable, and if the settlor is incompetent leginfo.legislature.ca.gov
California Probate Code § 16000: the trustee's duty to administer the trust leginfo.legislature.ca.gov
California Probate Code § 16060: the trustee's duty to keep beneficiaries informed leginfo.legislature.ca.gov
California Probate Code § 16061.7: notification by the trustee when a trust becomes irrevocable leginfo.legislature.ca.gov
California Probate Code § 16061.8: time limit to contest a trust after the notification leginfo.legislature.ca.gov
Texas Property Code, Chapter 111: Texas Trust Code, application and definitions (settlor, trustee, beneficiary) legis.texas.gov
Texas Property Code, Chapter 112: creating, revoking and amending a trust (§§ 112.004, 112.006, 112.008, 112.051) legis.texas.gov
Texas Property Code, Chapter 113: the trustee's duties and accountings (§§ 113.051, 113.151) legis.texas.gov
Texas Estates Code, Chapter 254: gifts by will to the trustee of a trust (§ 254.001) legis.texas.gov
Texas State Law Library: Nonprobate Property (living trusts, divorce) sll.texas.gov
State Bar of Texas and Texas Young Lawyers Association: Living Trust Scams and the Senior Consumer (PDF, 2020) texasbar.com
Florida Statutes § 736.0103 (2026): definitions (beneficiary, settlor, trustee) flsenate.gov
Florida Statutes § 736.0403 (2026): formalities required for revocable trusts flsenate.gov
Florida Statutes § 736.0505 (2026): creditors' claims against the settlor flsenate.gov
Florida Statutes § 736.05055 (2026): notice of trust after the settlor dies flsenate.gov
Florida Statutes § 736.0602 (2026): revocation or amendment of a revocable trust flsenate.gov
Florida Statutes § 736.0603 (2026): the settlor's powers while a trust is revocable flsenate.gov
Florida Statutes § 736.0813 (2026): the trustee's duty to inform and account flsenate.gov
Florida Statutes § 736.1105 (2026): effect of divorce on a revocable trust flsenate.gov
Florida Statutes § 736.1303 (2026): when the Florida Trust Code took effect flsenate.gov
Florida Statutes § 732.513 (2026): gifts by will to the trustee of a trust flsenate.gov
Florida Statutes § 733.707 (2026): a revocable trust's liability for estate expenses and debts flsenate.gov
New York Estates, Powers and Trusts Law § 7-1.16: a lifetime trust is irrevocable unless it says it is revocable nysenate.gov
New York Estates, Powers and Trusts Law § 7-1.17: execution, amendment and revocation of lifetime trusts nysenate.gov
New York Estates, Powers and Trusts Law § 7-1.18: funding of a lifetime trust nysenate.gov
New York Estates, Powers and Trusts Law § 3-3.7: gifts by will to the trustee of an existing trust nysenate.gov
New York Estates, Powers and Trusts Law § 5-1.4: revocation of gifts to a former spouse by divorce nysenate.gov
New York Courts, Ask a Law Librarian: What kinds of cases are filed in Surrogate's Court? (living, revocable and irrevocable trusts) nycourts.gov
New York Courts, Ask a Law Librarian: What is the difference between a living will and a healthcare proxy? nycourts.gov
IRS: Instructions for Form 1041 (revocable living trusts and grantor type trusts) irs.gov
IRS: Estate tax (gross estate and the 2026 filing threshold) irs.gov

This page explains the law in general terms. It is not legal advice about your situation. Justice is not a law firm and is not affiliated with any court or government agency.