Should You Set Up an Online Revocable Living Trust?

An online revocable living trust offers a tempting shortcut for organizing your estate-planning documents. With just a few clicks, some platforms promise a ready-to-go arrangement that can hold your assets, avoid probate, and give you peace of mind. But while the convenience is real, there are significant pitfalls, especially under Texas law, that make the “easy online solution” far from hassle-free.

We’ll walk you through what an online revocable living trust really involves, explore issues many platforms gloss over, and show why working with an attorney remains a wise choice.

Understanding Online Revocable Living Trust
Pros and Many More Cons of Online Trust Platforms
How to Decide Whether Online Works—or Whether to Go Attorney-Driven

Understanding Online Revocable Living Trust

What is an online revocable living trust?

An online revocable living trust is a legal document created via a web-based platform that allows you to place your assets into a trust structure which you control during your life and which distributes assets to beneficiaries on your death or incapacity. The “revocable” element means you can modify or revoke the trust while you are alive and have capacity. The “online” part means you fill out forms via a website instead of meeting in person with an attorney.

How it works in Texas

In Texas, a living trust (also called an inter-vivos trust) is valid so long as you have the necessary intent, writing, the trust holds property, and you have capacity. Platforms offering online trust creation claim to “customize” for the state, but you still bear responsibility for critical steps such as signing, notarizing where appropriate, and funding the trust (changing titles and retitling assets into the trust name).

Why people consider it

Convenience: Many platforms advertise fast turnaround and low cost.
Template-based: You answer questions online and the system generates the trust document.
Perception of control: Retaining yourself as trustee and revising the document at will is appealing.

These are real attractions—but they come with caveats.

Pros and Many More Cons of Online Trust Platforms

Potential benefits

You may save on attorney fees up front.
The interface may walk you through basic choices (beneficiaries, successor trustee).
For uncomplicated estates, a simple trust may get you a document faster.
However, these benefits must be weighed carefully.

Common pitfalls of doing it online

1. Funding the trust is often overlooked.
Creating the trust document is only step one. If you don’t transfer asset ownership into the trust (for example deeding real estate, changing bank account titles, updating beneficiary designations), the trust may not achieve its goal. In Texas the “funding” step is critical.

2. State-specific nuances may not be fully addressed.
Texas law has specific requirements. For example, a trust isn’t required to be recorded, and you must still satisfy the statute of frauds if real property is involved. Online platforms may provide blanket language that doesn’t account for all Texas complexities.

3. Limited customization for complex assets or situations.
If you own a business interest, multiple properties, out-of-state assets, special needs beneficiaries, or want advanced trustee protection clauses, an online form may lack the flexibility to craft tailored provisions.

4. Possible costs and hidden steps.
While initial cost appears low, you still may need to hire an attorney later to correct errors, retitle assets, or handle trustee transitions.

5. Trusts do not always avoid all legal processes.
Even after you create and fund a trust, you still must comply with successor trustee duties, keep proper records, and possibly handle tax, creditor or other legal issues. An online document does not eliminate those responsibilities.

6. Over-reliance on the software may produce outdated or boilerplate documents.
Law changes and legal precedents evolve. Generic platforms may not update immediately or may omit key architecture for your scenario.

7. Lack of attorney guidance may fail to identify liabilities.
For instance, defining incapacity triggers, preparing for disabled or minor beneficiaries, setting trustee indemnification provisions—these require nuanced drafting beyond fill-in-the blank.

Why working with an attorney is often the better path

An experienced Texas estate planning attorney will:

Review your entire estate and advise whether a revocable living trust makes sense for you (or whether other tools like a transfer-on-death deed might suffice).
Ensure the trust document is drafted to reflect your wishes, your state law, and your asset complexity.
Guide you through funding the trust properly (retitling real estate, bank accounts, personal property).
Help you anticipate future changes (marriage, divorce, new property, business sale).
Serve as resource for ongoing trust management issues and successor trustee guidance.

In short, while the cost is higher up front, the avoidance of downstream mistakes often makes it worthwhile.

How to Decide Whether Online Works—or Whether to Go Attorney-Driven

Step 1: Assess the complexity of your estate

Ask yourself:

Do I own real estate (in Texas or other states)?
Do I have business interests, complex investments, or multiple titled assets?
Do I have beneficiaries with special needs or who may need staged distributions?
Do I expect future major changes (marriage, children, inheriting significant assets)?
If the answer is yes to one or more, the benefit of attorney involvement rises significantly.

Step 2: Understand funding and execution obligations

Even with an online document, you must execute the trust properly: sign as required, notarize or witness if needed, transfer titles and designations. In Texas you may not need to file the trust with the clerk, but failing to list assets properly or not retitling can render the trust ineffective.
Check:

Are all real estate deeds retitled into the name of the trust (or trustee of the trust)?
Are bank, investment, vehicle titles updated or assigned?
Are beneficiary designations, life insurance, retirement accounts sorted out?
Is your successor trustee aware of their role and do you have appropriate powers assigned?

If you’re unsure of how to do these steps, an attorney can guide you safely.

Step 3: Compare cost versus risk

Online trust creation may cost a few hundred dollars. Attorney-drafted trusts in Texas may cost significantly more (several hundred to a few thousand, depending on complexity). The question is: what is the risk of doing it wrong? Potential risks include: assets going through probate anyway; beneficiaries not receiving as you intended; successor trustee confusion; out-of-state property not handled; increased legal fees later.

If your situation is simple (for example: one home, straightforward investments, no business interest, adult children as beneficiaries, no out-of-state assets), then an online trust might suffice—provided you are comfortable handling the funding and execution steps properly.
If the situation is more complex, the attorney route offers much more protection.

Step 4: If you go online anyway—choose carefully

Should you decide to proceed with an online revocable living trust, do so cautiously:

Confirm the platform offers state-specific documents tailored for Texas law (not generic national language).
Ensure you understand all your obligations post-document generation (funding, retitling, signing).
Plan a review with an attorney at least to check your document and asset transfers.
Be sure to revisit the trust document when major life events occur (property purchase, new business, beneficiary change).

Remember: the document is only as good as your follow-through.

Conclusion

An online revocable living trust can offer convenience and lower upfront cost, but these benefits come with important trade-offs—especially when operating under Texas law. The document alone doesn’t guarantee your goals are met unless it is properly drafted, executed, and funded. If you have multiple properties, business interests, special beneficiaries, or simply want peace of mind that everything is done correctly, working with an attorney remains a prudent choice. A trust done poorly may lead to probate anyway, unwanted disputes, or unintended outcomes. Choose the path that fits your asset complexity, comfort level, and willingness to follow through on the behind-the-scenes steps.

Your estate-planning matters are too important to leave to chance.

Frequently Asked Questions

1. Is an online trust legally valid in Texas?

Yes—so long as the trust document meets Texas requirements (intent, writing, property, capacity) and you complete the required steps like signing and funding the trust.

2. Can I draft a trust online and skip the funding step safely?

No. The trust may exist on paper, but unless you transfer titles, designate the trust as beneficiary or otherwise move assets into the trust, those assets may still be subject to probate

3. What about cost savings when using an online platform?

While online platforms tend to cost less up front, you may face additional costs later if you need to fix errors, retitle assets improperly, or handle disputes. The savings are only real if everything is done properly.

4. If I have minor children or special-needs beneficiaries, can I still use an online trust?

You can, but online platforms may not provide the tailored provisions needed for minors, special-needs trusts, or complex distributions. In those cases attorney assistance is strongly recommended.

5. How often should I review my trust once it’s set up?

You should review your trust whenever major life changes occur (marriage, divorce, birth of children, significant asset purchase or sale, new business involvement). Even with an online trust you bear the responsibility to update the terms, assets and titles to keep things current.

Should You Set Up an Online Revocable Living Trust? Pros, Cons, and Legal Tips