Several years ago the Texas legislature made clear that transferring your home to a living trust would not cause you to lose your homestead exemption. We do not have the same comfort regarding creditors. Your home is exempt from your creditors. There is no law in Texas to tell us if your home is still exempt from creditors if it has been transferred to a living trust. People should be very slow to risk the loss of that valuable right.
Many people solve the problem by transferring assets other than their home into the trust.
Due on Sale and Title Insurance. When transferring real estate to a trust, the due on sale clause must be considered. Generally this is not an issue for mortgage holders, however, it is prudent to get their consent or determine in writing that they have no objection. Likewise, the effect of the transfer on title insurance must be considered. Yes Living trusts save taxes.