Living Trusts are similar to a Last Will and Testament in that they dispose of assets after death. The Living Trust has the added advantage of allowing you to name a trustee to manage your assets for an extended period of time if you become incapacitated after executing the Living Trust. Living Trusts can avoid probate in multiple states if you own real estate in multiple states; however, an easier way to avoid probate in multiple states is to form a limited liability company to hold your out-of-state real estate.
Disadvantages and misunderstandings of Living Trusts are so serious that the State Bar of Texas posted a section about Living Trust abuse on its website. Living Trusts are more complicated than a Will, they do not avoid estate taxes, they do not provide creditor protection, you still need a Will, and you must transfer all of your assets into the Living Trust during your life in order to avoid probate.