Do I Need a Trust?
Answer 5 questions about your assets, family situation, and estate planning goals. Get a personalized recommendation in under 2 minutes.
What is the approximate total value of your estate?
Include home equity, investments, retirement accounts, etc.
When a Trust Makes Sense
A trust isn't just for the wealthy. Here's when it provides real value:
Strong Reasons for a Trust
- Real estate in multiple states: Avoids probate in each state
- Privacy concerns: Keeps estate details private
- Minor children: Control when they receive assets
- Special needs beneficiary: Protect their benefits
- Blended family: Clearer distribution rules
- Estate over $500K: Justifies setup cost
A Will May Be Enough
- Simple estate: Few assets, clear beneficiaries
- Property in one state: Single probate process
- No minor children: No need for controlled distributions
- Privacy not a concern: Okay with public probate
- Lower cost priority: Wills are cheaper to create
Common Types of Trusts
Revocable Living Trust
Most common. You control it while alive, can change anytime. Avoids probate but doesn't reduce estate taxes.
Irrevocable Trust
Can't be easily changed. Assets leave your estate for tax purposes. Used for estate tax planning and asset protection.
Special Needs Trust
Provides for disabled beneficiary without disqualifying them from government benefits like SSI or Medicaid.
Testamentary Trust
Created by your will upon death. Doesn't avoid probate but can control distributions (e.g., to minor children).
QTIP Trust
Provides for surviving spouse while ensuring remaining assets go to children from prior marriage.
Charitable Trust
Provides tax benefits while supporting charities. Can generate income for you during your lifetime.
Will vs Trust Comparison
| Feature | Will | Revocable Trust |
|---|---|---|
| Probate | Required | Avoided |
| Privacy | Public record | Private |
| Setup Cost | $200-$1,000 | $1,500-$5,000 |
| Ongoing Maintenance | None | Must fund & update |
| Incapacity Planning | No | Yes |
| Control After Death | Basic | Detailed conditions possible |
Frequently Asked Questions
What's the difference between a will and a trust?
A will goes through probate (public court process) after death. A trust avoids probate, keeps things private, and can provide more control over distributions. Trusts are more complex and expensive to set up but offer benefits for larger or more complicated estates.
What is a revocable living trust?
A revocable living trust is the most common type. You transfer assets into it during your lifetime, maintain full control, and can change or revoke it anytime. Upon death, assets pass to beneficiaries without probate.
How much does a trust cost to set up?
Simple trusts typically cost $1,500-$3,000 with an attorney. Complex trusts with multiple beneficiaries or tax planning can run $3,000-$7,000+. Online services offer basic trusts for $200-$500 but may miss important customizations.
Do I still need a will if I have a trust?
Yes, you should have a "pour-over will" that catches any assets not transferred to your trust and directs them into the trust. You also need a will to name guardians for minor children.
What assets should go in a trust?
Typically: real estate, investment accounts, valuable personal property, and business interests. Assets with beneficiary designations (life insurance, 401k, IRA) usually stay outside the trust and pass directly to beneficiaries.
Does a trust avoid estate taxes?
A basic revocable trust does NOT avoid estate taxes - it just avoids probate. For estate tax planning (estates over $13M in 2024), you need irrevocable trusts or other advanced strategies. Consult an estate planning attorney.