Living trusts don't have to be complicated.
Start with the questions that matter most. These plain-English resources will help you understand what a living trust can do, what happens without one, and why creating the documents is only part of the job.
Do I Need a Living Trust?
Not everyone needs the same estate plan. But for many homeowners and families, a living trust is worth considering.
A living trust may be worth exploring if:
- You own a home or other real estate.
- You have children or other people who depend on you.
- You want to make transferring certain assets easier for your family.
- You would prefer to keep more family and financial matters outside the public probate process.
- You want someone you choose to be able to manage trust assets if you become unable to do so.
- You own property in more than one state.
- Your family situation has changed since you created your current estate plan.
- You have a will but aren't sure whether it accomplishes everything you want.
- You keep saying, “We really need to get this done.”
It's whether a trust makes sense for what you own, the people you want to protect, and how you want things handled if you become incapacitated or after you die.
What Happens to My House Without a Trust?
For many families, the house is their largest asset. How title is held and what planning is in place can affect what happens to it later.
A will and a living trust do different jobs.
A will can state who should receive property after death, but property passing under a will may still be subject to probate. Probate is the court-supervised process used to administer an estate.
When appropriate assets are properly transferred to and held in a living trust, the successor trustee can generally administer those trust assets according to the trust's instructions without using the full probate process for those assets.
The court process may become part of the transfer.
Depending on the property, ownership, beneficiary arrangements and applicable law, probate or another transfer procedure may be required.
Your chosen successor trustee has a roadmap.
Trust assets can generally be managed and distributed according to the trust instructions, subject to applicable law and the circumstances of the estate.
If the plan calls for your home to be held in the trust, title and funding must actually be handled correctly. That brings us to one of the most commonly overlooked parts of estate planning.
Signing the Trust Is Not the Finish Line.
A beautifully prepared trust sitting in a binder does not automatically control every asset you own.
The trust has to connect to your real life.
“Funding” a trust generally means coordinating ownership of appropriate assets with the estate plan. Depending on the asset, that may involve changing title, reviewing beneficiary designations, assigning certain property, or taking other appropriate steps.
Define your wishes, decision-makers and instructions.
Properly execute the estate-planning documents.
Review how appropriate assets are titled or otherwise coordinated with the plan.
Revisit the plan after meaningful family, financial or ownership changes.
That's one reason the TRUSTMAKER™ Method includes implementation, funding and review—not just creating paperwork.
A few questions homeowners commonly ask.
No separate FAQ page. Just useful answers where you need them.
Does having a will mean I don't need a trust?
Not necessarily. Wills and trusts serve different purposes. Whether a trust is appropriate depends on your assets, family, goals and applicable law.
Does a living trust mean I lose control of my house?
With a typical revocable living trust, the person creating the trust generally retains significant control while living and competent, subject to the terms of the trust and applicable law.
Can a trust help if I become incapacitated?
A properly designed trust can provide a mechanism for a successor trustee to manage trust assets if the person creating the trust can no longer do so.
Do all of my assets belong in my trust?
No. Different assets can require different planning. Retirement accounts, beneficiary-designated assets, real estate and other property should be coordinated according to the overall estate plan and professional guidance.
Can I create a trust and forget about it?
Estate plans should be reviewed periodically and after significant changes such as marriage, divorce, births, deaths, major purchases, moves or substantial financial changes.
Where should I start?
Start with what you own, who you want to protect and what you want to happen. You don't need to understand every estate-planning term before beginning the conversation.
You don't need to become an estate-planning expert.
You just need enough clarity to take the next step. Tell us a little about your family, your home and what you want to protect.
See If a Living Trust Is Right for You No pressure. No confusing legal jargon. Just a clear next step.Educational information only. Estate-planning needs and laws vary by individual and jurisdiction. This information is general in nature and is not legal or tax advice. Legal services, when needed, are provided by appropriately licensed legal professionals.