Maybe it’s just my algorithm, but the internet seems to be working overtime handing out estate planning advice.
Lately it feels like everyone I talk to, prospective clients, friends, even the cashier at Target, is saying:
“I heard that I need a trust… but I don’t really know what that is.”
Now, to be fair, not all of the internet advice is wrong. Some smart folks are sharing content that seems helpful.
But most of us already procrastinate when it comes to estate planning. Add social media telling you that you are behind if you do not have a trust, and suddenly it feels urgent.
So let’s slow this down a bit.
In plain English, a revocable living trust is a legal tool that can hold certain assets and spell out what happens to them if you become incapacitated or when you die.
But here is the part people miss.
It only works if you actually move assets into it.
If your bank account, house, or investment account is still in your individual name, the trust does not control it. Creating the document is step one. Funding it by retitling assets into the trust is step two. Many people never do step two.
Otherwise, it can become a very expensive stack of paper.
One reason trusts get so much attention is probate. Probate is the court process that settles your estate if assets are still in your name. In some states, it is simple. In others, it can be lengthy and costly. Nationally, costs are often cited in the 3 to 10 percent range, depending on the estate and the state. That is not pocket change, and that is why people ask about trusts.
My husband and I have a revocable living trust as part of our estate plan. Not because TikTok told us to, but because an experienced trusts and estates attorney helped us decide it made sense for our situation. Then we followed through and actually titled assets into it.
Here is what I see in real life.
Many families say they “have a trust,” but no one is quite sure what is in it. Sometimes nothing was transferred. Sometimes, no one can find the documents. I am currently helping a family in exactly that situation.
That is not the streamlined legacy they thought they created.
So do you need a trust?
I don’t know. An experienced trusts and estates attorney can help you answer that.
Better question: What problem are you trying to solve?
Are you trying to avoid probate?
Do you want more privacy?
Do you own property in multiple states?
Do you want to control how and when someone receives money?
Are you thinking about who would manage things if you could not?
Those are strategy questions. Not social media questions.
If you decide to create a trust, commit to using it. Move assets into it. Keep it organized. Make sure someone knows where the documents are. Pretty please.
We help with the practical side. Organization. Asset and liability inventories. Trust funding support. Making sure the plan you paid for actually works.
We leave the lawyering to the lawyers.
