Dear F+H: Do I need a trust, or are they just for the ultra-wealthy?

Dear F+H: 

All of my friends are telling me I need a trust. I always thought trusts were only for the ultra‑wealthy. I already have a Will, what benefit could I even get from a trust?  

— Confused About Trusts 

Dear Confused: 

Believe it or not, trusts aren’t just for the ultra‑wealthy. In fact, many individuals and families benefit from adding a trust to their estate plan, even when they already have a Last Will and Testament.  A revocable living trust (a trust created during your lifetime that you can change while you are living) is the most common type of trust, but there are other types of trusts too. I’ve referred to a revocable living trust as a “trust” below 

One of the most significant benefits of a trust is that assets held in the trust, like your home, bank accounts and investment accounts, will pass directly to beneficiaries upon your death without going through probate. Probate is a court-supervised legal process of settling someone’s estate upon death. It can be time‑consuming, costly, and the records public. In Illinois, the probate process can take at least six months to a year before the assets are available to your family. By contrast, a trust allows for a smoother transfer of assets. Trusts also help maintain privacy, as trust documents generally do not become part of the public record like Wills do. 

In addition, while a Will only takes effect after your death, trusts can be an important tool during your lifetime. If you become incapacitated, you can choose someone (a trustee) to step in to manage the trust’s assets on your behalf. This can help avoid the need for a court‑appointed guardian and allows for continuity in financial management during an already difficult time. Assets are available for your use without the need for court involvement or court delays. Upon your death, the assets are immediately accessible and available for the beneficiaries named in the trust without the need for court supervision over the estate.  

Trusts are particularly useful for managing complex assets such as real estate, business interests or investment portfolios  because the trust can lay out the blueprint for how these unique assets should be managed, sold or distributed during your lifetime and after your death.  Trusts can also be helpful in blended families, when providing for minor children, or when planning for beneficiaries with special needs. 

Trusts are not just for those with significant wealth; they’re an invaluable estate planning tool if you’re seeking peace of mind that your family will have seamless access to funds upon your passing with no court involvement. That said, having a trust in and of itself does not guarantee your estate will not need to go through probate, as all or most of your assets must actually be titled in the name of the trust to get the full benefit of the trust. Your estate planning attorney or F+H tax advisor can help review the title of your assets to ensure this is done correctly or even as part of an estate plan check-up. Like Wills, trusts can still be challenged by heirs or beneficiaries, they do not protect your assets from creditors, and they do not avoid taxes, but if you are going to invest in an estate plan, a revocable trust is often a good place to start.   

While not everyone needs a trust, many are surprised to learn how practical and beneficial one can be as part of a thoughtful estate plan.