Revocable Living Trust Guide

The most popular estate planning tool in the US — here is how it works, what it costs, and whether you need one.

How a Living Trust Works

Create

You (the grantor) create the trust document, naming yourself as initial trustee and a successor trustee to take over when you die or become incapacitated.

Fund

You transfer assets into the trust — real estate, bank accounts, investments. The trust owns the assets, but you still control them completely.

Distribute

At death, the successor trustee distributes assets to beneficiaries according to your instructions — no probate, no court, no delays.

Benefits of a Living Trust

✅ Avoids probate — assets transfer immediately without court involvement
✅ Privacy — unlike a will, trusts are not public record
✅ Incapacity planning — successor trustee manages assets if you become unable to
✅ Avoids ancillary probate in other states where you own property
✅ Can be changed or revoked at any time during your lifetime

What a Living Trust Does NOT Do

❌ Does NOT reduce federal estate taxes (you need irrevocable trusts for tax planning)
❌ Does NOT protect assets from your creditors (it's revocable, so creditors can reach it)
❌ Does NOT automatically fund itself — you must transfer assets into it
❌ Does NOT replace a will — you still need a "pour-over will" to catch unfunded assets

Who Should Get a Living Trust?

🏠

You own real estate

Strong candidate

Real estate must go through probate without a trust. Multi-state property owners especially benefit.

📍

You live in California, New York, or another high-probate state

Essential

CA probate fees can be 4–7% of gross estate. A $1M home generates $46,000 in fees.

👨‍👩‍👧

You have minor children or a disabled beneficiary

Strongly recommended

Allows you to control when and how children receive assets. Can integrate with special needs planning.

🔒

You want privacy

Good fit

Unlike wills, living trusts are private documents — not filed with any court.

Create Your Living Trust

Online trust creation with attorney-reviewed documents — starting around $200

Start with Trust & Will