Evaluating the Inclusion of a Living Trust in Your Estate Planning Strategy

August 7, 2025

When it comes to estate planning, many people focus on drafting a will—but there’s another powerful tool worth considering: the living trust. Also known as a revocable trust, a living trust is a legal entity that holds your assets while you’re alive and helps manage and distribute them after your death.

So, should a living trust be part of your estate plan? Let’s explore what it is, how it works, and why it might be a smart move.

What Is a Living Trust?

A living trust is created while you’re still alive (hence the name). As the grantor, you typically serve as the trustee, meaning you retain full control over the assets you place in the trust. You can add, remove, or sell assets, and even revoke or modify the trust as your circumstances change.

How to Set One Up

Setting up a living trust involves a few key steps:

  1. Work with an estate planning attorney to draft the trust agreement.
  2. Transfer ownership of your chosen assets into the trust account, this can include real estate, bank accounts, investments, and even valuable personal items like art or jewelry.
  3. Appoint a successor trustee—someone who will manage the trust if you become incapacitated or after your death. This can be a trusted family member, friend, or a professional entity like a bank’s trust department.

Why Consider a Living Trust?

Here are some compelling reasons to include a living trust in your estate plan:

  • Avoid Probate: Assets in a living trust typically bypass the probate process, which can be lengthy and costly. This means your beneficiaries may receive their inheritance faster and with less hassle.
  • Privacy: Unlike a will, which becomes public during probate, a living trust can be administered privately.
  • Continuity: If you become incapacitated, your successor trustee can step in without court intervention, ensuring your financial affairs continue smoothly.

Pros and Cons

Like any estate planning tool, living trusts have their advantages and limitations:

Pros:

  • You maintain control over your assets while alive.
  • You can change or revoke the trust at any time.
  • It provides a clear plan for asset distribution and management.

Cons:

  • It requires more effort and legal guidance to set up.
  • You’ll still need a will for assets not included in the trust (like checking accounts or naming guardians for minor children).

Is a Living Trust Right for You?

Creating a living trust takes some upfront work, but the long-term benefits, like peace of mind, privacy, and smoother asset distribution, can make it well worth it. If you’re thinking about your estate planning strategy, a living trust might be a valuable addition.

Need help getting started? Reach out to our estate planning team to explore how a living trust can fit into your broader goals.

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Amanda Wojtkowski

Amanda Wojtkowski

CPA

Manager

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