A revocable living trust lets your assets pass to heirs without probate — saving your family months of waiting and thousands in court costs. Here’s whether you need one and how to set it up.
Living Trust vs. Will
| Feature | Living Trust | Will |
|---|---|---|
| Avoids probate | ✓ | ✗ |
| Privacy (not public record) | ✓ | ✗ |
| Incapacity protection | ✓ | ✗ |
| Cost to create | $1,500–$5,000 | $300–$1,000 |
| Ongoing maintenance | Must fund/update | Minimal |
| Time to distribute assets | Days to weeks | Months to years |
| Contestability | Harder to contest | Easier to contest |
| Works across state lines | ✓ | May need separate probate per state |
Who Needs a Living Trust?
| Situation | Trust Recommended? |
|---|---|
| Own real estate | ✓ (especially in multiple states) |
| Net worth over $100,000 | ✓ |
| Want to avoid probate | ✓ |
| Privacy is important | ✓ |
| Blended family | ✓ (control distribution) |
| Minor children | ✓ (manage inheritance) |
| Single, few assets, no property | Probably not — a will suffices |
| Young, healthy, renting | Usually not yet |
Probate Costs You’ll Avoid
| Estate Value | Estimated Probate Cost | Probate Time |
|---|---|---|
| $100,000 | $3,000–$5,000 | 6–12 months |
| $250,000 | $5,000–$10,000 | 6–18 months |
| $500,000 | $10,000–$25,000 | 9–24 months |
| $1,000,000 | $20,000–$50,000 | 12–36 months |
| $2,000,000+ | $40,000–$100,000+ | 12–36+ months |
Costs include attorney fees, executor fees, court fees, and appraisals. Varies significantly by state.
How to Set Up a Living Trust
| Step | Action | Notes |
|---|---|---|
| 1 | Create the trust document | Name yourself as trustee + successor trustee |
| 2 | Fund the trust | Transfer assets INTO the trust |
| 3 | Re-title real estate | Deed property to the trust |
| 4 | Update financial accounts | Change titles or add TOD/POD |
| 5 | Create a pour-over will | Catches assets you forgot to transfer |
| 6 | Review every 3–5 years | Update after life changes |
What Goes in a Living Trust
| Asset | Should It Go In? | How |
|---|---|---|
| Primary home | ✓ | Deed transfer |
| Investment property | ✓ | Deed transfer |
| Bank accounts | ✓ | Re-title or TOD |
| Brokerage accounts | ✓ | Re-title or TOD |
| Business interests | ✓ | Assignment to trust |
| Vehicles | Usually not | Use TOD title instead |
| Retirement accounts | ✗ | Use beneficiary designations |
| Life insurance | ✗ | Use beneficiary designations |
Cost Comparison
| Method | Cost | Best For |
|---|---|---|
| Online service (Trust & Will, LegalZoom) | $200–$600 | Simple estates |
| Estate planning attorney | $1,500–$5,000 | Most homeowners |
| Attorney (complex estate) | $3,000–$10,000+ | Blended families, business owners, high net worth |
Bottom Line
If you own real estate or have assets over $100,000, a revocable living trust is likely worth the upfront cost. You’ll save your family the time, expense, and stress of probate — plus maintain privacy and incapacity protection. The most common mistake is creating the trust but not funding it (actually transferring assets into it). A trust only works for assets it holds.
See our power of attorney guide or probate guide for more.
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