Many Americans face uncertainty about how to leave wealth and property to loved ones. Increasingly, attorneys and financial planners recommend placing assets, especially the family home, in revocable or irrevocable trusts.
“Trusts aren’t just for the wealthy,” said Laura Jennings, a New York-based estate attorney. “They’re for anyone who wants more control and less hassle for their family when they’re gone.” Experts emphasize that trusts are more accessible than commonly believed.
A revocable trust, also called a living trust, allows the grantor to retain control of assets during their lifetime and to modify, add to, or remove property from the trust as circumstances change. Upon death, the assets are distributed to beneficiaries according to the trust’s terms, usually without the delays and costs of probate court.
An irrevocable trust, by contrast, generally cannot be changed or revoked after it is created. Once assets are transferred into an irrevocable trust, the grantor usually loses all control over them, unless the beneficiaries agree to changes. This lack of flexibility is balanced by advantages such as increased protection from creditors and, in some cases, potential estate tax benefits.
For survivors, the difference between inheriting through a trust and enduring probate can be stark. “When my mother died unexpectedly, everything was tied up for months,” recalled Janet Lewis of Westchester, whose mother’s modest estate was subject to probate. “Legal fees ate up thousands, and I couldn’t even access her bank account to pay funeral expenses,” Lewis said. She later learned that a simple revocable trust could have given her immediate access to those funds.
Beyond efficiency, privacy is another important advantage. Attorneys point out that trusts also offer privacy—unlike wills, which become public record once they enter probate court. “A trust is a private document,” said Michael Chan, a partner at a Manhattan law firm specializing in estates. “Your assets, your wishes—they don’t become a matter of public record. That’s a big deal for a lot of families.”
There are also practical considerations for those with blended families, minor children, or beneficiaries with special needs. “Trusts allow for more nuanced planning than a will,” said Chan. “You can stagger distributions, protect vulnerable beneficiaries, and even include provisions for pets or charitable donations.”
The risks of neglecting this aspect of planning are significant. The consequences of failing to plan can linger for years. Stacy Ramirez of Brooklyn said her father’s failure to set up a trust left her and her siblings embroiled in a lengthy court battle with estranged relatives. “We lost time we’ll never get back. The money didn’t matter as much as the stress and the family rifts,” she said.
Despite these compelling benefits, it’s important to recognize that every situation is unique. While the benefits of trusts are compelling, attorneys stress that every situation is unique. “There’s no one-size-fits-all answer,” said Jennings. “A trust can be a powerful tool, but it’s not always the best or only option. The key is to talk with a qualified attorney who can help you sort out what’s right for your family.”
You Should Always consult your own attorney before making any legal decisions.
