Ask most people what they know about trusts and you will hear something like: 'That's for rich people, right?' It is a common perception -- and it is largely wrong. While complex irrevocable trusts are indeed tools for sophisticated tax and asset protection planning, the workhorse of everyday estate planning is the revocable living trust, and it is well-suited for a wide range of families and individuals.
So why would you want one? The most immediate benefit is probate avoidance. In Virginia, Maryland, and DC, assets that pass through a will must go through probate -- a court-supervised process that takes time, costs money, and creates a public record of your estate. Assets held in a properly funded revocable trust pass directly to your beneficiaries, outside of probate, typically within weeks rather than months or longer.
A trust also provides continuity if you become incapacitated. Because the trust owns your assets rather than you personally, your named successor trustee can step in and manage them on your behalf without the need for court intervention. This is a meaningful protection for anyone who has seen a family navigate a guardianship or conservatorship proceeding.
Finally, trusts offer flexibility. You can include provisions for children at different ages, create incentive structures, protect assets for a beneficiary with a disability, or plan for the management of your affairs across multiple states. None of this requires a multimillion-dollar estate -- it just requires thinking ahead. If you are wondering whether a trust belongs in your plan, we would be glad to walk through your situation and give you a clear answer.