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Revocable Trusts

A Revocable Trust Trades a Little Upfront Work for a Faster, Private Transfer at Death

REVOCABLE TRUSTS

What a Will Actually Controls

A revocable trust — sometimes called a “living trust” — is a legal arrangement you create and control during your lifetime, and can amend or dissolve entirely, at any time, for any reason. The trade you’re making is real but modest: some upfront work retitling assets into the trust, in exchange for avoiding probate on everything it holds and keeping the details of your estate out of the public record.

Because you retain full control — you can act as your own trustee, amend the terms, add or remove assets, or revoke it entirely — a revocable trust provides no asset protection and no tax benefit during your lifetime. The IRS and Medicaid both treat trust assets as yours because, legally, they still are. The value of a revocable trust is entirely in what happens at your death or incapacity, not in what it shields while you’re alive and well.

PROBATE & INCAPACITY

What It Solves:
Probate Avoidance and Incapacity Planning

When you die, assets titled in your individual name generally must pass through probate before your executor can distribute them. Assets properly titled in the name of your revocable trust bypass that process entirely — your successor trustee simply steps in and distributes according to the trust’s terms, typically far faster and without a public court filing. The same mechanism solves a second, less-discussed problem: incapacity. If you become unable to manage your affairs, a properly drafted trust allows your named successor trustee to step in immediately, without a guardianship proceeding — a court process that is slower, more expensive, and more public than most families realize.

TRUST FUNDING

The Step People Skip: Funding

A revocable trust only controls what’s actually inside it. Signing the trust document does nothing on its own — you (or your attorney) must retitle bank accounts, brokerage accounts, and real estate into the name of the trust, and update beneficiary designations where appropriate. We see this step skipped constantly, usually because it feels tedious after the signing appointment is already behind you. An unfunded trust provides none of its intended benefits: assets left outside it still pass through probate, defeating the entire purpose of creating the trust in the first place.

WILL VS. TRUST

Revocable Trust vs. Will: Choosing Between Them

Will

A will is simpler and less expensive to create, but guarantees probate and offers no incapacity plan beyond a separate power of attorney.

Revocable Trust

The person responsible for managing assets, debts, and taxes, then distributing what remains. It’s a legal responsibility—not an honor—and deserves consideration.

Most people who own real estate, have property in more than one state, value privacy, or want to spare a surviving spouse the delay of probate at an already difficult time find the additional upfront cost worthwhile. Most people with simpler estates, and no strong preference against probate, are well served by a will.

TRUST LIMITATIONS

What a Revocable Trust Does Not Do

It does not protect assets from your own creditors or lawsuits, because you retain full ownership and control. It does not reduce estate or income tax, because the IRS treats it as transparent — all trust income is reported on your own return. And it does not protect assets from being counted toward Medicaid’s asset limit; because you can revoke the trust and reclaim the assets at any time, Medicaid considers those assets yours. Families anticipating a long-term care need should look instead at our Medicaid Asset Protection Trusts page, which explains the specific, irrevocable structure Medicaid planning actually requires.

Frequently Asked Questions

Does a revocable trust protect my house from Medicaid?
No. Because you can revoke the trust and take the assets back, Medicaid counts them as yours. Medicaid asset protection requires an irrevocable structure — see our Medicaid Asset Protection Trusts page.
Can I be my own trustee?
Yes, and most people are, at least initially. You name a successor trustee who takes over if you become incapacitated or when you pass away.
Do I still need a will if I have a revocable trust?
Yes. A companion will — called a “pour-over will” — catches any assets accidentally left outside the trust and directs them into it, and it’s still the document that names a guardian for minor children.
How much does it cost to fund a trust after it's signed?
The cost varies by how many assets need retitling and whether real estate deeds need to be prepared and recorded. We handle the funding process as part of engagement so nothing is left unfunded and unprotected.
Is a revocable trust only for wealthy families?
No — the decision usually turns more on whether you own real estate, want privacy, or want to spare a family member the probate process than on net worth alone.

A WORD ON DIY WILLS

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Living Trusts
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