How to Know If You Actually Need a Living Trust

Learn when living trusts make financial sense and when a simple will is enough for your estate planning needs.

1. Check if your estate exceeds probate thresholds. Most states require probate (court supervision of asset transfer) for estates worth $20,000 to $275,000, depending on where you live. California sets the bar at $184,500 as of 2026. If your total assets — house, cars, accounts, everything — fall below your state's threshold, a simple will handles the transfer without court involvement.
2. Count your real estate holdings. Real estate almost always goes through probate unless it's in a trust or has joint ownership. If you own property in multiple states, each state requires separate probate proceedings. A living trust lets your beneficiaries skip this entirely, saving months of court time and thousands in legal fees.
3. Consider your privacy and speed priorities. Probate creates public records that anyone can access, listing your assets and beneficiaries. The process typically takes 6 to 18 months. Living trusts transfer assets privately within weeks. If you value confidentiality or want faster transfers, a trust serves those goals better than a will.
4. Weigh the ongoing maintenance costs. Living trusts require retitling all assets into the trust's name and cost $1,500 to $4,000 to set up properly. You'll need to update beneficiary designations and maintain trust records. Simple wills cost $300 to $800 and require minimal upkeep. Choose based on whether the probate savings justify the trust's complexity.
5. Skip the trust if these apply to you. You probably don't need a living trust if you're single with assets under $200,000, own only retirement accounts and life insurance with named beneficiaries, or rent instead of owning real estate. These situations make probate either unnecessary or simple enough that a basic will handles everything efficiently.