Do I Need a Trust if I Already Have a Will?

You did the responsible thing. You made a will, named a guardian for your kids, and checked estate planning off the list.

So why do people keep bringing up trusts?

A will and a trust do different jobs, and one isn’t a fancier version of the other. Which you need has more to do with your family’s circumstances than the size of your balance sheet. Here’s a simple overview, plus the situations where it makes sense to bring in an estate attorney.

What a trust is

A trust is a legal arrangement that holds money and property under rules you set. You (the grantor) put assets into it, someone you name (the trustee) manages them, and the people you choose (the beneficiaries) receive them. With a revocable living trust, you are often all three of those while you’re alive.

The rules are the point. A trust is a way to be specific about what happens to what you own.

Revocable vs. irrevocable trusts

A revocable trust (often called a living trust) can be changed or canceled while you’re alive. You usually name yourself as trustee, so day to day, nothing about how you manage your money changes. Because you keep that control, the assets are still treated as yours, and a revocable trust generally won’t lower your income taxes.

An irrevocable trust generally can’t be changed once it’s set up. When you move assets into one, they’re no longer yours in the eyes of the law. That’s the trade-off, and it’s why irrevocable trusts show up in estate tax planning for larger estates.

Either one is drafted by an attorney. What we can help with is whether the conversation is worth having, and what it would mean for the accounts we manage with you.

Why people use trusts

To avoid probate. Probate is the court process for settling an estate after someone dies. Depending on the state and the size of the estate, it commonly takes several months to well over a year, and court costs, legal fees, and executor fees come out of what you leave behind. It’s also public, so anyone who cares to look can see what you owned and who received it. Assets properly held in a trust generally pass outside of probate.

To plan for incapacity. A will does nothing until you die. If you become seriously ill and can’t manage your finances, a revocable living trust is one of the common tools that lets someone you chose step in. A durable power of attorney is the other. An attorney can tell you what your situation calls for.

To be specific about timing. Some parents don’t love the idea of a child receiving everything in one lump sum at 18. A trust is the usual way to spread an inheritance out or attach conditions to it.

The numbers worth knowing in 2026

• Federal estate tax exemption: $15 million per person. A married couple can generally shield up to $30 million, but the second $15 million isn’t automatic. It requires a portability election on a timely-filed estate tax return.
• State estate taxes are separate: Twelve states and the District of Columbia levy their own estate tax, several with exemptions far below the federal level.
• Kentucky has an inheritance tax, not an estate tax. It’s paid by the person who inherits rather than by the estate. Spouses, parents, children, grandchildren, and siblings are exempt. Other heirs may owe it, at a rate that depends on their relationship to you.
• SSI countable resource limit: $2,000 for an individual, $3,000 for a couple.

Figures are current as of 2026 and subject to change.

The takeaway from that first number: federal estate tax is not why most families set up a trust. It’s usually about probate, privacy, incapacity, or control.

The step people actually miss

A trust only controls the assets you actually put into it. Signing the document is step one. Retitling your house, your bank accounts, and your brokerage accounts into the name of the trust is step two, and step two is the one people skip. An unfunded trust is an empty box. Anything left outside of it generally goes through probate anyway, which undoes most of the reason you set it up.

Beneficiary designations usually come first. Retirement accounts and life insurance typically pass to whoever is named on the form, not to whoever is named in your will or trust. An outdated beneficiary form can quietly override a carefully drafted estate plan. Review yours every few years, and after any marriage, divorce, birth, or death in the family.

When to call an estate attorney

We’re not attorneys, and trust law varies from state to state. But these situations tend to warrant a real conversation with one:

• You have children who are still minors.
• You want to leave money to someone who receives means-tested benefits like SSI, where a $2,000 resource limit means even a modest inheritance can affect their eligibility.
• You’re in a second marriage or a blended family.
• You own real estate in more than one state.
• Your estate is approaching your state’s estate tax exemption, or the federal one.
• You already have a trust and you’re not certain your accounts and property were ever retitled into it.

So, do you need one?

Not every family does. If your situation is straightforward and most of what you own already passes by beneficiary designation or joint ownership, a well-drafted will and current beneficiary forms may be enough.

But if any of the situations above sound like you, a trust is worth asking about. Not because it’s sophisticated, but because a will was never built to do those jobs.

If you’re not sure where you stand, our financial planning team is happy to talk it through and coordinate with an estate attorney. Reach out with your questions here.

Sources:
https://www.ssa.gov/ssi/spotlights/spot-resources.htm

https://revenue.ky.gov/Documents/92F101714.pdf

https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill#:~:text=For%20tax%20year%202026%2C%20the%20standard%20deduction,households%2C%20the%20standard%20deduction%20will%20be%20%2424%2C150.

Disclaimer: This post is for informational purposes only and is never to be taken as advice or a recommendation. Talk to a tax or legal professional to determine how this information best applies to your personal situation.