Is a Will Enough for Your Young Family? Here's What You're (Probably) Missing

I'm not sure about you, but when I think about trusts, I picture rich families and rich kids. I remember hearing as a teenager about "trust fund children." I didn't grow up near many, or at least I don't think I did. But knowing what I do now, I hope my kids are trust fund children, and not in the negative sense of the word. Here's why.

I'm writing this as a 34-year-old with three kids, a rental property, several investment accounts, and about 8,000 lbs. of household items (which should be dramatically decreasing soon as my family plans for a move to Maui - more on that another time).

A Story That Might Sound Familiar

Picture someone in their mid-twenties. Single or newlyweds and a couple years into a career. Financial life is simple: a 401(k) from their job, a checking and savings account, maybe a brokerage account to save up for a home down payment. No children and assets of maybe tens of thousands or a couple hundred thousand dollars.

Then life slowly, and suddenly, happens.

That person meets someone. Gets married. Buys a house. Has a kid. Then another. Maybe they start a business on the side, or focus on a main career, or get promoted into better-paying roles. Suddenly there's a house, multiple bank accounts, investment accounts, 529 plans for the kids. There's talk about a second property, life insurance and perhaps an inheritance from a grandparent.

Sounds familiar, doesn't it? According to Trust & Will's 2026 Estate Planning Report, a staggering 56% of American adults have absolutely no estate planning documents in place. No will, no trust, no medical directives. Even wilder: 62% of Gen 46–61-year-olds, the very people navigating peak financial complexity, raising kids, and managing aging parents are flying completely blind without a plan.

Most people don't realize: if you don't have a plan, your state has one for you. And it probably isn't what you want. Now that you're paying attention, let's discuss a potential solution. (And a heads up: you'll likely want to pair your revocable living trust with other documents like a health care directive and a durable financial power of attorney.)

What Is a Revocable Living Trust (RLT)?

This article focuses on revocable living trusts, or RLTs. There are several different kinds of trusts available depending on your needs and situation, but a revocable living trust is likely to be a good starting point for most young families.

A revocable living trust is a legal arrangement where you transfer ownership of your assets to a trustee, who manages them on behalf of your beneficiaries according to your instructions. You're essentially creating a set of instructions for how your assets should be managed and distributed. The word "revocable" means you can change or dissolve it at any time during your lifetime.

Key Features of a Revocable Living Trust

Asset Management: The trust holds title to your assets for the benefit of you and your beneficiaries.

Trustee Appointment: You appoint a Trustee (and a Successor Trustee) to manage and distribute assets according to your specific instructions. During your lifetime, you and your spouse typically serve as Trustees. After you pass away, your Successor Trustee takes over.

Probate Avoidance: A trust is primarily used to avoid probate, which is especially beneficial if you own real estate in multiple states.

Asset Transfer: Assets must be affirmatively transferred into the trust. This is a critical step many people overlook.

A trust can hold nearly any asset: real estate, investment accounts, business interests, life insurance policies. Once properly transferred into the trust, assets operate according to your terms, not state law.

Why Revocable Living Trusts Matter: One Death or Both

It's common to think trusts are only important if both spouses die at the same time, however that is a misconception.

If one spouse dies and accounts are properly titled with "right of survivorship": Your surviving spouse gets immediate access to joint bank accounts, investment accounts, and jointly owned property without going through probate. These assets pass directly to the surviving spouse by operation of law.

However, here's the catch: Not all joint accounts automatically have rights of survivorship. Some are titled as "tenants in common," which means they go through probate. You need to verify your accounts are titled as "joint tenancy with right of survivorship" (JTWROS) or "tenancy by the entirety" (TBE) to get that protection.

If both spouses die: This is where the trust becomes essential. If you don't have a trust, your children's or dependents' inheritance gets frozen in probate. Assets get tied up for months or years. A trust ensures assets go directly to your children according to your instructions, with no court delays.

Additionally, a trust does more than just avoid probate for both deaths. It consolidates your entire financial life in one document. It ensures all assets (both jointly titled and individually owned) are managed the way you want, for both scenarios.

Three Critical Blind Spots an RLT Eliminates

Avoiding Probate: When someone dies without a trust, assets go through probate, a public court process that's expensive and time-consuming. Trusts avoid this entirely. Assets transfer directly to beneficiaries with no court involvement, no public disclosure, and no delays. Additionally, in probate a judge can make decisions about your assets that override your wishes. With a living trust, you maintain direct control over where everything goes.

Asset Protection: Trusts create a legal separation between you and your assets, protecting them from lawsuits, business failures, and creditors depending on the trust structure. Say you're a business owner or landlord and your company or property faces a significant liability lawsuit. Or you're a professional like a doctor where malpractice is a real risk. By placing personal assets in a trust, you create separation between the professional exposure and your family's financial security.

Control and Flexibility: With a will, you state who gets what. With a revocable living trust, you control the when, how, and under what conditions assets are distributed. For example, instead of your 19-year-old getting a lump sum inheritance and potentially spending it all within a year, you could structure the trust to give them $50,000 now for living expenses, another $100,000 when they finish college, and the remainder at age 30. A couple of other examples: you can protect a child with special needs without losing government benefits, ensure inheritance goes to your children and not a future ex-spouse, or direct assets toward causes you care about.

Nothing vs. Will vs. Trust

A will is better than nothing, but it's usually not enough, especially if you own your home, a business, or other significant real property.

Without a Will: You die intestate, which means the courts decide what happens to your assets and your kids. This is called probate, and it can cost thousands of dollars and take months or years.

With a Will: You go through probate, where a court validates your will. Your information becomes public record. The process costs money and takes time. Your family is stuck waiting for the courts instead of moving forward.

With a Revocable Living Trust: The trust bypasses probate entirely. Your information stays private and the courts stay out of it. Your assets transfer to your beneficiaries according to your instructions, without court involvement, without delay, and without your financial information becoming public.

Do You Need a Revocable Living Trust?

If you own a home, have meaningful retirement accounts, carry life insurance, or have people depending on you financially, a revocable living trust is worth considering. A young family with a home, a few hundred thousand in assets, and kids has more than enough at stake. In fact, young families often have the most to protect and the most to lose, because they have young children who depend on them and decades of plans that hinge on getting this right.

If you take away just one thing, it's this: you don't need to be wealthy to benefit from a trust!

Three Ways to Obtain a Revocable Living Trust

Option 1: DIY Online Services

Cost: $400-600 (LegalZoom, Wealth.com, etc.)

You complete an online questionnaire, and the software generates your customized trust documents. You download, print, sign, and you're done in a few hours to days.

Pros: Most affordable option. Complete control over timeline and process.

Cons: You're working in isolation. The trust isn't integrated with your broader financial plan, insurance, or investments.

Option 2: Financial Planner as Estate Planning Coordinator

Cost: $1,500-3,000

You meet with your planner to discuss your goals and assets, then work through a platform like Encore Estate Plans, Wealth.com, or Vanilla to build your trust together. Your planner coordinates your estate plan with your insurance, investments, and overall financial strategy.

Important distinction: Your financial planner facilitates the estate planning process but does not provide legal advice. For example, according to Encore Estate Plans' terms, advisors must disclose that "no legal advice will be provided by the advisor to the client." The documents can be attorney-reviewed, but your advisor's role is coordinating and guiding.

Pros: Comprehensive approach that looks at the whole picture. Documents are properly funded and titled.

Cons: More expensive than DIY. Not quite as legally specialized as working directly with an attorney.

Option 3: Estate Planning Attorney

Cost: $2,000-5,000+

You consult with an estate planning attorney who specializes in trusts and discusses your specific situation. They draft a customized trust document tailored to you and your state's laws. If you're ready to work with an attorney, the ABA Lawyer Referral Directory helps you find qualified, vetted estate planning attorneys in your state

Pros: Specialized legal expertise. Direct legal advice and thorough, customized documents.

Cons: The cost and the effort of booking an appointment create friction, which often means nothing gets accomplished.

Many estate planning attorneys and financial planners work together so you don't have to choose between comprehensive financial planning and legal expertise.

Now What? Your Action Plan!

Step one: Assess your complexity. Do you own a home? Have kids? Multiple accounts? A business? Received an inheritance? If yes to any of these, there's never been a better time to consider a revocable living trust.

Step two: Choose your path. Do you want to DIY? Start with a financial planner for guidance? Or work directly with an attorney?

Step three: Set a deadline and make it happen, perhaps before school starts again in the fall, or by a loved one's birthday. Call a financial planner or attorney and schedule a consultation.

Step four: Fund it properly. This is the critical step people skip. Update your real estate deed, retitle bank accounts, review life insurance beneficiaries. A trust with no assets is essentially useless.

Step five: Tell your loved ones. Your trustee needs to know they've been named. Your family should know the documents exist.

The Bottom Line

Wealthy families use revocable living trusts because they work. They avoid probate, provide protection, and give you control over your legacy. These aren't problems that only affect millionaires. They affect anyone with assets worth protecting and people they care about.

The price of action is always less than the cost of inaction. A trust that costs $500 or $4,000 now prevents your family from spending $10,000 to $30,000 in probate costs later. It prevents years of uncertainty, family conflict or confusion.

For young families especially, a revocable living trust isn't about wealth you already have. It's about protecting the life you're building and the people counting on you. If you own a home, have retirement savings, carry life insurance, or have people depending on you, and honestly, that's probably you, it's time to act!