Blog

Last week, we explored what estate planning is—organizing your assets and wishes for when you can’t manage them.

This week, let’s dive into trusts, a key tool to make that plan work. At J. Davenport Legal, we helped thousands use trusts to keep things simple and secure.

If you’re wondering “What is a trust?” or “How does a trust protect my family?”, this easy guide breaks it down, focusing on the revocable living trust with a peek at other types.

What Is a Trust?

A trust is like a special box where you put your assets—your home, savings, or even a car—so someone you trust can manage them later.

It’s part of estate planning to avoid court hassles and ensure your wishes are followed.

Only 32% of people have a trust in 2025, but they can save families from big problems.

Common Question & Answer: “What is a trust in simple terms?” – It’s a way to hold and manage your stuff for your family, skipping court delays.

How It Works

• You pick a “trustee” (you or someone else) to oversee it.
• You decide who gets what (“beneficiaries”) when you’re gone or sick.
• A legal document sets the rules, kept safe and updated

Spotlight: Revocable Living Trust

The revocable living trust is the most popular choice because it’s flexible and easy to understand. You create it while alive, control it, and can change it anytime—like updating a will.

Common Question & Answer: “What is a revocable living trust?” – It’s a trust you manage during your life, passing assets to your family without probate.

Why It’s Great

• Avoids Probate: Saves 3–7% of your estate (e.g., $7,500–$17,500 on $250K) and skips 9–18 month delays.
• Keeps Privacy: Unlike wills, it’s not public.
• Handles Incapacity: If you’re sick, the trustee steps in without court.
• Simple Setup: Local attorneys typically costs $4,500+, often less than probate fees. However, we charge $2,500 or less for some of our packages.

A Quick Example

Imagine you have a $300K home. With a revocable trust, it goes straight to your kids after you’re gone, avoiding a year in court and saving $9,000 in fees.

Other Trusts in Brief

Trusts come in different flavors, each with a purpose:

• Irrevocable Trust: You can’t change it, but it protects assets from the Medicaid 5-year look-back, shielding your home from care costs averaging $100,000/year. Common Question & Answer: “What is an irrevocable trust for Medicaid?” – It’s a trust that locks assets away to qualify for care benefits.
• Charitable Remainder Trust: Donates to charity after your death, cutting taxes while supporting a cause you love.
• Special Needs Trust: Supports a disabled loved one without affecting their benefits.
• Testamentary Trust: Created in a will, activating after death for minor kids.

These options add flexibility, but the revocable trust is the go-to for most.

Why Trusts Matter to You

Without a trust, 70% of estates face probate, costing time and money. A revocable trust keeps things private and quick, while an irrevocable trust can guard against care costs—a big worry for 88% of seniors.

Common Question & Answer: “Why should I use a trust in estate planning?” – It saves money, avoids court, and protects your family.

Getting Started Is Easy

You don’t need to be a lawyer to use a trust. Start by:

1. Listing your assets (home, bank accounts).
2. Choosing a trustee (you or a trusted person).
3. Talking to us for a free consultation to plan out your estate.

In 2025, trusts are more affordable than ever, with online tools and our flat fees.

Common Question & Answer: “How do I set up a trust in 2025?” – List assets, pick a trustee, and consult an expert like us.

Take the Next Step

Don’t let myths or complexity stop you—32% regret not planning sooner.

Contact J. Davenport Legal for a free consultation to set up your trust and protect your legacy. Or take our quick estate planning quiz to see how your current plan stacks up.

References

AARP Estate Planning Guide – Notes trust accessibility and middle-class benefits.

Caring.com 2025 Wills and Estate Planning Survey – Reports 32% with plans, 68% regret not planning.

Investopedia Estate Planning Basics – Details on probate costs (3–7%) and trust benefits.

National Council on Aging Medicaid Planning – Insights on irrevocable trusts and $100K/year care costs.

Estate Planning Law Statistics 2025 – 70% estates face probate, 88% seniors worry about costs.

Quicken Estate Planning Guide 2025 – Covers online tools and flat-fee trust costs.