Revocable Living Trust in Maine: Do You Need One?

Wondering if you need a trust or just a will? A quick guide for Maine families on what a trust does, what it doesn’t, and who might want one.

If you own a home in Maine, have kids, or just want things to go smoothly for your family, someone has probably told you to set up a trust. Maybe you should. Maybe a will is enough. Here’s a quick way to sort it out.

What is a revocable living trust?

It’s a legal document that holds your assets and spells out who manages them and who receives them. You can change it whenever you want, and most people act as their own trustee while they’re alive. You also name a successor trustee to step in when you can’t manage things or after you pass away.

How is a trust different from a will?

A will takes effect only after you die, and it usually goes through probate, the court process for settling an estate. Assets that are properly held in a trust often don’t have to. That can mean less delay, and more privacy, since probate filings are public and a trust generally isn’t.

A trust also keeps working if you become unable to handle your own affairs. Your successor trustee can step in without a court having to appoint someone.

When does a trust make sense?

It’s worth a conversation if you:

• own a home or other real estate, especially in more than one state

• have young children or a blended family

• own a business or rental property

• want to decide when and how your heirs receive money

• would rather keep your affairs private

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When is a will enough?

If your situation is fairly simple, a will along with a power of attorney and a health care directive may be all you need. A trust isn’t right for everyone, and it doesn’t lower your income taxes on its own.

The step people skip

A trust only controls what’s in it. Signing the document isn’t enough. Your house, bank accounts, and other assets have to be retitled into the trust. Retirement accounts and life insurance work differently, since they pass to whoever is named as beneficiary. A trust that never gets funded can leave your family dealing with the very process you were trying to avoid.

Where to start

An estate planning attorney can look at your situation and tell you whether a trust, a will, or a mix of the two fits. Please reach out to us to see if we can help you.

This article is general information, not legal advice, and reading it doesn’t create an attorney-client relationship. Every situation is different, so please talk with an attorney about yours.