Estate Planning Myth: Everyone Needs a Trust

Revocable living trusts are practical estate planning tools, but not everyone in Nebraska needs one. The “right” plan depends on your goals, assets, and how Nebraska’s probate alternatives already work in your favor.

What a Revocable Trust Does

A revocable living trust lets you manage your assets during life and direct who receives them at death, generally without a probate if your assets are titled to the trust. The trust document allows you to name a successor trustee to step in if you become incapacitated, providing continuity without the need for a court conservatorship. And because a trust isn’t required to be filed with the court, it typically privacy than using a last will and testament.

However, a trust will not reduce taxes by itself, it can’t shield your assets from your creditors while you are alive, and it won’t help avoid probate if your assets are not titled in the trust at the time of your death. To complete your estate plan, a pour-over will and powers of attorney are still needed.

Why a Trust May Not Be Necessary in Nebraska

Nebraska probate is often straightforward. In uncontested cases, Nebraska offers informal probate, which is mainly administrative. Many estates move from appointment to closing without heavy court involvement. For modest, routine estates, probate here is often measured in months, not years.

For example:

• Small estates may qualify for affidavit-based procedures, skipping probate altogether.
• Transfer-on-death (TOD) deeds for real estate and beneficiary designations for bank accounts, investments, and life insurance can efficiently transfer assets without a trust.
• Opening probate can help limit creditor claims. If no estate is opened, potential claims may linger much longer. Giving proper notice through probate shortens the window for creditors to act and can bring finality for heirs at the conclusion of the estate administration.

There are real trade-offs between cost and effort when selecting the right estate planning method. Trusts require more up-front work, drafting, re-titling assets (“funding the trust”), updating deeds and accounts, and maintaining records. Meanwhile, Nebraska probate costs for simple estates are often modest and are paid from the estate itself. For many families, the “pay now” vs. “pay later” calculus favors a simpler plan.

Trusts vs. Alternatives

• Will-based plan + beneficiary designations. For many families, core assets already pass outside probate by design: joint accounts, retirement plans, life insurance, TOD/POD accounts, and TOD deeds for the residence. A will then handles any remaining property and creates testamentary trusts for minors, if needed.
• Joint ownership (use carefully). Adding a child as a co-owner can avoid probate but also gives that child immediate ownership rights (and exposes the asset to creditors, divorce proceedings, or spending habits). It can also skew inheritances. A trust or beneficiary designation often achieves the goal with fewer risks.
• Small-estate affidavits. Nebraska provides a streamlined way to collect assets when the probate estate is below set value limits. These procedures are robust for modest estates and often eliminate the need for a trust or a court case.
• Incapacity planning. A trust can provide “built-in” management if you’re incapacitated. That said, many families pair a will-based plan with financial and healthcare powers of attorney and never need court involvement.

Bottom Line

A trust can be a valuable tool, but it’s not a one-size-fits-all solution. Some key questions to contemplate when considering a trust include:

• Do you own real estate outside Nebraska?
• Are you in a blended family, or want to structure distributions?
• Do you want privacy or faster access to funds?
• Will your beneficiaries need ongoing support or oversight?

Many Nebraskans benefit from will-based plans paired with non-probate transfers. The best estate plan is the one tailored to your unique situation.

Ready to Get Started?

Fraser Stryker’s Estate Planning & Probate team can help you evaluate your goals and structure an estate plan that works for you, with or without a trust. Contact us to get started.