Myth: "I Don't Have Enough Money for a Living Trust" - Guidance from a Portland, Oregon Trust and Estates Lawyer

One of the most persistent myths in estate planning is that living trusts are reserved for the ultra-wealthy. The reality? If you own a home, have a retirement account, or want to keep your family out of court, you likely have enough to justify a trust.

In fact, middle-class families often need a trust more than the wealthy because they can least afford the high costs of probate.

Is There a Minimum Net Worth for a Living Trust?

No. There is no legal minimum dollar amount required to create a trust. The decision shouldn't be based on how much you have, but rather on what you want to protect and how you want your family to handle your affairs.

If you own real estate, even with a mortgage, a trust is usually the only smart way to bypass probate. In many states, if you own a home worth $300,000, your estate could face $9,000 to $15,000 in probate fees if you only have a will.

What Are the Hidden Costs of Choosing a Will Over a Trust?

Many people choose a will because it's cheaper up front. However, a will guarantees your family will go to probate court. The cost of a trust is higher initially, but it bypasses probate later. The cost of a will is lower upfront, but it potentially creates $10,000 or more in court fees, legal fees, and personal representative fees later.

Think of a trust as prepaying your estate administration at a discount, so your children don't have to pay a premium during a crisis.

How Does a Trust Protect You While You're Alive?

Wealth isn't just about money. It's also about protecting yourself during health crises. If you become incapacitated by a stroke or dementia, a will does nothing because you're still alive.

Without a trust in Portland, Oregon, your family might have to petition a court for guardianship or conservatorship just to access your checking account to pay your mortgage. This public court process is expensive and emotionally difficult. A living trust allows your successor trustee to step in instantly and privately, without a judge's permission.

Why Does Privacy Matter in Estate Planning?

Probate is a public proceeding. Anyone can walk into the courthouse and download your will to see exactly who got what and who didn't. Scammers often use probate records to target widows or young heirs who have just received an inheritance.

Trusts are private contracts. Nobody knows what you own, who you left it to, or how much it's worth except the people you trust. This privacy protects your family from unwanted attention and potential exploitation.

Do You Need a Trust? The Middle-Class Checklist

You likely need a trust if you own a home and want to avoid probate delays and costs. You also benefit from a trust if you want to keep your family affairs private and out of the public record. Additionally, if you want to prevent a court guardianship if you become ill, a trust provides essential incapacity planning protection.

Making the Right Choice for Your Family

Don't let the millionaire myth cost your family their inheritance. A living trust isn't about being rich. Rather, it's about being smart and protecting what you've worked hard to build.

We can help you run the numbers in Oregon and determine whether a trust makes financial sense for your family. Contact us at (503) 235-5150 to schedule a consultation.