Four Reasons Retirees Need a (Revocable) Trust
Just because an estate attorney or ad recommends a revocable trust doesn’t mean you actually need one. However, maybe one of the following situations applies to you.


Imagine walking into a car dealership and asking the salesperson whether you need a car. The salesperson would answer with assurance: “Of course you need a car! The only question is which one on our lot you are going to buy.”
Unfortunately, the same approach can be expected from a lot of estate attorneys. No matter who you are or what your situation, the attorney is very likely to tell you that you need a revocable trust. This is a one-size-fits-all answer, and you should proceed with caution. That said, a revocable trust often makes sense. Here are four reasons why a revocable trust may fit your situation:
1. To avoid probate
When prospective clients approach me, insisting they need a trust, it’s typically because of a good or bad experience they had because of a trust or lack thereof. Maybe a parent had a trust and things passed very smoothly. Or maybe their parents didn’t have a trust, and they had to deal with the probate courts in a tough jurisdiction. It’s either that, or they got a targeted ad on Facebook saying they should absolutely have one.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In any case, probate avoidance is a legitimate reason to set up a trust. If you plan to pass assets through your will, it will go through probate. Probate is a court-supervised process of distributing the decedent’s assets. It can be, depending on the jurisdiction, expensive and time-consuming.
If you own assets in multiple states, this can be especially important. My office is in Virginia, but from my office window, I can see D.C. and Maryland. If I own a rental property in Maryland and die, my family will go through probate here in Virginia and ancillary probate in Maryland. A revocable trust that owns both properties solves that problem.
2. To have control
Imagine a scenario where two of your kids are great with money, but the third, not so much. You can stop imagining, as this is probably the case. It is more common than not to have kids who are going to do very different things with the same inheritance.
The most common way that revocable trusts control this challenge is to release a certain percentage of assets once the beneficiary hits certain ages. While this is most common, it is by no means the only way to solve the problem.
Along with the benefit of control comes flexibility. The trust I have in place would allow for annual distributions only up to the amount that my beneficiaries save each year. What kind of financial planner would I be if I didn’t incentivize saving?
3. To ensure privacy
Putting together an estate plan can be a very emotional process. Ideally, there won’t be too much disagreement among the parties, and you will land with a plan that executes your wishes. That said, I’m guessing you wouldn’t post that plan on social media. Your wishes are typically something you keep private except from those who have some role or benefit in the plan.
If you plan to pass assets through a will, just remember that most of the time, that will becomes public once the probate estate is closed. So, if you left one of your kids out, left your favorite a bit more or are just a private person, you may be better off with a trust.
4. To plan for incapacity
The scenario that no one expects or wants does, unfortunately, occur sometimes. If your bank accounts are titled only in your name, this can become a nightmare for simple tasks like paying your bills. A revocable trust won’t improve your situation, but it can create continuity and simplicity in managing financial matters.
In the case of the trust, you will name a successor trustee who will manage the assets in the trust according to the terms of the trust should you become incapacitated. This can happen immediately rather than going through the legal process of seeking guardianship or conservatorship.
While I believe these are four very strong reasons for drawing up a living trust, and while most of our clients do employ these instruments, they are by no means necessary for everyone. My next column: Four Reasons You Don’t Need a (Revocable) Trust.
related content
- Eight Types of Trusts for Owners of High-Net-Worth Estates
- What Assets Should You Put (or Not Put) in Your Trust?
- The (Only) 3 Reasons You Should Have an Irrevocable Trust
- Three Key Things to Consider Before Agreeing to Be a Guardian in a Trust
- Best States for Trusts: How to Choose One That’s ‘Trust-Worthy’
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

After graduating from the University of Delaware and Georgetown University, I pursued a career in financial planning. At age 26, I earned my CERTIFIED FINANCIAL PLANNER™ certification. I also hold the IRS Enrolled Agent license, which allows for a unique approach to planning that can be beneficial to retirees and those selling their businesses, who are eager to minimize lifetime taxes and maximize income.
-
Stock Market Today: Stocks Slip Ahead of Big Earnings, Inflation Week
Perhaps uncertainty about tariffs, inflation, interest rates and economic growth can only be answered with earnings.
-
Ask the Editor — Tax Questions on "The One Big Beautiful Bill Act"
Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on the new tax law.
-
I'm a Financial Planner: Here Are Some Long-Term Care Insurance Tips for Every Age
Strategies include adding riders to life insurance for younger individuals and considering hybrid or traditional long-term care policies for those in their mid-50s and 60s.
-
Engineering Reliable Retirement Income in 2025: An Expert Guide
For dependable income, consider using a bucket strategy and annuities in tandem to promote structure, flexibility and peace of mind.
-
Crazy Markets Shouldn't Derail Your Retirement if You Follow This Financial Pro's Plan
Being nervous about retiring in a volatile market is a red flag that you're relying too heavily on your investment portfolio, rather than a comprehensive plan.
-
Key to Financial Peace of Mind: Think 'What's Next?' Rather Than 'What If?'
Even if you've hit your magic number for retirement, it's hard to stop worrying about money. Giving it a clear purpose is one way to reduce financial anxiety.
-
Three Estate Planning Documents a Business Owner Can't Afford to Skip
A business owner's estate plan should protect the company and its employees as well as the entrepreneur's heirs. These three documents are critical.
-
Financial Fact vs Fiction: Why Your 'Magic Number' Isn't Actually Magical
Do you think you're diversified if you're invested in the S&P 500 and Nasdaq? Do you think your tax rate will fall in retirement? Think again — and read on for other myths that could be leading you astray.
-
Opportunity Zones: An Expert Guide to the Changes in the One Big Beautiful Bill
The law makes opportunity zones permanent, creates enhanced tax benefits for rural investments and opens up new strategies for investors to combine community development with significant tax advantages.
-
Five Ways Retirees Can Keep Perspective Through Market Jitters
Market volatility is a recurring event with historical precedents (the dot-com bubble, global financial crisis and pandemic), each followed by recovery. Here's how people who are near or in retirement can navigate economic uncertainty.