At What Net Worth Do I Need a Trust?

If you are wondering at what net worth do I need a trust, you are not alone. It is one of the most common estate planning questions families ask, and the answer is simpler than most people expect.

There is no legal minimum net worth required to create a trust. Anyone can set one up regardless of how much they own.

The short answer: if you own a home, have minor children, or live in a state with expensive probate, a revocable living trust is likely worth it — no matter your net worth. For many families, the real question is not whether they are wealthy enough for a trust, but whether they can afford not to have one.

Why the "Net Worth" Question Is the Wrong Starting Point

Most people assume trusts are only for the wealthy because of how they have been portrayed in popular culture. The term "trust fund" conjures images of multi-generational wealth and estate tax strategies. But the type of trust that most families actually need — a revocable living trust — has nothing to do with estate taxes and everything to do with avoiding probate.

The federal estate tax exemption in 2026 is approximately $15 million per individual. Unless your estate exceeds that threshold, estate taxes are not a factor in your decision. For the vast majority of American families, the reason to create a trust is probate avoidance, not tax planning.

Probate is the court-supervised process of distributing your assets after you die. Here is what it can cost your family:

• Time: Six to eighteen months, sometimes longer for contested estates

• Fees: Three to seven percent of your estate's total value in court and attorney costs

• Privacy: Everything that goes through probate becomes public record — your assets, your beneficiaries, and how much each person received

A $400,000 home that goes through probate could cost your family $12,000 to $28,000 in fees. A revocable living trust allows that same home to transfer directly to your beneficiaries without any court involvement.

When a Trust Makes Sense Based on What You Own

Rather than focusing on a specific dollar amount, consider what you own and how those assets would transfer if something happened to you.

You Own a Home

Real estate is the single most common reason families create living trusts. A home titled in your name alone must go through probate to reach your heirs. A home held in a revocable living trust transfers directly to your beneficiaries without court involvement, without public disclosure, and without the fees and delays that come with probate.

If you own property in more than one state, you need a trust even more, because your family would otherwise face probate proceedings in each state where you hold real estate. For a step-by-step guide on transferring your home, read how to put your house in a trust.

You Have Minor Children

A trust allows you to name a trustee to manage assets on behalf of your children until they reach an age you choose. Without a trust, children who inherit assets through probate typically receive full access at age eighteen, with no restrictions and no guidance. A trust lets you set conditions such as:

• Using funds for education and living expenses

• Releasing a portion at age twenty-five

• Distributing the remainder at age thirty or thirty-five

You Have Retirement Savings, Investment Accounts, or Life Insurance

While retirement accounts and life insurance policies use beneficiary designations to bypass probate, a trust can serve as the backup beneficiary to catch assets that fall through the gaps. It also provides instructions for how those assets are managed if a beneficiary is a minor or is not financially ready to receive a large sum at once.

You Value Privacy

A will becomes public record when it is filed with the probate court. Anyone can look up what you owned, who you left it to, and how much each person received. A trust is a private document that is never filed with any court. For families who value discretion, this alone is a reason to choose a trust over a will.

When You Might Not Need a Trust

Not every family needs a trust, and it is important to understand when simpler alternatives might be enough. You may not need a trust if:

• Your total assets are modest and fall below your state's probate threshold

• You are young, single, and do not own real estate

• All of your major assets already have beneficiary designations or payable-on-death arrangements

• You live in a state where probate is inexpensive and relatively fast

Each state sets its own threshold for when formal probate is required. Some states allow simplified procedures for estates under $25,000, while others set the bar at $200,000 or higher. Check the probate thresholds by state to see where your state falls.

Even if your estate falls below the probate threshold today, your assets may grow over time. A home that was worth $200,000 when you bought it may be worth $400,000 a decade later. A trust you create now protects your family regardless of how your estate grows in the future.

How Net Worth Affects the Type of Trust You Need

For most families, a revocable living trust is the right choice. It gives you:

• Full control over your assets during your lifetime

• Flexibility to make changes or revoke the trust at any time

• Probate avoidance for everything held inside the trust

• Incapacity protection so your successor trustee can step in if you become unable to manage your affairs

This is the type of trust that 299Trust creates for individuals and families.

If your net worth exceeds the federal estate tax exemption of approximately $15 million per individual or $30 million per married couple, you may benefit from more advanced strategies involving irrevocable trusts. Irrevocable trusts remove assets from your taxable estate, which can reduce estate tax liability. However, they also require you to give up control of those assets, making them a more complex planning tool that typically requires an attorney's guidance.

For families with net worth between $100,000 and $15 million — which includes the vast majority of American households — a revocable living trust is the most practical, affordable, and effective estate planning foundation.

Trust vs. Will: Which One Do You Need?

Many families assume they need to choose between a trust and a will. In reality, most complete estate plans include both. A living trust and a will serve different purposes and work together:

• A will names guardians for minor children, which a trust cannot do

• A will acts as a backup to catch any assets not transferred into the trust before your death — this backup document is called a pour-over will

• A trust handles the primary job of transferring your home, accounts, and other assets directly to your beneficiaries without probate

• A trust provides instructions if you become incapacitated, allowing your successor trustee to manage your affairs without a court-appointed guardianship

If you are deciding between a trust and a will, the question is usually not which one to get — it is whether you need the trust in addition to the will. For homeowners, parents, and anyone who wants to avoid probate, the answer is almost always yes.

How Much Does It Cost to Set Up a Trust?

One of the biggest barriers to creating a trust is the perception that it is expensive. Here is how the costs typically break down:

• Estate planning attorney: $1,500 to $5,000 or more, depending on complexity and location

• Online estate planning platform: $199 to $599 for a complete trust-based plan

• DIY template: $50 to $200, but carries the highest risk of errors

299Trust offers complete estate plans starting at $299 for individuals and $399 for joint plans. Each plan includes:

• A revocable living trust

• A pour-over will

• A durable power of attorney

• A healthcare directive

• All supporting documents, customized to your state's laws

For a detailed comparison of how pricing differs across methods, read the full living trust cost guide.

Frequently Asked Questions

Is there a minimum net worth to create a trust?

No. There is no legal minimum. Anyone can create a revocable living trust regardless of their net worth. The decision depends on what you own, whether you want to avoid probate, and whether you have dependents who need financial protection.

Do I need a trust if I only have a house?

A home is one of the strongest reasons to create a trust. Without one, your home must go through probate to reach your heirs, which can take months and cost thousands in fees. A trust allows your home to transfer directly to your beneficiaries.

Do I need a trust to avoid probate?

A revocable living trust is the most comprehensive way to avoid probate for all types of assets. Other methods, such as beneficiary designations and joint tenancy, can bypass probate for specific accounts or properties but do not provide the same level of control or privacy.

Do I need a trust or a will?

Most families benefit from having both. A will names guardians for children and catches any assets not placed in the trust. A trust handles probate avoidance, privacy, incapacity planning, and distribution control. Together, they form a complete estate plan.

At what age should I get a trust?

There is no specific age requirement. The right time depends on your life circumstances. If you own a home, have children, or have accumulated meaningful assets, those are stronger triggers than age alone. Many financial advisors recommend having a trust in place by your forties or fifties, but younger families with real estate or dependents should not wait.

Can I create a trust without a lawyer?

Yes. Many families with straightforward estate planning needs create trusts through guided online platforms without hiring an attorney. For situations involving business ownership, blended families, or estates above the federal tax exemption, consulting an attorney may be appropriate. Read more about setting up a trust without an attorney.

Disclaimer: This article is for informational and educational purposes only and does not constitute legal advice. Estate planning laws vary by state and individual circumstances. For specific legal questions, consult a qualified estate planning attorney.