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If you will, allow us to present the hypothetical case of Pete Moneywise, a married, 78-year-old father of three who wants to get his financial affairs in order before his passing.
Though he exists only in the confines of this article, his situation reflects what countless retirement-age people face as they draw up their wills and create their trusts.
“I hate probate,” Pete tells us in an exclusive interview (what else did you expect? We created him). “I went through it when my father died, and my family spent the next year talking to lawyers, trying to get things squared away.”
He shares how the probate process caused tension between his siblings. He also harbored frustration over one unanswerable question: “Why didn’t Dad create a living trust? It would’ve made things so much simpler.”
Credit Pete for following his own advice. He has set up a living trust. Now, he must decide what, if anything, to leave out of it. He has done the homework for you: Here are five things to consider as you structure your living trust.
Many folks don’t even know what the word “probate” means until they’re in the thick of it.
Sometimes, not always, when a person dies — even if they left a will — a legal process is required to validate the will, name an executor to administer the estate if there isn’t one already, pay off liabilities, and then distribute the remaining assets.
The process can sometimes take years, not to mention the piles of paperwork and legal fees. For example, when the beloved entertainer Prince passed away in 2016, the legal dogfight over his estate continued in probate until August 2022.
If you are “of sound mind and body,” then you can make a will — and it’s a good idea to do that, so you don’t leave your friends and family scrambling and trying to guess at your wishes.
If you want an extra layer of security and peace of mind, you can create a revocable living trust. A trust would have helped Pete’s family avoid probate, protect their privacy, and minimize estate taxes when his father died. A trust is a document that allows you to keep control of your money and property and designate who receives it once you die.
With Ethos Will & Trust, you can create both a will and living trust online from the comfort of your own home in as little as 20 minutes. All documents created on the platform are vetted by experienced estate-planning attorneys — giving you complete peace of mind. You can also make unlimited updates forever as your life changes, helping you secure your legacy for your loved ones.
You can create a will starting at just $149 and a living trust starting at just $349. Plus, if you’re not happy with the results, you can get a full refund within 30 days.
“Revocable” means you can change the terms at any time while you are alive. As the assets aren’t considered a part of your estate, they sidestep the probate process.
It also lets you continue to use assets transferred into the trust, such as property or investments you own.
If you have a large estate with plenty of investments, you may want to consider both consolidating your asset management on a single platform, and using that platform to manage the distribution of your wealth after your passing.
That’s where the trusted team of financial planners at Range can come in.
For high-earning professionals or households making over $200,000, Range offers a smart, streamlined way to manage your full financial life — especially your real estate investments.
Through a strategic partnership with Engineered Tax Services, Range members receive free cost segmentation analysis and discounted cost segmentation studies. Range advisors will then use the study as part of a member’s tax planning and strategy.
Cost segmentation shortens depreciation timelines — from the standard 27.5–39 years down to just 5–15 years—allowing you to claim significantly larger tax deductions sooner and keep more money in your pocket. Note that only investment properties qualify for segmentation studies.
Range also delivers proactive advice across your entire financial life — not just real estate or taxes
From stock options and tax strategies to real estate and big-picture planning, Range integrates it all under one roof. With a transparent, flat annual fee — no hidden costs or percentage-of-assets surprises — you get AI-powered insights and comprehensive guidance designed to scale with your wealth.
However, the advantages of trusts have their limits and certain items will only create headaches if held there.
Read more: Rich, young Americans are ditching stocks — here are the alternative assets they’re banking on instead
Vehicles. Whether it’s a 1963 Corvette, a Harley chopper or a prop plane, all that’s required to pass it on is a simple written instruction to transfer the title to a beneficiary. If it’s held in a trust, you could be vulnerable to lawsuits over accidents involving the vehicle.
Annuities and retirement accounts. A trust can turn non-taxed accounts into taxable ones. However, you can make the trust itself the beneficiary, so that these accounts pass directly to your trustees without an IRS agent crashing the wake.
One way to invest in gold that also provides significant tax advantages is by opening a gold IRA.
Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link.
If you’d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver.
To learn more about how Priority Gold can help you reduce inflation’s impact on your nest egg, download their free 2025 gold investor bundle.
Life insurance. No need to put this in a revocable trust. Simply name your beneficiaries within the policy. Or, create an irrevocable life insurance trust (ILIT) to avoid estate taxes.
If you’re worried about your loved ones having access to funds to cover your funeral expenses, or other costs and debts immediately after your passing, life insurance can offer a versatile solution to help support your family, providing coverage to potentially replace lost income or settle outstanding debts in the event of your death.
Opting for term life insurance through a provider like Ethos, ensures that as you age, your loved ones are protected from unexpected costs. With term life insurance, you can secure affordable coverage while managing your other financial responsibilities.
Ethos offers an easy online process that allows you to get up to $2 million in coverage with terms spanning from 10 to 30 years. To get a free quote, simply answer a few questions about yourself. Then, you can compare various policies and choose one that best suits your needs.
Assets held in other countries. This gets complicated, as you may not be permitted to place international assets in a trust. To find out if it’s possible, you’ll need to consult an estate attorney licensed in the country where your international assets are located.
Checking and savings accounts. If you use these to pay monthly bills, you may run into financial complications unless you’re the trustee and granted full control of trust assets. There’s a much easier route to take: Keep these accounts out of the trust.
And if Pete were real, he’d surely remind you that the information in this article does not constitute legal advice. Talk to a trust lawyer in your state, financial adviser, or other professional before making any decisions. Pete’s imaginary kids — and your real ones — will be grateful you did.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.