When Is the Right Time to Set Up a Trust Account?

When most people hear the word “trust,” they think of billionaires handing fortunes to future generations.
But trusts aren't just for the ultra-wealthy anymore.
For many families, setting up a trust can be a smart, strategic way to protect assets, simplify estate planning, and create lasting financial security.

The real question is: When should you set one up?

Here’s what you need to know.

What a Trust Actually Does

At its core, a trust is a legal arrangement that lets you control how your assets are managed and distributed — both while you're alive and after you pass away.

Trusts can:

• Avoid probate (saving time, costs, and privacy headaches)

• Protect assets for children or grandchildren

• Shield inheritances from creditors or lawsuits

• Create tax advantages in certain cases

• Allow you to manage money if you become incapacitated

Signs It Might Be Time to Set Up a Trust

You might want to seriously consider a trust if:

• You have minor children or beneficiaries who aren’t ready to manage money

• You own real estate in multiple states (to avoid multiple probate processes)

• You want to keep your affairs private after death (wills are public, trusts are private)

• You want to control distributions over time (rather than leaving a lump sum)

• You have a blended family and want to ensure specific inheritance wishes

• You have estate tax concerns (particularly if your estate could exceed future limits)

Even if your net worth isn’t in the tens of millions, a trust could save your heirs time, money, stress, and family conflict.

Common Types of Trusts

• Revocable Living Trust:
  The most common type — lets you stay in full control of your assets during your lifetime and changes can be made at any time.

• Irrevocable Trust:
  Offers stronger asset protection and tax benefits, but once created, it generally cannot be changed.

• Testamentary Trust:
  Created through your will and takes effect after you pass.

Each type serves different needs — the key is matching the trust structure to your goals.

Bottom Line

Trusts aren't just for the rich — they’re for anyone who wants more control, protection, and clarity over what happens to their money.

Setting up a trust at the right time can help ensure your wishes are honored, your loved ones are protected, and your legacy lasts beyond your lifetime.

Wondering if now is the right time to build a trust into your retirement or estate plan?
Our free trainings and trusted advisor network can help you explore your options with confidence.