What Is a Trust—and Do You Actually Need One?

Trusts can be incredibly useful when it comes to estate planning, managing your assets, or making sure the people you care about are protected. And while there are lots of different kinds out there, each one serves a unique purpose depending on your needs. So let’s start at the beginning.

What Is a Trust?

At its core, a trust is a legal tool that lets someone (called the "grantor") transfer their property to another person or entity (the "trustee"), who then holds and manages it for the benefit of someone else (the "beneficiaries"). Depending on how the trust is set up, the grantor might still have access to the assets, or they might not. The trustee has a legal obligation to follow the terms of the trust and use the assets as outlined.

Trusts can be created while someone is alive (these are often called living trusts) or through a will to take effect after death (called testamentary trusts). Each serves a different purpose, and the right one depends on what you're trying to accomplish.

Common Types of Trusts

Revocable Living Trust

This is created during your lifetime and, as the name suggests, it can be changed or completely revoked while you’re still alive. It’s a great option if you want to stay in control of your assets but avoid probate later on. You name yourself as trustee, keep managing everything like normal, and then name a successor trustee to step in when you're gone or unable to act.

Irrevocable Trust

This type of trust is more rigid. Once it's set up, it generally can't be changed without court involvement or consent of the beneficiaries. It’s often used for asset protection, long-term care planning, or tax strategy. You give up some control—but in return, you may gain other benefits, like protecting assets from creditors.

Testamentary Trust

Unlike a living trust, this one only comes into existence after you pass, through instructions in your will. It’s commonly used if you have kids who are minors, or if you want to space out distributions over time. The court oversees the process as part of your estate.

Special Needs Trust

If someone you love receives public benefits like Medicaid or SSI due to a disability, a special needs trust might be essential. It allows you to leave money or assets to them without jeopardizing those benefits. These trusts must be drafted very carefully to meet strict requirements.

When Does Setting Up a Trust Make Sense?

If you want to avoid probate (which can be a long and expensive process in Nebraska), a trust is usually the go-to strategy. Trusts are also useful if you:

• Have minor children

• Want to name a guardian and protect their inheritance

• Are planning for a loved one with special needs

• Want to protect your assets from lawsuits or creditors

• Own property in multiple states

That said, even with a trust, you still need a will—just in case an asset gets left out of the trust. That backup plan can save your family a lot of time and confusion.

Are Trusts Right for Everyone?

Not necessarily. Trusts aren’t one-size-fits-all. They can be powerful tools, but they need to be tailored to your goals, your assets, and your family dynamics. The good news? You don’t have to figure this out on your own.

If you’re in Nebraska and wondering whether a revocable living trust, irrevocable trust, or any other estate planning tool makes sense for your situation, I’m happy to walk you through it.

Talk with a Nebraska Estate Planning Attorney

Whether you’re just getting started or ready to dive into the details, let’s talk about what’s right for you. Request a consultation or give me a call at 402-259-0059. You can also email me at zach@zandersonlaw.com.

Let’s make sure your wishes are protected—and the people you love are too.