The notion that trusts are only for wealthy parents to give their children undeserved millions is a common trope. However, it’s not true. A recent article from MSN, “3 Reasons You Still Need a Trust, Even Without Kids, According to Suze Orman,” says this is a dangerous assumption and could lead to legal nightmares. Trusts create a level of protection not provided by wills and powers of attorney.
Joint home ownership doesn’t protect you or your spouse from incapacity. If a couple owns a home as joint tenants with right of survivorship (JTWROS), the surviving spouse automatically inherits the property upon the death of the other. However, joint ownership only works when one spouse passes away. It doesn’t protect the healthy spouse if the other spouse becomes incapacitated. If one spouse is unable to make financial or legal decisions and the home is owned JTWROS, the healthy spouse can’t sell the home without going to court to get a conservatorship. The healthy spouse may want to sell the home to move closer to a care facility, to family members, or to have a wheelchair-friendly house. They may have to go to court first.
Powers of attorney can be challenged. Powers of attorney can not be signed when someone is incapacitated, so if they haven’t been prepared before a spouse becomes incapacitated, it’s too late. However, some banks and financial institutions may reject them if the forms are outdated or were created many years ago. Even valid powers of attorney can be challenged by institutions preferring their own forms to be used. When a healthy spouse needs access to funds, they could face delays and battles with banks.
Trusts make control of assets seamless. Talk with an estate planning attorney about how living trusts with incapacity clauses solve problems that joint ownership and powers of attorney don’t. Trusts can be used to prevent legal complications in the face of incapacity. If both spouses are trustees and one becomes incapacitated, the other can have control over assets without going to court. The trust permits a smoother transition of assets in situations when a partner is still living but unable to act on their own behalf.
This protection extends beyond the incapacitation of one spouse. If both spouses are incapacitated, the trust can name someone else who can take over immediately. This might be a trusted friend, relative, or professional. The key point is that there will be someone who can take over without delay or requiring court involvement.
Trusts are more important for single people without a spouse. Incapacity for a single person could mean no one has legal authority to manage their finances or property.
Trusts work in many different situations. A person who is single, married, child-free, or retired should consider consulting an estate planning attorney to discuss how a trust can protect their home and property, ultimately providing them with peace of mind.
Reference: MSN (Sep. 8, 2025) “3 Reasons You Still Need a Trust, Even Without Kids, According to Suze Orman”
