Most people think trusts are for the ultra-wealthy. They’re not.
The confusion is about taxes. There’s a federal estate tax, but it only kicks in above about $13M, so for almost everyone, that’s not the point. That’s not why normal families set up a trust.
Here’s the real reason. If you die or get seriously hurt without a plan, your assets don’t just go to your family. They go to court first: a public, slow, expensive process called probate. It often takes close to a year, sometimes much longer, and it’s public record: anyone can look up what you left and to whom.
A trust skips all of that. Your assets pass straight to the people you chose, privately, without a courtroom. If you have young kids, it sets who looks after the money until they’re grown. If you’re ever hurt and can’t manage things yourself, someone you trust steps in without a legal fight.
So the question isn’t “am I rich enough.” It’s “do I want the people I love sorting out my life in a courtroom, or following a plan I left them?” If it’s the second, you want a trust, and you don’t need to be wealthy to have one.