Do you need a living trust?

What a revocable living trust does.

A revocable living trust is a document you create and usually manage yourself during life. You name a successor trustee to take over if you become incapacitated or die. Property titled in the trust passes under its terms without probate. New Mexico has a Uniform Trust Code that governs how trusts operate.

When a trust often makes sense.

• You own real estate in more than one state, which could otherwise mean more than one probate
• You want privacy, since probate is public and a trust generally is not
• You have minor children or beneficiaries with disabilities and want staged or protected distributions
• You want a plan for incapacity that does not need a court
• You have a blended family and need to control who ultimately inherits

When a will and simple tools may be enough.

New Mexico probate is often manageable. Informal probate is available, and very small estates may use an affidavit instead. Many families can combine a will, beneficiary designations, a transfer on death deed, and powers of attorney, and do not need a trust. See our guide on TOD deeds.

Costs and upkeep.

• More drafting work up front than a will
• Retitling real estate and accounts
• A pour-over will to catch anything left out
• Reviewing the trust when life changes

A trust does not by itself reduce federal tax, and in a community property state both halves generally get a stepped-up basis at the first death whether or not a trust is used. Our revocable living trust page gives more detail.