When Does a Trust Make Sense in Maryland?

One of the most common questions we receive at C&O Law Group is whether a person needs a will or a trust.

The honest answer is that it depends.

Estate planning is not about selecting documents from a menu. It is about identifying the challenges your family may face and creating a plan that addresses those concerns. For families with straightforward estates, a will paired with a power of attorney may be all that is needed. But certain circumstances make a trust the more practical choice.

The decision is rarely based on a single factor. Instead, it depends on your family circumstances, the nature of your assets, and your long-term goals.

Property in More Than One State

One of the most common reasons clients choose a trust is ownership of property in multiple states.

Consider a Maryland resident who owns a primary residence in Montgomery County and a vacation home in Florida. A will can certainly direct who inherits both properties. However, when the owner dies, the family may be required to open probate proceedings not only in Maryland but also in Florida.

This additional probate process can increase costs, create delays, and add administrative burdens for family members.

A properly funded revocable living trust can often simplify this process by allowing both properties to pass under the terms of the trust without separate probate proceedings.

For these families, the trust is less about wealth and more about efficiency.

Young Children and Inheritance Protection

Parents of young children often begin by asking who would raise their children if something happened to them.

A will is essential because it allows parents to nominate guardians for minor children. However, that is only part of the discussion.

Many parents are uncomfortable with the idea of a child receiving a substantial inheritance outright at age eighteen. A trust allows parents to establish rules regarding how and when assets are distributed. Funds can be used for education, health care, housing, or other needs while allowing the trustee to maintain oversight until the child reaches an age designated by the parents.

In these situations, the trust serves as a tool for protecting children rather than simply avoiding probate.

Blended Families

Second marriages frequently create estate planning challenges.

A spouse may want to ensure that a surviving husband or wife remains financially secure while also preserving assets for children from a prior marriage.

Without careful planning, these goals can conflict. Assets left outright to a surviving spouse may ultimately pass to that spouse's children or beneficiaries rather than to the children of the first marriage.

A trust can be structured to provide income and support for a surviving spouse while preserving the remaining assets for children or other beneficiaries.

For blended families, trusts often provide clarity and reduce the likelihood of future disputes.

Business Ownership

Business owners face concerns that extend beyond the transfer of assets.

If the owner becomes incapacitated or dies unexpectedly, who has authority to operate the business? Who can access accounts, sign contracts, or make management decisions?

A trust can provide continuity by identifying who will manage trust-owned business interests and how ownership will transition after death.

For business owners, estate planning is often as much about continuity and stability as it is about inheritance.

Planning for Incapacity

Many people focus exclusively on what happens after death. However, incapacity planning is often equally important.

A stroke, dementia diagnosis, serious illness, or accident can leave a person unable to manage financial affairs.

While powers of attorney remain critical tools, a trust provides an additional layer of protection by allowing a successor trustee to step in and manage trust assets immediately when necessary.

For many clients, the trust's greatest benefit is not what happens after death but what happens during life.

Privacy Concerns

Probate proceedings generally become part of the public record.

For some families, this is not a significant concern. For others, privacy is important.

Probate proceedings in Maryland generally become part of the public record. Maryland's new Transfer-on-Death Deed Act now gives homeowners one additional tool to keep real estate out of that process — though it does not address the broader incapacity and inheritance concerns a trust can solve. A trust generally allows assets held within it to be administered privately without the same level of public disclosure associated with probate proceedings.

Families with significant assets, business interests, or sensitive family circumstances often view privacy as an important advantage.

Special Needs Beneficiaries

When a child or family member has a disability, estate planning requires special consideration.

An inheritance received outright may jeopardize eligibility for important government benefits. In these situations, trust planning can often be used to provide financial support while preserving eligibility for programs upon which the beneficiary depends.

These plans require careful drafting and individualized attention, but they demonstrate that trusts are often used for reasons that have little to do with probate.

So, Do You Need a Trust?

Perhaps. The answer depends on your circumstances.

Families with simpler circumstances may find that a will is sufficient, especially when most assets already pass outside probate.

Others own property in multiple states, have young children, own businesses, have blended families, want privacy, or need sophisticated planning for loved ones. In those situations, a trust may provide significant benefits.

The goal is not to determine whether trusts are better than wills. The goal is to determine whether a trust solves a problem that your family is likely to face.