Revocable Living Trust Mistakes Minnesota Families Must Avoid
Many Minnesota families create a revocable living trust, file it away, and assume the hard work is done. It isn’t. A trust that isn’t properly funded, updated, and aligned with your current life can quietly fail your family — not because the idea was wrong, but because the execution was incomplete.
The Most Common Mistake: Not Funding The Trust
Funding a trust means actually transferring your assets into it. This is where most plans break down.
If your home isn’t titled in the name of the trust — or set up with a transfer-on-death designation to the trust — the trust has no control over it. If your bank accounts and investment accounts were never transferred, they sit completely outside of your plan.
An unfunded trust often leads to the very outcome you were trying to avoid: probate.
This is one of the most important steps in estate planning, and one of the most commonly skipped.
Other Mistakes That Quietly Undermine Your Plan
Even families who fund their trust well can run into these issues:
1. Assuming the trust replaces a will. It doesn’t. You still need a will — especially to nominate guardians for minor children. A trust alone cannot handle that.
2. Failing to name guardians. If you have minor children, guardian nomination is non-negotiable. Without it, a court makes that decision for you.
3. Outdated trustees. The person you chose ten years ago may not be the right fit today. Trustees need to be capable, available, and aligned with your values.
4. Leaving assets outright at age 18. Legally, 18 is adulthood. Practically, most parents want more structure around how and when their children receive an inheritance.
5. Ignoring incapacity planning. A revocable trust isn’t just about death. It can manage your assets if you become incapacitated — but only if successor trustees are clearly named and empowered to act.
6. Never reviewing the plan. Marriage, divorce, new children, new assets, moving to Minnesota from another state — life changes constantly. Your estate plan should keep pace.
A Trust Is A System, Not A Document
A revocable living trust isn’t something you create once and forget. It’s a living system that requires proper implementation and periodic maintenance.
The goal isn’t to be able to say “we have a trust.” The goal is to ensure your children are protected, your wishes are clear, and your family avoids unnecessary court involvement. That takes thoughtful design — and regular review.
If you have a trust you haven’t looked at in a few years, or you’re unsure whether it’s fully funded, we’d be glad to take a look with you.
Need Assistance?
SCHEDULE A FREE 15 MINUTE CONSULTATIONFrequently Asked Questions
What does it mean to “fund” a revocable living trust?
Funding a trust means transferring ownership of your assets — your home, bank accounts, investment accounts — into the name of the trust. Until that happens, those assets aren’t controlled by the trust and may still go through probate.
Do I still need a will if I have a revocable living trust?
Yes. A will is still essential, particularly for nominating guardians for minor children. A trust cannot make that nomination on its own. Most complete estate plans include both a trust and a coordinating will.
How often should I review my revocable living trust?
A good rule of thumb is to review your plan every three to five years, or after any major life change — marriage, divorce, a new child, a move, or a significant change in assets. Regular reviews help ensure your plan still reflects your life and wishes.
Author
Claire creates wills and trusts which provide security and peace of mind. She compassionately listens to her clients’ dreams, goals, and fears and then fashions plans that best meet their needs.
It is important to Claire that her clients understand different options and make decisions that are right for them. She loves to educate clients by drawing out complicated concepts.
Come visit us! Conveniently located in Rochester, Minnesota.
Sign Up to Our Newsletter
TO RECEIVE UPDATES ON THE LAW
Community Education: Events
Further Reading: NAEPC Journal of Estate & Tax Planning
