Is A Living Trust Right for You?

Living Trusts in Nova Scotia

For many Nova Scotians doing their estate planning, a standard will is enough. But in certain cases, especially when privacy, incapacity planning, or probate avoidance are concerns, a living trust might be worth considering.

A living trust, also called an inter vivos trust, is a legal arrangement where you transfer ownership of your assets into a trust during your lifetime. You can act as the trustee while you’re able, and name a successor trustee to take over if you become mentally incapacitated or pass away. It’s a way to manage your affairs smoothly without going through probate court.

Why Use a Living Trust?

People may choose a living trust to:

• Avoid probate delays and costs after death

• Maintain privacy, since trusts aren't public documents like wills

• Provide continuity if they become mentally incapacitated

• Better manage complex family or financial situations (e.g., blended families, second marriages, or property in other provinces)

That said, living trusts are not for everyone, and there are a few important caveats.

What You Should Know

1. They Are Relatively Complicated Setting up a living trust isn’t as simple as writing a will. It requires legal drafting, transferring ownership of your assets into the trust, and maintaining the trust over time. This means extra paperwork and ongoing attention.

2. They Are More Expensive to Set Up Because of the complexity, legal fees for creating a living trust in Nova Scotia are significantly higher than those for a standard will. You may also need help from financial or tax professionals to structure it correctly.

3. They Don’t Eliminate the Need for a Will A trust only controls assets that have been placed into it. Anything left outside the trust, such as personal belongings, new assets, or items accidentally omitted, won’t be covered. That’s why people with a living trust should also have a will to catch anything left out.

While living trusts offer useful benefits for some, they are not a shortcut or replacement for good estate planning. In most cases, a well-drafted will, with proper powers of attorney and a personal directive, is enough. But if you have specific concerns about incapacity, privacy, or complex estates, it may be worth speaking with a legal professional about whether a living trust is a good fit for you.

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