Do You Really Need a Trust? Not Necessarily

Posted on October 5, 2026October 5, 2026 by McCartha-Law

One of the most common questions we hear at McCartha Law is simple: “Do I need a trust?”

The honest answer is: not automatically. A well-prepared will, powers of attorney, health care documents, beneficiary designations, and careful asset titling give many people and families an effective estate plan on their own. A revocable living trust isn’t a one-size-fits-all solution, and it shouldn’t be recommended just because it sounds more sophisticated.

We believe estate planning should be built around your family, your assets, and the specific problems you want your plan to solve. For some clients, a trust offers real advantages. For others, a will-based plan coordinated with beneficiary designations is simpler and just as effective.

A helpful way to remember the most common reasons people consider a trust is what we call the “P” list.

The “P” Reasons for a Trust

Probate Avoidance

Assets properly titled in the name of a revocable living trust generally skip probate when the trust’s creator passes away. Instead, the successor trustee manages and distributes those assets according to the trust agreement.

Avoiding probate can mean:

Less court involvement in administering trust-owned assets
A smoother transition of management after death or incapacity
Fewer delays in accessing and managing assets
Less administrative burden on family members

Probate avoidance is often the main reason clients consider a trust. But it isn’t always necessary, or worth the added cost and effort of setting one up and maintaining it. The right approach depends on the nature and value of your assets, your family situation, and your goals.

Property in Multiple States

Owning real estate outside your home state can complicate estate administration. For example, an Alabama resident with a primary residence in Huntsville and a vacation condo in Florida may need probate proceedings in both states if the properties are titled in their individual name. This is called ancillary probate.

When properly funded, a revocable living trust can hold title to real estate in multiple states. At death, the successor trustee may be able to transfer those properties without separate probate in each state.

If you own a beach house, rental property, family land, or other out-of-state real estate, this benefit alone can make a trust worth considering.

Paternity and Maternity Issues: “His, Hers, and Ours”

Blended families need especially thoughtful planning. A traditional will might leave everything to a surviving spouse, but that may not protect children from a prior relationship the way you intend. You may want to support a surviving spouse during their lifetime while still preserving assets for your own children.

A revocable living trust can be structured to:

Provide financial support and security for a surviving spouse
Preserve an inheritance for children from a prior marriage or relationship
Set clear expectations for how assets are distributed after both spouses have passed
Avoid unintentionally disinheriting children in a “his, hers, and ours” family
Establish different shares, timing, or conditions for different beneficiaries when appropriate

These plans require careful drafting. The goal isn’t simply dividing property, it’s creating a plan that reflects your actual intentions while reducing uncertainty and conflict among the people you love.

Problematic Next of Kin

In Alabama, when a will goes through probate, the court generally requires notice to the decedent’s heirs at law (often called “next of kin”), even if those individuals aren’t named as beneficiaries.

That can be an unwelcome surprise. Maybe you’ve intentionally left an estranged adult child or a difficult family member out of your will. Under Alabama law, that person may still be entitled to notice of the probate proceeding, even though they won’t inherit anything.

Notice doesn’t mean inheritance, but it does mean that person may learn about your death, your estate, your will, and the probate case itself. That can sometimes lead to unwanted questions, conflict, delay, or even a will contest.

A properly funded revocable living trust can help here. Because trust assets generally pass outside of probate, trust administration may not require the same court notice to heirs at law who aren’t trust beneficiaries.

This matters most when there’s:

An estranged child, parent, or sibling
A family member who has caused ongoing conflict or might challenge your plan
A relative you intentionally don’t want involved in financial or family matters
A desire for more privacy around your estate plan

A trust won’t eliminate every possible dispute, and it has to be properly funded and administered to work as intended. But if you’re worried about probate notice reaching the wrong people, a trust may be worth a serious look.

Privacy

Probate court filings are generally public record. A will submitted for probate, along with related estate documents, can be available for anyone to review.

A properly administered revocable living trust is generally more private. The trust agreement typically doesn’t have to be filed publicly when the creator dies. While a trust won’t make every detail of your estate confidential, it can significantly reduce public disclosure about your assets, your beneficiaries, and how everything is distributed.

Privacy tends to matter most if you own a closely held business, hold significant real estate, want to protect beneficiaries from unwanted attention, or simply prefer to keep family financial matters out of the public eye.

A Trust Has to Be Funded

Creating the trust document is only half the job. For a revocable living trust to actually work, your assets generally need to be transferred into the trust or coordinated with it through beneficiary designations and other planning tools.

That typically includes:

Retitling real estate in the trust’s name
Moving eligible bank and investment accounts into the trust
Reviewing beneficiary designations on retirement accounts and life insurance
Coordinating business interests, vehicles, and personal property with the overall plan
Updating everything when life changes: new property, marriage, divorce, birth, death, or relocation

An unfunded trust won’t avoid probate for assets left outside of it. Good estate planning requires both thoughtful documents and real follow-through.

The Right Plan Is Personal

A revocable living trust is a valuable tool, but it’s not automatically the best plan for every person or family. Some clients do just fine with a straightforward will-based plan. Others, especially those with property in multiple states, blended-family dynamics, difficult relatives, or privacy concerns, benefit significantly from a trust.

At McCartha Law, we help you evaluate your actual options and build a plan around your real circumstances, not a one-size-fits-all template. The best plan is the one that protects the people you love, reflects your wishes, and makes things easier for whoever has to carry out your instructions one day.

This post is intended for general educational purposes only and is not legal advice. Estate planning decisions should be made after discussing your individual circumstances with qualified legal counsel. If you’d like to talk through how this applies to your situation, call us at 256-270-4233 or contact us online.

Who Does What in Your Estate Plan? Executors, Trustees, and Powers of Attorney in Alabama

Posted on February 26, 2026February 27, 2026 by McCartha-Law

If you’ve ever sat through an estate planning meeting and thought, “Now which one of these people actually does what?”, you are not alone. Clients at McCartha Law in Huntsville ask all the time about the difference between the executor named in their will, the trustee named in their trust, and the person they appoint under a financial power of attorney. The good news is that once you see when each role “turns on,” and which bucket of assets they handle, it starts to make a lot more sense.

Three Roles, Three Different Moments

Your executor (also called a personal representative in Alabama) only goes to work after you have passed away and after the probate court has officially appointed them. They gather probate assets, work through the “probate maze,” deal with creditors and final bills, and then distribute what is left according to your will.

Your trustee manages anything you have titled in the name of your trust, following the instructions in that trust document—sometimes during your lifetime and often for years after your death for the benefit of your spouse, children, or other beneficiaries.

Your agent under a financial power of attorney acts only while you are living, and can step in to help pay bills, manage accounts, and handle legal and financial matters if you are out of commission or simply need help; their authority ends at your death.

What They All Have in Common: Fiduciary Duty

Even though these jobs are different, they all share one important feature: each person is a fiduciary, meaning they are legally required to put your interests (or your estate’s or trust beneficiaries’ interests) ahead of their own. An executor must follow your will and Alabama law, not what is easiest or most convenient. A trustee must manage trust assets prudently, avoid self‑dealing, and keep beneficiaries reasonably informed. An agent under a power of attorney must use your money and property for your benefit and follow the instructions you put in that document. In other words, you are not just picking someone you “like”—you are selecting someone you trust to follow the rules and do the right thing when you are not in the room to speak for yourself.

One Trusted Person, or a Team?

In many North Alabama plans, it makes sense for the same trusted person to wear all three hats at different times, which can make things smoother when life happens. In other families, it is better to break up the roles—for example, a responsible adult child as executor and power of attorney, but a more financially savvy sibling or professional as trustee to oversee investments over the long haul. There is no one‑size‑fits‑all answer; the right structure depends on your family dynamics, your assets, and who you truly trust. If you are not sure whether you have the right people in the right roles, we are glad to sit down with you, review your current documents, and help you tighten things up under Alabama law so your plan actually works when your family needs it most.

How Does a Trust Work… Simply?

Posted on August 27, 2025January 6, 2026 by McCartha-Law

How Does a Trust Work… Simply?

At McCartha Law, we believe that understanding how a trust works doesn’t have to be complicated. While trusts can feel overwhelming at first, the core concept is relatively straightforward.

In simple terms, a trust is an agreement that outlines how your assets (property, money, or other valuables) will be managed and distributed. There are three essential roles involved in every trust: the Grantor, the Trustee, and the Beneficiary.

1. The Grantor: The Creator of the Trust

The Grantor (sometimes called the “Settlor” or “Trustmaker”) is the person who establishes the trust. This is the individual who decides how their assets should be handled and creates the rules for the trust (what we call the “rules of the game”). The Grantor also decides which property will be transferred into the trust.

2. The Trustee: The Legal Owner

The Trustee is the person or institution responsible for managing the trust according to the Grantor’s instructions. The Trustee holds legal ownership of the trust property. This means they have control over the property and are tasked with making sure the trust operates smoothly.

Importantly, the Trustee does not own the property in the usual sense—they must act in the best interest of the Beneficiary and follow the Grantor’s rules. The Trustee holds what we call “legal ownership,” but only in a fiduciary sense, meaning they must act responsibly and in good faith.

3. The Beneficiary: The Ultimate Recipient

The Beneficiary is the person or entity who ultimately benefits from the trust. The Beneficiary has what we call equitable ownership, meaning they are entitled to the benefits of the trust property. The Beneficiary may receive income from the trust, use of the property, or an outright distribution of assets at a certain time.

In essence, the Beneficiary holds the other half of ownership, where they gain the benefit, but do not have control over the assets.

The Three Key Essentials of Every Trust

Every trust, no matter how complex or simple, has these three key components:

Grantor (Creator): The one who creates the trust and decides its purpose.
Trustee: The person or institution who manages and controls the assets.
Beneficiary: The person or entity who ultimately benefits from the trust.

These three roles work together to ensure that the Grantor’s wishes are carried out, the Trustee manages the property responsibly, and the Beneficiary receives the intended benefits.

How Trusts Benefit You

Trusts are often seen as a way to protect assets, minimize taxes, and provide for loved ones in a structured manner. Whether you’re planning for retirement, protecting assets for your children, or ensuring your family avoids probate, a trust can be an incredibly valuable tool.

At McCartha Law, we understand that creating a trust can be an emotional and complex decision. It’s not just about choosing who gets what—it’s about making sure everything happens exactly the way you want. That’s why we’re here to help you navigate the process with confidence.

Don’t Go It Alone—McCartha Law Is Here to Help

Creating and managing a trust might seem straightforward in theory, but in practice, it’s essential to get it right. That’s why it’s important to have legal guidance from professionals who specialize in trust law.

At McCartha Law, we can help you create a trust that reflects your goals, provides security for your loved ones, and ensures everything works as intended. We’ll be with you every step of the way—not just online, but in person, ensuring you make informed decisions and avoid common pitfalls.

Ready to Get Started?

If you’re ready to learn more or create a trust that meets your needs, contact McCartha Law today. We’re here to provide expert advice and support, helping you protect your assets and secure the future of those you care about.

What Happens If My Trustee Resigns or Dies in Alabama?

Posted on January 22, 2020January 6, 2026 by McCartha-Law

Well, if that happens the the Code of Alabama in Section 19-3B-704 has an answer to that and it states, in relevant part to the Trusts we draft, as follows:

Section 19-3B-704
Vacancy in trusteeship; appointment of successor.
(a) A vacancy in a trusteeship occurs if:

(1) a person designated as trustee rejects the trusteeship;
(2) a person designated as trustee cannot be identified or does not exist;
(3) a trustee resigns;
(4) a trustee is disqualified or removed;
(5) a trustee dies; or
(6) a guardian or conservator is appointed for an individual serving as trustee.

(b) If one or more co-trustees remain in office, then a vacancy in a trusteeship need not be filled. A vacancy in a trusteeship must be filled if the trust has no remaining trustee.

(c) A vacancy in a trusteeship of a noncharitable trust that is required to be filled must be filled in the following order of priority:

(1) by a person designated in the terms of the trust to act as successor trustee;

(2) by a person appointed by unanimous agreement of the adult qualified beneficiaries and any entity which is a qualified beneficiary; or

(3) by a person appointed by the court…

(f) If a person is acting as the sole trustee of a trust and if there is no provision in the trust for a successor trustee, then the sole trustee and the adult qualified beneficiaries, by unanimous written agreement, may designate a successor trustee, which shall become trustee of the trust upon the vacancy in the trusteeship. The agreement may be recorded in the probate court or filed in the records of the trust.

(g) Whether or not a vacancy in a trusteeship exists or is required to be filled, the court may appoint an additional trustee or special fiduciary whenever the court considers the appointment necessary for the administration of the trust.