Worried about leaving your kids with stressful probate complications when you die? Avoid putting these 5 assets in a living trust

Consider John, a married, 78-year-old father of three who’s getting his financial affairs in order. His situation reflects that of countless retired Americans who begin drafting their wills and trusts before their passing.

John is preparing now to spare his family stress down the line. He knows how messy probate can be.

When his father died, his family spent the next year dealing with lawyers and trying to work through the chaotic and complicated estate process. The situation caused tension between him and his siblings, and John eventually realized the problem could have been avoided if his father had set up a living trust.

So after weighing his options, he’s setting up a revocable trust, which gives him the flexibility to change the terms at any time during his life.

An irrevocable trust, by contrast, is set in stone once it’s signed — but can reduce the tax liability of his estate.

Now he must decide what belongs in it, and what doesn’t. Here are tips for building your living trust, along with five assets to keep out of it.

Probate explained

Living trusts are usually a simpler option for loved ones than leaving them to deal with a long, drawn-out probate process.

Unfortunately, many folks don’t even know what “probate” means until they’re in the thick of it.

Sometimes, not always, when a person dies — even if they left a will — a legal process called probate ensues. Probate is required to validate the will, name an executor to administer the estate if there isn’t one already named, pay off liabilities and distribute the remaining assets to heirs.

The process can take years, requiring piles of paperwork and ongoing legal fees.

For instance, after Ozzy Osbourne passed away in July 2025, reports began surfacing that his $220 million estate would face hefty inheritance taxes and a lengthy probate process (2). According to a Hello! magazine interview with estate planning attorney Gideon Alper at Alper Law, “If Ozzy’s assets were left in trust, his family could inherit faster and privately (3).”

In John’s case, a trust could have helped his family avoid probate, protect their privacy and minimize estate taxes when his father died. A trust is a legal document that allows you to retain control of your money and property and designate who will receive what after you die.

The benefits can also extend beyond death. Pennock of Schwab Wealth Advisory notes, “Anyone concerned about facing a stroke, dementia or Alzheimer's may want to consider using a trust to help ensure their resources are preserved, managed and spent in line with their wishes.”

Consider life insurance for added peace of mind

Before we get into living trusts, it’s worth looking at an even simpler way to help your children live more comfortably after you pass.

Life insurance can be a faster and smoother way to ensure your loved ones are financially protected when that happens. But not all life insurance policies are made equal — so make sure you find one from a provider you trust, with premiums and payouts that align with your financial objectives.

For instance, Ethos offers term life insurance, is rated “Excellent” on Trustpilot and has an A+ rating from the Better Business Bureau (BBB). Ethos offers simple, affordable coverage for a set period of time — typically 10 to 30 years.

As a licensed third-party insurance administrator, Ethos has joined forces with some of the industry’s top insurance carriers, such as Banner Life, TruStage Financial and Ameritas Life Insurance.

You can get coverage in just 10 minutes online or by phone and guaranteed approval even if you have pre-existing health conditions. Even better, rates can start at just $9.80 per month.

Ethos also gives you the flexibility to select coverage amounts ranging from $2,000 to $100,000, depending on your needs, so you know exactly what you’re getting. And unlike the waiting time you might expect through probate, life insurance is typically paid out within weeks or months — not years. That means your children get support sooner rather than later.

Meet with experts

Clearly, even wealthy individuals like Ozzy Osbourne can get it wrong. That’s why it’s important that John meets with a qualified and regulated financial professional to ensure he’s not making mistakes with his estate planning.

High earners might consider working with the tax experts and legacy planning experts at Range. They offer white-glove financial services to high-income households, helping heirs minimize estate taxes while avoiding probate.

Range offers assistance with a wide range of estate planning services, including wills, trusts, power of attorney documentation, and even advanced health care directives stating your wishes for medical treatment.

When you work with Range, you work with Certified Financial Planners (CFPs) who are legally required to put your interests first. Their advisors will evaluate your existing estate plan documents to ensure they meet your current needs — and help coordinate drafting basic estate plans if needed.

And the best part? You can book a complimentary demo to see if Range can meet your comprehensive financial needs.

Five items to leave out of a revocable living trust

Here are five items to consider leaving out of a revocable living trust — and what the consequences might be if you keep them in.