The Ultimate Guide: What Kind of Trust Does Suze Orman Recommend in 2025?

You’re not the only one who doesn’t know what Suze Orman, the financial expert, says about protecting your family’s future. I did hours of research on this subject so you don’t have to, and the answer is crystal clear: Suze Orman strongly recommends revocable living trusts for almost everyone, no matter their age or net worth.

In this comprehensive guide, I’ll explain exactly why Orman is so passionate about revocable living trusts, how they work, and whether one might be right for your situation. Let’s dive right in!

What Is a Revocable Living Trust?

Before we get into Suze’s recommendations let’s understand what we’re talking about. A revocable living trust is a legal document that outlines how your assets will be managed during your lifetime and distributed after your death. It’s “living” because it takes effect while you’re alive and “revocable” because you can change or cancel it anytime.

The trust involves three key roles:

1. Grantor: That’s you—the person creating the trust and placing assets into it
2. Trustee: The person who manages the trust assets (typically you during your lifetime)
3. Beneficiary: The person or group who will receive the assets from your trust

Orman writes on her blog, “A living trust means that it works while you are alive.” You can change it at any time while you are still alive because it is revocable. You can also move assets into and out of the trust whenever you want. “.

Why Suze Orman Is “a Bit Nuts” About Revocable Living Trusts

Suze Orman doesn’t just casually recommend revocable living trusts—she’s passionate about them! On her Women & Money podcast, she frequently mentions that having a revocable trust is “one of the most important things you can do to protect yourself and your family.”

In fact, she admits it makes her “a bit nuts” that so many people still don’t have one. Why such strong feelings? Let’s look at the key benefits she highlights:

1. Protection During Incapacity

One of the most important benefits of a revocable living trust is that it protects you if you become incapacitated. If you’re suddenly unable to manage your affairs due to illness or injury, your designated successor trustee can immediately step in to handle your finances and ensure your care without court intervention.

Orman says, “You need to think about who will care for you and pay your bills” if something happens.

2. Avoiding Probate Court

When someone dies, their will is proven valid by the court. This is called probate. Orman warns that probate can be:

• Lengthy (sometimes taking years)
• Expensive (requiring attorney fees)
• Public (making your financial details available for anyone to see)

With a revocable living trust, your assets can transfer directly to beneficiaries without probate court involvement.

3. Maintaining Privacy

Unlike wills, which become public record during probate, the details of your trust remain private. This means your financial information and who gets what stays within your family.

4. Complete Control While You’re Alive

With a revocable living trust, you maintain total control over your assets. As Orman points out, “You can change your mind about the terms of the trust as often as you want, and you retain full control over the assets held in the trust.”

5. Protection for Beneficiaries, Especially Children

If you have minor children, a trust allows you to control when and how they receive their inheritance. Without a trust, assets left to minors would typically become available to them at age 18—perhaps not the best time for a large financial windfall!

As Orman explains, “If you have a trust in place you can outline when, under what circumstances, and in what amounts the trust assets can be distributed.”

Who Needs a Revocable Living Trust?

One thing that surprised me in my research is that Orman believes revocable living trusts aren’t just for the wealthy. In fact, she suggests they’re beneficial for people with modest assets too!

According to Orman, you should consider a revocable living trust if you’re:

Getting Married

If you have assets acquired before marriage, you can put them in your trust to keep them separate from community property shared with your spouse.

Purchasing a Home

When buying a significant asset like a house, putting it in a trust gives you complete control over what happens to it after your death.

Starting a Business

Business assets in a trust ensure that if you become incapacitated, family members can continue running the business to support you financially.

Having a Baby

With a trust, your successor trustee can immediately provide funds to support your minor child if you die prematurely. You can also control how and when your child receives their inheritance.

Revocable vs. Irrevocable Trusts: What’s the Difference?

While Suze Orman is a big fan of revocable living trusts, it’s worth understanding how they differ from irrevocable trusts.

Orman notes that irrevocable trusts are typically best for people with large estates worried about federal estate taxes (currently with an exemption of over $12.6 million per person).

How to Fund Your Revocable Living Trust

Creating a trust document is only half the battle. As Orman emphatically states, “Funding your living revocable trust is the next step, and you CANNOT forget about this people!”

Funding means transferring ownership of your assets into the name of the trust. This typically includes:

• Real estate
• Bank accounts
• Investment accounts
• Personal property

However, Orman points out that retirement accounts like IRAs and 401(k)s cannot be held within your trust due to tax regulations.

Why a Will Isn’t Enough

Some people think having a will is sufficient for estate planning, but Orman strongly disagrees. She recommends having BOTH a revocable living trust AND a will.

The key difference? A will only takes effect after you die, while a trust can protect you during incapacity. Plus, a will must go through probate, whereas assets in a trust can transfer immediately to beneficiaries.

Even if your accounts are set up as “payable upon death” (POD), that only works after your death. If you become incapacitated, your designated POD beneficiary has no authority to manage your affairs.

Common Questions About Suze Orman’s Trust Recommendations

Does Suze Orman sell revocable trusts?

Yes, Orman offers a “Must Have Documents Online Program” that includes templates for creating a revocable living trust, along with other essential documents like a will, financial power of attorney, and healthcare directive.

At what net worth should you consider a trust?

While some experts suggest $100,000 as a minimum threshold, Orman believes trusts are beneficial regardless of net worth. In fact, she argues they can be even more important for people with modest assets.

What is the downside of a revocable trust?

The main limitations Orman acknowledges are:

• Assets in a revocable trust aren’t protected from creditors during your lifetime
• They don’t provide tax advantages while you’re alive
• Trust assets may impact Medicaid eligibility for nursing home care

My Personal Take

After digging into Suze Orman’s advice on trusts, I’m convinced she’s onto something important. While setting up a revocable living trust does require some initial effort and expense, the peace of mind and protection it provides seems well worth it.

What really stuck with me was Orman’s point about how creating a trust is actually an act of love for your family. As she puts it, “You are making it as easy as possible for them under the most difficult of circumstances, and that is one way to truly show how much you love them.”

I’ve seen families struggle through the probate process after losing a loved one, and it’s painful to watch. Having a proper trust in place could have saved them so much stress during an already difficult time.

Final Thoughts: Is a Revocable Living Trust Right for You?

Based on Suze Orman’s advice, a revocable living trust is something most people should seriously consider, regardless of their age or wealth level. The benefits of avoiding probate, maintaining privacy, and protecting yourself during incapacity are substantial.

However, every financial situation is unique. While Orman provides excellent general guidance, consulting with an estate planning attorney who understands your specific circumstances is always a good idea before making final decisions.

Remember what Orman says: “It makes me so upset to hear about what happens to people and their families, who have the best intentions at heart, when these documents are not in place.”

Don’t put this off! If you haven’t already, make estate planning a priority this year. Your future self (and your loved ones) will thank you.

Have you set up a revocable living trust already? What was your experience like? I’d love to hear about it in the comments below!