One of the most important goals of estate planning is making sure your loved ones are cared for and your wishes are carried out. In New Mexico, trusts, especially revocable living trusts, can help make that happen.
Trusts are often associated with being a tool for wealthy families. In fact, they are one of the most effective ways to simplify the transfer of assets, avoid probate, and prepare for the unexpected. Working with a wills and trust lawyer in Las Cruces can help you decide if a trust fits your goals and family situation.
What Is a Revocable Trust?
A revocable trust is a legal arrangement that allows you (the grantor) to place your assets into a trust managed by a trustee.
The key feature of a revocable trust is flexibility. You can change or cancel it at any time during your lifetime. Most people name themselves as the initial trustee, meaning they keep full control of their assets while they’re alive. If you become incapacitated or pass away, a successor trustee steps in to manage or distribute the assets according to your instructions.
How Trusts Help Avoid Probate
Probate is the court-supervised process used to validate a will and distribute a person’s estate after death. In New Mexico, probate can be time-consuming, costly, and public.
According to The American College of Trust and Estate Counsel (ACTEC), one of the main benefits of creating a revocable trust is that it can help your family avoid or greatly reduce the need for probate as long as your assets are properly titled in the trust’s name.
Here’s how it works:
- Assets owned by the trust are no longer considered part of your personal estate.
- The trustee or successor trustee can immediately manage or distribute those assets according to the trust’s terms.
- Most court involvement is avoided, saving time and maintaining your family’s privacy.
However, any assets left out of the trust may still need to go through New Mexico’s probate process. That’s why it’s important to work with a wills and trust lawyer to make sure your trust is properly funded and up to date.
Common Misconceptions About Trusts
Many New Mexicans hesitate to create a trust because they’ve heard myths that simply aren’t true. Let’s clear up a few of the most common misconceptions so you can make informed decisions about your estate plan.
“Trusts are only for wealthy families.”
This is one of the biggest myths about estate planning. Trusts can benefit almost everyone, not just those with large estates. Trusts help protect homes, savings, and other personal property—no matter the size of your estate.
“Joint ownership is enough protection.”
Joint ownership, such as owning a home with your spouse, only helps when one spouse passes away. It doesn’t protect you if one spouse becomes incapacitated. Without a trust, the healthy spouse might have to go to court for permission to sell or manage property. A properly drafted trust can prevent this problem by clearly naming who has control if one partner becomes unable to act.
“A power of attorney does the same thing.”
While powers of attorney are important, they can be limited. Banks and other financial institutions may reject outdated or unfamiliar forms. A trust, on the other hand, gives your trustee immediate authority to manage assets if you become incapacitated, reducing the chance of delays or legal disputes.
Steps to Set Up a Revocable Trust
Creating a trust involves a few important steps. A wills and trust lawyer can guide you through each step and ensure your trust meets New Mexico’s legal requirements.
- Draft the trust document. This outlines the terms of your trust—who manages it, who benefits, and how it works.
- Fund the trust. Transfer ownership of your assets into the trust. This could include real estate, bank accounts, or personal property.
- Choose a successor trustee. Pick someone you trust to step in if you can’t manage the trust yourself.
- Review regularly. Life changes—so should your trust. Update it after major life events like marriage, divorce, or the birth of a grandchild.
Trusts and Incapacity Planning
Trusts don’t just protect your family after you’re gone; they also help if you become unable to manage your affairs.
If both spouses are co-trustees and one becomes incapacitated, the other can continue managing assets without going to court. If both become incapacitated, a named successor trustee can step in immediately. This seamless transition avoids court involvement and keeps your financial life running smoothly.
Key Takeaways
- Avoids Probate: Assets in a revocable trust bypass the court process, saving time and money.
- Maintains Privacy: A trust keeps your financial matters out of the public record.
- Provides Flexibility: You can change or revoke your trust anytime during your lifetime.
- Prepares for Incapacity: A successor trustee can manage your affairs if you’re unable to.
- Simplifies Transitions: Makes it easier for loved ones to manage your estate with minimal court involvement.
Ready to Protect Your Family’s Future?
If you’d like to learn more about how a trust can simplify your estate and protect your loved ones, schedule a consultation with Attorney Michele Ungvarsky at E-Law in Las Cruces. Michele will take the time to understand your family’s unique needs and help you create a plan that gives you peace of mind.
References: The American College of Trust and Estate Counsel (ACTEC). “How Does a Revocable Trust Avoid Probate?” (Apr. 11, 2019) and MSN. “3 Reasons You Still Need a Trust, Even Without Kids, According to Suze Orman.” (Sep. 8, 2025)