3 Reasons You Still Need a Trust, Even Without Kids, According to Suze Orman
Written by
Laura Beck
Edited by
Molly Sullivan
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Many people believe trusts are only for parents or the wealthy. Suze Orman said that’s a dangerous assumption that could leave you stuck in a legal nightmare. In a recent episode of her “Women & Money” podcast, the financial expert tackled a common misconception from a listener whose sister didn’t understand why she would need a trust without children. The sister and her husband already had wills and powers of attorney, so wasn’t that enough?
Orman’s response was firm: No.
“Anything can happen at any time,” Orman said, and a trust helps make sure you’re ready for those unexpected moments.
Here are the three key reasons Orman explained why trusts matter even for child-free couples.
Joint Ownership Doesn’t Protect You From Incapacity
Many married couples think joint ownership of their home protects them from legal problems. If they own property as joint tenants with right of survivorship, the surviving spouse automatically inherits if one dies. This setup seems bulletproof.
But Orman pointed out a critical flaw in this thinking. Joint ownership only helps when one spouse dies. It doesn’t protect you if one spouse becomes incapacitated but remains alive.
Orman gave a specific example to illustrate the problem. Imagine one spouse slips on ice, suffers a brain injury and can no longer make decisions. If the couple needs to sell their two-story home and move into a one-story house for medical reasons, they can’t do it without both signatures.
“Since both names are on the title, both parties must agree to the sale,” she explained. “But if one spouse is incapacitated and unable to sign, the other is stuck.”
The only option becomes going through probate court to get a conservatorship. This legal process can be expensive, time-consuming and emotionally difficult during an already stressful situation.
Powers of Attorney Often Fail When You Need Them Most
Many people assume their power of attorney documents will solve incapacity problems. Orman warned that this assumption can be costly.
Powers of attorney often become invalid when someone becomes incapacitated. Banks and financial institutions may reject them, especially if they were created years ago or haven’t been updated recently.
Even valid powers of attorney can face resistance from institutions that prefer more current documentation or have strict internal policies about accepting older legal documents.
This creates exactly the situation you’re trying to avoid. When you need quick access to accounts or the ability to make financial decisions, you’re stuck dealing with bureaucratic obstacles instead of focusing on medical care and recovery.
Trusts Provide Seamless Control Transfer
A living trust with an incapacity clause solves the problems that joint ownership and powers of attorney can’t address. Orman said this type of trust prevents legal complications when someone becomes unable to make decisions.
If both spouses are trustees and one becomes incapacitated, the other can continue making decisions without going to court. The trust allows for a smooth transition of control in situations where someone is alive but can’t act on their own behalf.
The protection extends beyond just one spouse becoming incapacitated. If both partners become unable to make decisions after a car accident, the trust can name someone else to take over immediately.
This could be a trusted friend, relative or even a professional trustee. The key is that this person can handle matters without delay or court intervention.
“The trust allows for a smooth transition of control in situations where someone is alive but can’t act on their own behalf,” Orman explained.
Who Should Consider a Trust
Orman’s advice applies broadly to different life situations. Whether you’re single, married, child-free or retired, having a trust in place can protect your home, your finances and your peace of mind.
Single people face even greater risks because they don’t have a spouse who might eventually gain control through joint ownership. Without a trust, incapacity could leave no one with legal authority to manage finances or property.
Married couples without children need trusts because they typically don’t have adult children who could step in during emergencies. The trust provides a clear framework for who takes control and how decisions get made.
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