How to Create a Living Trust in Connecticut

As you approach the estate planning process, you have many tools at your disposal. One such tool is a living trust. By creating a living trust, you can protect your assets and property and save your family from having to go through probate following your death. The considerations surrounding the creation of a living trust depend in part on your state’s laws. We’ll review how to create a living trust in Connecticut. Like any legal document, living trusts can be complex, so it might be helpful to work with an estate planning lawyer. A financial advisor can work with your lawyer to ensure a living trust fits in with your overall financial plans.

What Is a Living Trust?

A living, or “inter vivos,” trust is a legal arrangement that holds your property and assets in a single, sheltered entity. Regardless of whether you or someone else acts as trustee, this person is responsible for the care of your living trust. Don’t forget to name a successor trustee that will oversee the distribution of your trust’s contents to the appropriate heirs.

Items in a living trust may include:

Homes and real estate
Investment and brokerage accounts without a beneficiary
Bank accounts
Money that’s owed to you
Jewelry, furniture, vehicles, heirlooms and other valuable items
Life insurance policies and non-qualified annuities

Living trusts come in two variations: revocable and irrevocable. A revocable living trust allows you, the trust grantor, to add or remove contents as often as you’d like. An irrevocable trust abides by much stricter rules, as you cannot make changes to the trust without the express consent of everyone named within it.

Because the grantor technically retains control of the property and assets in a revocable trust, they are personally on the hook for any associated taxes. An irrevocable trust, on the other hand, is an independent entity, so it’s taxed on its own.

How to Create a Living Trust in Connecticut

Connecticut residents need to complete six distinct steps to get their living trust off the ground:

Pick a single or joint trust. Joint trusts are best suited for anyone who’s married and wants to bring their property together. On the other hand, if you’re single or you want to separate your assets from your spouse’s, a single trust will do the job.
Review and inventory your property. Try to put together a list of all of your assets and property that you want to protect. The only thing you can leave out are retirement accounts, as these have their own beneficiaries.
Decide on a trustee. This is who will take care of your living trust, and in turn your estate. While you should feel free to name yourself as trustee, be sure to decide on a successor trustee who can take over when you pass away. (This is the trust equivalent of the executor of an estate.)
Write out your trust documents. This can be done with an estate planning lawyer or through an online trust creation program.
Sign your living trust in front of a notary public.
Fund your trust. At this point, it’s time to officially transfer your assets and property into your trust. A lawyer can be especially helpful here.

A financial advisor can help you determine if a living trust is right for you.

How Much Does It Cost to Create a Living Trust in Connecticut?

A map of the United States, with the state of Connecticut highlighted.

The costs associated with a living trust vary on a case-by-case basis. The main factors that go into this calculation are the complexity of your estate planning needs and the method by which you choose to create your living trust.

Lawyers are notoriously expensive, and estate planning attorneys are no exception. In fact, if you go this route, you can expect to pay somewhere around $1,000 when all is said and done.

Online living trust services are much less pricey (around $400), but there are inherent dangers with taking estate planning into your own hands. It’s recommended you work with an estate planning lawyer.

Living Trusts vs. Wills

Wills and living trusts provide similar benefits, but don’t be afraid to utilize both. A will dictates what happens to property not placed in your living trust, making them a great pairing. Other features of a will include the ability to:

Name an executor
Establish guardianship for children who are minors
Provide instructions on how to pay taxes and debts
Select managers for children’s property

Take a look below for a breakdown of the differences between living trusts and will:

Living Trusts vs. Wills

Situation	Living Trusts	Wills
Names a property beneficiary	Yes	Yes
Allows revisions to be made	Depends on type	Yes
Avoids probate court	Yes	No
Requires a notary	Yes	No
Names guardians for children	No	Yes
Names an executor	No	Yes
Requires witnesses	No	Yes

Living Trusts and Taxes in Connecticut

In nearly every case, living trusts have basically no effect on your tax situation. There is an estate tax in Connecticut, though, so make sure to take this into account. The state does not levy an inheritance tax of any kind, clearing the way for your heirs.

No matter what state you live in, you may have to pay the federal estate tax. For 2025, the threshold for federal estate taxes is $13.99 million for individuals and $27.98 million for married couples. These limits mean that most estates won’t encounter this tax.

Why Create a Living Trust in Connecticut?

One of the most compelling reasons to create a living trust in Connecticut is to help your loved ones avoid probate. Probate is the legal process through which a court validates a will and oversees the distribution of assets. In Connecticut, this process can be particularly time-consuming and potentially intrusive, as it may expose private family and financial matters to public record.

Unlike some other states, Connecticut has not adopted the Uniform Probate Code, a standardized set of laws aimed at simplifying probate. As a result, probate proceedings in Connecticut can be more complex and drawn out. Establishing a living trust allows your estate to bypass this process entirely, providing your heirs with faster access to their inheritance and preserving your family’s privacy.

Another key advantage of a living trust is the ability to manage how assets are passed to minor beneficiaries. You can name a trustee to oversee the inheritance until the child reaches a designated age, offering more control than a simple will might provide.

Who Should Consider a Living Trust in Connecticut?

While living trusts are sometimes thought of as tools for the wealthy, they can be beneficial for a wide range of Connecticut residents. Anyone who owns property or has significant assets may find a living trust worthwhile, especially given the state’s lack of a simplified probate framework for most estates.

That said, Connecticut does offer a streamlined probate process for estates valued under $20,000. If your estate falls below this threshold, a living trust may not be necessary, and a will could be sufficient for your needs.

It’s also important to consider the trade-offs. Living trusts typically cost more to establish than wills and may take more time and effort to set up properly. They also remain open to legal challenges for a longer period, which could lead to complications if disputes arise. For many, however, the advantages of privacy, efficiency, and control outweigh these potential drawbacks.

If you’re unsure whether a living trust is right for your estate, working with a financial advisor or estate planning attorney can help you weigh your options and build a plan that fits your specific goals.

Bottom Line

The lack of Uniform Probate Code in Connecticut makes living trusts a truly effective estate planning tool in the state. They should be on the table for essentially every Connecticut resident with an estate that’s worth at least $20,000. You can go for the DIY approach if you feel confident you can handle the research, but an estate planning attorney could be a major help.

Tips for Planning Your Estate

Estate planning can be extremely complicated, but a financial advisor can help you get your plans in order. Luckily, finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
The legal situation surrounding an estate plan is different in every state. To learn more about the rules in Connecticut, check out our overview of the estate tax here.