How to Create a Living Trust in Maine

In Maine, setting up a living trust involves several steps, including selecting a trustee, transferring assets into the trust, and drafting the trust document in compliance with state laws. Understanding the nuances of Maine’s legal requirements is crucial to ensure that your living trust is valid and effective. Whether you’re looking to protect your estate from probate or simply want to ensure your wishes are honored, learning how to create a living trust in Maine is an essential step in comprehensive estate planning.

A financial advisor could help you answer many estate planning questions for your needs and goals.

Creating a Living Trust in Maine

In Maine, creating a living trust can be an effective way to ensure your estate is handled according to your wishes while potentially avoiding the lengthy probate process. Creating a living trust in the state is generally a six-step process:

Decide on the kind of trust you want: If you’re unmarried, you’ll probably want to go with a single trust. If you’re married, a joint trust might be best for you. You and your spouse can use a joint trust to store property that you and your spouse own independently, as well as jointly held property like homes, cars and furniture.
Decide what will go in your trust: You can store almost anything in a living trust, including investments, family heirlooms, vehicles and jewelry. If your property has any corresponding documents, like certificates of ownership or car titles, you’ll want to get those together as well.
Pick a trustee: Many people choose to name themselves at first. If you go that route, you’ll also need a successor trustee who can take over when you die. This person will be responsible for managing your assets and handing them over to your beneficiaries when you pass.
Create the trust document: This is doable through either a computer program or the help of a lawyer.
Sign the trust in front of a notary public: You can check online with your state to find a notary public near you.
Put your assets inside the trust: This is called funding the trust. While you can do it yourself, it might make sense to hire a lawyer to help with the specifics of the paperwork.

What Is a Living Trust?

A living trust is a legal framework into which property and assets can be transferred. It is established by a physical document and has a trustee who is tasked with managing it and distributing the property within it to beneficiaries when the time comes. The creator of the trust, also known as the grantor, can serve as trustee; it can also be someone else, likely a trusted relative or friend.

Two basic types of living trusts exist: irrevocable and revocable. Here is how each works.

Irrevocable living trusts are permanent. The grantor can’t modify the trust or its contents without written permission from everyone named in the trust. The trust takes full ownership of the assets inside. Thus, taxes are paid on the trust property through the trust.
Revocable living trusts are easier to modify after creation. The grantor can alter the trust as needed and remove property when he or she wants. Additionally, the grantor maintains ownership of the property in the trust and pays any relevant taxes on it.

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

The price of making a living trust depends on the method you use to put it together. One way is to use an online program and create the trust document yourself. This will cost you a few hundred dollars or so. Another viable option is to go through a lawyer, for which you’ll probably pay $1,000 or more.

Though it is cheaper to make your trust document yourself, some problems can arise with DIY estate planning. If you’re not comfortable doing the research that comes with properly establishing a living trust, you should strongly consider hiring a lawyer. Make sure the lawyer is a trust expert, not just an estate planner, and has fairly priced fees.

Why Get a Living Trust in Maine?

One of the main reasons to get a living trust is to make life easier for your family once you’ve died. Property stored inside a living trust doesn’t have to go through the probate process, which can potentially save your beneficiaries time and stress.

In Maine, however, this might not be as prominent a benefit as it is in other states. That’s because the state uses the Uniform Probate Code, which significantly streamlines the probate process. Additionally, Maine offers a simplified probate process to estates valued at less than $20,000. Because of these two factors, a living trust simply might not be worth it, especially for smaller or less complicated estates.

There are other reasons to get a living trust, though. For instance, a living trust may be especially useful if you want to leave property to a child. You can store that property in the trust, under the ownership of the trustee, until the child comes of age.

Who Should Get a Living Trust in Maine?

Living trusts are not reserved for the wealthy, but those with especially large or complex estates are more likely to benefit from a living trust. However, because the Uniform Probate Code is in effect in Maine, along with a simplified probate process for estates worth less than $20,000, a living trust simply may not be worth it for residents of Maine.

While living trusts boast many benefits, there are downsides. They tend to be more expensive and difficult to set up than wills, which can add a bit of a headache to what’s supposed to be your most relaxing years. They also give families more time to contest an estate than wills, which can inevitably lead to problems.

Living Trusts vs. Wills

Even if you make a living trust, you should still get a will. This is because the instructions you put in a will will determine the fate of any property that’s not placed in your trust. Wills also allow you to:

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

Deciding whether to use a living trust, a will, or both depends on your individual circumstances and estate planning goals. If privacy and avoiding probate are your primary concerns, a living trust may be a better option. However, if you have minor children or specific funeral wishes, a will is indispensable. Many people find that a combination of both a living trust and a will provides the most comprehensive estate planning solution, allowing them to cover all bases effectively.

To get a better sense of how these estate planning documents differ, take a look below:

Living Trusts vs. Wills

Situation	Living Trusts	Wills
Name guardians for children	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
Name an executor	No	Yes

Living Trusts and Taxes in Maine

Your living trust is unlikely to impact your tax situation. Still, if you’re in the middle of planning your estate, it probably makes sense to get a basic idea of the taxes in Maine that could affect your plans.

Maine has an estate tax on estates worth more than $7 million in 2025. An 8% tax applies to the first $3 million over that threshold, with a 10% tax applying to the next $3 million and a 12% tax applying to anything above that amount.

There’s also a federal estate tax for estates worth more than $13.99 million for individuals (and $27.98 for couples) in 2025.

Bottom Line

Creating a living trust in Maine is a strategic step towards ensuring your assets are managed and distributed according to your wishes, while also potentially bypassing the lengthy probate process. To begin, it’s essential to understand the components of a living trust, which include the trustor, trustee and beneficiaries. The trustor, or the person establishing the trust, transfers ownership of assets into the trust. The trustee, who can be the trustor or another appointed individual, manages these assets for the benefit of the beneficiaries.

Estate Planning Tips

Everyone needs help sometimes, and estate planning is no different. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
One asset you can’t store in a living trust is a 401(k) plan. You can name the trust as a beneficiary, though, so make sure to take that step if you want the money in your account to pay out to your trust once you die.