Many people believe that if they don't have children, setting up a trust isn't necessary. But according to Suze Orman, that's a dangerous assumption — especially for married couples who think having other legal documents in place is enough.
In a recent episode of her "Women & Money" podcast, Orman explained why a trust still plays a vital role, even for people without kids.
The Common Misconception: "No Kids, No Need"
A listener named Joan wrote in with a question about her sister, who doesn't have children and asked why she would ever need a trust. She and her husband already had the other "must-have" legal documents, such as wills and powers of attorney. Wasn't that enough?
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Orman responded with a firm: No.
She pointed out a common situation — a couple owns a home together, possibly as joint tenants with right of survivorship. That means if one spouse dies, the other automatically inherits the home. Many people assume that this setup protects them and avoids legal issues.
But what if one partner doesn't die, but becomes incapacitated?
When Incapacity Causes Legal Problems
Orman gave this example: Imagine one spouse slips on ice, suffers a brain injury, and can no longer make decisions. If the couple decides they need to sell their two-story home and move into a one-story house for medical reasons, they can't do it — not without both signatures.
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Since both names are on the title, both parties must agree to the sale. But if one spouse is incapacitated and unable to sign, the other is stuck. The only option might be going through probate court to get a conservatorship — a legal process that can be expensive, time-consuming, and emotionally difficult.
Many people think their power of attorney will help in these cases. But Orman warns that POAs often become invalid when someone becomes incapacitated. In addition, banks and financial institutions may reject them, especially if they were created years ago or haven't been updated.
How a Trust Solves the Problem
Orman says that a living trust — especially one that includes an incapacity clause — can prevent all of this.
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.
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And if both partners become incapacitated — say, after a car accident — the trust can name someone else, like a trusted friend, relative, or even a professional trustee, to take over and handle matters without delay.
Trusts Aren't Just for Parents or the Wealthy
Orman's advice is clear: a trust isn't just for people with children or massive estates. It's about control, protection, and planning for life's unexpected moments.
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.
As Orman put it, "Anything can happen at any time," and a trust helps make sure you're ready.
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