Joint Trusts: Pros, Cons, and How to Know If It’s Right for You

Estate planning is deeply personal. But when you’re building a life with someone — sharing a home, finances, responsibilities, and sometimes children — planning often becomes a shared process, too.

That’s where a joint trust can come in.

Joint trusts can help couples organize assets, simplify planning, and reduce administrative burden if something happens to one partner. But like any estate planning tool, they aren’t right for every situation.

Here’s what a joint trust is, how it works, and the real pros and cons to consider before creating one.

What Is a Joint Trust?

A joint trust is a single living trust created and shared by two people — most commonly spouses or long-term partners.

Like other living trusts, a joint trust can hold assets such as:

• Real estate (like your primary home)

• Bank accounts

• Investments

• Personal property

• Business interests

It also outlines what happens to those assets:

• While both partners are alive

• When the first partner passes away

• After the second partner passes away

Most joint trusts are revocable while both partners are alive, meaning they can be updated or changed as life changes.

Joint Trust vs. Individual Trust: What’s the Difference?

Think of it like this:

Joint Trust

• One shared trust document

• Often holds shared assets

• One coordinated estate plan

Individual Trusts

• Two separate trust documents

• Assets divided between partners

• More independent control over planning

Both can work well. The right choice depends on your finances, family structure, and long-term goals.

The Pros of a Joint Trust

Joint trusts can be powerful tools for couples who share assets and want a unified plan.

1. Simplifies Estate Planning for Couples

Instead of managing two separate trusts, couples can:

• Title assets into one trust

• Make decisions in one document

• Update their plan in one place

For many couples, this creates a sense of clarity and shared ownership over long-term planning.

2. Makes Things Easier If One Partner Passes Away

A joint trust can help reduce administrative friction for the surviving partner.

In many cases, the surviving partner can continue managing trust assets without court involvement, helping avoid probate delays and added stress during an already difficult time.

3. Helps Maintain Privacy

Trusts often allow assets to transfer outside of probate. Because probate is a public court process, avoiding it can help keep financial and family matters more private.

4. Creates Clarity for Beneficiaries

A well-written joint trust clearly outlines:

• Who receives what

• When they receive it

• Under what conditions

This can reduce confusion and potential conflict among beneficiaries later.

The Cons of a Joint Trust

Joint trusts can be incredibly effective — but they aren’t ideal for every couple or every family structure.

1. Some Provisions May Become Harder to Change After One Partner Dies

Depending on how a joint trust is structured, some provisions may become more fixed after the first partner passes away.

This is often intentional. Many couples use joint trusts to help ensure assets ultimately pass to specific beneficiaries — such as children from a previous relationship — even after both partners are gone.

For some families, this creates peace of mind. For others, it may feel like a loss of flexibility. The key is understanding how your trust is structured before creating it.

2. Can Require Extra Planning for Blended Families

If either partner has children from a previous relationship, joint trusts need careful planning.

Common goals can include:

• Supporting the surviving spouse financially

• Preserving inheritance for biological children

• Avoiding accidental disinheritance

Joint trusts can absolutely handle this — but clear language and thoughtful structure are essential.

3. Requires Strong Alignment Between Partners

Joint trusts work best when both partners:

• Agree on beneficiaries

• Are comfortable managing shared assets

• Share similar long-term financial priorities

If there are major differences in financial philosophy or goals, separate trusts may provide more clarity.

4. Can Be More Complex to Unwind After Separation or Divorce

Because assets are often combined into one structure, separating a joint trust can require:

• Retitling assets

• Updating estate documents

• Coordinating with financial institutions

It’s manageable — but can involve extra administrative steps.

Who Is a Joint Trust Best For?

A joint trust often works well if you are:

• Married or in a long-term partnership

• Sharing most major assets

• Generally aligned on inheritance decisions

• Looking to simplify planning and administration

• Comfortable managing a shared legal structure

Who May Want to Consider Separate Trusts?

Separate trusts may be worth exploring if:

• You are part of a blended family

• There is a large wealth imbalance

• One partner owns a business independently

• You want full individual control over your estate plan

• You want maximum future flexibility

Questions to Ask Before Creating a Joint Trust

Before deciding, consider:

• Do we want the same beneficiaries?

• Should the surviving partner have full flexibility to change the plan?

• Are there children from previous relationships?

• Do we want to guarantee inheritance for specific people?

• Are we comfortable pooling assets into one legal structure?

These answers can help determine whether a joint trust or separate trusts make more sense.

How GoodTrust Helps You Plan Together — Without the Overwhelm

Estate planning shouldn’t feel intimidating or confusing — especially when you’re planning with a partner.

GoodTrust helps couples:

• Organize and track assets

• Document beneficiary wishes

• Assign decision-makers and trusted contacts

• Store important estate documents securely

• Update plans easily as life changes

Whether you choose a joint trust or separate trusts, the goal is the same: protect each other and protect the people you love. Get started today.