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Many advisors and attorneys recommend a $100K minimum net worth for a living trust.

Alaska's statutes require that a grantor sign an “Affidavit of Solvency” prior to contributing assets to an Alaska Trust. Additionally, although not required by the statute, a general rule of thumb is that no more than 50 percent of the grantor's net worth should be contributed to the trust.

Trusts offer amazing benefits, but they also come with potential downsides like loss of control, limited access to assets, costs, and recordkeeping difficulties.

Not all transfers of title lead to property tax reassessment. Transfers due to death or between spouses often do not trigger reassessment to avoid undue financial burden. However, transferring title to a corporation typically constitutes a reassessment event due to the change in ownership nature.

Disadvantages of Putting Your House in a Trust Loss of Direct Ownership. Potential Complexity and Administrative Burden. Potential for Increased Costs. No Asset Protection Benefits. Limited Tax Advantages. No Protection Against Creditors.

When property is placed in a revocable living trust, there is no “change in ownership,” and thus, no reassessment of the current values.

There are several types of assets that should not be included in trusts for various reasons: Individual retirement accounts (IRAs) and 401(k)s. Health savings accounts (HSAs) and medical savings accounts (MSAs). Life insurance policies. Certain bank accounts. Motor vehicles. Social Security benefits.

Loss of Asset Access Similarly to the above disadvantage, putting assets in a trust means you don't have immediate access to them. Even if you have a very open, revocable trust, taking assets from the trust to your personal bank account or elsewhere requires filing paperwork and extra time.

An irrevocable trust is used when property is transferred during the lifetime —or upon the death—of the property owner, or when the beneficiary of such a trust is changed. These events will (for property tax purposes) generally trigger a reassessment.