What is said about trusts, and what the law actually provides

"A trust avoids probate."

Only for what has actually been put into it

A revocable trust governs the assets that have been transferred into it and nothing else. If the deed to the house was never transferred, if the brokerage account was never retitled, if the interest in the family entity was never assigned, those assets are still owned personally and still go through probate. The trust sits alongside them, doing nothing.

This is the single most common failure in estate planning. The documents are usually fine. The funding just never got finished.

"I have a will, so probate is handled."

A will is the instruction manual for probate, not an alternative to it

A will speaks to a probate court. It names who should receive what and who should administer the estate, and the court then supervises that happening. Having one does not remove the court from the process. It tells the court what to do.

Whether probate happens at all is a question of how assets are titled and what the beneficiary designations say, which is a separate exercise from drafting the will.

"A trust protects my assets from creditors."

A revocable trust does not, but an irrevocable trust may

A revocable trust is a probate avoidance tool, not an asset protection tool. During your lifetime, you retain control over your property and are typically the sole beneficiary.

On the other hand, an irrevocable trust is an asset protection tool. In this type of trust, you give up control over your property, but may still be a beneficiary during your lifetime.

"Trusts are for wealthy families."

The threshold question is what you own and where, not how much

The estates that most often benefit from a trust are not always the largest ones. They are the ones holding real property in more than one state, because each state controls the transfer of land within its own borders and an estate with a cabin in a second state can face a second proceeding there. They are also estates with a beneficiary who should not receive a lump sum, and blended families where the order of death changes who ends up with what.

For a straightforward estate held entirely in South Dakota, with correct beneficiary designations and joint titling where appropriate, a will can be the better answer.

"A South Dakota trust can last forever."

This one is actually true

South Dakota law does not limit how long property can be held in trust. This allows a South Dakota trust to exist for multiple generations.

"Trusts are private."

More so here than almost anywhere, and worth understanding precisely

Unlike a will administered through probate, a trust is not of public record. If a trust becomes subject to court proceedings, information related to the trust, including the trust document itself, are sealed and are not made part of the public record. Further, as it relates to beneficiaries, you can determine how much information is available to beneficiaries by the terms of the trust agreement.

Importantly, privacy and secrecy are not the same thing, and the distinction matters. These provisions govern what is disclosed to the public and to beneficiaries. They do not affect obligations owed to taxing authorities or to a court with jurisdiction over the parties.

"Once it is signed, we are finished."

The signing is the midpoint

In order for the trust to work, you need to transfer and retitle your assets to the trust. This includes all future accounts, real estate, and business ownership interests. Nothing in the trust automatically transfers these future accounts and property to the trust.