If you and your spouse have created separate revocable living trusts as part of your estate plan, you may be wondering: Will our child be stuck managing multiple trusts after we pass away? It’s an excellent and very common question – and the good news is that in many cases, the answer is no.
Couples often choose to create separate trusts for several valid reasons: to designate different beneficiaries, to protect assets from the financial risks of one spouse, to keep inherited or premarital property separate, or to facilitate more specific tax planning strategies. These are often wise decisions during your lifetime or while one spouse is living. But what happens when both spouses pass away and the ultimate beneficiary – usually a shared child or children – is left to manage the administration?
The reality is, dealing with multiple trusts can be cumbersome. Your child may have to track separate assets, file multiple tax returns, and maintain distinct investment accounts. Understandably, many clients want to avoid leaving that kind of complexity behind.
The Power to Combine Trusts
Here’s the encouraging part: In most cases, your child won’t be stuck managing two (or more) separate trusts forever. Under Section 417 of the Uniform Trust Code (UTC) – which, as of 2025, has been adopted in some form by 36 states and the District of Columbia – a trustee can consolidate multiple trusts into one, so long as doing so doesn’t impair the rights of any beneficiary or interfere with the purpose of the trusts.
In plain terms: if both trusts contain essentially the same terms and are ultimately intended to benefit the same person or people, a trustee may combine them, provided neither the trust documents nor state law prohibit it.
When Trust Combination Makes Sense
Let’s say you and your spouse each have your own trust, but you both name your daughter as the sole beneficiary after you’re both gone – and the provisions in both trusts are similar or identical. In that case, combining the trusts can streamline administration and reduce costs.
Benefits may include:
- Lower trustee fees
- Fewer tax returns (typically just one rather than two or more)
- More cohesive and strategic asset management
In fact, if the trusts are nearly identical, a strong argument can be made that the trustee should combine them in order to fulfill their fiduciary duty to act efficiently and in the best interests of the beneficiary.
Is Court Approval Required?
Under the UTC, a trustee does not need to go to court or get formal consent from the beneficiaries before combining trusts. However, they are required to give notice to the qualified beneficiaries before proceeding. That said, if the trusts differ significantly in how and when they distribute assets, a careful trustee may still seek court approval or beneficiary consent to avoid any potential disputes.
Planning Ahead with Clarity
If you and your spouse are considering separate trusts – or already have them – it’s important to understand the impact of your planning choices on your loved ones. Rest assured that, in most cases, your child or children won’t be burdened with managing multiple trusts for the long haul. Trust consolidation is a built-in option under modern trust law in many states, offering flexibility, efficiency, and peace of mind.
If you’d like a review of your estate plan to see whether your trusts can be combined after your passing – or if you’re just getting started – please reach out. We’re here to help ensure that your planning truly serves your family now and in the future.
At Cheever Law, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.
To learn more about our one-of-a-kind systems and services, contact us or schedule a no-obligation 15-minute introductory phone call today.