Do we need a living trust?

Dear DC, If the facts line up exactly as you state above THEN the property is covered IF it is titled in either joint tenancy with survivorship (if the 2 family members are married or not married) or tenancy by the entirety (if the 2 family members are married).   Do make sure the survivor has a will or trust (if avoidance of probate is sought) to deal with disposition of the property once the last survivor deceases......and do not make the assumption that the elderly one will pass  away before the younger one.  Also see if your state (not all have this tool) offers something called a Transfer on Death Instrument (TODI) which allows a living individual to convey his/her residential property upon their death without probate and without the costs associated with a trust Best of wishes with everything.